LUSAKA – ZCCM Investments Holdings Plc (LUSE: ZCCM-IH) has notified its shareholders and the public about ongoing confidential arbitration proceedings initiated by Trafigura Pte Limited.
The arbitration, filed under the London Court of International Arbitration (LCIA) Rules 2020 on February 24, 2024, follows a payment demand issued by Trafigura on November 21, 2023. The dispute centers on a guarantee signed on July 28, 2021, by ZCCM-IH’s former CEO.
The guarantee was issued as security for a ZMW 1.663 billion (approximately US$100 million) prepayment agreement between Trafigura and Konkola Copper Mines Plc (KCM), in which ZCCM-IH holds a stake. ZCCM-IH, however, is disputing Trafigura’s claims and is actively challenging the arbitration process.
As the matter remains unresolved, the outcome could potentially affect ZCCM-IH’s share price. The company has assured shareholders that updates will be shared as the situation develops.
The company secretary has advised shareholders and the investing public to exercise caution when trading in ZCCM-IH securities and seek independent professional guidance on the matter.
This disclosure is made in compliance with the Securities Act No. 41 of 2016 (as amended) and the Lusaka Securities Exchange Listings Requirements. The announcement was issued by ZCCM-IH’s company secretary, Charles Mjumphi, on Monday.
The statement serves to keep market participants informed of critical legal proceedings that may impact investment decisions.
