Zambia suffers a setback after losing a $92 million arbitration case against Trafigura
With the reopening of shaft B at Konkola Copper Mines, there is hope that ZCCM will be able to pay what is due to Trafigura
Zambia’s copper mining sector, the state-run ZCCM (Zambia Consolidated Copper Mines), has lost a legal battle against Trafigura. The London Court of International Arbitration has awarded the leading global commodities trader a staggering $92 million, stemming from a dispute over prepayments connected to the Konkola Copper Mines (KCM).
According to Business Insider, the arbitration award comprises $69.3 million in principal and $19.7 million in accrued interest as of March 31, along with costs associated with the arbitration process and Trafigura’s lengthy legal fees. In a compelling ruling, ZCCM has also been directed to pay an additional £73,525 in arbitration fees and reimburse £1.78 million, which accounts for 90% of the legal costs incurred by Trafigura.
This dispute traces back to February 2024, when Trafigura initiated legal proceedings under the London Court of International Arbitration Rules 2020. The contentious issue arose from a prepayment agreement with Konkola Copper Mines during the time it was under ZCCM management. As KCM is one of Zambia’s key copper mining entities, this ruling could have far-reaching implications for the country’s mining industry and its financial future.
Meanwhile, in a contrasting development, Konkola Copper Mines has recently resumed its mining activities at Chingola B shaft, marking a significant return after an 18-year hiatus. This revival is expected to provide a much-needed boost not only to the company but also to the local economy, which has been grappling with various challenges in the wake of fluctuating copper prices and operational setbacks.
