ZMDC seeks government support to avert asset seizure
The Zimbabwe Mining Development Corporation (ZMDC), a state-owned entity, is calling for urgent government intervention to shield its remaining assets from seizure due to an unresolved international arbitration dispute with Amaplat Mauritius.
ZMDC Chairman Paul Chimboza confirmed the legitimacy of a letter addressed to Mines Minister Winston Chitando, in which the corporation seeks state assistance to address a long-standing debt arising from the cancellation of platinum and nickel mining ventures. The debt stems from a 2014 arbitration ruling by the International Chamber of Commerce (ICC) in favor of Amaplat. In 2019, the High Court of Zambia authorized the enforcement of this ruling.
Challenge
Although Zimbabwe’s Ministry of Finance approved a settlement in 2021, in which ZMDC agreed to pay $65.9 million, the resolution has not been fully implemented. As part of the deal, Bravura Holdings, owned by Nigerian businessman Benedict Peters, was to contribute $15 million to Amaplat. However, only $3 million has been paid to date, and commitments involving asset transfers remain unfulfilled.
The challenge is further compounded by ZMDC’s diminished capacity to meet its financial obligations. Most of its assets have been reassigned to a newly established state entity, Defold Mine, leaving ZMDC with minimal resources. The corporation has also incurred over $500,000 in legal fees, intensifying its financial strain.
Amaplat, responding to inquiries, emphasized that the liability lies with the Government of Zimbabwe, given that the ICC ruling involves both ZMDC and the Chief Mining Commissioner a senior official within the Ministry of Mines. The company maintains that the full debt qualifies as public liability.
In pursuit of enforcement, Amaplat has already registered the arbitration award in the United States, with a hearing in Canada scheduled for June 30. These actions are part of broader legal efforts to compel Zimbabwe to meet its obligations.
Zimbabwe’s fiscal landscape is already under pressure, with state-owned enterprises collectively owing over $21 billion. The country remains locked out of international lending markets due to persistent loan defaults with institutions such as the World Bank and the European Investment Bank. This case also arises amid government plans to mandate a 26% free-carry stake in all new mining ventures—another policy that could impact investor confidence.
