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The Lusaka High Court has ruled that 78 properties and 15 environmental licenses be returned to Konkola Copper Mines (KCM), which is currently under provisional liquidation.
These assets had been previously transferred to KCM’s subsidiary companies, KCM SmelterCo Limited and Konkola Mineral Resources Limited.
High Court Judge, Charles Zulu, delivered the consent judgment, declaring KCM the rightful owner of the properties.
This decision directs the Registrar of Lands and Deeds to cancel the certificates of title and entries related to the transfers.
The court ordered that the environmental licenses be registered in KCM’s name by the Zambia Environmental Management Authority.
The court found these transfers illegal due to the failure to obtain prior court approval, as mandated by Section 103(1) of the Corporate Insolvency Act No. 9 of 2017.
KCM had initiated legal action, arguing that these assets were unlawfully transferred under the directives of former Provisional Liquidator Milingo Lungu in 2020.
The company contended that the necessary court approval for these transfers was not secured, rendering them illegal.
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In May 2024, current Provisional Liquidator Celine Nair proposed a scheme of arrangement to KCM’s creditors, aimed at transitioning the company out of provisional liquidation.
This scheme, which required the regularization of the disputed transfers, was approved by the creditors and sanctioned by the High Court on June 28.
KCM emphasized the necessity of holding the environmental licenses in its name to resume mining operations post-liquidation.
Despite efforts to rectify the transfers through communications with the Ministry of Lands and ZEMA, no progress was made.
The company claimed significant loss and damage due to being deprived of its assets while the defendants benefited from them.
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