Trafigura seeks arbitration against ZCCM-IH over 2021 copper deal

Trafigura on Tuesday reportedly filed a request for arbitration against Zambia’s majority state-owned ZCCM Investment Holdings (ZCCM-IH) over a copper prepayment deal dating back to 2021.

In a statement to the stock exchange as reported by finanzwire, ZCCM-IH said Trafigura’s request was brought under the London Court of International Arbitration Rules, and that the proceedings were confidential.

ZCCM-IH added that it was contesting the claims.

Read more: ZCCM-IH says K1.6 billion paid as dividends to stakeholders since 2015, as IDC, NAPSA, others benefit

The issue reportedly stemmed from a guarantee signed by ZCCM-IH’s former Chief Executive Officer in favour of Trafigura on July 28, 2021.

On November 21, 2023, Trafigura demanded payment under this guarantee, related to a US$100 million prepayment agreement involving Konkola Copper Mines Plc, in which ZCCM-IH holds shares.

ZCCM-IH is reportedly challenging these claims vigorously.

The outcome remains undecided and could impact share prices. Investors are urged to remain cautious when trading ZCCM-IH securities until further updates are disclosed.

Professional advice is recommended for any concerns regarding this situation.

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