FIRST QUANTUM IN A FRAUD CASE

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FIRST QUANTUM IN A FRAUD CASE

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Zccm Investments Holdings plans to claim as much 1.4 billion United States dollars from First Quantum minerals limited after accusing the Canadian based company of fraud.

Zccm-Ih, said in papers filed in the Lusaka High Court on 28th October, 2016 that First Quantum used the money as cheap financing for its other operations.

Also last month Zccm-Ih filed a notice of arbitration against Kansanshi in London over the same matter.

The claim includes 228 million United States dollars in interest on 2.3 billion United States dollars of loans that Zccm-Ih said First Quantum wrongly borrowed from the Kansanshi Copper Mine.

The Company is also seeking 260 million United States dollars as part of a tax liability the Zambia Revenue Authority said Kansanshi owed it, as well as the cost of the mine borrowing money commercially that Zccm-Ih said could have been avoided.

moneyIt also wants also 20 percent of the principal amount, or 570 million United States dollars.

First Quantum says the claims are “inflammatory, vexatious and untrue,” and that the loans were at fair market rate.

 

The mining giant is in talks with government representatives to resolve the matter.

But Philippe Bibard, a Spokesman for a minority shareholder group based in France, said by phone 11th November that First Quantum is disregarding the rights of minority owners in zccm-ih in dealing directly with government.

Zccm Investments Holdings keeps minority shares in most of the country’s copper mines

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