By Linda Soko Tembo
A guarantee issued by ZCCM Investments Holdings Plc (ZCCM-IH) in favour of global commodities trader Trafigura Pte Limited is legally binding, according to the London Court of International Arbitration (LCIA).
The ruling marks a significant development in a long-running commercial dispute that could expose ZCCM-IH to an $82.8 million claim.
A cautionary announcement issued on 22 January 2026 by the, ZCCM-IH Board through its Company Secretary, Charles Mjumphi, says the company had received a copy of the Partial Final Award from the Tribunal dated 16 December 2025.
According to the ruling, the London tribunal has determined that the guarantee, dated 28 July 2021, under which Trafigura brought its claim, is enforceable against ZCCM-IH.
However, the tribunal has not yet made a final determination on the amount payable, leaving the issue of quantum to be resolved in subsequent proceedings.
Under the tribunal’s directions, ZCCM-IH has six weeks from the date of the award to submit evidence identifying any portions of the principal claim of USD 82.8 million that it considers unsustainable.
Trafigura will then have three weeks to respond, after which the tribunal will convene a one-day hearing to determine the final quantum.
ZCCM-IH said it is actively assessing its legal options in response to the partial award and reaffirmed its commitment to protecting shareholder interests.
The company cautioned investors that the matter remains ongoing and could have price-sensitive implications.
“The Company is actively evaluating its legal options regarding the Partial Award and remains committed to safeguarding shareholder interests. Further updates will be provided as the matter progresses,” Mjumphi said.
The announcement was approved by the Lusaka Securities Exchange and the Securities and Exchange Commission of Zambia and was issued through Stockbrokers Zambia Limited, ZCCM-IH’s sponsoring broker.
Background
The Parties: The dispute is between global commodities trader Trafigura Pte Limited and ZCCM Investments Holdings Plc (ZCCM-IH), a Zambian state-owned mining investment company.
Origin of Debt: The debt stems from a July 2021 agreement where Trafigura provided a $100 million prepayment to Konkola Copper Mines Plc (KCM), a company in which ZCCM-IH is a shareholder.
Guarantee: ZCCM-IH signed a guarantee to secure this $100 million loan.
Arbitration: Following a payment demand by Trafigura in November 2023, Trafigura filed for arbitration under the London Court of International Arbitration (LCIA) rules on February 24, 2024.
KCM’s Financial State: At the time of the deal, KCM was in provisional liquidation and struggling with low production.
Disappearance of Funds: Reports in late 2021 suggested that while Trafigura paid $40 million of the $100 million, the funds could not be accounted for by the new government at the time.
Security for the Loan: As part of the arrangement, ZCCM-IH pledged 750,000 shares (out of 3 million) in Kansanshi Mining Plc as security for the loan.
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