ZCCM-IH reportedly sets aside $44 million for Trafigura dispute settlement

ZCCM Investments Holdings (ZCCM-IH) has reportedly set aside approximately US$44 million towards the settlement of its arbitration dispute with commodities trader Trafigura, as negotiations between the two parties continue.

The amount is less than half of the US$92 million awarded to Trafigura by a London arbitration tribunal, reflecting ZCCM-IH’s assessment of the likely outcome of ongoing settlement talks, according to the latest market commentary by Access Bank group

The dispute arises from a US$100 million financing facility that Trafigura extended to Konkola Copper Mines (KCM) before the Zambian government regained control of the mine from Vedanta Resources.

“According to ZCCM-IH, any settlement reached with Trafigura will be reimbursed by KCM under an agreement supported by the Zambian government,” the commentary stated.

It reported that ZCCM-IH Board Chairperson, Phesto Musonda, said the negotiations were intended to resolve the dispute while preserving the company’s relationship with Trafigura.

The settlement discussions form part of Zambia’s broader efforts to resolve investor disputes through negotiation as the country seeks to attract investment and increase annual copper production to three million tonnes.

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