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Court orders Moxico Resources, Kalengwa Mines to pay $21 million in damages

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The Lusaka High Court has ordered Moxico Resources Zambia Limited and Euroafrica Kalengwa Mines Limited to pay US$ 21 million damages to Kalengwa Mineral Processing, the rightful owners of Kalengwa Mines in Mufumbwe district, North-Western Province.

This follows a judgment dated September 22, 2023, in which Judge Edward Musona declared Kalengwa Mineral Processing as the rightful owners of Kelengwa Mines and should, therefore, continue their operations.

Read more: PCB Mining demands immediate re-instatement of its mining licence following court order

Kalengwa Minerals Processing, in April this year, sued Moxico Resources Zambia Limited, Euroafrica Kalengwa Mines Limited and the Attorney-General as first, second and third respondents respectively, in the Lusaka High Court, commercial division, demanding for a declaration that it was the rightful owner of the mine and was at liberty to resume oeprations.

It was also claiming immediate payment of US$21 million being sums owed by the first and second defendants for damages, costs and losses occasioned to it over its land, mining rights, capital and investments over Kalengwa Mines.

Justice Musona in his judgment declared Kalengwa Mineral Resources as the right owners of the mine which encompasses Farm.no 31477, farm no. 31478 and farm.no 31479 .

He said all the three defendants did not dispute the validity of licence no. 24982-HQ_MPL, as belonging to the plaintiff

He also ordered for Moxico Resources Zambia Limited and Euroafrica Kalengwa Mines Limited to pay damages to be quantified by the deputy registrar for the theft and pilfering of the plaintiff’s plant and equipment.

“I have found out that the order of injunction was maliciously obtained against the plaintiff. There was no need for it. This was demonstrated by the first and second defendants themselves when they discontinued the whole action after more than three years of subjecting the plaintiff to the order of injunction and its attendant incurred losses.

“It is for this reason that the first and second defendant ought to forthwith pay damages as claimed herein on claim 1, and so I order. I am satisfied, therefore that the plaintiff has proved their case and order that the plaintiff e paid by the first and second defendants USS21 million in the manner pleaded,” he ordered.

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