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Drizit Zambia Limited has sued Sino Metals Leach Zambia Limited and the Zambia Environmental Management Agency (ZEMA) at the Lusaka High Court, seeking payment of over US$3.48 million for environmental assessment services allegedly rendered following the Chambishi tailings dam spill earlier this year.
The Kitwe-based environmental consultancy firm is also claiming damages for breach of contract and statutory duty, as well as interest and legal costs.
According to court documents, the lawsuit arises from an Environmental Assessment Services Contract signed with Sino Metals on March 29, 2025, along with a related proposal approved by ZEMA, which had regulatory oversight over the project.
The contract required Drizit Zambia to conduct a post-incident environmental assessment following the February 18, 2025, breach of a Sino Metals tailings dam in Chambishi, which resulted in the spillage of acidic mine effluent into the Kafue River and nearby farmlands.
Under the agreement, Sino Metals was to pay Drizit Zambia US$4.36 million, exclusive of VAT, in four tranches tied to completion milestones.
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Drizit claims that while the mining company made an initial payment of US$1.74 million, it defaulted on the remaining balance despite the consultancy completing its obligations.
Drizit further stated that its assessment reports, covering the Mwambashi Stream and Kafue River sections, were prepared and submitted in line with ZEMA’s approval requirements.
However, the consultancy company alleges that ZEMA failed or neglected to review and approve the submitted reports or respond to a formal request for water and soil quality standards applicable to mining areas in Zambia.
The company also contends that during a meeting on April 23, 2025, involving ZEMA and Sino Metals, it recommended that an area near the tailings dam be declared a “hot zone” due to high contamination levels.
Drizit alleges that this recommendation angered Sino Metals, which subsequently issued a notice of breach and terminated the contract without justification.
Drizit argues that the termination was unlawful and made in bad faith, asserting that it fully met its contractual obligations and continued to perform its work despite disruptions.
The company is now seeking a court order compelling Sino Metals to pay the outstanding amount plus 16 percent VAT, in addition to damages for breach of contract and interest.
ZEMA has been separately cited for breach of statutory duty for allegedly failing to act on the assessment reports in accordance with the Environmental Management Act No. 12 of 2011.
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