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Kalymnos Processing Limited and Albertina Mwansa Kashiba have formally demanded US$2.4 billion in compensation from Konkola Copper Mines (KCM) for what they allege to be the illegal extraction of copper ore from their licensed areas in Chingola.
The demand follows years of unresolved disputes concerning mineral rights and purported persistent encroachment by KCM into two tenement areas said to be legally held by Kalymnos and Albertina Kashiba since 2016.
In a letter submitted to the Ministry of Mines and Minerals Development, the two license holders have urged Minister Paul Kabuswe, to take decisive action to enforce the Ministry’s own findings and directives—some of which date back as far as 2017.
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In a statement issued in Lusaka on Tuesday, the companies said they were seeking justice for what has been a long-standing violation of their rights.
“We are seeking justice for what has been a blatant and sustained violation of our legal rights as license holders,” the companies said in a joint statement.
“Despite clear directives from the Ministry and multiple site inspections confirming the unauthorized mining activity by KCM, no meaningful enforcement action has been taken,” it added.
The Ministry of Mines is said to have previously acknowledged the violations in official correspondence. A 2017 letter from the Director of Mines reportedly directed KCM to cease all operations within the disputed tenements.
Furthermore, there are claims that both a mining technician and a government-appointed quantity surveyor estimated that KCM extracted over 12 million tonnes of copper-rich ore from the affected site—valued at approximately US$2.4 billion.
At no point, according to the demand letter filed by CCY Legal Practitioners on behalf of the complainants, has KCM disputed or appealed the Ministry’s findings.
“The Ministry’s own internal reports concluded that KCM breached the Mines and Minerals Development Act,” the letter states. “There is no ongoing legal dispute on this matter, as the decisions of the Ministry were never contested by KCM and thus stand uncontested in law,” it claimed.
The companies also highlight that both the High Court and the Court of Appeal found that the matter—particularly the counterclaim—was not adjudicated on its merits, and that the correct resolution should fall under the Ministry’s jurisdiction.
Kalymnos Processing Limited and Kashiba are now urging the Ministry to take immediate steps to enforce compliance with its past directives, recognize the findings of its technical experts and legal framework, and initiate or facilitate the process of compensation for the extracted mineral resources at that time.
They have further called on the government to ensure that mineral rights granted under Zambian law were protected from unlawful encroachment, in order to uphold investor confidence and the integrity of the mining sector.
“We trust the Ministry will act with urgency and fairness in this matter, as it has serious implications for rule of law, property rights, and the credibility of Zambia’s mineral licensing regime,” the joint statement indicated.
Efforts to obtain a comment from Konkola Copper Mines (KCM) over the allegations proved futile by the time of publication.
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