First Quantum Faces $1.4 Billion Claim From Zambian Firm
- Company last month sued First Quantum in Lusaka High Court
- ZCCM-IH says company wrongly used Zambia unit’s cash
Copper mine in Chingola, Zambia.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
ZCCM Investments Holdings, the state-controlled Zambian company that holds minority stakes in most of the country’s copper mines, plans to claim as much $1.4 billion from First Quantum Minerals Ltd. after accusing the Vancouver-based company of fraud. The Canadian company’s stock fell.
The claim includes $228 million in interest on $2.3 billion of loans that ZCCM-IH said First Quantum wrongly borrowed from the Kansanshi copper mine, as well as 20 percent of the principal amount, or $570 million, according to an internal company presentation, dated Nov. 4, obtained by Bloomberg.