Sino Metals Sues Drizit for $8.6M Over Alleged Fraud and Fake EIA Licence
Sino Metals Leach Zambia Limited has filed a countersuit against Drizit Environmental Consultants, accusing the firm of fraudulent misrepresentation, incompetence, and breach of contract over an Environmental Impact Assessment (EIA) agreement.
In documents submitted to the Lusaka High Court on 14 October, Sino Metals alleges that Drizit falsely claimed to be duly licensed and qualified to conduct the EIA under the Environmental Management Act. The mining company argues that these misrepresentations induced it to enter into Contract No. SML 2025-03-07, resulting in significant financial and reputational losses.
According to the defence and counterclaim, Drizit “knowingly misled” Sino Metals by presenting itself as licensed by the Zambia Environmental Management Agency (ZEMA) when it was not. The company further contends that Drizit’s reports were riddled with errors, including the misidentification of key mine infrastructure and failure to meet basic environmental assessment standards.
Sino Metals claims it paid USD 871,800 as a deposit for the EIA, along with additional costs incurred in reliance on Drizit’s “purported expertise.” It is seeking a full refund, as well as USD 8.62 million in damages for business losses allegedly caused by Drizit’s poor performance.
The counterclaim also accuses Drizit of breaching confidentiality by publicly releasing unapproved reports and a letter dated 3 June 2025, signed by its Group CEO, Doug Carmody.
Sino Metals argues that the public disclosure of the disputed and unapproved EIA findings damaged its reputation, provoked lawsuits, and subjected it to “unwarranted public criticism and regulatory scrutiny.”
Sino Metals is seeking a declaration that the contract is void for illegality, alongside compensation for fraudulent misrepresentation, breach of confidentiality, and reputational harm. It has also requested punitive damages “to deter similar conduct in the future.”
The case adds another chapter to the growing dispute between the two firms over the controversial EIA report, which was reportedly not approved by ZEMA but publicised by Drizit earlier this year.
Neither Drizit nor its representatives have publicly responded to the allegations.
