ZCCM-IH Issues Further Cautionary Notice on Mopani Transaction Court Case
ZCCM Investments Holdings Plc (ZCCM-IH) has issued a further cautionary announcement informing shareholders and the investing public that it has been joined as a party to an ongoing Constitutional Court matter relating to the 2024 Mopani Copper Mines transaction.
The proceedings were initiated by Honourable Miles Bwalya Sampa, who has petitioned the Attorney General, challenging the Mopani Copper Mines Plc transaction involving International Resources Holdings.
The Petitioner argues that the agreement, executed at a time when ZCCM-IH wholly owned Mopani, constitutes the disposal of a significant state asset.
He contends that such a transaction required prior approval of Parliament, in line with Article 210 of the Constitution of Zambia (Amendment) Act No. 2 of 2016.
Among the reliefs sought, the Petitioner has requested the Court to declare the deal unconstitutional, null and void, and to order its cancellation. He further argues that, although the transaction was structured as a share subscription, its substantive effect amounts to a sale of a state asset.
ZCCM-IH has now been added as a party to respond to these claims. In its defence, the Company has contested the basis of the petition, maintaining that the Mopani transaction does not fall within the scope of Article 210 and therefore did not require Parliamentary approval.
The Company stated that it will keep shareholders informed of material developments in accordance with its continuous disclosure obligations. Until then, investors have been advised to exercise caution and seek professional guidance when trading in the Company’s securities.
The announcement has been approved by the Lusaka Securities Exchange, the Securities and Exchange Commission, and the ZCCM-IH Board.
