The High Court has ordered Moxico Resources Zambia Limited, Euro-Africa Kalengwa Mines Limited to pay Kalengwa Mineral Processing Limited US$21,000,000.00 in addition to other reliefs.
This is a matter in which the involved parties had land, mining assets and licence wrangles, leading to long standing legal battles over Kalengwa mine in Mufumbwe.
In 2019, the first and second Defendants launched proceedings in the Ndola High Court against Kalengwa Processing Zone Limited.
They also obtained an Order of Injunction against the Plaintiff.
Delivering the verdict in the commercial matter, High Court Judge, Justice Edward Musona said Kalengwa Mineral Processing Limited was affected and suffered the repercussions of that Order of Injunction.
The Judge said Kalengwa Mineral Processing Limited is the Title holder of the affected land and is also holder of a Mineral Processing Licence No. 24982-HQ-MPL.
“If the Plaintiff exercised their proprietary right and/or interest over their land they definitely would have found in breach of the Order of Injunction. In total obedience with the Order of Injunction the Plaintiff scampered from their land, left their equipment on that affected land. The plaintiff did this in apprehension of fear of breaching the Law,” said the judge.
“On 28th November, 2022, the 1st and 2nd Defendants filed into Ndola High Court a Notice of Discontinuous of the matter. Accordingly, that matter was wholly discontinued. So by operation of that notice of discontinuous the Order of Injunction fell off. But that was almost three years from the date when the Order of Injunction was granted.”
Justice Musona said the Order of Injunction was not without an undertaking on the part of the first and second Defendants.
“The undertaking was in the following terms: ‘…and the plaintiffs’ undertaking to abide by any Order the Court may make as to damages in case the Court should hereafter be of the opinion that the Defendant shall have sustained any by reason this Order which the Plaintiffs ought to pay’…” he said.
The Judge stressed that after making others suffer that Injunction for almost three years, Moxico Resources Zambia Limited and Euro-Africa Kalengwa Mines Limited unilaterally and without consent from the Plaintiff discontinued the whole case.
From the amount in question the Defendants have been ordered to pay a total sum of US$21 million as specific damages as pleaded by the Plaintiff. The Honourable Justice explained that US$6 million is for loss and damages as it was disabled from retaining economic value of their Mineral Processing Licence, to account for their high grade stockpiles and to process the same.
He added that US$15 million is the assumed debt which it settled on behalf of the previous owners of the land that the Plaintiff purchased.
Justice Musona also declared that the Plaintiff is the title holder of Certificates of the Title relating to Farm No. 31477; Farm No. 31478; and Farm No. 31479 Mufumbwe and Bona Fide Purchaser of the said properties which properties remain those of the Plaintiff to date.
He said that there is no dispute that the Plaintiff is the bonafide Purchaser of the land in question.
“The state in whom by law and land is vested has not disputed that these parcels of land are owned by the Plaintiff.The Attorney General conceded that the Plaintiff is the owner of all those parcels of land. The first and second defendants have not disputed the ownership of that land by the Plaintiff,” he said.
The Judge had also earlier issued and confirmed an Order of Injunction against the Defendants from accessing, entering and conducting any activity or trespass on the subject properties.
Justice Musona also awarded the plaintiff general damages as pleaded and same to be assessed by the Deputy Registrar.
In respect to the all successful claims of a monetary nature, Justice Musona ordered interest to be calculated at the same short term bank deposit rate from the date when the matter was filed to date of Judgment and, thereafter, at the current Bank of Zambia lending rate.
Lastly, Justice Musona ordered legal costs to be paid to the successful party being the Plaintiff and same to be taxed in default of agreement.
The Plaintiff is represented by a Team of Lawyers that include Phillip Chibundi of Mosha & Company;Rex Zambwe and Jane Sipalo of Zambwe & Partners; and Apton Banda of Apton & Partners.