By Beatrice Chabaya
In a shocking turn of events, court bailiffs have seized assets from Anglo American’s Handa Resources, Arc Minerals, and Kopara Investments after a payment default of $650,000. The high-profile seizure unfolded as goods were confiscated from Anglo American’s Handa Resources’ offices, signaling a legal showdown in the mining industry.
The saga began when Zambia Mineral Exchange Corporation Limited (ZAMEX) filed a certificate of default against Arc Minerals Limited, Kopara Investments Limited, and Anglo American’s Handa Resources Limited. The demand for USD 650,000 has sent ripples through the business world, raising questions about financial integrity in major corporations.
Efforts to obtain comments from Anglo American in Zambia regarding the default and asset seizure have been met with silence. Speculation is rife that Anglo American’s inability to pay the $650,000 default payments may have sparked interest from mining giant BHP, which has reportedly offered to acquire the entire Anglo American corporation.
Amidst the turmoil, industry experts are closely monitoring the unfolding situation as potential acquisition talks loom. The unexpected turn of events has left the mining sector on edge, with stakeholders eagerly awaiting clarifications from the involved parties.
ZAMEX’s legal action stems from a Consent Judgement dated March 3, 2022, requiring Handa Resources to pay default penalties of $450,000 and relinquish $200,000 worth of Arc Minerals shares. The issuance of a Certificate of Default on April 17, 2024, solidified ZAMEX’s claim and paved the way for the asset seizure.
This headline-grabbing incident serves as a stark reminder of the importance of financial accountability and contractual compliance in the mining sector, as the industry braces for potential seismic shifts in ownership and operations.