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Battle for Kalaba Mine deepens as ZAMEX gets injunction against ZAMSORT

16 March 2021

ZAMBIA Mineral Exchange Corporation Limited (ZAMEX) has obtained an order of injunction at the Lusaka High Court, restraining Zamsort Limited from the use, possession and management of the plant, equipment and mining licenses for Kalaba Mine in North Western Province.

Kalaba Mine has been a subject of contention, with Terra Metals taking Zamsort to court, demanding its 53 per cent shares allocated to another investor or payment of over US$5.8 million as compensation.

Zamsort held the licence and managed Kalaba Mine but very little has so far been done, derailing progress that would otherwise have been made had seriousness been attached to the project, Terra Metals contends.

According to an order drawn by Sukwana Mweemba and Partners and signed by a Lusaka High Court judge, the plaintiffs (ZAMEX) have been granted an interim measure of protection by way of an interim injunction.

This is in a matter of the arbitration Act No 19 of 2000, section 11, subsection (1, (2)(c) and (4)(A) as read together with order XXVII Rule 4 of the High Court Rules, Chapter 27 of the Laws of Zambia filed in the Lusaka High Court Commercial Registry.

“Upon reading the affidavit of Mumena Mushinge, filed in support of the applicant’s application for an order granting an interim measure of protection by way of an interim injunction, and upon reading the skeleton arguments filed in support of the aforesaid application, and the applicant by its counsel undertaking to, as soon as is practicably possible, issue and serve the originating summons on the respondent and to abide by the order the court may make as to damages in case the court should hereafter be of the opinion that the respondent shall have sustained any damage by reason of this order which the applicant ought to pay,” the judge stated. “It is hereby ordered that the respondent company whether by itself, its directors, servants or agents or otherwise howsoever be and are hereby restrained from breaching clause N (ii) of the plant Lease Agreement dated May 4, 2020 between the applicant and the respondent by interfering in or with the applicant’s use, possession and management of the plant, equipment and mining licenses described in and the subject of the aforementioned agreement until the determination by arbitration of the dispute.”

By this injunction, the judge has also restrained the respondent from continuing with or otherwise insisting upon a termination of the agreement by notice until determination by arbitration of the dispute.

Source: The Mast

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