A London arbitration tribunal issued a final award on May 22 requiring ZCCM Investments Holdings Plc - the majority state-owned Zambian investment vehicle - to pay Trafigura roughly $92 million in connection with a dispute over a prepayment agreement linked to operations at Konkola Copper Mines.
The tribunal's decision breaks down to $69.3 million in principal and $19.7 million in interest that had accumulated through March 31. In addition to these amounts, the tribunal ordered ZCCM to cover substantial legal and arbitration expenses. ZCCM's filing on the Lusaka Securities Exchange indicates the company must pay Trafigura two sterling sums: £1.78 million, representing 90% of Trafigura's legal fees, and £73,525 toward arbitration costs.
Trafigura commenced the arbitration in February 2024 under the London Court of International Arbitration Rules 2020, bringing the claim in relation to a prepayment arrangement with Konkola Copper Mines, which was at the time operated by ZCCM. The tribunal had previously issued a partial final award on Dec. 16, 2025, finding that a guarantee dated July 28, 2021, in favor of Trafigura is binding on ZCCM.
The final award also sets out how further contractual interest will be applied to outstanding sums. A specified balance of $55.1 million will attract additional interest from April 1 until the date the final award is received, and thereafter on all outstanding amounts. That interest is calculated at a variable rate equal to the Secured Overnight Financing Rate, or SOFR, plus 5% per annum, with monthly compounding.
Separately, interest on another category of contractual outstanding amounts accrues from Nov. 25, 2023, until payment is made, at a variable rate of SOFR plus 2.5% per annum, also compounding monthly. These provisions mean the company’s liability will grow until settlement occurs in line with the award’s terms.
In response to the tribunal’s final award, ZCCM said it is assessing its legal options. The company emphasized its commitment to protecting shareholder interests and cautioned shareholders and members of the investing public to exercise care when transacting in its securities until further information is released.
Readers should note the core elements of the tribunal’s order: the breakdown of principal and pre-March 31 interest, the additional sterling amounts to cover a high proportion of Trafigura’s legal fees and arbitration costs, the tribunal’s earlier determination regarding the July 28, 2021 guarantee, and the contractual formulas for ongoing interest accrual tied to SOFR with monthly compounding.