US court rules in Zimbabwe’s favor over $93 million mining dispute

A US court has dismissed a case brought by two Mauritian companies seeking to enforce a decade-old arbitration award against a Zimbabwean state-owned miner.

The US Court of Appeals, District of Columbia Circuit, ordered the case brought by Amaplat Mauritius Ltd. and Amari Nickel against the Zimbabwe Mining Development Corp. be dismissed, citing a lack of jurisdiction.

The Mauritian firms approached the US court after the Zimbabwean company ignored an arbitration order and a court ruling.

The International Court of Arbitration in Zambia in 2014 ordered ZMDC to pay $42.9 million to Amaplat and $3.9 million to Amari, with 5% annual interest, for canceling a nickel and platinum joint venture in the southern African nation. The amount has since risen to $93 million.

In 2019, the Zambian High Court granted the companies permission to enforce the arbitration award, which would have allowed them to seize the state miner’s assets.

Amaplat and Amari said it will pursue the matter in other jurisdictions. The court’s decision only applies to actions in the US, a spokesperson for the companies said. “It has no application or precedential value to actions brought against Zimbabwe in other countries.”

Zimbabwe’s Secretary for Mines and Mining Development Pfungwa Kunaka welcomed the court’s decision. Zimbabwe’s Mines Minister Winston Chitando didn’t immediately respond to a text message seeking comment. Lawyers for the Zimbabwe government and ZMDC, also didn’t immediately respond to emailed queries.

The court case is Amaplat Mauritius Ltd. v Zimbabwe Mining Development Corp., case number is 24-7030 in the US Court of Appeals, District of Columbia Circuit.

(By Ray Ndlovu and Godfrey Marawanyika)