Vedanta’s bid to stay liquidation of KCM dismissed in Zambian court

Lusaka — A Zambian court has dismissed an application by Vedanta to stay the liquidation of its Konkola Copper Mines (KCM) unit, and set the hearing for a winding-up petition on Augusut 27.

“Vedanta is reviewing the ruling and will then make a decision on its next steps,” the company said in an e-mailed statement on Wednesday in response to the ruling by justice Annesi Banda-Bobo of the Lusaka high court. Preliminary arguments will be heard on August 13.

Zambia’s ZCCM Investments Holdings, which owns a 20% stake in KCM, is seeking to liquidate the company, accusing Vedanta of lying about expansion plans and paying too little tax. Vedanta says it is a “loyal investor” that has spent more than $3bn in the country since 2004.

In July, an SA court ordered Zambia to halt the liquidation proceedings and ruled that the state breached its shareholder obligations, and continued to do so.

Vedanta had approached the high court in Johannesburg due to an agreement that selected the city as the seat of arbitration in the event of a dispute. Zambian mines and minerals development minister Richard Musukwa says the court has no jurisdiction in Zambia and the ruling isn’t enforceable in the nation.

Bloomberg