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Vedanta seeks arbitration in SA High Court amid KCM lawsuit

12th July 2019

By: Marleny Arnoldi

Online News Editor

     

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Diversified miner Vedanta Resources obtained an ex parte order in the High Court of South Africa last week, granting the company leave to institute an urgent interim interdict application against ZCCM Investments Holdings.

In terms of the urgent application, served on both Zambian company ZCCM and provisional liquidator Milingo Lungu for Konkola Copper Mines (KCM), Vedanta declared that ZCCM had breached the KCM shareholders’ agreement by pursuing winding-up proceedings against KCM in Zambia.

I

n the application, Vedanta also directed ZCCM to withdraw the proceedings, thereby removing the provisional liquidator.

The Zambian State launched court proceedings in June to have KCM, in which Vedanta holds an 80% interest and State-owned ZCCM 20%, wound up.

As previously reported by Mining Weekly, Vedanta said it would take urgent steps to protect its Zambian assets and pursue international arbitration, if necessary, after a Lusaka court last week rejected its request to be included in the liquidation proceedings.

T

he judge ruled that Vedanta could not participate in the court proceedings brought by ZCCM, but granted Vedanta leave to appeal the ruling, which Vedanta said it would consider.

Vedanta said there was “no just or equitable grounds to wind up KCM” and said it believed the appointment of a provisional liquidator had added to the financial pressure on KCM, as well as put jobs at risk.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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