Judgment reserved in Vedanta’s application to join KCM proceedings

11th June 2019 By: Marleny Arnoldi - Deputy Editor Online

Diversified miner Vedanta Resources on Tuesday said its application to be joined to the confirmation hearing for the ex parte appointment of a provisional liquidator for its Konkola Copper Mines (KCM) subsidiary had been heard by judge Annesie Banda-Bobo in the Lusaka High Court and that judgment had been reserved.

Vedanta wanted to be represented by law firm Nchito & Nchito Attorneys and not those appointed by the provisional liquidator.

The motion for KCM to appear in the matter, represented by Nchito & Nchito, was set down for a hearing on June 20.

Vedanta maintained in the updated statement on Tuesday that Zambian State-owned mining company ZCCM had chosen a route, in the winding-up process for KCM, that sought to exclude Vedanta, by having a provisional liquidator appointed ex-parte.

The applications by Vedanta and KCM were aimed at allowing Vedanta, as KCM’s majority shareholder, and KCM to appear and make representations at any hearing in the wind-up proceedings, including in relation to the confirmation of the appointment of the provisional liquidator and the hearing of the wind-up petition.

Vedanta said it did not believe there were just and equitable grounds to wind-up KCM and said it would defend attempts to do so.

ZCCM holds a stake of about 20% in KCM.

Zambia's decision to name a provisional liquidator to run KCM, one of the country's biggest employers, has unnerved international miners concerned about rising resource nationalism in Zambia and neighbouring countries.

The Zambian government said KCM had breached the terms of its licence.