The Lusaka High Court has denied Vedanta Resources’ application for a stay of winding up proceedings against its subsidiary Konkola Copper Mines (KCM).
Vedanta said on Wednesday that it would review the ruling and then decide on its next steps.
Judge Banda-Bobo set August 27 down as the hearing date for the winding-up petition brought by ZCCM-IH – preliminary arguments will be heard on August 13.
Vedanta Resources last week notified its Zambian joint venture partner ZCCM-IH that it had launched arbitration proceedings related to an attempt by the Zambian government to liquidate KCM.
Mumbai-listed Vedanta has been locked in a dispute with the Zambian government since May, when Lusaka appointed a liquidator to run KCM, which is 20% owned by ZCCM-IH, Zambia's State mining company, and 80% owned by Vedanta.
Zambia accused KCM of breaching the terms of its licence.
Vedanta denies that KCM has broken the terms of its licence and says it will defend its assets in the Southern African country.
Vedanta said the notice demands that arbitration should be in accordance with the United Nations Commission on International Trade Law arbitration rules.
In July, South Africa's High Court ordered the Zambian government to halt the sale of KCM until a final decision is made through arbitration, but Zambia's mines minister said the country would appeal the ruling and press on with the wind-up.
The dispute in Africa's second-largest copper producer has intensified concerns among international miners about resource nationalism in Africa.