Vedanta resorts to South Africa over Zambian divorcePublished by MAC on 2019-07-11
Source: Reuters (2019-07-04)
For previous coverage, see: Behind Zambia's divorce from Vedanta
Vedanta appeals to South African court to protect Zambian business
Vedanta is locked in a dispute with the Zambian government, which accuses
KCM of breaching the terms of its licence
4 July 2019
Mining company Vedanta said on Thursday that it is seeking an urgent court
order in South Africa to prevent Zambia's mining investment arm ZCCM from
winding up its disputed Konkola Copper Mines (KCM) business. Vedanta is
locked in a dispute with the Zambian government, which accuses 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 Zambia, Africa's second-biggest copper producer.
The case has intensified concerns among international miners about
resource nationalism in Africa. A ZCCM spokeswoman was not immediately
available for comment.
Vedanta said in a statement that it had obtained a temporary order in
South Africa's High Court allowing it to make an urgent request on July 16
for an injunction against ZCCM and a provisional liquidator at KCM.
Vedanta holds a majority stake in KCM, with ZCCM holding a minority stake.
"Vedanta will seek an interim court order declaring that ZCCM has breached
the KCM shareholders' agreement by pursuing winding-up proceedings against
KCM in Zambia, and directing ZCCM to withdraw those proceedings," the
statement added. Vedanta applied to the South African court because the
KCM shareholders' agreement makes provision for arbitration in South