Vedanta Resources Head office

The High Court in Johannesburg this morning granted Vedanta Resources an urgent interim order blocking ZCCM from liquidating Konkola Copper Mines (KCM).

The Indian-owned mining company is fighting the Zambian government’s decision, through ZCCM-IH to appoint provisional liquidator Milingo Lungu to wind up KCM operations after government accused Vedanta of breaching the terms of its mining licence.

Today’s interim interdict was granted after two days of argument in court last week, where Vedanta contended that ZCCM-IH had breached and continued to breach the KCM shareholders’ agreement by instituting the proceedings against KCM.

It argued that ZCCM-IH had pushed ahead with the provisional liquidator instead of reverting to the agreed-upon dispute resolution mechanism for shareholder disputes.

South African High Court Judge Leicester Adams said in a ruling seen as a big win for Vedanta that wind-up proceedings must be immediately withdrawn until a final decision is made following arbitration.

“Pending the final determination of the arbitration, the first respondent is interdicted and restrained from taking any further steps in the furtherance and prosecution of the winding up proceedings,” he said.

The granting of the interim interdict means that, pending the final outcome of an arbitration process, ZCCM-IH should immediately withdraw its winding-up proceedings.

It also means that provisional liquidator Milingo Lungu is discharged from office and leave KCM premises.

ZCCM-IH was also ordered to pay Vedanta’s legal costs for three Lawyers who applied for the interdict.

In a statement, Vedanta said it welcomed the ruling by Judge Adams and reiterated its commitment to resolving the dispute with ZCCM-IH via arbitration.

Vedanta had been locked in a dispute with the Zambian government since May when it appointed a liquidator to run KCM, which is 20% owned by ZCCM-IH and the rest by Vedanta.

The legal counsel for ZCCM-IH declined to comment.

It was not immediately clear whether the ruling would be binding in Zambia.

Vedanta said it was unable to comment on the process currently underway in the Zambian courts, in compliance with the guidance provided by Justice Banda-Bobo in the Lusaka High Court on 4 July 2019, after concerns were raised about the parties making public comments about ongoing court proceedings.

Vedanta had sought the urgent order in South Africa to prevent KCM from being wound up, arguing that the dispute should be subject to arbitration, which cannot happen if the Zambian government is pursuing a new investor.

Mines Minister Richard Musukwa last week said that it expects bids for the KCM business to be submitted within weeks by nine companies from Russia, Turkey, Australia, Canada and China.

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64 COMMENTS

  1. South African courts halts liquidation of KCM??? What do these creatures know about the failed KCM and are they? Did any courts and a Zambian court ever interfere in the case of the Gupter brothers? KCM belongs to Zambians and we are at liberty to sell it to credible and sincere investors who will not subject our people to slavery conditions in their own country and deny our treasury the revenue from our minerals.

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    • Can Zambian court order South Africa to stop any sale of a company, commanded by President Ramaphosa?
      This is an insult on our President Lungu.

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    • Malinso – You must be listening or watching too many of Lazy Lungu’s airport tarmac bogus statements…really laughable…that’s a failed lawyer!!!

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    • Kikikikikikijukija hahahahaha pwahahahahahahahahahahahahahha!
      Sounds like the BSA company, Northern Rhodesia/Nyasaland era crap.
      Hilarious!
      Painful memories yeah!
      One thing double h forgets when he rendezvous South Africa, setting meetings with those BSA remnant of his business colleagues.
      LT, the title in and around itself doesn’t sound right even to an insane mind.
      Quote: South African court orders Zambia to halt liquidation of KCM.
      Maybe it should end like: –
      Else South Africa will launch Economic Sanctions against Zambia.
      Get out’a here. Jurisdiction ati shani apo? The indian Nigga thought he was being smart. Indict Zambia. Come on fellaz show us what you got.

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    • Ignorance is very costly…….

      1. Minister’s can stay in the office after parliament is dissolved
      2. We are getting a new investor KCM bu end of July

      Words from one drunk ignored guy is state house….
      How a country an elect a kachasu drinker from a compound as a president beats logic

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    • Thorn in the a$$ – LT published the contents of the Shareholder Agreement when Vendanta presented their case but you chose to ignore go and read again …go and follow it up to the procedure for arbitration or read the whole article above your Mines Minister is a Primary school science teacher what would he know.

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    • Without knowing exactly what the ZCCM-HI/Vedanta “marriage” contract says, it is difficult to speak from an informed position. However, if arbitration is not mandatory in the contract, ZCCM-HI cannot be forced to abide by it….arbitration is not something that can be forced on an unwilling party to the case if they do agree to it. Arbitration, in most cases, is voluntary unless it expressly says so in the contract. Even then, it is not automatic or mandatory that both parties should or must accept the outcome or settlement of the arbitration hearings. Any of the involved parties can still decide to go through a full Court trail….which is what is going on in the Zambian Courts on this issue. But again, this is speaking without the complete details of the ZCCM-HI/Vedanta contract.

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    • By the way, most corporations, companies, businesses, entities, extra, insist on arbitrations in order to avoid a court record against their name. A record that can be used against them in future. Here in America you will find a lot of these mandatory arbitration clauses written into contracts for that same reason. But courts are not bound by them if party still decided to take the case to court.

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    • This is an academic exercise that can only excite sadists who belong to a certain hopeless political party. A high court in south Africa has no jurisdiction over Zambian courts. For foreign judgements to bind on Zambia the countries have to sign a reciprocal agreement protocol which does not exist between south Africa and Zambia. This judgement needs to be registered in our courts for it to have any effect. Do you remember the London judgement against FTJ? Who is going to register this useless judgement in our Zambian high court? Your indian crook is gone for good. Get it in your thick unpatriotic heads

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    • @1.9 Danielle. Don’t think that anyone who disagrees with you is a sadist and unpatriotic. Read the Contract of Sale. It mandates ALL disputes to be resolved thru Arbitration: “ALL disputes SHALL..”.
      Secondly, it identifies the PLACE where this Arbitration shall be held, J’burg South Africa.
      What Vedanta is doing is ensuring that they follow the letter of the law step by step. I doubt if they will get KCM back, but these judgements will come in handy when they sue for damages. Right now DRC has to pay FQM $4Billion as compensation.
      We are busy playing Nsolo while our opponents are playing Chess!

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  2. South African courts halts liquidation of KCM??? What do these creatures know about the failed KCM and who are they to tell us what to do? Did any courts and a Zambian court ever interfere in the case of the Gupter brothers? KCM belongs to Zambians and we are at liberty to sell it to credible and sincere investors who will not subject our people to slavery conditions in their own country and deny our treasury the revenue from our minerals.

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    • They say “if you want to hide anything from a black man, put it in a book..”!!
      Have you read the Contract of Sale? It mandates Arbitration as a method of resolving disputes and South Africa as the location for Arbitration. That is how RSA comes into the picture.

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    • You are BOUND by the terms of Shareholders Agreement.
      Respect the Terms and Conditions or pay Billions in compensation.

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    • sosoliso – You live in a global village…you want foreign investors but dont know how to play the game when everything goes tip….all your lazy man had to do is follow simple procedure. We told you..

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  3. malinso, you sentiments are warranted, however, without details of the contract, it would be premature to dismiss this simply because it took place in a south African court. I mean zccm…had lawyers there, so it means they were bound by some contractual agreement that’s why they obeyed the subpoena.
    at times emotions can crowd clear thinking, I don’t know how well the govent. looked at the contract prior to commencing the liquidation process.
    I sure hope they’ll appeal, I think they’ve grounds to appeal citing the mine’s violations of various tax laws…

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  4. I hope chaps using internet they have not paid for will not comment, This issue is far more complicated than your rocky marriages

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  5. I have always said whoever will make zambian tax payer lose by paying KCM should be held accountable by levying the same amount on them

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  6. THE GUPTA’S IN TYPICAL STATE CAPTURE AT IT AGAIN ZAMBIA IS SUPREME SOVEREIGN LAND BANE

    TWO RANDS JUDGEMENT

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  7. We told you fooooools carry on and Vandanta we use this evidence of your shambolic behaviour when they take it to London courts…I can see hefty fines for us because some lazy moron wanted to cut corners!!

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    • This is Zambia you 1d10t. In case you got yourself twisted. What do you know? Evil.

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  8. @ mukolwe
    You are sober in your contribution and I encourage that but brother I hope you are not one of those guys who blindly support what the new mine owners are doing to our once vibrant Mining towns. I mean people who were not living on the Mining towns before HH sold them to enrich himself. What hates us more than anyone can understand is that Copperbelt was once a vibrant and i mean vibrant place for anyone on earth to dream living there. Since the haste and mishandling of the privatization program, the new mine owners have been stealing and raping our country. All the the proceeds of our mineral rich Copperbelt and now North Western Provinces are just making Billionaires in other countries whilst our people who break their backs day and night are subjected to slavery conditions,…

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    • It’s amazing how UPNDEAD sympathizers seem to be romancing this out’a context ruling by jurisdiction that is also by and large not binding to Zambia.
      I wonder. Their reasoning sounds like double h’s. Unlike them, double h has vested interest in this. VEDANTA will soon be part of the UPNDEAD sponsors with huge promises.
      The Zambian Government is standing on firm ground here. The issues it has raised are genuine. Vendata has been loss making according to it’s buyer. Vendata is KCM bankrupt. The workers at KCM wanted Vedanta out. Government never benefited from Vedanta. So KCM in liquidation. This case is in Zambian courts not South African Courts. Fast fast, let’s roll.

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    • You are still here talking about your silly HH when you are hit with fines its everyone that will pay for your stupidity!!

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    • There this f00l goes again. “When you are hit with fines” nonsense.
      Calm your azs down nigga.
      We got this.
      Wilapenapena apa!
      KCM is Zambian with all the minerals therein.
      We can’t afford to watch incompetence proliferate.

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  9. [email protected] mukolwe
    All the the proceeds of our mineral rich Copperbelt and now North Western Provinces are just making Billionaires in other countries whilst our people who break their backs day and night are subjected to slavery conditions, this is what we will NOT accept any more. HH may today try and come out clean on this but he will NOT because we know what our revenues from the mines are capable of doing to the economy, ask anyone who lived on the Copperbelt before this HH did the damage and today he wants to lie to our children, it will not work. The mines used to sponsor our children to go straight to UK, Australia, US to study before HH came on board and he thinks we can forget? Copperbelt was epicenter of sports in this country, with world class infrastructure from public swimming…

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  10. contd
    The mines under RCCM, used to sponsor our children to go straight to UK, Australia, US to study before HH came on board and he thinks we can forget? Copperbelt was epicenter of sports in this country, with world class infrastructure from public swimming pools to lawn tennis courts, well kept streets and Avenues regardless of the place but the likes of KCM came and destroyed everything despite the huge profits they hide from Zambians. All schools and hospitals had the necessary and basic requirements, HH camee and destroyed everything, HH will not escape this because he is not even remorseful.

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    • How did HH sell the mines? I believe it was the government of the Republic of Zambia decision to sell off most state enterprises. This started soon after the Chiluba govt. came to power. HH was a mere facilitator using his accounting/consultancy skills to enhance the privatization program. I stand to be corrected, he was not even a politician that time.

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    • @SKEPTICO

      A million dollar question.
      How did HH sell the mines?

      The answer unfortunately is not for the fainthearted. It’s complicated to feeble minds.

      Maybe you can’t bear the complex nature of it all.

      Double h knows. His heart harbours it all. Maybe Malinso knows.

      Dr. Katele warned, don’t open that pandora box. Imagine the filthness and the attention Katele’s caution just invokes.
      More questions and affirmation than answers. To rest the case for posterity’s sake, one day a probe will be inevitable either to exonerate double h or discover the filth.

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    • @Thorn in the Fleah @11.2
      You have accused HH but have not explained anything. How did HH sell the mines?
      That decision was made by the MMD govt comprising Chiluba, Nawaki, King Cobra etc. HH was a 26year old running a private Firm, Coopers and Lybrand. Tell us how he sold the mines? Please!!

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  11. The Zambian court will just ignore the Boer court ruling.
    so how are they going to enforce the court order on the two Lungu’s?.
    Just deport all KCM mwenyes asap

    What do they want to arbitrate? Decision to divorce already made

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    • Go and read shareholder agreement you think Investors invest in your countries through gentleman’s agreements in the taverns …there are shareholder’s agreement to protect them when there is a change of govt or coup d’etat

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  12. Cool down this is just an interim injunction. It can still be challenged in a neutral international court, eg London. Despite them having strong case in terms of contractual terms, overall tax evasion, veering from mining Licence and failing to pay workers and stake orders among others is strong case enough.
    Let us put our legal mind together and put up a fight. This is not about the President alone, it is about Zambia.

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  13. Too many ignorant clowns thinking they are Lawyers. The level of ignorance amongst these PF cadres is just astounding.

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    • These are fooools…these have cadre brains they think they are in their backyards where they give out illegal plots next to railway lines or dividing up plots on public roads for katembas to street vendors

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  14. @malinso, again I share your sentiments
    what you’re talking about is corporate responsibility, if the Zambian govent. this that’s important (and it should) it ought to include that in the contract…but that’s inconsequential in the matter at hand and what’s at stake in these proceedings
    what’s at question is violation of the terms and conditions. a business on a scale such as this one isn’t run by one individual, those running the operation don’t call the shorts. they’ve shareholders breathing on their a rses.
    both parties have to abide by the contractual agreement that was agreed upon when they engaged into the aforementioned transaction. any violation by either party is grounds for litigation, and that’s why we’re where we are hencewith

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    • Do you know that the Zambian government is a shareholder in KCM? What were they doing when Vadenta did all what you saying. You have board members from the government on KCM. What you saying does not hold water

      Ignorance is very expensive

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  15. I wonder what the preamble to the upcoming economic summit will be as we court new investors….why didn’t our govt go the arbitration way first, cite all the misdeeds of Vedanta, which are well documented I believe, then insist on liquidation. It could have taken a bit longer but achievable I think. What is the cost of these Vedanta lawyers anyway ?

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  16. Just why would a South African court preside over the happenings that take place on Zambian soil? KCM is not a South African mine. We are a sovereign state.

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    • The Contract of Sale identifies Arbitration in South Africa as the route of Conflict Resolution.

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  17. Tell them to handle before they come to Zambia

    And tell them to share land wilth blax before they preside over Zambian mine

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  18. This is pure foolishness, next you will get some judge from the high court in India telling our government that they cannot impose or increase any taxes on foreign companies in Zambia. Our sovereignty is being tested and we urge the government to use every ounce in their power to kick these fake investors out. They have overstayed their welcome in Zambia. I hope immigration will also revoke their work permits so that they can be re-issued by the South African high court. Malabish!

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  19. The Law Association of Zambia should come out and explain this n0nsensical injunction to the Zambian people. Why are foreign courts constantly interfering with our affairs? We may as well shut shop and use the South African courts instead? LAZ…give us iwe ala!

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  20. @ JAY JAY
    Which agreement are you talking about because the same indian man you are supporting was the first one to breach the agreement that you are saying so my friend don’t talk without get the truth why do you hate your own country so much . are you happy that your country men are suffering at KCM at the hand of an indian.

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  21. Zambian government should put on big boys pants and nationalize KCM. Why do we have to entrust God given minerals in the hands of foreigners as investors all the time whose motives is to rip where they did not sow and make profit. Yet we are wondering why Zambian economy is stagnant with a lot of debts pilling up. Like seriously dont we have Zambians who can run and operate these mines efficiently? What has happened to all these Zambians who claim to be educated with masters in Business Admin, Masters in Mines etc. #MAKEZAMBIAGREAT AGAIN. #NATIONALIZEKCM

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  22. So what. Times have changed. This win in a toothless court does not change anything. Ask Rodger Chongwe if he got his millions.

    Fack remains that Boma has an arsenal of strategies to recover from smart alecs and such crooks what they stole from the people. Lewis Moosho hasn’t entered the fray yet. Even DEC is waiting to move in on the fictional accounting and investment books. The Africaneer Mercenaries even told this crook to keep his pitful money coz Zambia Army is not mickey mouse!!

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  23. Jayjay is right. Contractual obligations are important to consider what ever the situation. But we are CADERS from professors to a street plot minder.

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  24. I now realize why the Chinese despise India. The worst Asian country African nations could ever do business with. These idioots from India do not like Africans.

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  25. Trouble is most Zambians do not read.Many of our lawyers are ever drunk and have no time to read sizeable documents and agreements let alone negotiate favourable terms to agreements.Zambians may meanwhile react emotionally to the South Afriacan ruling but in the end the Indians will win this case because of our useless lawyers and careless leaders.

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  26. We told u so but u didn’t listen.Now Zambia has to pay the Price. The are major consequences if the Zambian Govt ignores this Judgement. No new Investor will buy disputed KCM Assets. Zambia will be internationally sanctioned if the breach the International Arbitration Law. ZCCM-IN has no choice buy to Dialogue with Vedanta and Agree on KCM Exit Terms. GRZ/ZCCM-IN have no choice but to buy out Vedanta out of KCM at a Premium and on Vedanta’s Terms.No doubt Zambia will have to pay heft fines and compensation to Vedanta. Vedanta is prepared to walk away from KCM with a Smile as long as the Price is good. The writing is on the Wall.

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  27. The highly corrupt, improper, sell of KCM, by Mwanawasa needs to be revisited, the international courts should nullify the single buyer sell on the grounds of vast corruption; the deal was rotten.

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  28. Let SA order the halt of gun sales in Soweto. Is it the absence of serious cases to preside on or what???

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  29. There are some commercial contracts that are made with the inclusion of a jurisdiction clause in them. Meaning, if there is a dispute, the parties agree to which courts will hear the matter. This maybe because one of the parties has substantial business in that country or their business, or part thereof is registered there. Of course the problem that arises is usually on enforcement. The other party or government may simply refuse to recognise the same.
    But if people care to read, they will find that the parties in this case (ZCCM-IH & KCM) included this clause in the contract. Zambia may refuse to honour it, but sometimes, again, it is not without serious commercial, business or political consequences

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