
Zambia’s High Court on Tuesday suspended hearings on the winding up of Konkola Copper Mines until the Court of Appeal rules on the lower court’s refusal to let the matter go to arbitration, the provisional liquidator said.
Vedanta has been locked in a dispute with the Zambian government since May, when the government appointed a liquidator to run KCM which is 20% owned by ZCCM-IH and the rest by Vedanta.
Legal arguments have been heard in both Zambia and South Africa.
“Judge Banda decided that despite her not believing in the likelihood of Vedanta’s grounds for appeal, it was in the interest of justice to stay the hearing of the petition,” Provisional Liquidator Milingo Lungu said in a statement.
On Aug. 7, the Lusaka High Court refused Vedanta’s application to halt the Zambian government’s winding-up proceedings against KCM.
However, on Friday a South African high court judge found in Vedanta’s favour when he refused ZCCM leave to appeal a previous ruling in the South African courts halting the sale of KCM pending arbitration.
In response to the Lusaka High Court decision on Tuesday, Vedanta said in an emailed comment it remained “committed to engaging with the government of Zambia in order to find an amicable solution”.
Meanwhile, KCM released the following statement to the media.
LATEST COURT UPDATE-ZCCM IH VS KCM LIQUIDATION PROCEEDINGS
LUSAKA, 27TH AUGUST 2019: The High Court for Zambia today, 27th August, 2019 heard two different applications from Vedanta. These are:
1. The application on behalf of Vedanta Resources Holdings Limited (“Vedanta”) to stay the proceedings in the High Court until the appeal Vedanta wants to make to the Court of Appeal of Zambia is decided following the High Court’s Ruling of 7th August, 2019 refusing to refer the matter to arbitration; and
2. An application by Vedanta to curtail some of the powers given to the Provisional Liquidator by the Court on 21st May, 2019.
The Honourable Judge Madam Justice A.M. B. Bobo reserved ruling on the second application i.e. the application to curtail some of the powers of the Provisional Liquidator and she will decide on a later date.
With respect to the first application Honourable Judge Banda decided that despite her not believing in the likelihood of Vedanta’s grounds of appeal, it was in the interest of justice to stay the hearing of the Petition. This has the following consequences:
1. The hearing of the Petition will be suspended until the Court of Appeal of Zambia renders a decision on Vedanta’s appeal;
2. The Provisional Liquidator, Mr. Milingo Lungu, continues to be in charge of all operations and management of Konkola Copper Mines Plc; to operate normally and as before and no unit should be affected by the latest Ruling;
3. All contractual and commercial obligations are valid and will continue to be honoured by KCM;
In view of the above, we urge all the employees and Business Partners to remain calm, and continue to work safely as we ramp up production. Our Legal team is actively working towards securing KCM interests and ensuring that the due process of the law is followed.
Milingo Lungu
PROVISIONAL LIQUIDATOR
For any clarification contact:
Shapi Shachinda
Manager Public Relations & Communications