The global leader in mining, Vedanta, is reportedly seeking an urgent court order in South Africa to prevent Zambia’s mining investment arm ZCCM from shutting down its disputed Konkola Copper Mines (KCM) business. Vedanta and the Zambian Government had locked horns in a dispute about the terms of license. The Zambian government has accused KCM of breaching the terms of its license while Vedanta has denied that KCM has violated the terms of its license. It has stated that it will defend its assets in Zambia. The dispute has created anxiety among international miners about resource nationalism in Africa.
Vedanta has claimed that it had obtained a temporary order in South Africa’s High Court that enables it to submit an urgent appeal on July 16 for an injunction against ZCCM and a provisional liquidator at KCM. In a statement issued, the company reported,“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 majority stake in KCM is held by Vedanta with ZCCM holding a minority stake. The shareholders’ agreement also includes a provision for arbitration in South Africa.
