ZCCM

VEDANTA SEEK KCM TALKS IN SA
August 3, 2019 Editor2
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By CHINTU MALAMBO

ZCCM-Investment Holdings says Vedanta Resources Holding Limited has served it with a notice for arbitration to commence in the South African High Court over the winding up of Konkola Copper Mines (KCM).

This is according to a confirmation by ZCCM-IH spokesperson Louisa Mbata Kakoma.

Vedanta Resources Holding, the majority shareholder in KCM, claimed there is a dispute relating to the shareholders agreement and that ZCCM-IH breached the said agreement when it sought to have KCM wound up before resorting to arbitration in South Africa.

Meanwhile, the Zambian High Court on Monday reserved ruling on Vedanta’s application to refer parties to arbitration. The issues for determination are whether there was a dispute between the parties and whether the matter should be stayed and referred to arbitration.

This is in a case where ZCCM-IH is seeking an order to wind up KCM for allegedly engaging in tax evasion and being managed in a manner detrimental to its interest among other allegations.

In May this year, High Court Judge Annessie Banda-Bobo granted ZCCM-IH an order to appoint lawyer Milingo Lungu of Messrs Lungu Simwanza and Company as provisional liquidator of KCM.

During deliberations on the application to refer the matter to arbitration, ZCCM-IH urged the court to continue with the winding up proceedings as there was no dispute which had arisen to warrant an order for arbitration.

It said there was no dispute because there was an admission of insolvency from KCM.

And KCM also opposed the application for arbitration and asked the court to dismiss it with cost.

It stated that in the amended petition that ZCCM-IH started, the issues were those that an arbitrator could not deal with. KCM said the Corporate Insolvency Act had given the court the authority of winding up companies but Vedanta prayed that the court sustains the application.