The High Court of South Africa has decided to suspend the sale of Konkola Copper Mines (KCM), which is owned by Vedanta Resources. According to the decision, the Zambian Government will wait for the High Court to announce its final decision in order to proceed with the sale.
India-based Vedanta Resources and the Zambian Government had a dispute in May over the company’s alleged failure to comply with its commitments. The Zambian Government, which owns 20% of the mine through the public company ZCCM-IH, accused the KCM of violating the license terms and appointed a liquidator to the operation. Vedanta denied the allegations, announced that he would remain in contact with the Zambian Government to seek his rights.
The decision to stop was considered a major win for Vedanta, while Zambian Mining Minister Richard Musukwa announced that the Zambian Government has appealed to South African lawyers to appeal. Musukwa also added that foreign court decisions will not be implemented unless they are registered in the local courts of Zambia and the decision will have no impact on the ongoing processes in Zambia.
Despite the developments, the government of Zambia expects the clarification of the proposals for KCM, which has operations in Chingola, Chililabombwe, Kitwe and Nampundwe in the coming period. The statement made by the Government showed demand from mining companies from several countries which also include a company from Turkey.
