JUSTICE Banda-Bobo of the Lusaka High Court in Zambia reserved judgement regarding an application by Vedanta to impose a stay on the proposed winding up of Konkola Copper Mines (KCM).
The winding-up application was made by ZCCM-IH, an investment company controlled by the Zambian government. The application was made following allegations that certain commitments to invest in KCM’s expansion by Vedanta were not carried through, as well as other obligations.
Vedanta said it had invested $3bn in Zambia to date.
Vedanta, which owns most of the shares in KCM, said the winding up order had been done ex-parte; in other words, without the presence of the company. It argued the matter ought to be been ventilated in terms of KCM’s shareholders agreement between it and ZCCM-IH.
This argument was subsequently heard in the Johannesburg High Court with the judge finding in favour of Vedanta.
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 after concerns were raised about the parties making public comments about ongoing court proceedings.
