We are loyal investors – Vedanta

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Vedanta Resources Limited, the majority shareholder in Konkola Copper Mines (KCM) has argued that it is a loyal investor which contributes to the Zambian treasury and employs more than 13,000 people and contributes US$210 million in corporate social responsibility.

“The company employs nearly 13,000 people at its sites and operates clinics, hospitals and schools through its corporate social responsibility programme that amounts to over US$210 million since the acquisition. KCM has contributed US$1.3 billion to the Zambian Exchequer in that period and continues to be the
leading Pay As You Earn contributor in the country. For the year ended 31 March 2019, Vedanta provided KCM with financial support (including funding of loan repayments) of approximately US$500 million,” the company said.

And Vedanta has announced that it will challenge the recent liquidation of KCM through the legal system. According to a statement dated May 23, made available to the media, Vedanta said it has many grounds on which it can challenge the liquidation in the Zambian courts of law.

“Vedanta confirms that it is seeking to formally challenge the decision of the Lusaka High Court to grant an ex parte order appointing a provisional liquidator for KCM. The liquidation application was brought against KCM by ZCCM-IH. While Vedanta intends to fully defend its legal rights, Vedanta calls for the Government of Zambia to meet with Vedanta to come to a mutually agreeable solution to the current situation,” the company said in a statement.

Vedanta announced that the legal process was commenced on May 22, against the KCM liquidator.

“Vedanta’s legal representatives in Zambia yesterday served papers notifying ZCCM- IH, KCM and the KCM provisional liquidator of its intention to apply to be joined as a party to the hearing by Justice A.M. Banda-Bobo in the Lusaka High Court on Friday 24 May 2019.
The application to be enjoined is a critical step in the process so that Vedanta may file and receive documents relating to the proceedings,” the company said in a statement.

“Vedanta has serious concerns about the intentions of the applicants and the procedures that were followed by ZCCM-IH as a representative of government to obtain a provisional liquidation order on an ex parte basis against KCM in a apparent misuse of the legal process to date. The company is relying on the
protection of its rights under Zambian law and international norms”


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Start: 2019-07-01 End: 2019-07-31