Vedanta Resources has applied for an urgent court order in South Africa to prevent ZCCM-IH from winding up its disputed Konkola Copper Mines (KCM) business.
Vedanta is locked in a dispute with the Zambian government, which accuses KCM of breaching the terms of its licence.
Vedanta denies that KCM has broken the terms of its licence and says it will defend its assets in Zambia.
Vedanta said in a statement that it had obtained a temporary order in South Africa’s High Court allowing it to make an urgent request on July 16 for an injunction against ZCCM and Mr Milingo Lungu in his capacity as provisional liquidator of KCM.
“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 statement added.
In other words, if the Urgent Application, to be heard on 16 July 2019, succeeds and an interim order is granted, the order will remain in place until the arbitration – to be instituted in due course – has been finally resolved.
Vedanta applied to the South African court because the KCM shareholders’ agreement makes provision for arbitration in South Africa.