EXCLUSIVE: Zambian government orders liquidation of Vedanta’s KCM; awaits legal approval [UPDATE]
The Zambian government has filed an official document to the High Court to liquidate the assets of Konkola Copper Mines (KCM), which is majority-owned by Vedanta Resources.
The government has called for the appointment of Milingo Lungu to act as the provisional liquidator, according to the document dated Tuesday May 21 and seen by Fastmarkets.
It is ordered that the provisional liquidator may take over the business of KCM, the operator of a 310,000 tonne per year copper smelter and major mines including Nchanga and Konkola in Zambia.
It is unclear whether all of the company’s assets will be included in the liquidation.
“Vedanta Resources and Konkola Copper Mines (KCM) are aware of media reports that Zambian state-owned company ZCCM-IH has obtained an order against KCM,” Vedanta said in a media statement later on Tuesday afternoon.
“ZCCM-IH owns 20.6% of KCM and has its nominees on the company’s board. Vedanta and KCM reiterate their request for an immediate and urgent meeting with Mr Edgar Lungu, President of Zambia, to discuss the matter,” the company added.
Additional reporting by Archie Hunter.[This article was first published at 12pm and was updated to include comments released in a media statement from Vedanta Resources.]