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KCM provisional liquidator discontinues case where he was restrained from selling mine areas

KONKOLA Copper Mines provisional Liquidator Milingo Lungu has discontinued proceedings in a matter he was restrained from selling KCM mining rights areas to Rephidim Mining and Technical Suppliers Limited, Mimbula Minerals and Moxico Resources Limited.

This is in a matter where KCM and Vedanta sued Rephidim Mining and Technical Suppliers Limited, Mimbula Minerals and Moxico Resources Limited for trespassing on its mining rights areas.

KCM and Vedanta sought a declaration that the defendants have no authority to enter upon Lot 694/M and the remaining extent of Lot 564/M or the land in Nchanga Mine area without the prior consent of the plaintiff, among other grounds.

Last week, the Lusaka High Court granted an injunction to KCM and Vedanta Resources Holding Limited, the majority shareholder of KCM, restraining Lungu from selling the company’s mining rights areas to Rephidim, Mimbula and Moxico Resources limited at a sum of US$20,000,000.

According to a statement, Vedanta insisted that the KCM Board would continue protecting the company’s assets through all available legal means.

Vedanta stated that it remained committed to engaging with ZCCM-IH and the Zambian government amicably in order to find a solution that was in the best interests of its mining company, KCM and Zambia.
The government through Zambia Consolidated Copper Mines Investment Holdings has applied to wind up KCM operations and Lungu was appointed as provisional liquidator.

However, Vedanta Resources invoked the sale agreement that expressly provides for arbitration in Johannesburg, South Africa, where orders to stop the liquidation process in the Lusaka High Court were issued.

“Yesterday, the Lusaka High Court granted the Board of Konkola Copper Mines (KCM) and Vedanta Resources Holdings Ltd (Vedanta) an injunction order preventing the sale of KCM Mining Right areas by the KCM Provisional Liquidator Mr Milingo Lungu to the Defendants,” read the statement.

“Recently, Vedanta and the KCM Board became aware that the KCM Provisional Liquidator had entered into a consent judgment in Zambia’s Court of Appeal which would result in KCM’s sale of Lot 649/M Chingola, part of KCM’s Mining Licence area for US$20,000,000 to three companies (Rephidim, Mimbula and Moxico Resources Zambia plc) with whom KCM had been in legal dispute over the area since 2016.”

Vedanta said that the court action was taken to demonstrate that the decision by Lungu was not in accordance with the law.

A Notice of Appointment filed in the matter stated as follows:m”Take notice that the first plaintiff herein have appointed Messrs In House Legal counsel whose address of appointment is at Stand M/1408 Fern Avenue, Chingola and P/bag KCM @2000, as their advocates. Therefore, all documents to be served on the 1st plaintiff (KCM) must be served on the advocates at the aforesaid address.”

And according to a notice of discontinuance of proceedings, Lungu indicated that all proceedings in the matter against the Rephidim, Mimbula and Moxico had been discontinued.

Lungu has since filed a notice of discontinuance in the matter without Vedanta’s consent.

“Take notice that the first plaintiff Konkola Copper Mines (KCM) PLC hereby wholly discontinues all further proceedings in the above mentioned matter against all the defendants,” read the notice of discontinuance.

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