21 May 2019
On 21 May 2019 it came to our attention that Zambian state-owned company, ZCCM-IH (ZCCM) had obtained an ex parte order for the appointment of a provisional liquidator (PL) as a first step to the winding up of KCM.
June 2019
ZCCM filed an amended Winding Up Petition asserting that in addition to KCM being wound up on a ‘just and equitable’ basis, KCM should be wound up as it has failed to pay its debts as they fall due.
Vedanta Resources Limited (VRL) filed a Notice of Intention to be heard as an interested party at the hearing of the Winding-Up Petition.
July 2019
Vedanta obtained an ex parte order in the High Court of South Africa granting it leave to institute an urgent interim interdict application (the Urgent Application) out of the South African High Court in Johannesburg against ZCCM and Mr Milingo Lungu in his capacity as provisional liquidator of KCM.
23 July 2019
The South African High Court in the case of Vedanta Resources Holding Limited v ZCCM Investment Holdings Plc and Lungu, Milingo granted an anti-suit injunction in support of the arbitration agreement in the KCM Shareholder Agreement and blocked the winding up of KCM. The judge found that the grounds on which the ZCCM had applied for the provisional liquidation such as alleged mismanagement, failure to pay dividends and others, all had a sufficient nexus to the KCM Shareholders Agreement and fell under the arbitration agreement.
31 July 2019
In response to the domestic litigation, Vedanta Resources Limited instituted international arbitration proceedings against ZCCM-IH. It is also defending the winding up petition in Zambia. At this juncture the aim is to regain operational and management control of KCM.
7 August 2019
Justice Banda-Bobo of the Lusaka High Court refused Vedanta’s application for a stay of winding up proceedings against Konkola Copper Mines.
23 August 2019
Justice LR Adams of the Gauteng Local Division, Johannesburg, of the High Court of South Africa denied ZCCM leave to appeal his judgement of 23 July 2019, dismissing ZCCM’s application with costs. The Johannesburg Court is recognised as a Court in the context of the International Arbitration Act.
28 Oct 2019
Vedanta Resources confirms that the arbitration process related to Konkola Copper Mines (KCM) is ongoing. Arbitration is a confidential process and Vedanta has been advised that it is not permitted to say anything further about that process.
28 November 2019
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.
20 November 2020
Court of Appeal rules in favour of Vedanta.