BioTech

Zambian court appoints provisional liquidator of Vedanta's Konkola Copper Mines

Zambia's High Court on Tuesday appointed a legal firm as a provisional liquidator of Vedanta-controlled Konkola Copper Mines, according to a court document seen by Reuters.

Adds detail, quotes, background

LUSAKA, May 21 (Reuters) - Zambia's High Court on Tuesday appointed a legal firm as a provisional liquidator of Vedanta-controlled Konkola Copper Mines, according to a court document seen by Reuters.

The document named Zambian law firm Lungu Simwanza & Company to oversee KCM a day after the president said Zambia planned to strip the company of its mining licence and bring in a new investor.

According to the court document, the firm is appointed to act "as provisional liquidator" until the conclusion of the hearing of a petition, brought by Zambia's mining investment arm ZCCM-IH ZCCM.LZ under Zambia's corporate insolvency act, or a further order.

KCM's parent Vedanta VDAN.NS had no immediate comment.

Presidential spokesman Amos Chanda told Reuters on Monday the government had to intervene "because KCM is too big to fail".

"The government is actively in talks with potentially private investors for KCM," he added. "There will be no takeover. No seizure of private assets."

International miners have warned Zambia will deter foreign investment at a time when it is in great need of finances to pay off high levels of debt.

Zambia, Africa's second-biggest copper producer, has proposed tax changes that President Edgar Lungu says he will push through, despite opposition from international miners.

(Reporting by Chris Mfula in Lusaka and Barbara Lewis in Johannesburg; Editing by Louise Heavens and David Evans)

((Barbara.hm.Lewis@thomsonreuters.com; +44 207 542 2932; Reuters Messaging: barbara.hm.lewis.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Bonds

Latest BioTech Videos

    #TradeTalks: Reallocation of Funds to the Healthcare System and Telehealth for Substance Abuse

    Sober GridCEO Beau Mann joins Jill Malandrino on Nasdaq #TradeTalks to discuss reallocation of funds to the healthcare system and telehealth for substance abuse.

    Jul 20, 2020

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More