Vedanta applies to join KCM winding up case
By Staff Reporter
VEDANTA Resources Holdings Limited, the majority shareholder in Konkola Copper Mines (KCM) with 78.4 per cent shares, has applied to join the proceedings in the Lusaka High Court where ZCCM-IH PLC asked the court to wind up the mining giant.
And Vedanta has submitted that it has an interest in the matter as majority shareholder in KCM and stands to suffer great prejudice if the court orders the winding up of the mine without hearing it.
According to an affidavit by Hermien Uys, a South African of Stellenbosch filed in court, he was the authorised representative of Vedanta, who are the intended second respondent in the matter.
He stated that Vedanta has invested millions of United States dollars in KCM with a view to realize a return on the investment over a period of time and thus, it was within its interest that KCM should continue as a going concern.
Uys submitted that Vedanta has the requisite locus standi to be added as a party to the proceedings as it possesses sufficient interest in the matter and that the application was properly before court as such, it was a proper case in which to join the proceedings.
He stated that Vedanta also wished to make submissions on the appointment of Milingo Lungu as provisional liquidator when the matter comes up for hearing on Friday, May 24.
ZCCM-IH and Vedanta are shareholders in KCM holding 20.6 per cent and 78.4 per cent shares respectively.
And Uys stated that ZCCM-IH filed a petition where it seeks an order to wind up KCM and that the record would show that the court, by ex-parte order on the same day, appointed Lungu to be provisional liquidator for KCM.
He stated that he was aware that Lungu has since assumed the
responsibilities of a provisional liquidator and has demanded that
some personnel in KCM’s senior management should prepare handover
notes for him.
Uys added that the inter-parte hearing of the application
concerning the appointment of Lungu was scheduled to be heard on Friday, adding that it was in the interest of justice that Vedanta be
joined as a party to the proceedings so that it may make representations on the matter.
He also stated that it was crucial and of utmost urgency that Vedanta be joined as a party to these proceedings.
And Uys argued in his skeleton arguments in support of summons for an order for joinder that the application was anchored on the provisions of Order XIV Rule 5 (1) of the High Court Rules, High Court Act chapter 27 Volume 3 of the Laws of Zambia as read with Order 15 of the Rules of the Supreme Court 1965. (White Book”. RSC. 1999 Edition Volume 1).
Meanwhile, Milingo Lungu who has been appointed to act as provisional liquidator of KCM has filed a consent to act committing that: “I do hereby give my absolute and qualified consent to act as liquidator in winding up proceedings herein.”