KCM’ majority shareholders’ Vedanta commences arbitration process in SA
By Staff Reporter
VEDANTA Resources Holding limited has commenced the arbitration process in South Africa of its mining company Konkola Copper Mines against Zambia Consolidated Copper Mines Investment Holdings.
In this matter, Vedanta Resources Holding Limited sued ZCCM-IH and its provisional liquidator Milingo Lungu in the South African High court and sought an interim order that the minority shareholder ZCCM-IH breached the shareholders’ agreement by pursuing winding up proceedings against KCM in Zambia.
The court in South Africa also directed ZCCM-IH to withdraw the winding up proceedings and remove Lungu as provisional liquidator.
According to a statement issued by Vedanta, the KCM’s majority shareholder has served a notice of arbitration on ZCCM-IH relating to the ongoing attempt by the minority shareholder to liquidate the company’s operations.
“The notice of arbitration comprises a demand that the dispute which Vedanta has declared against ZCCM-IH under the shareholders’ agreement be referred to arbitration in accordance with United Nations Commission on International Trade law (UNCITRAL) arbitration rules,” read the statement in part.
The arbitration process has commenced following an order by the South Gauteng High Court in Johannesburg stopping ZCCM-IH from winding up KCM by halting proceedings before the Lusaka High Court.
On July 4 this year, Vedanta was granted an ex-parte order by the South African High Court for leave to institute an urgent interim interdict (injunction) against ZCCM and its provisional liquidator.
Vedanta argued that the winding up of KCM had nothing to do with its insolvency but a dispute between shareholders’ agreement.
