This archive report was first published on 29 June 2019.
On Friday, June 28, 2019, a Zambian court reversed its earlier order that had banned the provisional liquidator of Konkola Copper Mines (KCM) from selling any of the mine's assets, as reported on June 29, 2019.
KCM, the country's largest copper mining firm, has been at the center of a dispute between its majority owner, London-based Vedanta Resources, and Zambian President Edgar Lungu, who has pledged to dissolve the firm. The president has accused KCM of violating its operational licence and not paying all its taxes, charges that Vedanta denies.
Background ¶
The high court had appointed a provisional liquidator to dissolve the company in May 2019, at the government's urging. This move was part of President Lungu's efforts to generate tax revenue from the mining sector, as Zambia struggles with growing debt. In 2016, the mining sector was identified as a key area for revenue generation.
The court's latest ruling, which vacated the order to stay some of the powers of the provisional liquidator dated June 26, 2019, allows the liquidator to proceed with the sale of KCM's assets. This decision is likely to have significant implications for the future of KCM and the Zambian mining sector as a whole.
