In what is ensuing as a possible diplomatic row, a South African High Court has granted Indian miner Vedanta Resources an urgent interdict halting the liquidation of Konkola Copper Mines – KCM, a Copper Mining unit in Zambia until a final decision is made through arbitration.
In may this year, the Zambia Consolidated Copper Mines investment holding company – ZCCM – IH, a state owned investment company that holds the stake in mining companies raised a disput and filed for liquidation of Vedanta’s interest in KCM, accusing the Indian miner of breaching the terms of its license and went on to appointed a liquidator to run the Company, in which it owns 20% and what is believed to be a golden share.
In a report obtained by the Zambian Business Times – ZBT on July 23, 2019, South African High Court Judge Leicester Adam has indicated that the wind-up proceedings must immediately be withdrawn until a final decision in made through arbitration.
“Pending the final determination of the arbitration, the first respondent is interdicted and restrained from taking any further steps in the furtherance and prosecution of the winding up proceedings,” He said.
And in response to the ruling and orders indicated by the South Africa Court, Zambia’s Mines Minister Richard Musukwa has rubished the validity of the ruling stating that the order given by South Africa has no jurisdiction and is not applicable in the Zambian legal system hence the judgments are not enforceable in the country.
Addressing the Media in Lusaka on July 23, 2019, Musukwa said government continues to respect the jurisdictions of other countries and it has since advised the South African Attorney’s to appeal against the judgment.
He said Zambia has a history of foreign judgment been made in a number of cases and has since urged the public to remain calm as the process is under control. At the same media briefing event, Justice Minister Given Lubinda said the South African Judge can not in any way undermine the decisions made by the Zambian government hence it will ensure that it protects the integrity of the judiciary in Zambia and the country’s sovereignty.
Earlier in July, Mines Minister Ricard Musukwa announced that government expects bids for the KCM assets to be submitted within July by nine companies from Russia, Turkey, Australia, Canada and China that have expressed interest to partner with ZCCM – IH.
Zambia is a key export destination for South African products and the two countries enjoy deep rooted political ties with Zambia having being new a key player in facilitating the end of the minority apartheid rule in South Africa. Zambia is yet to appoint a new ambassodor to South Africa.
