June 2,2019:
Vedanta Resources Ltd., owned by Indian billionaire Anil Agarwal, stated that it’s seeking international arbitration to resolve a dispute with the Zambian government about its copper assets in the country.
Zambia’s Government this month began liquidation proceedings against Vedanta’s Konkola Copper Mines, after accusing Vedanta of lying about expansion plans and paying too little tax.
Vedanta stated that it is a “loyal investor” that’s spent more than $3 billion in the country since 2004.
Vedanta notified state-owned ZCCM Investments Holdings, the minority shareholder in KCM, of a dispute under a shareholders agreement.
Company added that,“The shareholders’ agreement provides for disputes to be submitted to international arbitration in Johannesburg”.
ZCCM-IH, which owns 20.6% of Vedanta’s KCM, on May 20 won a provisional order to liquidate Konkola three days after President Edgar Lungu warned Vedanta of “divorce” as he claimed the company had lied to the country.
Government added that it moved to wind up the company to prevent its collapse and to protect jobs.
Vedanta has sought to formally challenge the court decision and the matter will be heard on June 4.
Vedanta Chief Executive Officer Srinivasan Venkatakrishnan and Deshnee Naidoo, a company executive, on May 29 met Zambian state representatives in the capital, Lusaka, to discuss the dispute.
Company was given the assurance that the government has not entered into any sale agreements with other parties regarding Konkola.
Source Business Standard
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