COURT HALTS KCM SPLIT

Lusaka ~ Thur, 21 Jan 2021

By Brightwell Chabusha

The Lusaka High Court has restrained Konkola Copper Mines (KCM) PLC provisional liquidator Milingo Lungu from undertaking any reorganisation of the mine or from transferring, disposing, selling or dissipating the assets in any manner.

In an ex-parte order signed by judge Dr Winnie Mwenda, Mr Lungu has also been ordered to preserve all the assets of KCM until the determination of the proceedings.

The judge has further restrained KCM or its agents or senior management from undertaking or participating in any reorganisation of the mine pending the determination of the proceedings.

Vedanta Resources Holding Limited, Vedanta Resources (Jersey II) Limited and Vedanta Resources Limited have sued Mr Lungu and KCM.

The trio is challenging Mr Lungu’s proposed decision to reorganise the mining firm.

The plaintiffs are also seeking a declaratory order that Lungu does not have the power to carry out the reorganization of KCM business, assets


and affairs in the manner announced on December 28, 2020.

On December 28, 2020, Lungu issued a management brief to employees of KCM in which a proposed reorganization of KCM was announced and described.

Mr Lungu proposed that the mine be restructured and reorganized by transferring the whole of its business and assets to two separate entities.

But Vedanta have sought an order that Mr Lungu, whether by himself, servants or agents,


immediately reverse any process of reorganisation that has been undertaken with respect to KCM.

The plaintiffs further asked for an injunction to restrain Lungu from undertaking any reorganisation of KCM or from transferring,


disposing of, selling or dissipating the the assets of the mine in any manner whatsoever and directing the liquidator to reserve all the assets of KCM until the determination of the proceedings which the judge has granted.