Zambia intends to wind up copper company

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President Edgar Lungu took office in 2015.

The Zambian government has no intentions of stopping the process that will wind up the Zambian subsidiary of the mining multinational Vendanta Resources, President Edgar Lungu has announced.

The Zambian government started liquidation proceedings for Konkola Copper Mines KCM in May after it accused Vedanta of breaching terms of its mining license. Vedanta denies the allegations.

The Zambian government has a 20% stake in KCM. The government and Vedanta are currently locked in a legal dispute over the future of KCM.

Vendanta chairman Anil Argawal met President Lungu in an attempt to resolve the situation.

“The Vedanta chief expressed his desire to continue running the mine and, among other things, to pay the debt owed to suppliers and contractors, and to reinvest in the mine and restructure the shareholding of Konkola Copper Mines,” the president’s spokesperson, Isaac Chipampe said in a statement.

“The president stated that the position that the government has taken has the support of the people of Zambia, and the meeting will not affect the ongoing liquidation process,” the statement said.

 

 

Nneka Ukachukwu