Zambian court withdraws order blocking disposal of Vedanta unit assets

28th June 2019 By: Reuters

LUSAKA – A Zambian court on Friday withdrew an earlier order blocking a provisional liquidator at Vedanta's Konkola Copper Mines (KCM) business from disposing of KCM's assets or making arrangements with its creditors.

The about-turn from the Zambian High Court is the latest twist in a dispute between Vedanta and the Zambian government, which says KCM breached its operating licence.

Vedanta has denied that claim, and has said it will protect its assets in Zambia, a major African copper producer.

The case has intensified concerns among international miners about resource nationalism in Africa.

"It is hereby ordered that the ex-parte order to stay some of the powers of the provisional liquidator dated June 26, 2019, be and is hereby vacated forthwith," the Zambian High Court said in a ruling seen by Reuters.

The ruling did not give a reason for the withdrawal of the order.

State-owned Zambian radio reported that lawyers for Zambia's mining investment arm, which owns a minority stake in KCM, had argued in court that the earlier order was irregular.

Reuters has approached Vedanta for comment.