Vedanta Unit Said to Lose About $100 Million Zambian Claimby and
Konkola Copper Mines to pay state investment co. in 14 days
ZCCM-IH filed claim in June over 2013 copper price deal
Konkola Copper Mines, the Zambian unit of Vedanta Resources Plc, has been ordered by a U.K. court to pay Zambia’s state-owned mining investment company about $100 million for a claim related to the copper price, according to two people familiar with the case.
ZCCM Investments Holdings, in which the government has a 77 percent stake, filed the application in June for outstanding payments under a 2013 copper price participation deal. A KCM spokesman didn’t immediately respond to a call or e-mail seeking comment, and neither did Vedanta.
The state-owned company won a default judgment on Dec. 16, according to the people, who asked not be to named as the outcome isn’t public yet. Zambia is Africa’s second-biggest copper producer.
KCM hadn’t paid the money because of “operational and financial challenges,” ZCCM-IH, which has a 20.6 percent shareholding in Konkola, said in its 2015 annual report. The Vedanta unit was in talks with ZCCM-IH and the government to pay the claim, which needed to be settled from available cash flows, Steven Din, KCM’s chief executive officer, said Nov. 10. The company was at that point hoping to resolve the matter out of court, he told investors on a call.
The case is number CL-2016-000352 in the High Court of Justice, Queen’s Bench Division, Commercial Court.