Vedanta Resources Holdings Limited has applied to the Lusaka High Court to be joined to the proceedings in the matter in which ZCCM-Investments Holdings is seeking an order that Konkola Copper Mines (KCM) be liquidated because it is insolvent.
According to an application for an ex-parte joinder filed in the High Court Registry, Vedanta has submitted that if it is not joined to the proceedings, it stands to suffer great prejudice as it has over 79 per cent shares in the mining company.
Vedanta also wants to be joined to proceedings to wind up KCM as second respondent.
The Company’s representative, Hermien Uys, has explained that ZCCM-IH and Vedanta are KCM shareholders.
On May 21, ZCCM-IH filed a petition, seeking an order to wind up KCM and asked the Court to appoint Lusaka lawyer Milingo Lungu to be a provisional liquidator for the mining company.
However, Uys has stated that Vedanta had invested millions of dollars in KCM with a view to realising a return on the investment over a period of time and that it was therefore within Vedanta’s interest that KCM should continue as a going concern.
Uys has further stated that as as a majority shareholder in KCM, Vedanta stands to suffer great prejudice if the court ordered that the mining company be wound up without hearing it.
Meanwhile, ZCCM-IH has accused KCM of evading tax and not declaring dividends.