Vedanta Resources Holdings Limited has obtained an ex parte order in the High Court of South Africa granting it leave to institute an urgent interim interdict application out of the South African High Court in Johannesburg against ZCCM Investments Holdings Plc (ZCCM) and Konkola Copper Mines provisional liquidator Milingo Lungu.
Vedanta, in a statement, indicated that it would seek an interim order declaring that ZCMM-IH had breached the shareholder agreement by pursuing winding proceedings against KCM.
“In terms of the Urgent Application (served on both ZCCM and the Provisional Liquidator in
Zambia yesterday), Vedanta will seek an interim court order declaring that ZCCM has breached the KCM Shareholders’ Agreement by pursuing winding-up proceedings against
KCM in Zambia, and directing ZCCM to withdraw those proceedings (thus removing the
Provisional Liquidator). In other words, if the Urgent Application, to be heard on 16 July 2019, succeeds and an interim order is granted, the order will remain in place until the arbitration – to be instituted in due course – has been finally resolved,” stated Vedanta today.
“Vedanta approached the South African High Court based both on the agreement to arbitrate contained in the KCM Shareholders’ Agreement, and the selection of Johannesburg as the seat of arbitration. The application is brought in terms of the South African International
Arbitration Act, 2017, which facilitates the conduct of disputes of this nature in South Africa.
This Act gives effect to internationally recognised principles aimed at facilitating the resolution of commercial disputes where cross-border parties have agreed to do so by way of arbitration.”