Mines Minister Richard Musukwa couldn’t immediately be reached for comment and calls to government and presidential spokesmen went unanswered.
lodged the application against Zambia’s ZCCM-IH Holdings Plc, which owns a 20% stake in KCM, as it battles to stop the liquidation and planned disposals of its copper mines in the country.
In May, Zambia’s government began liquidation proceedings against KCM, after accusing Vedanta of lying about expansion plans and paying too little tax. The company says it is a “loyal investor” that’s spent more than $3 billion in the country since 2004.
The ruling is a blow to the Zambian government, which has said it plans to sell KCM to another foreign investor. Companies
including China Non-Ferrous Metals Co. have expressed an interest in buying the asset.
While uncertainty may still linger for mining companies
about the security of their investments in Zambia, Musukwa has said the dispute with Vedanta is “an isolated case” that should not be used to damage the southern African nation’s image.
The seizure has spooked investors, with yields on Zambia’s Eurobonds due in September 2022 surging to a record 22.1% at the end of May. The dispute has also weighed on the shares of other mining companies
with operations in Zambia, including Canada-based First Quantum Minerals Ltd. and Gemfields Group Ltd.