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Vedanta agrees to suspend KCM reclaim

Vedanta Resources Limited has confirmed that it has agreed to suspend legal action to reclaim Konkola Copper Mines (KCM) pending talks to settle the dispute.

KCM was placed under provisional liquidation after the former Patriotic Front Government accused the parent company Vedanta of being dishonest about expansion plans and underpaying tax.

The company says it wants the Mines back and has pledged to invest about 1.5 billion United States Dollars to revive operations.

Bloomberg reports that Vedanta Chief Executive Officer Sunil Duggal says the Company has always been of the view of resolving the matter outside court without litigation and finding an amicable solution to protect the national asset.

Yesterday, State House Communications Director Clayson Hamasaka said government has not given KCM back to Vedanta Resources as the issue was still active in Court.

Mr Hamasaka said the best and quickest way to resolve the issue is by sitting on the table and discuss as opposed to the court process.

The State House Communications Director said Vedanta still remains a shareholder in KCM regardless of what anyone does, a fact which cannot be ignored.

Mr Hamasaka said agreeing to end litigation does not equate to handing KCM back to Vedanta but that government has decided to find a solution outside the courts.

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