Zambia exit likely for Vedanta

The future of London-listed mining company Vedanta Resources' copper mining operations in Zambia is in jeopardy following reports that legal proceedings have begun against subsidiary Konkola Copper Mines (KCM).

Vedanta and KCM acknowledged media reports that state-owned investment group ZCCM-IH, which holds a 20.6pc interest in KCM, has obtained an ex-parte order against the firm, Vedanta said. The company is requesting an immediate meeting with Zambian president Edgar Lungu.

ZCCM-IH has been granted the order by a Zambian High Court, which has placed KCM under liquidation and given full control of KCM assets to a law firm.

The company has not received any formal communication from the government, it said on 20 May.

The insolvency plan for KCM comes amid escalating tensions between copper mining firms and the government over a new mining policy.

Zambia increased mining royalties and introduced new duties at the start of the year, prompting criticism from mining companies.