Zambia seeks out-of-court resolution with Vedanta over Konkola dispute

The Zambian government is seeking an out-of-court resolution to its dispute with Vedanta Resources Ltd. over the Konkola Copper Mines PLC operations, Reuters reported July 12 citing Paul Kabuswe, the country's minister of mines and minerals development.

Kabuswe instructed Zambia's state-owned mining investment company ZCCM Investments Holdings PLC to contact Vedanta's lawyers about a possible agreement, the official said in a press briefing.

Vedanta spokesperson Masuzyo Ndhlovu told Reuters that the minister's statement is a "welcome development."

In 2019, Zambia proceeded with the liquidation of Konkola after accusing Vedanta of violating an investment agreement. The move triggered a drawn-out court battle between Vedanta and Zambia. An international arbitration hearing is scheduled for January 2023.

In September 2021, Kabuswe criticized the liquidation of Konkola, signaling that the government would lessen its interference in the mining sector under the new administration.

Vedanta owns 79.4% of Konkola, and ZCCM Investments owns the remainder.

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