News

5 June 2019

The Supreme court of Zambia issued a verdict regarding the company Konkola Copper Mines

Earlier it was reported that the government of Zambia and Vedanta Resources conflict. Indian group owns a local company, Konkola Copper Mines. It is the largest copper mining company in the state. In the end, the Supreme court of Zambia made the decision to eliminate it. In addition, it should be placed under interim management. Control over it will take law firm Lungu Simwanza and Company. Interestingly, as the plaintiff was made by the state company ZCCM-IH. She owns 20.6% of shares in Konkola Copper Mines. But in fact, the initiator was the Zambian government.

As explained by the President of the country, the nationalization of enterprises will not. It is expected that it will be just another investor. He will have to buy the assets of the Vedanta Resources. Of course, this will take place under compulsion. With regard to the Konkola Copper Mines, it is also waiting for the change. First of all, it will lose the license for mining. Currently, the company consists of six companies. We are talking about two open copper mines. There are also three concentrator. In addition, there is another smelter. Its capacity is more than 310 thousand tons of refined copper. As it processes its own raw materials and concentrate in other companies.

We will remind, the Vedanta and the Zambian government began to clash in the beginning of the year. At that time began to operate, further changes in the tax laws. So, significantly increased the amount of royalties and other payments. It refers to those that involve foreign companies in the country. The government intends to increase the country’s share of the income from the extraction of minerals.

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