Vedanta Resources slapped with $100m settlement

PUBLISHED: Tue, 20 Dec 2016 09:26:11 GMT

LUSAKA – Konkola Copper Mines (KCM), owned by Vedanta Resources, has been ordered by a London court to pay the Zambian government more than $100 million for a claim related to the copper price, a state-owned company involved in the dispute said.

The claim relates to outstanding payments under a 2013 copper price participation settlement agreement between KCM and Zambia Consolidated Copper Mines Investments Holdings (ZCCM-IH), the latter said late on Monday.

In June this year, ZCCM-IH filed the claim with the English High Court to recover over $100 million it said was owed to it from KCM in terms of the 2013 agreement.


“We now advise that ZCCM-IH has been successful in its application for default judgment. KCM has been ordered (on 16 December 2016) to pay all sums owed to ZCCM-IH,” the state company said.

“The total amount to be paid by KCM amounts to approximately $103 million. KCM has also been ordered to reimburse ZCCM-IH 80 percent of the costs it has incurred in pursuing its claim.”

A ZCCM-IH spokeswoman said the company and KCM planned to issue a joint press statement on Tuesday to give further details of the ruling.

(Reporting by Chris Mfula; Editing by Ed Cropley)

Sign Up for Our Newsletter Daily Update
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.