Zambian gov't wants to place Indian-run mining firm under receivership

Source: Xinhua| 2019-05-21 23:38:25|Editor: yan
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LUSAKA, May 21 (Xinhua) -- Authorities in Zambia on Tuesday asked a court to grant the government an order to appoint a provisional liquidator for Konkola Copper Mines (KCM), a unit of India's Vedanta Resources.

In an application filed on Tuesday in a high court in Lusaka, the country's capital, the Zambia Consolidated Copper Mines (ZCCM), an entity that holds shares in all mines on behalf of the government, said it was applying for an ex parte order appointing a provisional liquidator.

The mining firm has come under attack for failure to run the Zambia operations, resulting in problems such as failure to pay suppliers and contractors.

Last week, President Edgar Lungu said the government has had enough of the Indian investors and would seek disengagement, adding that the investor has taken the country for a ride for a long time.

On Monday, Presidential Spokesperson Amos Chanda confirmed that the government will strip the mining firm of its mining license and bring a new investor following a number of breaches of the terms of the license.

The spokesperson said a number of investors are ready to take over the operations of the mine.

The government has asked the police to station officers in all the mine's operations to avoid stripping of assets.

Eugene Chungu, the mining firm's manager for corporate affairs, said the firm wants to continue engaging the government in a constructive and transparent manner.