Vedanta v. Govt of Zambia - continued conflict

Thursday, 20 February, 2014

An interesting article here on Mines and Communities (ultimately, Bloomberg) with news of serious allegations against Vedanta Resources Plc's Zambian entity Konkola Copper Mines Plc.

According to Zambian VP Guy Scott, Konkola has removed "a lot of money" from Zambia and wants the government to assume its liabilities, which at USD1.5 billion+ are not negligible.

Scott is also concerned that Konkola is illegally keeping information from the government, failing to pay its debts or service its loans, and failing to pay other mining companies for copper concentrate.

"This is a matter of national importance," said Scott; and it comes on the back of a bit of previous with Konkola - whose Chief Exec had his work permit revoked at the end of last year after announcing imminent job cuts.

The full article covers the history of that to-do as well as the bones of a further tax dispute between Konkola and the government, which they’re suing over a USD $560 million tax charge on the export of copper cathodes. This one may run for a while.