The Vedanta, Zambia row has escalated, with the latter accusing the mining firm of being involved in criminal activities, including underpaying taxes and breaking investment promises. The Mining Minister Richard Musukwa, speaking during the just completed Mining Indaba, called for both International and African support in the matter.
In May 2019, the Zambia Consolidated Copper Mines Limited (ZCCM), the government mining vehicle sought liquidation of the mining firm. At the time, Zambia accused KCM — the country’s largest copper operation — of breaching the terms of its licence and owing money in unpaid taxes. Vedanta has since denied that charges and moved on to international arbitration.
The conflict is also putting Zambia at a disadvantage in terms of investment. This is because soon after seizing control of the mine with a productive capacity of about 100,000 tonnes of copper, Zambia had interested buyers, including China Nonferrous Metals Co. and Eurasian Resources Group. However, these have since pulled out.
Additionally, a landmark suit against Vedanta involving almost 1,900 Zambian villagers got underway this week. The group, who is suing the miner for environmental damage allegedly caused by KCM, will have to prove that the company can be held responsible for the actions of its Zambian subsidiary.
They will also have to bring KMC to the proceedings, which could be difficult as, at least provisionally, since the company is not connected to Vedanta. According to media reports, a ruling in Zambia’s favour would be a breakthrough that will likely set a precedent that will have consequences beyond the UK.
