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Zambian court blocks asset sale by Konkola Copper Mines liquidator

An aerial view shows the Konkola mine in Chililabombwe,500km (300miles) north of the capital Lusaka, Zambia. PHOTO BY REUTERS/SALIM HENRY

27/06/2019

LUSAKA (Reuters) - Vedanta Resources said on Thursday a Zambian court has issued an order halting any move by the provisional liquidator of its Konkola Copper Mines (KCM) business to dispose of KCM's assets or make arrangements with its creditors.

Zambian state mining company ZCCM-IH holds about 20% of KCM, while Vedanta Resources, part-owner of the Mumbai-listed Vedanta group of companies, holds a majority.

Zambia's dispute with Vedanta began in May when the government of Africa's second biggest copper producer appointed a liquidator to run KCM, saying it had breached its licence. Vedanta Resouces has denied this is the case.

China's Nonferrous Metals Mining Corporation (CNMC), commodities trader ETG Group and a Turkish firm have expressed interest in buying a stake in KCM, a senior government source said last month, on condition of anonymity.

The government source said CNMC had offered $2 billion for KCM, adding there had also been talks with ETG Group, a diversified commodity trader active across Africa.

(Reporting by Chris Mfula in Lusaka and Tanisha Heiberg in Johannesbug; Editing by Jan Harvey)