Zambia is a poor example of how to treat mining investors
High Court in Joburg has to step in to handle spat between Vedanta Resources and Zambian government
A strange battle is playing out in Zambia over Konkola Copper Mines. It has come to court in Johannesburg as India’s Vedanta and the Zambian government wrestle for control of the assets.
The forced liquidation process of Konkola is odd. The Vedanta subsidiary is backed by the government, and was launched by ZCCM Investment Holdings, the state-owned mining company that holds a 20% stake in the mines.
It is also deeply damaging for investor perceptions of Zambia as a copper mining investment destination despite the enormous latent potential mineral wealth...