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KCM to appeal against stay

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  • This follows the Court of Appeal’s order that Liquidation proceedings be stayed to allow the parties to proceed to arbitration.

By SILUMESI MALUMO
KONKOLA Copper Mine (KCM) will appeal to the Supreme Court the decision to stay liquidation proceedings, Provisional Liquidator Milingo Lungu has said.

This follows the Court of Appeal’s order that Liquidation proceedings be stayed to allow the parties to proceed to arbitration.
Mr Lungu said said in an interview yesterday that he would ensure that the liquidation case was followed to the letter.
“We shall definitely appeal to the Supreme. We want to ask the Supreme Court for stay of High Court ruling pending judgement,” Mr Lungu said.
Mr Lungu explained that the Court of Appeal had not discharged the Provisional Liquidator and that he remained with full powers as granted by the High Court of Zambia on May 21, last year.
“In view of this latest Judgment, Mr. Lungu wishes to update employees, business partners, the nation and all KCM stakeholders that the Court of Appeal has not discharged the Provisional Liquidator and he remains with full powers as granted by the High Court of Zambia on 21st May 2019,” he said.
Mr Lungu said operations of KCM would remain on course with production ramp-up being the key focus.
He said as provided for under Corporate Insolvency Act and powers granted to the Provisional Liquidator, he would continue to exercise the executive responsibility of running the company.
The KCM Executive Management Committee remains accountable to the Provisional Liquidator.
“I therefore, urge all employees to continue working normally, safely and remain steadfast in the pursuit to make KCM a great organization. Our stakeholders should also remain calm as we continue to work towards a common goal safely and increased production,” he said.
Vedanta Resources, the main shareholder in KCM has been locked in a dispute with the Zambian government since May last year. A liquidator was appointed to run KCM, which is 20 percent owned by Government through ZCCM-IH.
Zambia accused Vedanta of breaching the terms of its licence.
ZCCM Investment Holdings PLC asked the Lusaka High Court to grant them an order to appoint Milingo Lungu of Messrs Lungu Simwanza and Company as provisional liquidator of Konkola Copper Mines PLC.
This is according to an application for ex parte order appointing a provisional liquidator that was filed in the High Court on May 21.
According to the order filed by the ZCCM, the liquidator had been given powers to carry assets of KCM.
Mr Lungu was also given powers to defend any action or other legal proceedings in the name and or on behalf of the Respondent.

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