Vedanta Resources to challenge winding up of Zambian business in court

Vedanta Resources on Tuesday plans to challenge the appointment of a provisional liquidator and the intended winding up of its Zambian business without the chance to be heard through lawyers of its choice, documents filed in court show.

According to a notice filed in court on June 6, Vedanta wants to be represented by lawyers Nchito & Nchito and not those appointed by the provisional liquidator.

A court hearing following Zambia's decision to name the provisional liquidator to run Vedanta's Konkola Copper Mines (KCM) business was adjourned until Tuesday without tackling the company's demands to be involved, Vedanta said last week.

Vedanta Resources, part-owner of the Mumbai-listed Vedanta group of companies, is KCM's majority shareholder, while Zambian state mining company ZCCM-IH holds a stake of about 20 per cent.

Vedanta wants the court to determine "whether a confirmation of the provisional liquidator and the compulsory liquidation can be conducted without the company or its directors being heard through lawyers of their choice," the notice reads.

Vedanta also wants the court to determine whether the lawyers appointed by the provisional liquidator on its behalf can appear in court to represent it.

"It is illogical to expect that lawyers appointed by the provisional liquidator can oppose his appointment and present an independent case in opposition of the liquidation," it says.

Zambia's decision to name a provisional liquidator to run KCM, one of the country's biggest employers, has unnerved international miners concerned about rising resource nationalism in Zambia and neighbouring countries.

The Zambian government says KCM has breached the terms of its licence.

Vedanta CEO open to dialogue with Zambia, but says will defend KCM rights

Vedanta Resources is open to dialogue with the Zambian government but will defend its legal rights and opposes the appointment of a provisional liquidator at its Konkola Copper Mines business, the company's CEO said on Monday.

A court hearing involving Vedanta and Zambia over the control of KCM was adjourned on Friday until June 4.

The government is pressing for the liquidation of KCM, which it has accused of breaching its operating licence, in a case that has stoked broader concerns among international miners about a rise in resource nationalism.

"While Vedanta intends to fully defend its legal rights, we remain open to dialogue," CEO Srinivasan Venkatakrishnan said in a statement on Monday.

"We hope to meet with the Zambian government in the near future to discuss a mutually agreeable solution to the current situation as well as the broader challenges faced by KCM."

Vedanta Resources, partial owner of the Mumbai-listed Vedanta group of companies, is the majority shareholder of KCM.

It says Zambia is misusing corporate law by calling for the winding up of KCM on the basis of fairness and equity rather than on grounds of insolvency.

For now the provisional liquidator, who says business is continuing as usual at KCM, is in charge of day-to-day running of KCM.

Vedanta Resources raises $1 billion through bond issue to repay debt

Miner Vedanta Resources said on Friday it had raised $1 billion through a bond issue and would use the proceeds to repay existing debt.

The bonds, sold in two tranches, were issued through Vedanta's subsidiary Vedanta Resources Finance II plc and it attracted interest from global investors across Europe, North America and Asia, the company said.

India-listed Vedanta delisted from London last year but maintains a legal base in Britain. The decision was seen by some as a prelude to a potentially broader deal with bigger miner Anglo American Plc.

Credit Suisse (Hong Kong) Limited, J P Morgan Securities plc and Standard Chartered Bank acted as Joint Global Coordinators, Joint Lead Managers and Joint Bookrunners.