Just when it seemed like the provisional liquidator and his team were about to hit a concrete wall in their bid to have KCM be split into two subsidiary companies under two separate management, the high court of Zambia has come through for them.
‘Plot twist’ as some would put it. Late last year the Chief Executive Officer of KCM, Enock Mponda, in a management brief announced plans by the provisional liquidator, Mr. Milingo Lungu, to restructure and reorganise KCM into two separate subsidiary companies, namely KCM SmelterCo Limited and Konkola Minerals Resources Limited. Upon having knowledge of these plans, Vedanta Resources Holdings and others (VEDANTA), sought for an injunction in the courts of law to halt the planned restructuring and reorganisation of KCM before arbitration matters were concluded, and they were granted. For a moment, the injunction in favor of Vedanta seemed like a huge blow to the plans Mr. Milingo Lungu had.
The commencements of operation of the two subsidiaries were slated to be on the 1st February 2021. And just on time for the provisional liquidator, on 01/02/2021, Vedanta suffered a major setback in their case as Judge W.S. Mwenda dismissed the court case commenced by Vedanta and further discharged the injunction which was commenced on 18th January 2021.
According to the statement issued by KCM management, the court ruled that the costs of the case will be incurred by Vedanta. Therefore, the court ruling now means, the restructuring and reorganisation of the company which was announced by the provisional liquidator, Mr. Milingo Lungu, will now proceed without any difficulties. The publication by KCM also states that letters of employment will be distributed and that employees who receive those letters will have to respond by end of business day on 02/02/2021.
The publication by KCM management concludes by encouraging employees and business partners that the spirit, of restoring KCM’s technical health is still alive, and that it is the provisional liquidator’s and the management’s key objective. “In restructuring KCM, it is the provisional liquidator’s and Management’s considered view that this will increase efficiency and business opportunities, as well as asset and resource optimization”, stated KCM CEO.