Vedanta Resources Ltd., run by Anil Agarwal, said it’s seeking international arbitration to resolve a dispute with the Zambian government about its copper assets in the country.
Zambia’s government this month started liquidation proceedings against Vedanta’s Konkola Copper Mines, after accusing Vedanta of lying about expansion plans and paying too little tax. The company says it is a “loyal investor” that’s spent more than $3 billion in the country since 2004.
Vedanta Chief Executive Officer Srinivasan Venkatakrishnan and Deshnee Naidoo, a company executive, on May 29 met Zambian state representatives in the capital, Lusaka, to discuss the dispute. The company was given the assurance that the government has not entered into any sale agreements with other parties regarding Konkola, according to the statement.
On Thursday, Richard Musukwa, Zambian Mines Minister said the dispite with Konkola “an isolated case” that should not be used to damage the southern African nation’s image.
Also said in a statement, “the case should instead be used as a signal to other mining companies not complying with the law to put their house in order.”
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