Tag Archives: Supreme Court

Zambian government ‘divorces’ Vedanta

Miners unions demonstrate in Chingola in support of the government’s decision

28th June 2019. On the 20th of May, following weeks of protests and riots which had briefly brought tanks into Chingola, Zambia’s President – Edgar Lungu – announced his government’s intention to liquidate Konkola Copper Mines in order to ‘divorce’ Vedanta Resources as the majority shareholder and seek a new investor.

Miners and residents of Chingola in the Zambian Copperbelt had taken to the streets in anger about unpaid wages and conditions at KCM, despite being denied a police permit applied for by Nchanga Member of Parliament Chali Chilombo to stage a peaceful protest. This was the culmination of negative public opinion which had been building up against KCM for many years, and especially since mass layoffs of employees in 2013 and 2015 and outsourcing of labour.

In his announcement president Lungu accused KCM of breaching its operating licence and said the government’s decision to punish Vedanta’s subsidiary for breaches of environmental and financial regulations was a signal to other firms to follow the country’s laws.

Milingo Lungu (front right) takes over KCM

On 21st May provisional liquidator Milingo Lungu of law firm Lungu, Simwanza & Company was appointed by ZCCM-IH (Zambia Consolidated Copper Mines – Investment Holdings, the government’s mining investment arm which owns 20.6% of KCM), at Lusaka High Court with power to take over the running of the mine and deal with all company matters.

Later that day various mine workers’ unions including the Mineworkers Union of Zambia, alongside other miners, ex-miners and residents of Chingola and Chililabombwe held a historic demonstration in the streets of Chingola in solidarity with the government’s decision.

In a press statement on 21st May Minister of Mines Richard Musukwa cited the layoff of employees, the indebtedness of KCM, vast unpaid bills to contractors and suppliers, and failure to invest in and develop its mining assets as reasons for KCM’s liquidation, saying the extreme action was taken ‘to make KCM viable’.

Continue reading

Landmark jurisdiction case won by Zambian farmers at Supreme Court

The Supreme Court today announced its verdict in the landmark case of the Zambian communities consistently polluted by Konkola Copper Mines (KCM), a subsidiary of British miner Vedanta Resources Plc, allowing them to have their case against the parent company and its subsidiary tried in the UK. The ruling sets a strong legal precedent which will allow people with claims against subsidiaries of British multinationals to sue the parent company in the UK.

The judgment by Chief Justice Lady Hale, and four further judges, re-affirms the rulings of the Court of Technology and Construction in 2016 and the Court of Appeal in 2017. Lady Hale refused Vedanta’s pleas in appealing the former judgments stating that, contrary to the claims of Vedanta’s lawyers:

  • the claimants do have a bona fide claim against Vedanta
  • the company does owe a duty of care to the claimants, especially in view of the existence of company wide policies on environment and health and safety.
  • that the size and complexity of the case, and the lack of funding for claimants at ‘at the poorer end of the poverty scale in one of the poorest countries of the world’ means that do not have substantive access to justice in Zambia.

See coverage at:

BBC – Court rules Zambians can seek compensation for pollution

Financial Times – UK Supreme Court rules Zambians can sue miner Vedanta

The Hindu – Zambian villagers get court’s nod to sue Vedanta

The Guardian – Zambians can pursue mining pollution claim in English courts

The Lusaka Times – Landmark Jurisdiction case won by Zambian farmers at Supreme court

Adivasi Resurgence – Zambian villagers win the right to sue Vedanta for pollution in UK court

Afrik 21 – Vedanta to be sued in London for pollution by Zambian subsidiary

Continue reading