Mimbula Minerals Limited and Moxico Resources Zambia PLC have asked the Lusaka High Court to stay the interim injunction granted to the board of Konkola Copper Mines (KCM) and Vendata Resources Holdings Limited, restraining Provisional Liquidator Milingo Lungu from selling the mining rights areas.
The two companies have argued that they will suffer huge losses as a result of the ex-parte order of interim injunction that was granted in favour of the KCM board and Vedanta, which put a halt to it’s intended operations despite there currently being no competent cause of action against them.
In this matter, the KCM board and Vedanta Resources Holdings Limited have sued Lungu in his capacity as Provisional Liquidator of KCM, Rephidim Mining and Technical Suppliers Limited, Mimbula Minerals Limited and Moxico Resources Zambia PLC, seeking among other claims, an injunction restraining Lungu whether by himself or his agents from taking any action to effect or perfect the sale of Lot 694/M to the other defendants.
But Mimbula Minerals and Moxico Resources have filed an affidavit in support of ex-parte summons for an order for stay of Vedanta’s action and the exparte order of injunction pending hearing and determination of an application by them and Moxico Resources’ to dismiss the matter for irregularity and incompetence.
They have stated that the defendants have prospects of success of the application to dismiss the matter for irregularity and being incompetently before court.
Stephen Brice, a director of Mimbula Minerals and Moxico Resources companies, stated that on November 28, Vedanta and the KCM board commenced the action against the defendants, claiming among other things, an order setting aside the consent order dated September 10, 2019 under appeal number 74/2018 and an order of injunction restraining three mining companies whether by themselves from enforcing the consent order in the said appeal until final determination of the matter and that the defendants be restrained from entering and remaining on Lot number 694/M Chingola Zambia.
He stated that a consent order was entered into by KCM, through its provisional liquidator as the proper owner of the surface rights in respect of Lot number 694/M Chingola on one hand and Rephidim Mining, Mimbula Minerals and Moxico Resources on the other hand.
Brice stated that the provisional liquidator was given power by the court to dispose KCM assets by public tender or the most transparent manner under the circumstances to sell real and personal property and things by public auction or private contract.
He stated that KCM wholly discontinued all further proceedings in this matter against its provisional liquidator and Rephidim Mining, Mimbula Minerals and Moxico Resources.
Brice further stated that KCM used to be the owner of the surface rights of Lot 694/M, the asset that was sold or disposed of by way of a consent order, adding that it is the said sale of the surface rights of the said property by KCM to Mexico Resources that KCM was challenging under the guise of setting aside the consent order that disposed of the said asset.
He stated that the said asset belongs to KCM and only KCM has the capacity to sue if the consent order was in issue.
“Following KCM’s discontinuance of the action, the cause of action has wholly fallen off against the defendants as KCM was a proper owner of Lot 694/M, a subject matter in this action. Vedanta did not seek leave to commence an action against the defendants and cannot enforce it’s rights as a shareholder in KCM, a mining entity, as it is not locally registered in Zambia,” Brice stated.
He further stated that Vedanta had no cause of action against the defendants as it was merely riding on KCM, a former owner of Lot 694/M, and that KCM had discontinued the action wholly against the defendants.
Brice stated that Mimbula and Moxico had invested huge amounts of money which cannot be compensated by Vedanta as KCM was undergoing liquidation due to its inability to pay debts or it’s creditors under cause number 2019/HP/0761 in the High Court of Zambia.
He stated that Mimbula and Moxico Resources shall suffer huge losses as a result of the ex-parte of interim injunction that was granted in favour of KCM and Vedanta, which put a halt to it’s intended operations despite there currently being no competent cause of action against them.