KCM says sale is best solution for Zambia copper producer

Konkola Copper Mines (KCM) said the debt it owes to the Copperbelt Energy Corporation (CEC) is a result of a lack of investment from its parent company, Vedanta Resources, and that the best solution is for it to be sold to another investor.

The Zambian copper producer, which Zambia's High Court ordered into liquidation last year, is 79.4% owned by London-listed Vedanta.
Since then, Vedanta has been actively defending its rights in both the Zambian courts and an international arbitration brought under a shareholders agreement. 
"The debt owed by KCM to the CEC is a direct consequence of the insufficient investment by Vedanta into KCM, which created a situation where the costs have remained at a higher level compared with the company's revenue," KCM said. 

"A company is only placed in provisional liquidation if it is unable to pay debts as and when they fall due. The placing of KCM in provisional liquidation is a step...

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