The High Court has appointed Milingo Lungu of Messrs Lungu Simwanza and Company as Provincial Liquidator for Konkola Copper Mines (KCM) following an application by ZCCM-IH.
According to the order, the provisional liquidator will among others things have the powers to carry on the business of the respondent so far as is necessary for the beneficial of the winding up, make any compromises or arrangements with creditors, make any agreement on all questions in any way relating to or affecting the company or its assets.
The liquidator will also take possession, custody and control of all the assets of the respondent and bring or defend any action or other legal proceedings in the name of or on behalf of the respondents, dispose of assets by public tender or the most transparent manner under the circumstances, sell the real or personal property and things in action of the respondent by public auction public tender or private contract.
And a high-powered government delegation has arrived in Chingola to take over operations at the troubled mine.
Part of the Presidential delegation assigned to institute the undertaking includes; Milingo Lungu of Messrs Lungu Simwanza and Company, Minister of Mines and Mineral Resources Richard Musukwa, Minister of Labour and Social Security Joyce Nonde-Simukoko, State House aides Amos Chanda (press), Kaizar Zulu (political affairs) and Hibeene Mwiinga (economic affairs). The Labour Commissioner is also part of the delegation.
Last week, President Edgar Lungu told KCM, whose parent company is Vedanta Resources, to pack and go for alleged failure to fulfil investment pledges, among other things.
But in a statement yesterday, KCM General Manager in charge of Corporate Affairs Eugene Chungu argued that Vedanta has invested more than US$3 billion to upgrade and expand company assets and yet it has not made any positive return on its investment.
Chungu although KCM management has heard media reports of a Government takeover of the mine, there has not yet being any formal communication from the Zambian authorities.