Zambia: Govt. accuses mining company of underpaying taxes and breaking investment promises
Author: Cecilia Jamasmie, Mining.com, Published on: 10 February 2020
‘Vedanta row escalates, minister calls company criminal’ 6 February 2020
Zambia has escalated its attacks on miner Vedanta, owned by Indian mining magnate Anil Agarwal, saying the company has been involved in criminal activities, including underpaying taxes and breaking investment promises. “Zambia is a victim and it needs support,” mining minister Richard Musukwa told delegates at African Mining Indaba in Cape Town, the continent’s largest gathering of professionals from the resource extraction sector. “We deserve African and international support to make sure Vedanta pays the price.”
…At the time, Zambia accused KCM — the country’s largest copper operation — of breaching the terms of its licence and owing money in unpaid taxes, charges the company has denied and is fighting through international arbitration.
Additionally, a landmark suit against Vedanta involving almost 1,900 Zambian villagers got underway this week. The group, who is suing the miner for environmental damage allegedly caused by KCM, will have to prove that the company can be held responsible for the actions of its Zambian subsidiary. They will also have to bring KMC to the proceedings, which could be difficult as, at least provisionally, the company is not connected to Vedanta.
Related companies: Vedanta Resources