NEWS
2,500 Zambian Villagers to be Compensated by British Mining Company
AOver 2,500 villagers in Zambia
are to be financially compensated by a British mining company for significant water pollution to the region ’ s waterways . In a joint statement issued late last month , the villagers , represented by Leigh Day solicitors , and Vedanta Resources Ltd said : “ Without admission of liability , Vedanta Resources Limited and Konkola Copper Mines Plc confirm that they have agreed , for the benefit of local communities , the settlement of all claims brought against them by Zambian claimants represented by English law firm Leigh Day .”
The claim was brought by the thousands of locals — including 642 children , against Konkola Copper Mines Plc and its parent company , UK-based Vedanta Resources .
Severe Water Pollution Issued in 2015 , the claim centred on pollution caused by the Nchanga Copper Mine . A mine that employs 16,000 people in Zambia — the country ’ s biggest private employer , and sold a controlling share of its company in 2004 to Vedanta which is one of the largest mining companies in the world . The plaintiffs alleged that the pollution severely impacted the lives and the livelihoods of people living in nearby villages Shimulala , Kakosa , Hippo Pool and Hellen — where the primary source of income is farming and fishing .
It was also claimed that toxic effluent discharge from the mine damaged local land and waterways used for irrigation .
As a result , the use of polluted water for drinking , washing and bathing caused severe health problems in residents . The villagers sought damages , remediation and cessation to the alleged continual pollution that they say is gravely impacting the quality of their lives .
Accountability and Liability In a landmark ruling , Supreme Court judges ruled in April 2019 that the case could be brought against Vedanta in the English courts because — as the parent company of Konkola , the company arguably owed the villagers a duty of care .
Vedanta had published material asserting its responsibility for the establishment of group-wide environmental control and sustainability standards , and therefore it was decided that the company must be held accountable for such statements .
The Supreme Court agreed with arguments advanced by the plaintiffs that there was a real risk they would not be able to achieve justice in the Zambian courts due to lack of funding and legal expertise available .
It appears that more and more giant international companies are gradually beginning to be held liable for abusive operations in local African communities .
Zambian court denies Vedanta attempt to halt Konkola Copper Mines split
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Zambian court dismissed a motion by miner Vedanta Resources ’ seeking to stop a state-appointed provisional liquidator from splitting up its Konkola Copper Mines ( KCM ) unit and selling the assets . The ruling is a blow to the Indian-owned mining company which has said it would fight any attempt by Zambia to sell KCM to third parties .
SmelterCo Limited and Konkola Mineral Resources Limited , effective Feb . 1 .
“ The ex parte Order of Injunction dated 18th January 2021 is , accordingly , discharged forthwith ,” she wrote in the ruling . The ruling awarded costs to the defendants ( the provisional liquidator and KCM ) and denied leave to appeal .
Vedanta has been locked in a protracted dispute with the Zambian government since May 2019 , when the Zambian government , which owns 20 % of KCM through state mining investment firm ZCCM-IH , handed control of the mine to a liquidator . Judge Winnie Sithole- Mwenda discharged a Jan . 18 injunction order which Vedanta had sought to restrain Provisional Liquidator Milingo Lungu from splitting KCM and selling the assets .
Lungu has previously said asset disposal is KCM ’ s last remaining option .
Lungu said the order that instated him as provisional liquidator set out powers including the ability to split and sell the company . In a restructuring announced in December , Lungu said KCM would be split into two subsidiary companies : KCM
Vedanta and Zambia are still in arbitration proceedings in London over the KCM dispute , which began when the government accused Vedanta of failing to honour licence conditions , including promised investment .
Zambia ’ s Court of Appeal in November ordered a halt to KCM liquidation proceedings , to allow Vedanta and ZCCM-IH to proceed to arbitration . ZCCM-IH is appealing that ruling .
www . fmdrc-Zambia . com 3