By Alex MacDonald

 

LONDON--India-focused Vedanta Resources PLC (VED.LN) is challenging the jurisdiction of a legal case filed at the U.K. High Court by Zambian villagers who claim the miner has polluted their water for more than a decade causing them to fall sick and lose crops.

The legal case was first filed with the U.K. High Court in August by law firm Leigh Day and is due to be heard by the U.K. High Court on Tuesday for a three-day period, according to the law firm.

Leigh Day says Vedanta, the U.K.-based holding company of majority-owned Zambian copper unit Konkola Copper Mines PLC, is arguing for the case to be heard in Zambia since the claims have been made by Zambians for damage caused in that country.

Leigh Day, acting on behalf of the 1,826 villagers who are members of four artisanal farming communities in Zambia's copperbelt region, said the claims should be tried in British courts because the parent-company is U.K.-based and it was aware of the unit polluting local water sources as far back as 2004.

"The claimants are desperately poor Zambians who are anxious to be compensated for all the losses and harm they have suffered as speedily as possible," said senior Leigh Day partner Martyn Day. "It is clear that justice is far more likely to be achieved quickly and efficiently by the cases staying in this country."

Vedanta Resources declined to comment on the legal case.

Vedanta's shares were up 1.3% at 356 pence a share as of 1518 GMT, resulting in a market capitalization of GBP1.33 billion or $1.37 billion. Vedanta's shares have fallen 31% over the past year due to the continued commodities price rout and fears over its ability to service its hefty debt burden.

Standard and Poors downgraded the firm's debt further into junk status in February, with the potential for further downgrade, but took the firm off Creditwatch Negative last week after determining the company had arranged adequate funding and secured amendments on certain covenants.

Vedanta on Monday reported mixed output for its fourth financial quarter ended March 31, 2016, and said it's reviewing the value of its assets for potential impairments, particularly in oil and gas, after a protracted rout in commodity prices.

 

Write to Alex MacDonald at alex.macdonald@wsj.com

 

(END) Dow Jones Newswires

April 11, 2016 11:56 ET (15:56 GMT)

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