General counsel | Vedanta Zinc International
Hermien Uys
General counsel | Vedanta Zinc International
Team size: Six
What are the most significant cases and transactions that your legal team has recently been involved in?
The project in which I have immersed myself over the past couple of years involves the dispute between the Government of Zambia and Vedanta Resources over the Konkola Copper Mine (KCM) in Zambia. KCM is one of Africa’s largest integrated copper producers. The dispute began with a winding-up petition lodged by a government-controlled minority shareholder of KCM, which Vedanta opposed based on arbitration being the dispute resolution mechanism chosen by the parties in the shareholders’ agreement of KCM.
The Vedanta dispute with the Zambian state-owned mining company is a first-of-its-kind case. The arbitration was initiated in South Africa under the International Arbitration Act, which became operational in South Africa in 2017. A litigation and arbitration process that required working across jurisdictions, such as South Africa, Zambia, and the United Kingdom, was resolved when the Government of Zambia and Vedanta signed a new shareholders’ agreement for KCM on 6 November 2023 in Lusaka.
Vedanta Zinc International’s (VZI) zinc mines in the Northern Cape of South Africa are situated within one of the 36 recognised biodiversity hotspots in the world. Consequently, VZI is presently implementing a unique biodiversity offset agreement with the Northern Cape Department of Environment and Nature Conservation, under the guidance of the VZI Legal Department.
A further example of embedding ESG in our business practices is VZI’s engagement with its local communities, where we strive to meet the requirements of ‘meaningful consultation’ as mandated by Regulation 42 of the South African MPRDA regulations.
How do you see the general counsel role evolving in South Africa over the next five-ten years?
General counsel (GC) are not only legal advisors; nowadays, they also function as trusted allies in business, strategy, and governance. They provide advice to the CEO and hold positions on the Board, as is the case with my role at Black Mountain Mining. GCs play a crucial role in driving long-term goals and guiding the conscience and culture of the organisation.
We must be able to respond to increased pressure on legal costs while managing risk. This requires an understanding of what drives the cost base and influences the profit line of the business. Relationships with external lawyers are becoming increasingly important with the successful appointment of a panel of preferred legal advisors and the development of a close working relationship with these firms. This is key to saving time and money.
What are some of the key developments that have affected your business over the past year?
The social license to operate requires genuine collaboration with communities regarding our company’s Social and Labour Plans. Only when these plans yield measurable and impactful outcomes can we begin to make a positive contribution to alleviating poverty and addressing inequality in our local communities.