NEW DELHI (Reuters) – Global mining conglomerate Vedanta said on Friday its executives were unable to visit its Zambian Konkola Copper Mines (KCM) operation and engage with local management in a setback to efforts to ease tensions amid a legal battle with Zambia.

Vedanta is contesting the country’s decision this month to name a provisional liquidator to run Vedanta Resources’ KCM business. The government has accused KCM of breaching its operating licence, and legal proceedings have been adjourned until June 4.

Shares of Vedanta’s India-listed arm Vedanta Ltd were down 2.8 percent in late trade on Friday.

Vedanta Resources’ Chairman Anil Agarwal said on Thursday the company was working to comply with Zambia’s laws and tax requirements, adding that he did not understand why state-controlled minority shareholder ZCCM-IH had gone to court to seek the appointment of a provisional liquidator.

Zambia said on Thursday its decision to punish Vedanta’s local operation for what it said were breaches of environmental and financial regulations was a signal to other firms to follow the country’s laws.

Zambia has riled miners with tax changes they say will force them to withhold the investment Zambia needs.

KCM, one of Zambia’s largest employers, said it would raise output to 400,000 tonnes per year, but instead production has fallen because of technical issues as infrastructure has aged, as well as problems such as power outages.