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Anil Agarwal’s Vedanta Resources has reportedly contracted in the global EPCM major Worley for project management to raise US$1 billion for the revamping of operations at Konkola Copper Mines (KCM) in Zambia.
According to a news report by The Hindu Businessline on Monday, Worley, an Australia-based engineering, procurement, and construction management player, will also “engage with international experts” for backwards integration and identifying partners for critical mineral extraction projects.
Plans are also said to be underway to build an additional tailings processing plant to enhance copper recovery from tailings, marking a strategic step towards improved resource efficiency and environmental sustainability.
Vedanta intends to scale up production at KCM and is planning an investment of US$1 billion but has yet to raise the money since the out-of-court settlement was reached with the Zambian government after a long liquidation battle.
Sources said the company could look at a possible US public listing for its Zambian unit (KCM), among “other financing options”, as it looks to raise approximately US$1 billion for mine development.
Talks are reportedly on with a couple of investment bankers too, these sources said, adding that New York is amongst the probable listing options.
The Zambian copper asset is believed to be one of the largest high-grade mines in the world.
Vedanta, sources said, is putting plans in motion to increase output at KCM to 300,000 tonnes annually upon the completion of this US$1 billion investment.
A Vedanta spokesperson confirmed onboarding the international entity.
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“Vedanta Resources has recently signed on international firm Worley to work as its extended project office that will engage international experts to deliver projects at KCM.
“The primary objective of Worley is to identify and engage the most suitable partners to deliver benefits from backwards integration,” the spokesperson told businessline.
Worley – with a near US$11,616 million turnover in FY24 – is amongst the major global players and is a publicly traded company.
Nearly a year back, Vedanta Resources Holdings Limited, the diversified global mining, metals, natural resources, energy and technology conglomerate, secured control of KCM.
It paid $271 million in line with its commitment under the KCM shareholders agreement, which allowed reinstatement of the Board of Directors of the KCM and the return of full management control to Vedanta.
This was the necessary first step before Vedanta ramped up production.
A Vedanta spokesperson said the company intends to “unlock greater value from Zambia’s rich copper and cobalt deposits”. Both copper and cobalt are critical minerals.
KCM has more than 16 million tonnes of contained copper resources, with an average copper grade exceeding 3 per cent and a projected mine life of around 50 years.
KCM also has more than 400,000 tonnes of cobalt resources.
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