Vedanta nears final takeover of Konkola Mine, reports indicate


Vedanta Resources is reportedly on the verge of taking back control of the Konkola copper mine in Zambia, with plans to quickly ramp up output as demand is expected to surge in the coming years.

According to a report seen by Zambia Monitor on Friday, the firm was ready to pay US$250 million to settle debts owed by the mine to regain access to the asset.

Konkola Copper Mines (KCM) went into provisional liquidation in 2019 after the previous government accused its owner of lying about expansion plans and paying too little tax.

“We think we are now literally weeks away from getting the asset back,” Chris Griffith, who runs Vedanta’s base metals unit, said in an interview in London.

Griffith described Konkola as one of the world’s prime and premier copper mining assets, poised to return at a time when the world needs copper.

Before Vedanta can return to Konkola, a Zambian court needs to approve the deal backed by creditors.

Read more: advocacy-group-urges-stakeholders-to-allow-govt-vedanta-resources-conclude-kcm-transaction-deal

If sanctioned, Vedanta would release the US$250 million to settle some debts accrued since the liquidator was appointed.

“The money is ready to flow,” Griffith said, adding it would be “premature” to specify how his firm is raising the funds.

Vedanta and the current administration resolved the Konkola impasse in September, last year with the company agreeing to spend about US$1.3 billion on the asset, which is capable of producing more than 300,000 tonnes of metal a year.

Beyond paying down the debt, Vedanta has committed to investing US$1 billion over five years to complete expansion projects.

The company is also looking to sell a minority stake in Konkola to finance the development. International Resources Holding (IRH), the mining unit of Abu Dhabi’s largest listed company, which recently acquired another large Zambian copper project, is said to be one of the firms in discussions about acquiring shares.

WARMING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.

Toyota to launch self-driving electric SUVs in China, as firm struggles with fifth position in car sales

Previous article

Bank of Zambia to maintain tight monetary policy amid rising inflation

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Economy