Vedanta Initiates Funding and Strategic Plans for KCM in Zambia
Vedanta Resources has taken decisive steps towards revitalizing Konkola Copper Mines (KCM) by commencing funding and disbursing its first $25 million for employee salaries, contract labor, and essential services.
Masuzyo Ndhlovu, Director of Corporate Communications at Vedanta, issued an official statement detailing the company’s strategic plans.
A technical team from Vedanta has been deployed to collaborate with current management at KCM to assess the state of the asset. This initiative aims to ensure operational readiness for Vedanta’s takeover once the ongoing scheme of arrangement is concluded in court.
Upon reaching an agreement with creditors and the withdrawal of court cases, the KCM Provisional Liquidator will vacate her office, marking the end of the liquidation process.
Subsequently, the KCM Board of Directors will be reinstated or reappointed by Vedanta and ZCCM-Investment Holdings, the shareholders of the mine.
Following these developments, Vedanta intends to implement a 20% salary increment for all direct KCM employees and offer a once-off K2,500 award. Management will begin reporting to the Board of Directors for policy decisions.
Ndhlovu emphasized Vedanta’s commitment to Zambia and its people, aligning with the country’s vision of significantly increasing copper production to over 3 million metric tonnes annually within the next decade.
Discussions with the Zambian government have led to plans to invest $1.3 billion to modernize KCM and boost copper production from 70,000 to 300,000 tonnes annually in the medium term.
Vedanta’s business approach prioritizes sustainable, long-term returns for shareholders and value creation for stakeholders.
The company remains dedicated to the development of the Konkola Deeps Project and fulfilling its obligations, including a $250 million payment to local small suppliers and contractors, as well as proposed community development initiatives with an annual allocation of $20 million.
