UAE’s IRH Withdraws Bid to Acquire Stake in Vedanta’s Zambian Copper Mines
International Resources Holding (IRH), a subsidiary of UAE’s International Holding Company (IHC.AD), has announced the withdrawal of its bid to acquire a 51% stake in Vedanta Resources Ltd’s Zambian copper mines.
The decision comes after unsuccessful negotiations over asset valuation, according to a report by Reuters.
IRH had initially proposed to invest over $1 billion to acquire the stake in Konkola Copper Mines (KCM), aiming to bolster its copper assets in Zambia following its recent acquisition of a 51% stake in Mopani Copper Mines.
However, discrepancies in the valuation led to the termination of discussions two months ago.
“IRH terminated the transaction discussions two months ago due to discrepancies in valuation,” IRH stated in an emailed message to Reuters.
The UAE, along with Saudi Arabia, is strategically seeking critical metal supplies from Africa to support their green energy transition. The move was part of a broader effort to secure essential resources for sustainable energy projects.
Vedanta, which owns 80% of KCM, has been looking to sell a stake in its Zambian copper mines to raise approximately $1.2 billion. The funds are intended for debt settlement, operational revival, and investment in the Konkola Deep Mining Project.
“We remain committed to exploring funding options aligned with KCM’s best interests,” a Vedanta spokesperson said, declining to comment on ongoing negotiations.
The withdrawal represents a setback for IRH’s expansion plans in Zambia’s copper sector amidst global shifts towards sustainable energy sources.
The outcome leaves Vedanta continuing its search for viable investors to support its operational and financial goals.
Source: CopperbeltKatangaMining
