Vedanta Considers Sale of Minority Stake in Zambian Copper Assets to Fund Restart of Konkola Copper Mines

Vedanta Base Metals CEO, Chris Griffith, revealed plans last week to explore various financing options to secure funds for the revival of its Konkola Copper Mines (KCM) unit in Zambia.

Among these options is the potential sale of a minority stake in KCM, as part of efforts to raise $1.3 billion for the project.

Griffith clarified that Vedanta would maintain its majority shareholding in KCM even if a minority stake is sold. The company currently owns 80% of KCM, with the Zambian government holding the remaining 20% through state-owned entity ZCCM-IH.

Following Zambia’s agreement last September to return control of KCM to Vedanta, ending a dispute over ownership that began in 2019 with the seizure of the mines by Zambian authorities, Vedanta aims to resume operations at the heavily loss-making assets.

Griffith outlined Vedanta’s intention to significantly increase copper output at KCM’s mines, potentially reaching 200,000 tons after assuming operational control. 

Despite committing to invest approximately $1 billion over five years in KCM’s operations, Vedanta plans to raise financing in stages, depending on the deal’s structure.

The CEO emphasized Vedanta’s readiness to execute its revitalization plan for KCM upon regaining control, underscoring the company’s commitment to restoring the mines to profitability. 

Griffith’s remarks reflect Vedanta’s strategic approach to navigate the challenges faced since the liquidation of KCM in 2019, as the company seeks to revitalize its operations and contribute to Zambia’s copper sector.

With Vedanta’s proposed investment poised to inject new life into KCM’s operations, stakeholders await further developments as the company progresses with its funding initiatives and plans for the future of the Zambian copper industry.

Additional source: Copperbelt Katanga Mining