Vedanta Resources is seeking to provide around $1 billion in financing to expand and increase production at its Konkola Copper Mines (KCM) in Zambia. Chris Griffith, head of the company's base metals unit, stated at the Mining Indaba conference that this funding will be used to expand the mine's capacity. Vedanta was previously considering selling at least 30% of its 80% stake in KCM. However, Griffith indicated that this is now unlikely and that the company is looking at other financing options while retaining its stake.
Vedanta intends to use the funding to increase annual copper production at KCM to 300,000 metric tons over the next five years. The company regained control of the mine in 2024 after lengthy legal proceedings. The Zambian government holds a 20% stake in KCM through the state-owned investment company ZCCM-IH. Last year, United Arab Emirates-based International Resources Holding withdrew its offer to acquire a 51% stake in Vedanta due to disagreements over the value of assets.
Vedanta, which has recently strengthened its financial structure, has restructured its debts and is now in a better financial position. Griffith stated that the necessary financing has been secured to pay off short-term debts and the company is now focused on its long-term growth plans. Vedanta is evaluating various borrowing options to increase production and expand its operations.
Comments
No comment yet.