Vedanta regains control of the Konkola Copper Mines in Zambia

Vedanta Resources has regained control of the Konkola Copper Mines in Zambia after about five years. The firm confirmed a settlement with the Zambian government, where Vedanta agreed to clear debts owed to KCM’s creditors through a court-approved plan.

KCM, known for holding one of the world’s largest high-grade copper deposits and significant cobalt reserves, had been placed into provisional liquidation due to accusations by the previous government that Vedanta misrepresented its expansion plans and underpaid taxes.

Imminent reinstatement

Vedanta made a substantial payment of about $246 million to creditors, clearing the way for the “imminent reinstatement” of KCM’s board and the return of full management control to Vedanta. The company is now poised to revitalize the mines with plans to increase copper production to 300,000 tons per year and cobalt output to 6,000 tons annually. Chris Griffith, CEO of Vedanta Base Metals, expressed confidence in transforming KCM into a world-class copper and cobalt asset, citing the existing smelter and robust tailings leaching plant as key facilities for this turnaround.

Anil Agarwal, Vedanta’s chairman, aims to reduce the parent company’s substantial debt and has pledged a $1 billion investment into KCM. This investment is expected to double copper production, potentially boosting Zambia’s copper output, which is projected to reach a 14-year low in 2023.

KCM comprises of open pit and underground mines, concentrators, a state-of-the-art smelter, a tailings leach plant and a refinery. It is the only mining company in the country that has operations in four locations, including Chingola, Chililabombwe, Nampundwe and Kitwe, playing a key role in the communities around these mining areas.