International Holding Company eyes Konkola Copper Mines

International Holding Company is eyeing Konkola Copper Mines in Zambia. Konkola Copper Mines (abbreviated to KCM) is a copper mining and smelting company in Zambia majorly owned by Vedanta Resources, a mining conglomerate based in Mumbai and London.

With an offer exceeding $1 billion for a 51% stake in Konkola Copper Mines (KCM), IHC’s mining unit, International Resources Holding (IRH), is aiming to solidify its presence in the African copper market. Before this offer, IRH acquired a 51% stake in Mopani Copper Mines for $1.1 billion and is reportedly interested in bidding for a stake in Lubambe Copper Mine. This expansion aligns with IHC’s ambition to establish an African copper mining empire.

Deal

Vedanta has initiated plans to sell part of its 80% stake in KCM to raise capital. Standard Chartered has been hired to facilitate this process, seeking investors interested in buying a minority interest in KCM. However, IRH desires a controlling stake, highlighting its preference for an active role in the management of acquired assets rather than passive investment.

Vedanta’s move to sell part of its stake in KCM comes after a legal battle with the Zambian government, which resulted in Vedanta regaining control over its assets. Vedanta aims to raise $1 billion for investment in these assets over the next five years and an additional $300 million to clear local creditors. Despite the potential attractiveness of the copper market due to rising prices, challenges such as groundwater removal at Konkola Deep underground operation may pose obstacles to potential investors.