Vedanta Holdings Deposits $245.75 Million for Full Control of Konkola Copper Mines
Friday, 19th July 2024, Lusaka, Zambia – Vedanta Resources Holdings Limited (“VRHL” or “Vedanta Holdings” or “Vedanta”) yesterday confirmed the deposit of USD 245.75 million into an escrow account designated by the Hon. High Court of Zambia.
This critical financial move paves the way for the imminent reinstatement of the Board of the Konkola Copper Mines (KCM) and the return of full management control to Vedanta.
This transition will enable Vedanta to take the necessary steps to allow KCM to operate at its full potential, thereby contributing significantly to Zambia’s resurgence as a major copper-producing nation.
The Konkola Copper Mines boast one of the world’s largest deposits of high-grade copper, along with substantial cobalt reserves. Both minerals are expected to play an increasingly vital role in the global energy transition in the years ahead.
Reinforcing Vedanta’s commitment to KCM and Zambia, Chris Griffith, Chief Executive Officer of Vedanta Base Metals, stated:
“We are delighted to confirm the transfer of funds into a designated escrow account as per our earlier commitment. Vedanta is committed to Zambia and the Zambian people.
We are confident that with the full support of the government and other key stakeholders, we will soon be able to help KCM reach its full potential, both as a world-class copper and cobalt asset that is well equipped with a smelter and a robust Tailings Leaching Plant, and as a growth engine for the robust social and economic development of Zambia.”
Zambia aims to produce 3 million metric tonnes of copper over the next decade. The infusion of funds will have a transformative impact on the country by revitalizing local economic activity, creating jobs, and supporting local businesses and communities through sustainable initiatives that promise a brighter future for generations of Zambians.
The funds in the escrow account will be utilized for the following purposes:
-Settling creditor claims, including those of Class 2 creditors.
-Supporting local community development projects through the Community Trust.
-Providing a one-off employee bonus to KCM employees.
This payment follows Vedanta’s facilitation of the signing of five landmark collective agreements between KCM and its workers’ unions, underscoring the importance of a positive and collaborative relationship at the Konkola Copper Mines.
Vedanta remains fully committed to partnering with the government, ZCCM Investments Holdings (ZCCM-IH), and the local community to deliver on a shared roadmap of progress and economic goals. The future of Zambia’s copper industry looks promising with Vedanta’s continued support and investment.
