Vedanta Resources Initiates Funding and Transition Plans for Konkola Copper Mines in Zambia
Vedanta Resources, a global natural resources company, has commenced financial support for Konkola Copper Mines (KCM) in Zambia, with an initial disbursement of $25 million allocated for employee salaries, contract labor, and critical services to uphold the asset’s integrity.
The company has deployed a technical team to collaborate with KCM’s current management to assess the condition of the operation, ensuring readiness for operations under Vedanta’s control pending the conclusion of the ongoing scheme of arrangement before the court.
Upon agreement with creditors and the withdrawal of court cases, the provisional liquidator overseeing KCM will vacate her position, effectively concluding the liquidation process and transitioning the company to Vedanta.
Once this transition occurs, the KCM board of directors will be reinstated or reappointed by Vedanta and ZCCM-Investment Holdings, the mine’s shareholders.
Subsequently, Vedanta plans to implement a 20% salary increase for all direct KCM employees and provide a one-off ZK2,500 across-the-board award. Management will report to the board of directors for policy decisions.
Vedanta reaffirms its commitment to Zambia’s copper production goals, aiming to invest $1.3 billion in expanding and modernizing KCM to increase copper production from 70,000 to 300,000 metric tonnes annually.
Furthermore, the company pledges to support the Konkola Deeps project and fulfill its obligation of a $250 million payment to local small suppliers and contractors. It also plans to operationalize community development initiatives, allocating $20 million annually for this purpose.
