Vedanta Restores Ownership of Konkola Copper Mines in Zambia
In a significant development, Vedanta Resources and the Zambian government have put an end to a long-standing ownership dispute by reaching an agreement that restores Vedanta’s ownership of Konkola Copper Mines (KCM).
This agreement brings closure to a protracted battle that had a negative impact on investments in the region.
Zambia’s Mines Minister, Paul Kabuswe, presided over the signing of the agreement between the state-owned firm ZCCM-IH and Chris Griffith, Vedanta’s Head of Base Metals, in Lusaka. The formal handover of the copper assets, which the state had seized in 2019, marked a significant turning point in the dispute.
The signed agreement encompasses several key provisions. It will lead to the re-appointment of the KCM board and the withdrawal of all ongoing legal challenges, including the removal of the provisional liquidator who had been overseeing the assets, as highlighted by Minister Kabuswe.
Underlining the government’s commitment to resolving the matter, it’s worth noting that the Zambian government holds a 20% stake in KCM through ZCCM-IH.
In September, an agreement had been reached to allow Vedanta to regain control of the mines and smelter after the company pledged to invest approximately $1.2 billion in these operations.
Vedanta, led by billionaire Anil Agarwal, had taken multiple legal actions, including filing lawsuits against Zambia at the arbitration court in London.
These actions were aimed at regaining control of KCM, which had been forced into liquidation by the government of former President Edgar Lungu in May 2019.
The government had accused Vedanta of failing to invest in expanding copper production, but the forced takeover and subsequent legal disputes had stifled investments and severely impacted operations.
With the restoration of ownership to Vedanta, the Zambian government expressed its desire for KCM’s assets to “come back to life.” Minister Kabuswe emphasized the importance of Vedanta honoring its investment commitments and rebuilding relationships with the local communities.
As the Minister aptly put it, “You have to live by what you have told us, that this is the investment that will be coming.” This resolution holds the potential to reinvigorate the mining operations and promote positive economic growth in the region.
