Vedanta Seeks $1 Billion to Boost Konkola Copper Mines Production
Vedanta Resources is looking to raise approximately $1 billion in debt financing to develop Zambia’s Konkola Copper Mines (KCM), according to Chris Griffith, head of the company’s base metals division.
While Vedanta previously considered selling at least 30% of its 80% stake in KCM, Griffith indicated that a sale now appears unlikely. “There is a much higher likelihood that we can raise the funds through various financing options,” he told Reuters on the sidelines of the Mining Indaba conference in Cape Town. “We own 80% of the business and clearly, we’d prefer to continue owning 80%.”
The Indian mining giant, owned by billionaire Anil Agarwal, is evaluating different debt-raising strategies to fund the expansion, though Griffith did not disclose specifics.
The $1 billion financing is intended to ramp up KCM’s copper production to 300,000 metric tons per year over the next five years.
Vedanta regained control of KCM in 2024 after a protracted five-year dispute with the Zambian government, which had seized the assets under former President Edgar Lungu, accusing the company of failing to invest in production growth. The Zambian government retains a 20% stake in KCM through the state-owned investment firm ZCCM-IH.
In 2023, UAE-based International Resources Holding withdrew its offer to purchase Vedanta’s 51% stake in KCM due to differences in asset valuation.
However, Vedanta’s financial position has since strengthened following the refinancing of its bonds. Griffith noted that the company has also secured short-term financing to clear outstanding debts, positioning it to raise additional capital through internal and external sources.
