Vedanta restarts Zambian copper mine after $246 million debt settlement

19 Jul 2024 , 12:51 PM

As part of an agreement to reclaim the mines, Vedanta Resources, the parent company of India’s Vedanta, has paid $245.75 million in debts to support the revival of operations in Zambia’s Konkola copper mines (KCM), the Indian miner announced on Friday.

The miner, who is controlled by billionaire Anil Agarwal, reclaimed possession of the copper mines and smelter in November 2023 after the Zambian government had taken it over in 2019. However, in order to restart operations, the mines required to pay their creditors.

After a five-year legal fight, Vedanta Resources acquired ownership of KCM’s assets after Edgar Lungu, the former president of Zambia, accused the business of not making enough investments to increase copper production and confiscated its assets.

According to a Reuters article from early July, the UK-based company still needs to raise an extra $1 billion to fund the advancement of the Konkola deep mining project, which has one of the world’s richest copper resources, and to resuscitate the KCM’s mining operations.

Through the mining investment company ZCCM, the Zambian government holds 20% of KCM; Vedanta Resources controls the remaining eighty percent.

In light of the company’s rising debt and several rating downgrades since last year, Anil Agarwal stated last month that Vedanta Resources aims to cut its debt by $3 billion over the next three years.

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