Vedanta locks Zambian copper assets deal; stock gains

7 Nov 2023 , 01:23 PM

Vedanta Resources and the Zambian government agreed on Monday to restore the Indian company’s ownership of Konkola Copper Mines (KCM), putting an end to a long ownership struggle that has hindered investment.

Zambia’s Mines Minister, Paul Kabuswe, observed the signing of the deal in Lusaka between state business ZCCM-IH and Chris Griffith, Vedanta’s head of base metals, officially returning the copper assets confiscated by the state in 2019.

The deal will result in the re-appointment of the KCM board and the withdrawal of all pending legal challenges, including the removal of a provisional liquidator in control of the assets, according to Kabuswe.

The government, which has a 20% ownership in KCM through ZCCM-IH, said in September that it entered into a deal with Vedanta to hand over management of the mines and smelter in exchange for a $1.2 billion investment.

After former president Edgar Lungu’s government orchestrated the seizure of the copper assets by forcing the operations into liquidation in May 2019, billionaire Anil Agarwal’s Vedanta mounted numerous legal challenges, including suing Zambia at the arbitration court in London, to reclaim control of KCM.

While Zambian government accused the corporation of neglecting to invest in order to increase copper output, the forced takeover and legal hurdles hampered investment and nearly ruined operations.

At around 1.21 PM, Vedanta was trading 0.64% higher at Rs 234.60, against the previous close of Rs 233.10 on NSE. 

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