Vedanta Resources Ltd. is prepared to pay $250 million owed to creditors in Zambia

24 Aug 2023 , 01:53 PM

As soon as it regains control of the copper mines that the government of the southern African country’s government seized more than four years ago, Vedanta Resources Ltd. is prepared to pay $250 million owing to suppliers in Zambia.

2019 saw the placement of Konkola Copper Mines under provisional liquidation after the administration of former President Edgar Lungu accused Anil Agarwal’s Vedanta of lying about development plans and paying insufficient taxes. This led to a string of legal proceedings, which culminated with the current president, Hakainde Hichilema, attempting to settle the conflict amicably.

Agarwal has also promised to invest $1 billion in Konkola and more than double the operation’s copper production as part of his efforts to decrease the parent company’s enormous debt load. The metal’s production in Zambia is expected to plummet in 2023, reaching its lowest level in 14 years. The sector desperately needs new investment to capitalize on the soaring demand for copper that will fuel the switch to sustainable energy.

According to Agarwal, the goal of paying off all debts is ‘to make sure I win the hearts of the people,’ he said in an interview with Bloomberg on Wednesday in Johannesburg. Money will never be an issue.

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