Vedanta jumps after regaining a mine from Zambian government
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Ties between Zambia and Vedanta, owned by billionaire Anil Agarwal, soured after former President Edgar Lungu’s government orchestrated the seizure of the KCM assets and forced liquidation in May 2019.
Shares of Vedanta Limited rose over 2 percent to Rs 247 in early trade on September 6 after the company announced that it has regained control of the Konkola Copper Mines (KCM) in Zambia, marking a significant milestone for both the global mining industry and India’s burgeoning demand for copper.
KCM, known for its copper reserves and resources of 16 million tonnes of contained copper, will serve as a linchpin in Vedanta’s ambitious strategy to vertically integrate into the copper sector, aligning with the pressing needs of a decarbonising world, it said in a statement.
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The government, which owns a 20 percent stake in KCM through ZCCM-IH, will allow Vedanta to resume control and operate KCM’s mines and smelter after the company renewed a pledge to invest more than $1.2 billion to increase output and repay outstanding debts, news agency Reuters reported citing Paul Kabuswe, Zambian mines minister.
Also Read: Vedanta regains control over Konkola Copper Mines from Zambia govt
Ties between Zambia and Vedanta, owned by billionaire Anil Agarwal, soured after former President Edgar Lungu’s government orchestrated the seizure of the KCM assets and forced liquidation in May 2019, accusing the Indian company of failing to meet plans to invest in increasing mining output.
The reinstatement of Vedanta to the leadership position in KCM carries substantial importance for India, given the remarkable annual growth of 25 percent in its copper demand. This decision helps establish a reliable supply chain for this crucial mineral, thus reducing India’s heavy dependence on imports, with over 90 percent coming from copper concentrate and more than 40 percent from finished copper imports.
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