Indian natural resources company Vedanta Resources is reported to have reached an advanced stage of executing agreements with the Zambian government over Konkola Copper Mines assets.
Konkola Copper Mines is a Zambian integrated copper producer that operates underground mines and open pit mines as well as metallurgical plants with operations located at Nchanga, Konkola, Nkana and Nampundwe.
The company was owned by Vedanta Resources with a majority stake of 79.4%, while the remaining interest was held by ZCCM-IH, a company that is 87.6% owned by the Zambian government and 12.4% owned by public shareholders.
According to various media, Vedanta Resources stated: “Vedanta is alive to the fact that the talks have taken a little longer than initially anticipated. The company is firmly committed to the process.”
In 2019, the Zambian government placed Konkola Copper Mines into provisional liquidation and since then has been engaged in legal battles with the company over the asset.
The Indian company has committed to invest $1bn in the assets of Konkola Copper Mines.
Vedanta Resources aims to double the annual integrated production of copper to 100,000 tonnes, with the potential to 200,000 tonnes in the medium term.
Separately, Konkola Copper Mines has forged a deal with Copperbelt Energy over a debt the mining company owed it.
Under the agreement, Konkola Copper Mines will pay the company $20m in instalments.
In November 2020, ZCCM-IH planned to appeal against a court ruling that asked it to proceed to arbitration with Vedanta Resources regarding the Konkola Copper Mines.
