UK-based mining company Vedanta Resources said that it has paid $245.75m to the Zambian government for regaining control of the Konkola Copper Mines (KCM) in the African country.
The payment, which has been made in line with its commitment under the Konkola Copper Mines scheme of arrangement, will allow Vedanta Resources to take back full management control of the Zambian copper assets.
According to Vedanta Resources, the regaining of control is necessary before the company ramps up production and unlocks the full potential of the 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 private equity holders.
In 2019, the Zambian government placed Konkola Copper Mines into provisional liquidation and since then has been engaged in legal battles with Vedanta Resources over the asset.
Vedanta Resources aims to ramp up the annual production of copper to 300,000 tonnes. It also aims to increase annual cobalt production from 1,000 tonnes to 6,000 tonnes per annum by improving production capabilities at the Konkola Copper Mines assets.
Vedanta Base Metals CEO Chris Griffith said: “We are pleased to confirm transfer of funds under the KCM scheme of arrangement. Vedanta is committed to Zambia and Zambian people.
“We are confident that with full support of the government and other key stakeholders, we will soon be able to help KCM turnaround and reach its full potential, both as a world-class copper and cobalt asset that is well equipped with a smelter and a robust tailings leaching plant, and as a growth engine for the socio-economic development of the Zambian nation.”
