Vedanta reinstated for Zambian copper asset, KCM.Vedanta Resources Ltd (“Vedanta”) today announced that the ownership and management of Konkola Copper Mines (“KCM”) has been returned to the company following a historic decision by the Government of Republic of Zambia.
KCM’s world class assets have reserves and resources of 16 million tonnes of contained copper. It has a copper grade of 2.3% which compares very favourably with the global average of 0.4%. KCM will form the backbone of Vedanta’s strategy to vertically integrate in copper which is critical to the energy transition needs of a decarbonising world.
On the reinstatement of Vedanta to run KCM, Mr. Paul Kabuswe, Hon’ble Minister of Mines and Minerals Development, said “Vedanta will return to run and resuscitate the operations of KCM as the majority shareholders.”
The reinstatement of Vedanta as the majority shareholder with a 79.4 percent stake in KCM is also a significant step for India at a time when the country’s demand for copper, a critical mineral for the energy transition technologies, is growing at around 25% every year. An Indian-owned and operated asset in copper-rich Zambia is important in the context of secure supply chains. The technology used to do deep underground mining at KCM can be deployed in India to mine copper on a large scale in India. Currently, India is over 90% dependent on imports for copper concentrate and over 40% dependent on imports for finished copper.
With this, Vedanta will now be optimally positioned to deliver into these needs for the country in a fully integrated manner combining KCM’s world class upstream production with the downstream operations in India.
Chairman, Vedanta Resources, Mr. Anil Agarwal said, “I welcome the decision of the Government of Republic of Zambia to reinstate Vedanta at KCM. We have been committed to KCM since 2004 and believe that it is a prized asset in our portfolio. Copper is a critical mineral for the technologies of the future. Vedanta will become a fully integrated producer of copper and cater to India’s fast-growing demand while also making Zambia the leading producer of copper in the world. I wish to express my sincere gratitude to His Excellency President Hakainde Hichilema for his proactive and progressive leadership and putting Zambia’s interests first”.
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