By NATION REPORTER
VEDANTA Resources has stated that it is in the process of raising funds to operationalize the Konkola Copper Mine (KCM) and is exploring ways for the best corporate structure that would help to raise financing without losing control of its stake the Zambia’s giant copper mine.
Masuzyo Ndhlovu, the Vedanta Resources Director Corporate Communications says Vedanta shall remain a majority shareholder in KCM and has so far put in place business strategies that would result into an investment of us$1.3 billion to expand and modernize the copper mine.
Responding to press query yesterday, Mr Ndhlovu said the US$1.3 projected investment into KCM was likely to boost copper production to 300,000 tonnes from the current 70, 000 tonnes.
He said the increase in copper production at KCM would in the long term contribute to the country’s vision of the annual production of 3 million metric tonnes in the next 10 years.
Vedanta is putting in place business strategies of investing $1.3 billion to expand and modernize the mine, to increase the annual integrated production of copper from the current 70,000 tonnes to 300,000 tonnes in the long term and contribute to the country’s vision of producing 3 million metric tonnes of copper annually in the next 10 years,” Mr Ndhlovu said.
“We have stated publicly before that Vedanta Resources is in the process of raising funds to operationalize KCM, an entirely normal process in business. The company will continue to be the majority shareholder and is exploring ways for the best corporate structure to raise financing without losing control of its stake in KCM,” he said.
He explained that the process of raising to operationalize KCM was entirely a normal business process.
Mr Ndhlovu stated that Vedanta as the global mining firm had reaffirmed its commitment to Zambia and its citizens, stating that the future of KCM was of utmost importance to the company.
“We are committed to making a positive contribution to KCM’s employees and their families; business partners, suppliers and their employees; the communities where Vedanta operates; the people of the Copperbelt in particular,” Mr Ndhlovu said.
He explained that on 6 November 2023, ZCCM-IH and Vedanta signed a Shareholders Agreement and the Implementation Agreement and that the last stage before KCM could completely be taken over was the Creditors Scheme of Agreement, which was a court-driven process.
“We remain positive of a speedy resolution of all pending matters in the Zambian High Court, a process that has already started with the Scheme of Arrangement Creditors meetings scheduled for the 24th and 30th May 2024. We have in the meantime provided funding of $25 million as bridge financing before the full operationalization of the mine to maintain the integrity of the asset and for staff warfare,” he said.
