Vedanta Secures Full Control of Key Copper Mines in Zambia

On 19 July 2024, Vedanta Resources Holdings Limited (“VRHL” or “Vedanta Holdings” or “Vedanta”), a global conglomerate with diverse interests in mining, metals, natural resources, energy, and technology, announced that it has fulfilled its commitment under the KCM scheme of arrangement by paying USD 245.75 million. This payment sets the stage for the immediate reinstatement of KCM's Board of Directors and the restoration of complete management control to Vedanta. This crucial step is essential for Vedanta to increase production and fully realize KCM's potential.

With copper grades exceeding 2.4%, KCM ranks among the world's largest high-grade copper deposits. Additionally, with 412kt of contained cobalt reserves and resources, KCM has the potential to become one of the top five global cobalt producers. Vedanta plans to boost copper production at KCM to 300ktpa and increase cobalt production from 1ktpa to 6ktpa by enhancing production capabilities at the site.

Reaffirming Vedanta’s dedication to KCM and Zambia, Chris Griffith, Chief Executive Officer of Vedanta Base Metals, stated:  “We are pleased to announce the successful transfer of funds under the KCM scheme of arrangement. Vedanta remains deeply committed to Zambia and its people. With strong support from the government and key stakeholders, we are confident that KCM will soon achieve its full potential. The site is well-equipped with a smelter and a robust Tailings Leaching Plant, positioning it as a premier Copper and Cobalt asset and a significant driver for Zambia’s socio-economic development.”

On the occasion, Anil Agarwal, Chairman of the Vedanta Group, expressed his enthusiasm:  “I am thrilled that Konkola Copper Mines has rejoined the Vedanta family. We have a long and proud history with Zambia and its people, and I am eager to deepen our collaboration in the coming decades.  Copper is undoubtedly a metal of the future, and securing its supply chain is a priority for the Government of India due to the high domestic demand, limited local production, and substantial import needs. We anticipate that KCM will play a key role in meeting some of this demand and in strengthening economic and trade relations between India and Zambia.”

Global annual copper demand is projected to rise by approximately 40% by 2040. This surge is driven by the global shift toward energy transition, sustainable transportation, and increased electrification. To meet the Paris Agreement's climate goal of limiting global warming to no more than 1.5 degrees Celsius, it is estimated that around $1 trillion in annual investments will be necessary to fund global renewable infrastructure from 2025 to 2030.

Global copper supply is expected to reach its peak of 26 million tonnes in 2026. However, if new major projects are not developed, demand will likely continue to exceed supply.

Against the global backdrop of a decade-long scarcity of major new copper discoveries and a consistent decline in ore grades at mines worldwide, KCM stands out with its high-grade deposits and comparatively low capital requirements. The Zambian government aims to become a leading player in the global copper market, targeting a production goal of 3 million metric tonnes of copper over the next decade. In this context, KCM is exceptionally positioned to leverage robust government support and favorable global market conditions.