Vedanta Settles $245.75 Million Dues to Revive Konkola Copper Mines

UK-based Vedanta Resources, the parent company of India's Vedanta, has settled dues amounting to $245.75 million to facilitate the revival of operations at the Konkola Copper Mines (KCM) in Zambia. This payment is part of an agreement that enabled Vedanta to regain control of the mines.

Vedanta Resources, owned by billionaire Anil Agarwal, resumed control of the KCM assets in November 2023. The Zambian government had seized these assets in 2019, accusing Vedanta of not investing sufficiently to expand copper production. The recent settlement was necessary to pay off the mines' creditors and resume operations.

The company regained control of KCM after a protracted five-year legal battle. Former Zambian President Edgar Lungu had accused Vedanta of failing to invest in the mines, leading to the government's seizure of KCM assets.

Despite this settlement, Vedanta Resources will need to raise an additional $1 billion to fully revive KCM's mining operations and advance the Konkola deep mining project, which boasts one of the world's richest copper deposits, according to a Reuters report from early July.

The Zambian government holds a 20% stake in KCM through its mining investment company, ZCCM, while Vedanta Resources owns the remaining shares.

In light of mounting debt and multiple rating downgrades since last year, Anil Agarwal announced last month that Vedanta Resources aims to reduce its debt by $3 billion over the next three years.