Abu Dhabi’s IHC Expands African Copper Interests with Potential Vedanta Resources Deal

Abu Dhabi's International Holding Company (IHC), through its mining unit International Resources Holding (IRH), is making significant strides to establish a copper mining empire in Africa. IHC has reportedly offered over $1 billion for a 51% stake in Konkola Copper Mines, a key asset of Vedanta Resources in Zambia. This follows IRH's acquisition of a similar stake in Mopani Copper Mines for $1.1 billion and its plans to further extend its reach by bidding for a stake in Lubambe Copper Mine.

This aggressive expansion into copper aligns with the strategic interests of oil-rich nations like the UAE and Saudi Arabia, who are keen on securing critical metal supplies to support their transition to green energy. The move indicates a broader shift in resource acquisition strategies amidst global pushes for renewable energy sources.

Meanwhile, Vedanta Ltd's shares saw a downturn, trading 1.08% lower at Rs 381.70, despite overall market gains. The securities are currently under the Additional Surveillance Measure framework on both BSE and NSE, aimed at cautioning investors of potential price volatility.

The negotiations between IRH and Vedanta are ongoing, with Vedanta employing Standard Chartered to navigate the partial sale of its 80% stake in Konkola Copper Mines. The firm seeks to rejuvenate these assets, which were nearly paralyzed due to a previous ownership dispute with the Zambian government. Despite the potential challenges, including operational issues like groundwater removal at the Konkola Deep underground operation, the rising copper prices might boost investor interest.