Four years after it was taken over by the government, Vedanta Resources Ltd., owned by Indian billionaire Anil Agarwal, claimed to be in "advanced stage" talks to retake control of a copper mining complex in Zambia. Vedanta issued a statement on Sunday saying, "Vedanta is aware that the talks have taken a little longer than initially anticipated." The business has a strong commitment to the procedure.
In 2019, the Zambian government put Konkola Copper Mines Plc, which Vedanta held 79.4% of, into provisional liquidation. Since then, the government and the firm have been engaged in legal disputes over the enterprise. Prior to announcing his "divorce" with Vedanta and taking action to liquidate Konkola, the former president Edgar Lungu accused the corporation of lying about its profitability and future growth plans. Since taking office in August 2021, President Hakainde Hichilema's administration has had difficulty coming up with a solution.
Production has decreased as a result of the conflict. Vedanta has committed to investing $1 billion in the assets needed to increase annual integrated production of copper from 60,000 tonnes to 100,000 tonnes, with the potential to increase to 200,000 tonnes over the next few years.
Zambia's declining copper output has been attributed to Konkola's production issues. According to a report released by the finance ministry on Sunday, the country's output of the metal will drop to 682,431 tonnes this year from 763,550 tonnes in 2022.
Separately, Konkola reached a debt settlement agreement with Zambian electricity provider Copperbelt Energy Corp. According to the deal, KCM will pay the business $20 million in instalments. Zambian Mines Minister Paul Kabuswe told reporters on Friday that there is still one issue to settle before concluding a contract with Vedanta. He did not specify what it was. In the country's capital, Lusaka, he declared, "We are counting days; it's no longer months."
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