UK-based Vedanta Resources, the parent company of India's Vedanta, has settled dues worth $245.75 million to help revive operations in the Konkola Copper Mines (KCM) in Zambia. This settlement is part of a deal to regain control of the mines, the Indian miner announced on Friday. Owned by billionaire Anil Agarwal, Vedanta Resources regained control of the copper mines and smelter in November 2023 after the Zambian administration seized them in 2019. However, the company needed to pay creditors of the mines to restart operations.
Vedanta Resources gained control of KCM's assets following a five-year legal battle after former Zambian President Edgar Lungu accused the company of failing to invest in expanding copper production, leading to the seizure of its assets. The UK-based company will still need to raise an additional $1 billion to revive KCM's mining operations and invest in advancing the Konkola Deep Mining Project, which holds one of the richest copper deposits in the world, as per a Reuters report from early July.
The Zambian government owns a 20% stake in KCM through the mining investment company ZCCM, while Vedanta Resources owns the remaining 80%. Last month, Anil Agarwal stated that Vedanta Resources is looking to reduce its debt by $3 billion over the next three years as the company grapples with mounting debt and multiple rating downgrades since last year.
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