Vedanta Resources Limited, the parent company of Mumbai-listed mining giant Vedanta Ltd, on September 5 made an announcement revealing that ownership and operational control of Konkola Copper Mines (KCM) had been returned to the company by the Zambian government.
According to Vedanta, KCM has resources and reserves of 16 million tonnes of contained copper, and its copper grade is 2.3 percent, which is significantly higher than the 0.4 percent average for the world. It has also acknowledged KCM's critical role in addressing the energy transition needs of a decarbonising world.
Regarding the reinstatement of Vedanta to oversee KCM, Paul Kabuswe, Minister of Mines and Minerals Development, said “Vedanta will return to run and resuscitate the operations of KCM as the majority shareholders.”
According to Vedanta's press release, the timing of this development coincides with India's yearly growth rate of almost 25 percent in demand for copper, a crucial mineral for energy transition technologies. Vedanta added that its restoration as the largest shareholder, with a 79.4 percent stake in KCM, is extremely important for it.
Vedanta Resources Chairman Anil Agarwal, welcoming Zambia government's decision said the company recognises KCM as a valuable asset, as copper stands as a pivotal mineral for future technologies.
"We have been committed to KCM since 2004 and believe that it is a prized asset in our portfolio. Copper is a critical mineral for the technologies of the future. Vedanta will become a fully integrated producer of copper and cater to India’s fast-growing demand while also making Zambia the leading producer of copper in the world," said Agarwal.
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