Indian mining firm Vedanta Resources is seeking to raise approximately $1 billion in debt financing to support the development of its Konkola Copper Mines (KCM) in Zambia, according to Chris Griffith, head of the company’s base metals unit.
The Indian company, which owns 80% of KCM, said last year it planned to sell at least 30% of its holdings in the Zambian copper mines.
The firm also held talks with potential investors to sell 30% of its KCM stake in the mines.
However, Griffith stated that a stake sale now seems unlikely.
“We are in a much higher likelihood that we can raise the funds from a range of financing options,” Griffith said to reporters on the sidelines of the Mining Indaba conference in Cape Town, South Africa.
“We own 80% of the business and clearly we’d prefer to continue owning 80% of the business.”
In addition, Vedanta Resources Limited, owned by Indian billionaire Anil Agarwal, is exploring various debt fundraising options, Griffith said without providing further details.
Griffith said the firm wants the $1 billion in funding to boost copper output at KCM to about 300,000 metric tons per year over the next five years.
Vedanta regained control of KCM’s assets in 2024 after a five-year tussle to recover the copper mines and smelter that the government of former Zambian president Edgar Lungu had seized. The former administration accused Vedanta of failing to invest to expand copper production.
On its part, the Zambian government owns the remaining 20% stake in KCM through state investment firm ZCCM Investment Holdings.
United Arab Emirates firm International Resources Holding last year withdrew an offer to buy Vedanta’s 51% stake in the copper mines, citing differences in valuation of the assets.
Vedanta’s debt position has improved after it refinanced its bonds and this might help the company to raise more cash flow internally alongside external debt options, Griffith said.
He said it had secured short-term financing to pay outstanding debts.
More on Zambia’s mining sector
The mining sector remains a key driver of Zambia’s economy, contributing approximately 70% to its export earnings.
Earlier this year, UK-based mining firm, Jubilee, secured regulatory approval for its new power supply agreement in Zambia which would ensure stable energy supply for its Roan copper concentrator and Sable Refinery.
Zambia, which is Africa’s second largest copper producer, has faced recurring power supply challenges that have hindered mining operations in recent years.
Jubilee is actively preparing for the full scale restart of the Roan concentrator, with copper production rates expected to ramp up to meet target levels in the coming months.
