Vedanta Seeks $1 Billion Debt Financing to Boost Konkola Copper Mines in Zambia

Vedanta Resources is aiming to secure approximately $1 billion in debt financing to support the development of Konkola Copper Mines PLC in Zambia, according to Reuters, citing Chris Griffith, head of Vedanta Base Metals Ltd.

While Vedanta initially considered selling part of its 79.4% stake in Konkola to raise capital, Griffith indicated that this option is becoming less likely. “We are in a much higher likelihood that we can raise the funds from a range of financing options,” Griffith stated. “We own 80% of the business, and clearly we’d prefer to continue owning 80% of the business.” The remaining 20.6% of Konkola is held by Zambia's state-controlled ZCCM Investments Holdings PLC.

Vedanta plans to use the funds to expand Konkola’s copper production capacity to about 300,000 metric tons per year over the next five years. Griffith did not provide specific details on the debt financing options being explored.

In July 2024, Vedanta paid $245.8 million to regain full control of Konkola, ending a long-standing dispute with the Zambian government, which had pursued liquidation of the mine in 2019 over alleged investment agreement violations.

Previously, International Resources Holding, a unit of UAE-based International Holding Company PJSC, had offered to buy a 51% stake in Konkola from Vedanta for over $1 billion. However, the offer was withdrawn in April 2024 due to differences in asset valuation.