Vedanta Resources is considering an initial public offering in the United States for its Zambian subsidiary, Konkola Copper Mines (KCM), with the aim of raising approximately $1 billion. The company has appointed Barclays and Citigroup as financial advisors for the potential listing, though discussions remain in the early stages and no timeline has been set.
The planned IPO is intended to fund a major expansion at KCM, one of Africa’s largest integrated copper producers. Vedanta, which holds an 80% stake in KCM while the Zambian government owns the remaining 20%, is targeting an increase in annual copper output to 300,000 tonnes over the next five years. The funds raised would support upgrades to smelters and the development of underground mining infrastructure, as well as community investments and debt repayments following a period of legal disputes and provisional liquidation under Zambia’s previous administration.
KCM is recognized for its high-grade copper deposits and holds around 400,000 tonnes of cobalt reserves, making it a key asset in the global transition to clean energy. The company’s production had previously declined due to operational challenges and legal issues, but Vedanta regained control of the mines, smelter, and refinery last year. Since then, the company has secured short-term financing, resumed payments to local suppliers, and increased investment in the surrounding communities.
Vedanta has also established a US-based entity, Global Transition Resources, which could potentially serve as the listing vehicle for the IPO, though details remain unclear. Previous attempts to sell a minority stake in KCM to international investors were unsuccessful, making a public offering a more viable option for securing the necessary capital.
If successful, the IPO would help position KCM as a major contributor to global copper and cobalt supply at a time of rising demand for both metals, driven by electric vehicles, renewable energy, and new technologies.
