VEDANTA Resources Limited’s Zambian copper mining subsidiary, Konkola Copper Mines (KCM), has reportedly engaged Rand Merchant Bank (RMB) to secure up to US$1 billion in debt financing aimed at expanding its operations.
The move comes 10 months after Vedanta, owned by Indian billionaire Anil Agarwal, regained 80 percent control of KCM following the resolution of a protracted dispute with the Zambian government.
As part of the settlement, Vedanta pledged to invest US$1 billion into the mine’s operations.
According to a report by Mining.com, KCM had mandated RMB to explore financing options and engage potential lenders to support investment in its projects.
The debt-funding initiative remained at a preliminary stage, sources familiar with the matter disclosed, and requesting anonymity as the discussions are private.
“Vedanta regained control of 80 percent of KCM 10 months ago after resolving a long-running dispute with the Zambian government, partly by pledging to invest US$1 billion in the operations. The company said it has already invested US$330 million since retaking control of the mines, mainly to pay creditors,” Mining.com reported.
Since the takeover, the company had invested US$330 million, primarily to settle outstanding creditor obligations, and has outlined plans to significantly scale up copper production — from 40,000 metric tons in 2023 to 300,000 metric tons annually.
The anticipated financing would largely support the Konkola Deep Mining Project, with Vedanta exploring a mix of debt, equity, and internal funding avenues.
A spokesperson for Vedanta confirmed the company is “evaluating a range of financing alternatives, including internal accruals, debt instruments and equity options.”
Additionally, a potential listing of KCM is under consideration.
Ajay Goel, Chief Financial Officer of Mumbai-listed Vedanta Ltd., disclosed to Bloomberg Television that the company was weighing a public offering for the Zambian unit.
Discussions with major commodity trading houses regarding prepayment deals for future copper output are also underway.
Despite persistent pressures on global copper prices, driven by international trade concerns, Zambia — Africa’s second-largest copper producer — continues to attract significant investment from major mining firms such as Barrick Gold, First Quantum Minerals, and China Non-Ferrous Mining Corporation, all seeking to secure long-term supply of the metal vital to the global green energy transition.
