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Vedanta Resources reinstated for Konkola Copper Mines

Vedanta Resources has announced that the ownership and management of Konkola Copper Mines has been returned to the company following a historic decision by the Government of Republic of Zambia.

Konkola Copper Mines’ world class assets have reserves and resources of 16 Mt of contained copper. It has a copper grade of 2.3% which compares very favourably with the global average of 0.4%. Konkola Copper Mines will form the backbone of Vedanta’s strategy to vertically integrate in copper which is critical to the energy transition needs of a decarbonising world.

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On the reinstatement of Vedanta to run Konkola Copper Mines, Paul Kabuswe, Hon’ble Minister of Mines and Minerals Development, said: “Vedanta will return to run and resuscitate the operations of Konkola Copper Mines as the majority shareholders.”

The reinstatement of Vedanta as the majority shareholder with a 79.4% stake in Konkola Copper Mines is also a significant step for India at a time when the country’s demand for copper, a critical mineral for the energy transition technologies, is growing at around 25% every year.

With this, Vedanta will now be optimally positioned to deliver into these needs for the country in a fully integrated manner combining world class upstream production with the downstream operations in India.

Copper is a critical mineral for the energy transition technologies and demand is soaring globally for use in electric vehicles and an increasingly digitised modern world striving for net zero. To support the energy transition away from hydrocarbons, copper in tonnes by the million is needed for both generation and transmission of renewable energy.

However, copper supply is projected to fall short of this demand: current global mine production sits at c. 22 Mt, with demand set to reach 50 Mt by 2035. The reinstatement of Vedanta at Konkola Copper Mines operations will support the global supply, facilitating electrification and the path to net zero.

Chairman, Vedanta Resources, Anil Agarwal said,

I welcome the decision of the Government of Republic of Zambia to reinstate Vedanta. We have been committed to Konkola Copper Mines 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.

“I wish to express my sincere gratitude to His Excellency President Hakainde Hichilema for his proactive and progressive leadership and putting Zambia’s interests first.