Vedanta Reiterates Commitment To $1.5 Billion Investment In KCM

Global mining company Vedanta Resources has said it remains prepared to invest a further $1.5 billion into Konkola Copper Mines, including $100 million to support projects in the local community, 

In a statement to the media, Vedanta said it “remains committed to re-investing $1.5bn into KCM, supporting the community projects & local suppliers”. In particular, it promises $200 million to pay the local suppliers of the mine, as well as $400 million to bring in best in class ESG practices to improve health, safety and working conditions for employees. 

The company pledged this investment would led to “significant improvement” in KCM’s operations, upgrading infrastructure in order to create a more efficiently run mine. It also predicted that the cash-injection would bring greater job stability for employees and help rejuvenate Zambia’s economy. 

Vedanta’s CEO, Sunil Duggal, said that “KCM remains a very important asset to Vedanta and Zambia and the company is committed to ensuring the success of its operations for the benefit of its employees and surrounding communities, as well as contributing to delivering better lives for all Zambians.”

Vedanta is the majority shareholder of KCM, however under President Lungu the mine was effectively brought under government control and handed to a state-appointed liquidator, who sought to split up the company and sell off its assets.

Vedanta has since sought to regain control of the mine, entering into arbitration talks with the government’s investment company ZCCM. In July, an arbitral tribunal in London found that the ZCCM was in breach of its shareholder agreement with KCM and that the liquidator should be discharged immediately. 

Following the election of President Hakainde Hichilema, Vedanta say they are now keen to reenter talks with ZCCM. The mining giant says it is committed to making KCM and Zambia “world leaders in copper production once again” and that it is looking forward to collaborating with the new government to ensure a stable and beneficial future for all stakeholders.