KCM Seeks New Investor As Operations Resume At Chingola

Konkola Copper Mines (KCM) is actively searching for a new investor to replace the disgraced Vedanta Resources, the company’s provisional liquidator has said.  

On Tuesday, Celine Nair said that KCM would appoint an adviser to help find an equity investor willing to fund the mine’s expansion. The news came as Nair also announced the resumption of mining operations at the open pit in Chingola.

In May 2019, the government placed KCM into the hands of a liquidator, triggering an ongoing legal dispute with Vedanta Resources, KCM’s parent company. At the time the government accused Vedanta of failing to honour its licence conditions, including promised investment. Since taking office, the UPND government has repeatedly stated that it considers Vedanta to have lost its social licence to operate in Zambia.

The government’s takeover of KCM goes to an arbitration hearing in London in January 2023.

In a statement yesterday, Ms Nair said that a new strategic equity investor would be required to guarantee the development of KCM’s $1.1 billion Konkola Deep Mining Project.

Several firms have been invited to submit a proposal to act as adviser, including international banks Citibank, Standard Bank, Bank of American Merrill Lynch, Rothschild, Rand Merchant Bank and InvestEcon.

“The search for a strategic investor in Konkola Copper Mines has started in earnest,” Nair said.

The provisional liquidator also said the resumption of operations at the Chingola open pit was part of broader plans to improve operations before the government finds a new investor.

According to Nair, KCM plans to spend $17 million on an annual maintenance shutdown of the Nchanga Smelter, which has an annual capacity of 311,000 tonnes of copper. She also announced other measures to expand output at the Konkola East operation.

“We are looking at various options to improve production at KCM for the benefit of the company and the nation,” Nair said.