ZCCM-IH Agree and Sign Milestone KCM Deal with Vedanta Resources

On Monday, the Zambian government reached agreement with Vedanta resources, restoring part-control of the Konkola Copper Mines (KCM) to the Indian corporate outfit.

State firm ZCCM-IH and Vedanta officially signed a shareholders and implementation agreement aimed at regulating KCM’s operations, which outlines the responsibilites of both companies in managing KCM.

Zambia Mines Minister Paul Kabuswe, Infrastructure Minister Charles Milupi, and Technology & Science Minister Felix Mutati, oversaw and witnessed the signing ceremony in Lusaka amongst other officials.

Paul Kabuswe, addressing those present, urged all parties to uphold their commitments outlined in the agreement. He further stressed the importance of corporate social responsibility as something which can enhance the company’s relationship with the local community.

Vedanta’s head of base metals, Christopher Griffith, likewise expressed his company’s focus on fulfilling its investment pledge, announced on September 5, 2023. He also highlighted Vedanta’s commitment to rebuilding community trust in KCM through their refreshed and strenghtened partnership with the Zambian government.

Vedanta’s restored ownership of KCM comes as an end to the protracted ownership battle which previously stifled investement.

Back in May 2019, former president Edgar Lungu oversaw the seizure of copper assets by forcing KCM’s operation into loquidation - an attempt at resource nationalisation that ultimately discouraged foreign investement thereon. As a result, billionaire Anil Agarwal's Vedanta mounted numerous legal challenges, including suing Zambia at the arbitration court in London, so as to regain control of KCM.

Since President Hakainde Hichilema’s landslide victory in 2021, economoic issues resulting from Lungu’s rule have gradually been resolved, with the Vedanta and ZCCM-IH signed agreement marking another successful step forwards.

ZCCM-IH CEO, Ndoba Vibetti, emphasised that this agreement clearly marks out each stakeholder’s roles and responsibilities in managing KCM. The milestone signifies the establishment of a mutually beneficial and productive partnership for the management of Konkola Copper Mines.