Vedanta Resources is in talks with investors including International Resources Holding (IRH), a subsidiary of the United Arab Emirates’ International Holding Company, for the sale of stake in its Zambian copper mines, reported Reuters, citing Vedanta’s senior executive.
Vedanta base metals CEO Chris Griffith said that IRH is looking to acquire a stake in KCM and is undertaking due diligence on the assets.
In April 2024, IRH expressed interest in expanding its copper mining portfolio.
Griffith said that other potential investors are also considering acquiring stake in KCM. Other long-term investors are also considering involvement with KCM assets.
The sale forms part of Vedanta’s efforts to raise approximately $1.2bn (£948.99m) to rejuvenate operations and enhance copper production from KCM.
The company regained control of the mines after a protracted legal dispute with the Zambian Government, which had accused Vedanta of inadequate investment.
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Currently, Vedanta holds an 80% stake in KCM with the remaining 20% owned by Zambia’s state company, ZCCM-IH.
Vedanta said the company is looking to divest “a little bit more than just up to 30%” and is open to negotiation.
Griffith said: “IRH have been in discussions with us and have been part of the data-room process.”
Previously, IRH reportedly proposed acquiring a 51% stake in KCM for more than $1bn, aiming to strengthen its copper mining activities in Zambia.
Over the next five years, Vedanta plans to progressively invest in boosting copper production from KCM.
Furthermore, the company is nearing the acquisition of an additional $270m needed to settle KCM’s debts and fulfil social obligations, Griffith said.
Earlier this month, the Zambian Cabinet reportedly approved the establishment of a special purpose vehicle to improve earnings from its mineral resources.
