VEDANTA Resources is transferring its Zambian copper mine to a US-based subsidiary as it seeks to benefit from increased American government support for the mining sector, said the Financial Times on Thursday.
The group, owned by Indian billionaire Anil Agarwal, said its new US subsidiary CopperTech Metals would own and operate Konkola Copper Mines in Zambia’s copper belt. Vedanta plans to raise $1.5bn, covering its commitment to invest $1bn to revive the mine under a 2023 deal that restored its control after Zambia’s government seized the asset in 2019.
Tom Albanese, former Vedanta CEO and strategic adviser to CopperTech, told the newspaper that the move was designed to attract US interest, assist with financing and develop relationships with consumers.
“I’ve never seen anything like this, the shift in sentiment in the US towards having better control of our destiny,” said Albanese. He added that all funding options were on the table, including a possible public listing.
The money will be invested in developing Konkola, with plans to more than double copper production from an estimated 140,000 tons in 2026 to 300,000t by 2031.
Vedanta and the Zambian government, which holds a 21% stake through ZCCM Investments, want to boost production. Copper prices reached a record high last week, while increased sales would help Zambia reduce debt after defaulting on foreign loans in 2020, said the Financial Times.
Most of Konkola’s copper currently goes to Asian buyers, but production growth could allow more sales to the US, Albanese said. The US Development Finance Corporation has provided a $550m loan to renovate a railway route to Angola.
