Vedanta’s $1 Billion Debt Financing Plan
Vedanta Resources is working on raising about $1 billion through debt financing. This money will be used to develop its Konkola Copper Mines (KCM) in Zambia. Chris Griffith, who leads Vedanta’s base metals division, shared this information. Vedanta Resources, owned by Indian billionaire Anil Agarwal, needs the $1 billion, in order to increase copper production at KCM to around 300,000 metric tons each year within the next five years.
Vedanta owns 80% of KCM and had earlier thought about selling at least 30% of its share. However, Griffith mentioned that selling a part of the business seems less likely now. He reported to Reuters on the sidelines of the Mining Indaba conference in Cape Town: “We are in a much higher likelihood that we can raise the funds from a range of financing options.” He added, “We own 80% of the business and clearly we’d prefer to continue owning 80% of the business.”
Regaining Control and Ownership Structure
Vedanta regained control of these mines in 2024 after a long legal battle with the Zambian government. The previous administration had taken over the mines, accusing Vedanta of not investing enough to grow copper production.
The Zambian government still holds the remaining 20% of KCM through its state investment firm, ZCCMIH. Last year, a UAE-based company, International Resources Holding, dispatched an offer to buy Vedanta’s 51% stake in the mines which eventually declined due to unknown reasons.
Lastly, Vedanta’s financial position has improved after refinancing its bonds, which could help it raise more funds internally as well as externally. Griffith confirmed that they have secured short-term loans to clear outstanding debts.
