Vedanta Finalizes Zambian Copper Assets Agreement
Vedanta Resources and the Zambian government reached a deal that ended the long-running ownership dispute that discouraged investment and reinstates the Indian company's ownership of Konkola Copper Mines (KCM). At the signing ceremony in Lusaka, Zambia's Mines Minister Paul Kabuswe observed the official transfer of the copper assets, which the state had confiscated in 2019, back to Vedanta through state-owned company ZCCM-IH and Chris Griffith, Vedanta's head of base metals.
Kabuswe, the deal will result in the KCM board's reappointment and the dismissal of all pending legal challenges, including the removal of the interim liquidator who was in control of the assets. After Vedanta promised to invest roughly $1.2 billion in the operations, the government which holds a 20% share in KCM through ZCCM-IH announced in September that an agreement had been reached to let Vedanta to regain control of the mines and smelter.
Billionaire Anil Agarwal's Vedanta initiated a number of legal actions to reclaim control of KCM after the government of former president Edgar Lungu orchestrated the seizure of the copper assets by forcing the operations into liquidation in May 2019. One such action was a lawsuit against Zambia in a London arbitration court. The corporation was accused by the Zambian government of not investing enough to increase copper output, but the forced takeover and legal troubles slowed down investments and almost completely stopped operations.
The government desires that the KCM assets "come back to life," according to Kabuswe. Vedanta also needs to mend frayed relations with the communities by keeping its investment commitments. "You have to live by what you have told us that this is the investment that will be coming", added the minister.