Vedanta Resources is seeking to raise approximately $1 billion in debt financing to support the development of its Konkola Copper Mines (KCM) in Zambia, according to Chris Griffith, head of the company’s base metals division.
The Indian conglomerate, which holds an 80% stake in KCM, previously considered selling at least 30% of its ownership. However, Griffith indicated that a stake sale is now less likely.
“We are in a much higher likelihood that we can raise the funds from a range of financing options,” Griffith told Reuters at the Mining Indaba conference in Cape Town. “We own 80% of the business, and clearly, we’d prefer to continue owning 80% of the business.”
Vedanta, controlled by Indian billionaire Anil Agarwal, is evaluating various debt financing mechanisms but has not disclosed specific details. The company aims to use the $1 billion to increase copper production at KCM to approximately 300,000 metric tons per year over the next five years.
Vedanta regained control of KCM in 2024 after a five-year legal battle to reclaim the mines and smelter, which had been seized by the former Zambian administration led by President Edgar Lungu. The previous government had accused Vedanta of failing to invest adequately in expanding copper production.
The Zambian government, through its state investment firm ZCCM-IH, holds the remaining 20% stake in KCM.
Last year, UAE-based International Resources Holding withdrew an offer to acquire Vedanta’s 51% stake in KCM, citing differences in asset valuation.
Since then, Vedanta’s financial position has improved, particularly after refinancing its bonds, which Griffith believes could enhance its ability to generate cash internally alongside external debt financing.
Additionally, he noted that the company has secured short-term funding to settle outstanding debts.