'Perfect Time': Anil Agarwal Hails Return Of Konkola Copper Mines From Zambia Govt To Vedanta

Ownership and control of Konkola Copper Mines (KCM) have been returned to Vedanta Resources following a historic decision by the Government of the Republic of Zambia.

Vedanta Resources Chairman Anil Agarwal took to X and said, "Return of Konkola Copper Mines (KCM) to Vedanta Resources comes at a perfect time!"

Vedanta Resources chairman Anil Agarwal on Tuesday said that the return of Konkola Copper Mines (KCM) in Zambia to Vedanta Resources comes at a "perfect time." Agrawal's comment comes a week after Vedanta Resources Ltd announced that it will begin copper operations in Zambia following a favourable government decision.

According to a statement issued by the metal and mining conglomerate, ownership and control of Konkola Copper Mines (KCM) have been returned to the firm following a historic decision by the Government of the Republic of Zambia, reported PTI. 

Vedanta Resources Chairman Anil Agarwal took to X and said, "Return of Konkola Copper Mines (KCM) to Vedanta Resources comes at a perfect time!"

"Copper is a key metal for world's decarbonization. Demand is growing rapidly. In India, growth is over 20% annually. Vedanta acquired KCM in 2004 and made good profits when global copper prices were only $4,000. Now, global copper prices are around $8,500 and technologies are much superior so profitability will be much higher," he added.

He also emphasised the importance of maximising synergies between KCM and Vedanta Ltd's refining or smelting companies in the UAE and India.

"We can create a fully integrated copper vertical and eventually, a successful global copper company, like Chile's Codelco and Mexico's Southern Copper. We have other big projects coming up in the copper blocks that we have won in auctions and smelters in international geographies," he said.

According to Vedanta, Konkola Copper Mines (KCM) holds reserves of 16 million tonnes of copper with a copper grade of 2.3 per cent.

The PTI report noted that the relationship between Zambia and Vedanta, owned by billionaire Anil Agarwal, deteriorated when the previous government, under President Edgar Lungu, orchestrated the takeover of KCM assets and forced liquidation in May 2019. They accused the mining giant of failing to fulfill commitments to invest in expanding mining production. This takeover severely disrupted KCM's operations and sparked prolonged disputes. Vedanta initiated legal actions, including seeking arbitration in London to regain control of the copper assets.

Currently, India heavily relies on imports for copper concentrate, with over 90 per cent of its supply coming from abroad. Additionally, it imports more than 40 per cent of its finished copper, the report noted.