With the Konkola copper mine in Zambia almost back under Vedanta Resources Ltd.’s control, copper production is expected to soar in response to the world’s enormous demand. The billionaire Anil Agarwal’s mining group is willing to pay off $250 million in debt in order to obtain this vital resource. In a recent interview in London, Chris Griffith, the head of Vedanta’s base metals unit, affirmed these developments.
The Konkola Copper Mines, a key player in the global copper market, faced operational challenges when it was placed into provisional liquidation in 2019. The Zambian government at the time accused Vedanta of underreporting expansion efforts and contributing insufficient tax revenues. Now, with a change in administration and a fresh agreement with creditors, Vedanta is optimistic about reclaiming and revitalizing the mine.
Copper’s critical role in modern technology—from powering electric vehicles to facilitating data centers and the AI revolution—has driven its demand to unprecedented levels. Last month, copper prices hit record highs, and market analysts anticipate that demand will continue to exceed supply for years. According to Griffith, “We think we are now literally weeks away from getting the asset back. One of the world’s prime and premier copper mining assets is going to come back at a time when the world needs copper.”
However, Vedanta’s return to the Konkola mine hinges on approval from a Zambian court. The proposed settlement, supported by creditors, would see Vedanta disburse $250 million to resolve some of the mine’s accumulated debts since its liquidation began. Griffith emphasized that the funds are ready and awaiting deployment, though he did not disclose the specific sources of these funds. Reports from Bloomberg in April suggested that Vedanta had explored financial arrangements with commodity traders, including Mercuria Energy Group Ltd., to cover the upfront capital requirements.
Last September, Vedanta and the present government of Zambia came to an agreement, which was an important shift from past disagreements. Vedanta has committed to investing over $1.3 billion on the mine, which has the capacity to produce over 300,000 tons of metal yearly, as part of this agreement. In addition to paying off the loan, Agarwal’s business has promised to invest an extra $1 billion over the following five years in site development initiatives.
Vedanta is also exploring the sale of a minority stake in the Konkola mine to help finance these ambitious developments. One potential investor is International Resources Holding, part of Abu Dhabi’s largest listed company, which recently acquired another major Zambian copper project. Discussions about acquiring shares are ongoing, as confirmed by Griffith.
Production at Konkola’s processing plant, which refines ore from the mine as well as from third-party sources, dramatically decreased last year, with output falling to less than 40,000 tons of copper. Vedanta aims to increase this figure to 250,000 tons in the coming years, with about 40% of that production derived from its own ore. The long-term goal, set for the next decade, is to transition to exclusively using its own reserves for copper production.
The mine, known as Konkola Deep, extends nearly a mile underground and is recognized as one of the world’s wettest mining environments. Its operation requires the daily pumping of water equivalent to 140 Olympic-sized swimming pools to maintain functionality.
