Government reinstate KCM ownership

Ownership and management of Konkola Copper Mines (KCM) has been returned to Vedanta Resources, a historic decision by the government.

KCM, the country’s largest integrated copper producer, has reserves and resources of 16 million tonnes of contained copper.

According to Vedanta, KMC has a copper grade of 2.3 percent which compares very favourably with the global average of 0.4 percent.

Now KCM will form the backbone of Vedanta’s strategy to vertically integrate in copper which is critical to the energy transition needs of a decarbonising world.

“Vedanta will return to run and resuscitate the operations of KCM as the majority shareholders,” said Paul Kabuswe, Minister of Mines and Minerals Development on On the reinstatement of Vedanta to run KCM.

Meanwhile the reinstatement of Vedanta as the majority shareholder with a 79.4 percent stake in KCM is also a significant step for India at a time when the country’s demand for copper, a critical mineral for the energy transition technologies, is growing at around 25 percent every year.

Vedanta will now be optimally positioned to deliver these needs for the country in a fully integrated manner combining KCM’s world class upstream production with the downstream operations in India.

Copper is a critical mineral for the energy transition technologies and demand is soaring globally for use in Electric Vehicles and an increasingly digitised modern world striving for net zero. To support the energy transition away from hydrocarbons, copper in tonnes by the million is needed for both generation and transmission of renewable energy. However, copper supply is projected to fall short of this demand: current global mine production sits at c. 22 million tonnes, with demand set to reach 50 million tonnes by 2035.

The reinstatement of Vedanta at KCM operations will support the global supply, facilitating electrification and the path to net zero.

“We have been committed to KCM since 2004 and believe that it is a prized asset in our portfolio. Copper is a critical mineral for the technologies of the future.

“Vedanta will become a fully integrated producer of copper and cater to India’s fast-growing demand while also making Zambia the leading producer of copper in the world,” said Chairman, Vedanta Resources, Mr. Anil Agarwal said, “I welcome the decision of the Government of Republic of Zambia to reinstate Vedanta at KCM.

 

By: Francis Mumba

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