Mining giant Vedanta Resources Ltd. is exploring various strategies, including the possibility of listing its Zambian copper operation, Konkola Copper Mines, on the US stock market to secure funding for the development of its mining assets, as stated by a company representative.
Konkola Copper Mines boasts reserves and resources amounting to 16 million tonnes of contained copper. Ajay Goel, the chief financial officer of Vedanta, mentioned to PTI that the Zambian asset has one of the highest copper grades, which opens up several avenues for capital raising. He indicated that a public listing could be a viable option for value creation in the future.
He emphasized that, given the current copper prices, this mine could be likened to a gold mine. However, he also clarified that no definitive plans have been made as of now, and that the listing remains a potential option for the near future.
When questioned about the amount the company intends to raise from the listing and the intended use of those funds, Goel noted that they are not yet at the valuation stage for Konkola Copper Mines and the specific amount to be raised is still undetermined. He reiterated that the primary focus at present is to make the KCM fully operational and reach its target capacity of 300,000 tonnes per annum, while keeping the option of a listing open for later.
Copper is increasingly recognized as a vital mineral for energy transition technologies, and global demand is on the rise, particularly for use in electric vehicles and the modern digital landscape striving for net-zero emissions.
KCM is known for its high-grade copper deposits exceeding 2.4%, making it one of the largest high-grade copper reserves worldwide. In addition, with 412,000 tonnes of contained cobalt reserves and resources, it has the potential to rank among the top five cobalt producers globally.
Vedanta aims to increase copper production at KCM to 300,000 tonnes per annum from the current output of 200,000 tonnes per annum, while also boosting cobalt production from 1,000 tonnes per annum to 6,000 tonnes per annum by enhancing production capabilities at the site.
Vedanta Resources serves as the parent company for both Vedanta and Konkola Copper Mines, which have various subsidiaries involved in a diverse range of sectors including oil and gas, zinc, lead, silver, copper, iron ore, steel, nickel, aluminium, power, and glass substrate.
