Metals & Mining News

Anil Agarwal talks of moving Konkola Copper Mines to Vedanta Ltd at ‘right valuation’


Mining tycoon Anil Agarwal on Tuesday stated that the Konkola Copper Mines, which returned to his London-based firm Vedanta Resources last week, can be moved to the group’s India-listed firm Vedanta Ltd “at the right valuation”.

Last week, Zambia agreed to give back control of Konkola Copper Mines (KCM) to Vedanta Resources, which is the parent firm of Mumbai-listed Vedanta Ltd.

Vedanta renewed its commitment to invest more than USD 1.2 billion to enhance output and pay off debts, and the Zambian government—which has a 20% share in KCM—will now permit Vedanta to resume management and operation of KCM’s mines and smelter.

“Going forward, my thought is that we must maximize synergies between KCM and Vedanta Ltd’s refining/smelter businesses in UAE & India,” Agarwal said in a post on X. “KCM can be moved from Vedanta Resources to Vedanta Ltd at the right valuation.

He said the return of KCM to Vedanta Resources comes at a perfect time.”It has one the largest reserves of copper and cobalt in the world, both important in energy transition,” he said.Copper is a key metal for the world’s decarbonization. Demand is growing rapidly. In India, growth is over 20 per cent annually, he said.Vedanta, he said, acquired KCM in 2004 and made good profits when global copper prices were only USD 4,000. Now, global copper prices are around USD 8,500 and technologies are much superior so profitability will be much higher.

“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.

Agarwal, who is the chairman of Vedanta Resources Ltd, said with KCM and Sterlite Copper coming together, “we will have a vertically integrated copper business that will create positive synergy not just for the two businesses but also for India’s growth.

“Copper is a critical mineral for India’s energy transition. Thousands of MSMEs will come up, creating jobs and revenue,” he added.

(With PTI inputs)


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