Vedanta Resources Ltd.’s Zambian copper mining unit has appointed Rand Merchant Bank (RMB) to help raise up to $1 billion in debt financing to support the expansion of its operations at Konkola Copper Mines (KCM).
The move comes ten months after Vedanta — owned by Indian billionaire Anil Agarwal — regained control of an 80% stake in KCM following a lengthy dispute with the Zambian government.
As part of the settlement, Vedanta committed to invest $1 billion in revitalizing the mining complex.
Since then, the company has injected $330 million, primarily to clear outstanding debts and stabilize operations.
Now in the early stages of funding discussions, RMB has been tasked with engaging potential lenders to support Vedanta’s investment plans.
A Vedanta spokesperson confirmed the company is exploring various financing options, including internal resources, debt instruments, and equity arrangements.
KCM is aiming to ramp up annual copper production to 300,000 tonnes, a sharp increase from the approximately 40,000 tonnes produced in 2023 under a court-appointed administrator.
A significant portion of the planned investment will go toward completing the Konkola Deep underground mine, one of the most advanced copper mining projects in Zambia.
As global demand for copper continues to rise—driven by its essential role in the green energy transition—major players like Barrick Gold, First Quantum Minerals, and China Non-Ferrous Metals Co. are also expanding their footprints in Zambia, Africa’s second-largest copper producer.
In addition to raising debt, Vedanta is also considering a public listing for KCM, according to Ajay Goel, Chief Financial Officer of Vedanta Ltd.
The company has reportedly held talks with commodity trading firms about prepayment deals for future copper output as another potential financing route.
