Indian billionaire Anil Agarwal has promised to pay $250 million, which Vedanta Resources, the mining company he controls, owes to suppliers as soon as he regains control of copper mines that were seized by the government of the southern African country over four years ago.
In 2019, during the administration of former President Edgar Lungu, Vedanta’s Konkola Copper Mines was placed under provisional liquidation following accusations against Anil Agarwal’s Vedanta of providing false information about expansion plans and insufficient tax payments. These events triggered a series of legal proceedings, ultimately leading to current President Hakainde Hichilema’s attempt to resolve the dispute amicably.
Agarwal, who aims to reduce the substantial debt burden of the parent company, has additionally committed to injecting $1 billion into Konkola and doubling copper production from the operation. Zambia’s projected copper output for 2023 is anticipated to be the lowest in 14 years. The industry urgently requires fresh investments to capitalize on the soaring demand for copper, driven by the shift towards clean energy.
Agarwal emphasized that the strategy to settle all creditors’ claims is driven by a desire to “win the hearts of the people.” In an interview at Bloomberg’s Johannesburg office on Wednesday, he asserted: “Money will never be a constraint.”
Vedanta faces a sizable debt load, with approximately $2 billion in bonds maturing in 2024, including a record annual payment of $1.1 billion due in January.
Increasing production at the mine will enable Zambia to enhance tax revenues, as the nation heavily relies on copper for around 70 percent of its export earnings. Konkola’s operations encompass shafts, a smelter, and a refinery. Presently, it yields roughly 50,000 metric tonnes of refined copper from its own mines, whereas First Quantum Minerals Ltd.’s copper mines in the country yielded 390,000 tonnes the previous year.
SOURCE; BILLIONAIRES.AFRICA