BackVedanta's Anil Agarwal agrees to pay Zambian creditors, says ‘money will never be a constraint’
Vedanta Resources to pay $250m debt to creditors in Zambia after regaining control of seized copper mines.
PremiumVedanta Resources Ltd. has agreed to pay $250 million owed to its creditors in Zambia after it resumes control of the copper mines that were seized by former President Edgar Lungu's administration in 2019.
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Zambia government had accused Vedanta of paying too little tax and lying about its expansion plans while placing Konkola Copper Mines under provisional liquidation in 2019. However, current President Hakainde Hichilema wants to resolve the issue amicably, reported Bloomberg.
Vedanta Resources Limited founder Anil Agarwal has vowed to invest $1 billion in Konkola, leading to more than double copper production from the plant. Zambia's copper industry is in need of new investment in order to take advantage of the increasing demand for copper that is needed to fuel the transition to clean energy. Moreover, increased output at the Konkola Mines will also improve tax revenue for Zambia, a country that receives over 70 percent of its export earnings from Copper.
Konkola’s complexes comprise of shafts, a smelter and a refinery. It currently produces about 50,000 metric tons of finished copper from its own mines. First Quantum Minerals Ltd. copper mines in the country produced 390,000 tons last year.
In an interaction with Bloomberg, Agarwal noted that the plan for paying all creditors is “to make sure I win the hearts of the people," and “Money will never be a constraint."
While praising South Africa, Agarwal said “Africa is my heart…If I have to marry two wives, one will be India, one will be Africa."
Vedanta, India’s biggest mining company, produces metals from aluminum to zinc. It has also expanded its operations in Africa, and has mines in Namibia as well as South Africa.
Vedanta has about $2 billion of bonds due in 2024 — a record annual bill for the company, with a $1.1 billion repayment due in January.
(With inputs from Bloomberg)
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