The Indian mining giant Vedanta (VEDL), which has its London headquarters, would consider acquiring Konkola Copper Mines (KCM) at the "right valuation" even as it begins to integrate all of its copper companies.
The Zambian government has returned ownership and operating control of KCM to the corporation, according to a statement from VRL, the parent company of the VEDL, which is traded on the Mumbai Stock Exchange. "I believe that going forward, we should optimise the synergies between KCM and VEDL's refinery and smelting companies in the UAE and India. At the correct price, KCM can be transferred from VRL to VEDL, according to VRL Chairman Anil Agarwal's statement on social media platform X.
The combination of KCM and Sterlite Copper, he continued, will result in a vertically integrated copper business that will be advantageous for the expansion of both companies as well as India. "A vital mineral for India's energy revolution is copper. Numerous MSMEs will sprout up, generating employment and income, he continued.
A crucial metal for global decarbonization is copper. The market is expanding quickly. India experiences annual growth of over 20%. Vedanta bought KCM in 2004 and made a profit even though the price of copper was just $4,000 globally at the time. The profitability will be much higher now that copper prices are about $8,500 globally and technologies are lot more advanced.
"Like Chile's Codelco and Mexico's Southern Copper, we can build a vertically integrated copper business that will eventually be profitable on a worldwide scale. In order to get input and suggestions from the social media users, he stated, "We have additional significant projects coming up in the copper blocks that we have won in auctions and smelters in international geographies.
The former Zambian government of Edgar Lungu liquidated KCM provisionally in 2019 after charging VRL with lying about its development plans and tax payments. These had started a number of court cases. Current President Hakainde Hichilema reportedly put an end to a four-year legal dispute over its ownership. VRL and ZCCM Investments Holdings, which is owned by the Zambian government, have settled their differences. "The KCM to VRL relationship is timely. It possesses some of the world's greatest copper and cobalt reserves, both of which are crucial for the shift to renewable energy.
