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“We are delighted to confirm the transfer of funds into a designated escrow account as per our earlier commitment. Vedanta is committed to Zambia and the Zambian people. We are confident that with the full support of the government and other key stakeholders, we will soon be able to help KCM reach its full potential.”
Chris Griffith,
Chief Executive Officer,
Vedanta Base Metals.
In a decisive financial move, Vedanta Resources Holdings Limited (Vedanta Holdings) has deposited USD 245.75 million into an escrow account designated by the High Court of Zambia. This critical transaction paves the way for the reinstatement of the Board of Konkola Copper Mines (KCM) and the return of full management control to Vedanta.
KCM, renowned for its vast high-grade copper and substantial cobalt reserves, stands at the threshold of a new era. With Vedanta at the helm, the mine is poised to unlock its full potential and reinforce Zambia’s position as a leading copper-producing nation. These minerals are expected to be instrumental in the global energy transition, underscoring KCM’s strategic importance.
Chris Griffith, Chief Executive Officer of Vedanta Base Metals, expressed enthusiasm about the future, stating, “We are delighted to confirm the transfer of funds into a designated escrow account as per our earlier commitment. Vedanta is committed to Zambia and the Zambian people. We are confident that with the full support of the government and other key stakeholders, we will soon be able to help KCM reach its full potential.”
Additionally, the Zambian government has set an ambitious goal to produce 3 million metric tonnes of copper within the next decade. Vedanta’s substantial investment is anticipated to revitalize local economic activity, generate employment, and support community initiatives, promising a brighter future for Zambians.
Furthermore, the allocated funds in the escrow account are earmarked for:
-Settling creditor claims, that is addressing outstanding debts, including those of Class 2 creditors.
-Community development Projects, that is supporting initiatives through the community trust.
-And then, employee bonuses, that is disbursing a one-off bonus to KCM employees.
Moreover, this financial move follows the signing of five landmark collective agreements between KCM and its workers’ unions, facilitated by Vedanta. These agreements highlight the importance of fostering a collaborative and positive relationship within the workforce.
Vedanta remains steadfast in its commitment to partnering with the Zambian government, ZCCM Investments Holdings (ZCCM-IH), and the local community. Together, they aim to achieve shared economic and developmental goals. The future of Zambia’s copper industry looks promising, bolstered by Vedanta’s ongoing support and strategic investments.
As Vedanta prepares to take full control of KCM, the focus will be on optimizing operations and ensuring sustainable growth. The mine’s robust Tailings Leaching Plant and smelter are expected to play crucial roles in driving production and socio-economic development in the region.
With a firm commitment to Zambia and its people, Vedanta is set to lead KCM into a new phase of prosperity, reinforcing its pivotal role in the nation’s mining sector. The continued collaboration with government and local stakeholders ensures that KCM will not only thrive as a premier copper and cobalt producer but also contribute significantly to Zambia’s economic resurgence.