Vedanta Resources close to conclude Konkola mines deal
The CEO of Vedanta Resources, Chris Griffith, says the company is hopeful of completing the Konkola copper mines deal within the next three months, stressing that the last step is the creditor's scheme of arrangement in Zambia which determines the debts owed. Speaking with CNBC Africa’s Fifi Peters on the side-lines of the Mining Indaba, Chris says the process is currently underway and is hopeful the mines will see a boost in production within one year.
Fri, 09 Feb 2024 12:17:21 GMT
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AI Generated Summary
- Vedanta Resources poised to conclude the acquisition of Konkola copper mines in Zambia, with finalization of creditor scheme of arrangement expected within three months.
- CEO Chris Griffith highlights Vedanta's portfolio expansion and growth prospects, including the unbundling of the company into six entities for listing in India and the Gamsberg project's production doubling by 2025.
- Geopolitical dynamics in the Global South and positive collaborations between businesses and governments in Southern Africa signal a new era of investment opportunities and sustainable growth prospects for Vedanta Resources.
Vedanta Resources, a global diversified metals and mining company, is on the cusp of finalizing the acquisition of Konkola copper mines in Zambia, as CEO Chris Griffith sheds light on the company's growth prospects and strategic moves. In an exclusive interview with CNBC Africa at the Mining Indaba, Griffith emphasized the positive developments unfolding within Vedanta's portfolio of Vedanta-based metals, spanning across regions like South Africa, Namibia, Zambia, India, United Arab Emirates, and Saudi Arabia.
The interview kicked off with Griffith discussing the unbundling of Vedanta into six separate entities set for listing in India, a move that has drawn significant interest from investors eager to explore the potential of the diversified company. Within the existing portfolio, Griffith touched on the expansion of the Gamsberg project in South Africa, a substantial endeavor expected to double production by 2025, showcasing Vedanta's commitment to growth in the zinc and copper sectors.
However, the spotlight of the conversation shifted to the imminent return of Konkola copper mines in Zambia to Vedanta ownership. Griffith outlined the progress made in negotiations with the Zambian government, marking the completion of shareholder agreements and implementation deals last November. The final hurdle lies in the creditor scheme of arrangement, which is currently underway in Zambian courts and anticipated to conclude within the next three months.
Upon regaining control of Konkola mines, Griffith outlined ambitious production targets, aiming to ramp up copper output from the current 70 kilotons to 200 kilotons within the first year of operation. Long-term projections set a goal of reaching 300 kilotons in three to four years, promising a revitalized and profitable asset benefiting all stakeholders involved.
Griffith's insights extended to the broader geopolitical dynamics in the Global South, specifically highlighting the collaborative efforts between businesses and governments in Southern Africa, emphasizing positive developments in areas such as infrastructure, energy, and security. The CEO expressed optimism about increased inbound investment from regions like the UAE and Saudi Arabia, signaling a promising era of cooperation and growth in the mining sector.
As the conversation delved into the industry's outlook amidst global economic uncertainties, Griffith remained unfazed by commodity price fluctuations and Chinese market softness, citing Vedanta's resilient quality assets and strategic investment decisions as key strengths to navigate through challenging cycles. Griffith's long-standing experience in the mining sector instilled confidence in Vedanta's ability to weather market fluctuations and emerge as a sustainable and profitable player.
In conclusion, Griffith's strategic vision for Vedanta Resources encapsulated a blend of resilience, innovation, and growth, positioning the company as a formidable contender in the global mining landscape. With the impending conclusion of the Konkola mines deal and ongoing expansion projects, Vedanta's trajectory underscores a commitment to harnessing opportunities and driving sustainable growth across its diversified operations.
