Vedanta Eyes $372 Million Raise From Zambia Copper Mines IPO

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(Bloomberg) — Vedanta Resources Ltd. plans to sell an 11.9% stake in a US-based unit to raise about $372 million to develop its Zambian copper mining complex. 

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The division, CopperTech Metals Inc., said Tuesday that it intends to put about 23.5 million shares up for sale after applying earlier this month to list in New York. The net proceeds could rise to $429 million if underwriters exercise an option to purchase additional stock.

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CopperTech was established last year as Vedanta pivoted to the US to mobilize funds for the group’s Konkola Copper Mines business. Vedanta, owned by Indian billionaire Anil Agarwal, regained control of its 80% stake in KCM in 2024 after resolving a long-running dispute with the Zambian government. 

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The offering, if it goes ahead, will reduce Vedanta’s interest in CopperTech to at least 88.1%. The proceeds will go toward completing the underground Konkola Deep operation, which will be crucial to reaching the company’s copper production target of 270,000 tons a year.

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Mining executives are increasingly focused on copper amid expectations that supply will struggle to keep pace with demand from electric vehicles, renewable energy, power grids and AI infrastructure.

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Vedanta’s Zambian mines are “one of the few operations positioned to help meet US demand for copper,” CopperTech said in its prospectus. The company said it is positioned “to capitalize on what we believe will be an unprecedented copper demand cycle.”

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Zambia is Africa’s second-biggest supplier of the metal, producing a record 890,000 tons last year, and relies on copper for most of its export earnings. Mines owned by First Quantum Minerals Ltd. and Barrick Mining Corp. accounted for 60% of output in 2025.

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Read: Vedanta Pays $246 Million to Regain Zambia Copper Mines (1)

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CopperTech is inviting potential shareholders to invest in a major mining complex in Zambia’s Copperbelt Province that comprises open pits, underground shafts, concentrators, a smelter, and a refinery. Vedanta first acquired the assets in 2004, several years after they were privatized. A state-controlled investment firm, which retains a 20% stake in KCM, owned and ran the operations from 2019 to 2024.

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Following operating losses in recent fiscal years, there is currently “substantial doubt” about KCM’s “ability to continue as a going concern,” CopperTech said on Tuesday. However, Vedanta has undertaken to provide the Zambian firm with necessary financial support for at least 12 months, it said – anticipating that the mines will be able to generate positive cash flows “over the long term.”

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CopperTech said it may raise additional capital or take on additional debt to meet Vedanta’s $1 billion loan commitment to KCM, which has already been partially funded. 

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The company wants to spend $2.7 billion by early next decade as it aims to more than double copper output, with a third of that volume due to come from smelting metal supplied from other mines.

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(Updated with details on KCM’s assets, recent performance from eighth paragraph)

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