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(Bloomberg) — Vedanta Resources Ltd.’s Zambian copper mining unit has hired Rand Merchant Bank to help raise as much as $1 billion in debt financing for the expansion of its operations in the country.
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The unit of Vedanta — owned by Indian billionaire Anil Agarwal — has tasked RMB with tapping lenders to fund investment at Konkola Copper Mines, according to people familiar with the matter. The debt-funding plans are at an early stage, the people said, asking not to be named discussing a private matter.
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Vedanta regained control of 80% of KCM 10 months ago after resolving a long-running dispute with the Zambian government, partly by pledging to invest $1 billion in the operations. The company said it’s already invested $330 million since retaking control of the mines, mainly to pay creditors.
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KCM is ramping up annual copper production to 300,000 tons. Output was only about 40,000 tons in 2023, when the assets were run by a court-appointed administrator.
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While copper has been hit by fears that President Donald Trump’s trade war will hurt global growth, the biggest miners are still pushing to increase output, anticipating long-term deficits of the metal that’s key to the green energy transition. Barrick Mining Corp., First Quantum Minerals Ltd. and China Non-Ferrous Metals Co. are also investing billions of dollars in copper projects in Zambia, Africa’s second-biggest producer.
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Vedanta has committed to investing about $1 billion in KCM over five years, mainly for completing work on the underground Konkola Deep operation. The company is evaluating a range of financing alternatives, “including internal accruals, debt instruments and equity options,” a spokesperson for Vedanta said by email.
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The company is considering listing KCM, Ajay Goel, chief financial officer of Mumbai-listed Vedanta Ltd., told Bloomberg Television this month. Vedanta has also had discussions with commodity trading houses about prepayment deals for copper output.
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A spokesperson for RMB declined to comment.
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