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Vedanta Resources is reportedly in discussions with global investors to sell a stake in Zambia's Konkola Copper Mines (KCM), a high-quality copper reserve that the company recently regained control of. Sources familiar with the matter told Moneycontrol that negotiations are underway, with Glencore PLC emerging as a potential buyer.
Glencore Among Potential Investors
- Glencore PLC, a Switzerland-based natural resources and commodity trading giant, is one of the key investors in talks with Vedanta Resources.
- The company is one of the world’s largest players in mining, metals, energy, and agriculture.
- In May 2023, Glencore provided a $250 million loan to Vedanta Resources (VRL), which was secured against VRL’s 4.4% stake in Vedanta Limited, its Indian-listed subsidiary.
- As of now, Glencore has not responded to requests for comments regarding the stake purchase.
Why is Vedanta Selling a Stake in KCM?
Vedanta Resources' decision to sell a stake in KCM comes as part of a broader strategy to raise funds for expanding production.
- KCM is among the world's top copper reserves, with a copper content of over 2.4%, making it a premium-grade mining asset.
- The mine also has substantial cobalt reserves, positioning it as one of the top five cobalt producers globally.
- Vedanta aims to ramp up copper and cobalt production, recognizing their critical role in global energy transition and electric vehicles (EVs).