The Zambian government has agreed to return control of Konkola Copper Mines, KCM, to Vedanta Resources, according to Paul Kabuswe, the country’s mines minister, who revealed on Tuesday, September 5, that the country was terminating the years-long row over the ownership of the assets that began in 2019 when authorities took ahold of the mines.
Kabuswe had said that the government, which owned a 20% share in KCM would now be permitting Vedanta to have control and operate KCM mines and smelter, after the company recommenced their promise to invest over 1.2 million dollars to heighten output and repay outstanding debts.
Kabuswe had also added that a shareholder’s agreement was being drafted to make the commitments of both the shareholders legally and lawfully binding.
The legal details of the agreement would be concluded within the next three months, according to the minister.
Ties between Zambia and Vedanta, owned by billionaire Anil Agarwal, had gone south after the country’s former President, Edgar Lungu’s administration plotted the seizure of the KCM assets and enforced liquidation in May 2019, claiming that the Indian company had failed to meet plans to invest in raising its mining output.
This involuntary takeover had almost crippled the operations at the KCM and precipitated extended conflict, with Vedanta instituting legal battles and approaching an arbitration court in London to help recover the copper resources.
