Vedanta Resources is considering a US public listing for its Zambian unit, Konkola Copper Mines (KCM), as part of its efforts to raise approximately $1 billion for mine development. The mining conglomerate, owned by Indian billionaire Anil Agarwal, has engaged Barclays and Citigroup to advise on the potential initial public offering (IPO), with New York emerging as a possible listing venue.
The move aligns with Vedanta’s broader strategy to ramp up copper production, targeting an annual output of 300,000 metric tons over the next five years. KCM, which holds one of the world’s highest-grade copper deposits, also boasts reserves of 400,000 tons of cobalt, a critical mineral for clean energy and electric vehicle infrastructure.
Vedanta’s decision comes after a prolonged legal battle to reclaim KCM from Zambia’s previous administration, which had placed the unit under provisional liquidation citing underinvestment. Since regaining control last year, Vedanta has secured short-term financing, repaid debts to local suppliers, and increased community investments.
The company has also established a US-based entity, Global Transition Resources Inc., which focuses on copper, cobalt, and gold production in Africa. While it remains unclear whether this entity will house KCM’s assets in the event of a US listing, Vedanta continues to evaluate multiple financing options, including debt instruments and equity sales.
Past attempts to attract strategic investors for KCM have fallen through, including a failed stake sale to UAE-based International Resources Holding due to valuation differences. With a separate effort to sell at least 30% equity in KCM also proving unsuccessful, a public listing has emerged as one of the most viable alternatives.
Vedanta Resources currently holds an 80% stake in KCM, while Zambia’s state investment arm, ZCCM-IH, owns the remaining 20%. The company is also undergoing a broader restructuring to split its oil-to-metals business into five independently listed entities, a move that could shape its future financing plans.
As Vedanta explores its next steps, the potential US listing could provide the necessary capital to accelerate copper production and strengthen its position in the global mining sector.
Stay tuned for more updates on Vedanta and international business developments.
