Vedanta Investment into Zambian Konkola Mines Soon to be Finalised.

Vedanta Resources, owned by Indian billionaire Anil Agarwal, has promised to increase investment, and execute new social responsibility programmes in Zambia's Konkola Copper Mines (KCM).

In a letter to the government, Vedanta pledged their commitment to improving the operations of KCM with the condition of regaining control over the mining firm.

Zambia's previous government, in May 2019, entrusted the management of KCM to liquidator Milingo Lungu, thereby initiating an enduring legal conflict between Vedanta, the parent company of KCM, and the Zambian government.

This ongoing dispute has reportedly caused a significant decrease in the mine’s exports over the last four years, an issue that Vedanta is anxious to remedy as a 79.4% shareholder of KCM.

In a leaked letter directed to the Minister of Mines, Paul Kabuswe, (the authenticity of which has been verified by a senior executive of a local company) the chief executive of Vedanta, Sunil Duggal, expressed the company's firm dedication to allocating an extra $1 billion towards enhancing the capital mine development and other associated infrastructure in order to augment the production capabilities of KCM.

Additionally, the company pledged to implement a universal salary increment of 20% for all its employees.

In an official statement on Saturday, Vedanta discussed that fulfilling these pledges, has “taken a little longer than initially anticipated”, but affirmed that “The company is firmly committed to the process.”

The “commitments by Vedanta will be included in a Framework Agreement to be entered into between KCM, Vedanta, ZCCM-IH and (the government)”, the letter reads.

Vedanta expressed a firm commitment to fulfil its financial obligations to KCM suppliers, particularly smaller suppliers who were owed up to $220 million at the time of the appointment of the Provisional Liquidator, as stated in the letter by Mr. Duggal.

Duggal also states that “The agreement will be auditable on a bi-annual basis by an independent firm to verify all parties' compliance with their commitments under the Framework Agreement”

Kabuswe anticipates the near completion of these discussions with Vedanta, “We are counting days, it’s no longer months,” he told reporters in Lusaka.