Eurasian Resources Group and China Non-Ferrous Metals Co. expressed interest in buying Konkola Copper Mines, should the Zambian government succeed in seizing it from Vedanta Resources Ltd, people familiar with the situation said.
Eurasian Resources, owned by three Kazakh billionaires, approached the government about two months ago, according to the people, who declined to be identified by name.
CNMC also wanted to buy the assets, they said.
The Chinese company offered to spend $2.5 billion on development, one person said.
At stake are copper mines and resources in one of the world’s richest deposits, which stretches from Zambia’s Copperbelt region into southern Democratic Republic of Congo.
Zambia, cash-strapped and struggling to contain debt, says that Vedanta hasn’t met its investment promises and paid too little tax, while the company says it is a “loyal investor” that’s spent more than $3 billion in the country since 2004.
Eurasian Resources and CNMC declined to comment.
Mines Minister Richard Musukwa wouldn’t immediately comment.
“KCM isn’t for sale from our perspective,” a spokesperson for Vedanta said by email.
“While we remain open to dialog with the Zambian government, we will consider all options to preserve our legal rights.”
State-owned ZCCM Investments Holdings, which owns 20.6% of KCM, asked the Lusaka High Court on 20 May to liquidate the company because it hasn’t met the conditions of its license.
The case, which is being challenged by Vedanta, was postponed to 4 June.
Vedanta, majority owned by Indian billionaire Anil Agarwal, says the deposits could be mined for another 50 years.
The company valued the assets at $1.6 billion in its last annual report.
Agarwal, in a “personal message” published in Zambian newspapers said the attempted liquidation of KCM “can only hurt the country’s hard-earned democracy and investor-friendly status.”
Source: Live Mint