Bloomberg is reporting that Zambia has agreed to end legal action against billionaire Anil Agarwal’s Vedanta Resources Ltd. as President Hakainde Hichilema seeks to revive mining output in the southern African country.
Vedanta’s Konkola Copper Mines was placed under provisional liquidation in 2019 after the previous Zambian government alleged that the company had lied about expansion plans and paid too little tax.
KCM denied any wrongdoing.
Now Hichilema is seeking to attract investment to one of the world’s biggest copper producers by repairing damaged relationships with mining companies.
Any solution at KCM has to include Vedanta, which remains a co-shareholder in the operation with the government, Hichilema told reporters at the Investing in African Mining Indaba conference in Cape Town on Monday.
“Vedanta and ourselves agreed that we suspend litigation, by-and-large as a partial way of resolving the matter,” he said. “The outcome I wouldn’t predict, but there will be a resolution of Konkola Copper Mines.”
Rebooting production at KCM is central to Hichilema’s ambitions to raise annual copper output to about 3 million tons in a decade, from about 800,000 currently.
Vedanta reiterated in December that it was ready to invest about $1.5 billion in reviving KCM and making it a world-class asset, while warning that the mothballed operations are on the verge of collapse.
Hichilema said his government will seek to end “excessive litigation” in mining after former President Edgar Lungu’s administration took an increasingly aggressive stance with the industry.
The president’s investment drive received a boost this week after First Quantum Minerals Ltd. approved a $1.25 billion project to expand its Kansanshi copper mine in Zambia.
The government’s overtures toward Vedanta may make it easier for Zambia to find a buyer for Mopani Copper Mines Plc, which it recently bought from Glencore Plc. Selling those assets is less complicated than resolving the challenges at KCM, and potential buyers are being sought, said Hichilema.
There you have it! “Whatever solution, will include Vedanta”! No words minced here!
#plant a tree please!
Alyamo HH. Corrupt bustard! You have seen nothing yet. Come 2026 you will own nothing in this country. We warned you
“Any solution at KCM has to include Vedanta, which remains a co-shareholder in the operation with the government, Hichilema told reporters at the Investing in African Mining Indaba conference in Cape Town on Monday.”
If Vendanta remains co-shareholder then what is the point of looking for a new investor and where will they fit in? This is not good news you should have parted ways with them…did you even bother to investigate the tax issues raised by the previous govt.
The original sin was bedazzlement from a guy with a string of prayer beads and selling the asset for a song by the MMD government. No we are asking someone else to polish this turd of deal into something shiny to satisfy even the knee-jerk critics.
Whoever ends up managing the asset will require close supervision from the government. We can be hopeful the current government will do a better job than the last. And that is saying a lot.
@Tarino Orange …. It is not a forgone conclusion that Vedanta will run the mine.
“The outcome I wouldn’t predict, but there will be a resolution of Konkola Copper Mines.”
>>> Quote from article.
IT OK >> “COME 2026 WE WONT OWN A THING” ??
I DOUBT THAT VERY MUCH >> ITS JUST PF WISHFULL THINKING
ONE THING FOR SURE IS PF WONT BE TALKING ABOUT
1 + 1 = BMW
I am vindicated. Milingo was removed from KCM because GRZ could not change policy direction without showing him the door.
It is a done deal. Vedanta wrote a soothing tantalising letter to Hakainde appeasing most bereaved parties and atoning past deeds. Let’s move on.
Meanwhile, Agarwal is smiling ready to tease, mock and swindle us again.
Son_of_the_18Million – Vendenta is already on a charm offensive campaign already bribing the greedy mine union leaders have you not been reading the news…Agarwal is probably having dinner with HH7 as I am typing…Vendanta wouldnt agree to end this dispute and leave empty handed.
And all the UPND vuvuzela are hiding now…all the praise singers Lumbani madoda are hiding HH demagogue President strikes again
#10 Saulosi
May 9, 2022 At 11:53 pm
“And all the UPND vuvuzela are hiding now…all the praise singers Lumbani madoda are hiding HH demagogue President strikes again..”
As mush as we don’t like vendetta,……….
The international courts would rule in their favour , as happened in SA………….
You won’t be able to sell any copper from KCM…….
There is PF law and unfortunately international law………….
Hichilema is testing the depth of the water with both legs and a disaster awaits him. The reasons he has stated for his decision to bring back Vedanta are flimsy and are far from the truth. This isn’t the 90s privatization period when Zambians were duped by tilted legal jargons. Any follower of the UPND knew long ago that either Anglo was going to take over KCM or Vedanta the moment it was reported that it was one of the financiers of the UPND campaigns. This is the reason that we must seriously look at how we fund our democracy. Soon his deals will be exposed by the very people that he has appointed. Zambia shall continue to move in circles. The man has no shame because he has many tongues
His business interests and their (Vedanta) business interests are thicker than Zambians interests. Therefore, there is nothing for Zambia but environmental liabilities. Twachula again.
The jigsaw puzzle which my seven years old grandson solved…. I am not a racist but a leopard will remain one even if wash away it’s spots. Can a Zambian hold any position in India even if one is born in India? That was the cry I heard so much each time previous administrations put an Indian in charge. Even our own Given Lubinda was a subject of ridicule. But now it’s okay an Indian can be in charge of KCM ( remember I am not racist, I am only reminding those who move with the wind). Truly the dawn has damned
Although this seems a good way to move forward, we’ve got to ask why Vedanta seems so keen on Zambia. What have they done for us, other than reap us off? The family owning it has been building universities in India, yet nothing for us to see in Zambia. That’s the copper story. Let’s not bury our heads in sand and continue with Cecil Rhodes agenda. Time to reflect and change course. Bring back home companies with a national agenda. No more licences to foreign companies in mining. We get nothing from it.
No logical investor will take part in KCM until the Vedanta issue is resolved. The goal for Government should be to negotiate the sale of Vedanta’s stake to new equity partner. What HH needs to come out strongly on is that his government will not accept any scenario where Vedanta remain co-owners of the mine.
If the case has been withdrawn it means HH and Vedanta have struck a deal….no need for calculus.
Once upon time, the old man told a story to the man learning to catch fish.The old man once said it’s not possible to catch a fish without a bait.Always the bait attracts fish.When there’s a bait on the hook it’s obvious that the fish will rush to swallow the bait without thinking of the deadly hook it is hiding.The question to pose is Vedanta again?Do not ignore the truth of the living history of KCM.
Surely Africans are there own worst enemies. Never working in their own peoples interests but that of others.
As as child I once called out my mother that she was telling a lie. My father gave me a hiding which I still remember up to now. He warned me never to call an adult a lier ever again. Well I’m older than Mr Hakainde so I can safely call him a lier. Someone who so far hasn’t kept even a single promise.
#20 At the press conference he categorically accused social media of spreading lies that the Upnd was going to hand back KCM to Vendata. So who’s telling lies now?
Why not just wholly own it as government??.. we cannot afford losing huge sums in revenues because of vendata..take Ghana aluminium VALCO for example which was co-owned by Ghanaian govt and that American company which was later booted out and the govt has 99% ownership and the company is doing just fine. We should aim to completely wipe out neo-colonialism as blacks by taking responsibility of our own resources.
Moderation is an assault on freedom of expression ba LT… i would suggest you sell LT elon musk
Can a leopard change it’s spots? Impossible!! So it is with a person accustomed to lies and Bally fits the description. Bally is sliding this country into an abysmal pit and by 2026 Zambia will be completely privatized. Not too long ago during the shambolic press briefing, BMW was asked a question about Vedanta coming back, he said ”AKALUMBAFYE” the mine won’t be given to Vedanta. What has changed? Vedanta directors are crooks!
The best thing is the FQM Investments pledge and when you look at the multiplier effect on the local economy and Zambias it’s marginally far better than KCMs pleadge and when you analyse the Minning Investments attractive index by Frazer including individual firms and Capital in Investments then you begin to see why Zambias attractiveness for minning should be attractive to the best in the 2022 2021 rankings The rest in Investments promotions has been okay only this weights weighing down the minning performance outlook in Zambia The give has still the responsibility to secure the assets and assure job prospects for long-term by giving the asset to the best minning companies in the rankings
Judas Iscariot…
Activities of Vedanta in Zambia is a replica of the corrupt-Guptas in South Africa, the Guptas owned Coal Mines, aviation industries, TV Channel 405 etc, all facilitated by Jacob Zuma in South Africa. Guptas repeated billions of Rands which they invested in India and Dubai. Soon after the Zondo Commission was set up, the Guptas fled from South Africa to safe havens outside Africa leaving many black South Africans in pitiful poverty whilst the noose closes on Zuma and his supporters to face the Law. Just like Anglo-American, Vedanta will repeat from Zambian mines, flee the country and the noose will close on most UPND supporters to face the Law after 2026.
Activities of Vedanta in Zambia is a replica of the corrupt-Guptas in South Africa. The Guptas owned Coal Mines, aviation industries, TV Channel 405 etc, all facilitated by Jacob Zuma in South Africa. Guptas harvested billions of Rands which they invested in India and Dubai. Soon after the Zondo Commission was set up, the Guptas fled from South Africa to safe havens outside Africa leaving many black South Africans in pitiful poverty whilst the noose closes on Zuma and his supporters to face the Law. Just like Anglo-American, Vedanta will repeat from Zambian mines, flee the country and the noose will close on most UPND supporters to face the Law after 2026. Food for thought to Zambian miners.
Very soon union officials starting with shop stewards will start driving or building.
Ending legal action does not mean giving the mine back. It means to allow an amicable possible settlement. It is interesting people are judging to conclusions without proof. Many possible solutions could come out of it. For example, govt share holding could be increased, workers could be part of the share holding or govt buy offs all shares. A zambian consortium consisting of zambian people plus workers union could buy shares. There are many models out there that can be discussed and be put on the table.
HH is a liar. He came on a platform of lies and has continued lying even when he has ascended to presidency. Liars will ever be liars. There is nothing that comes out of lies. We told you that HH was just duping you, you thought we were lying. Within a short period of his presidency, he has proved to be a liar.Fili okotuleya!!!