Vedanta Deposits USD 245.75 Million into Designated Escrow Account
• Paves the way for the imminent reinstatement of the Konkola Copper Mines Board and for Zambia’s resurgence as a global leader in Copper production.
Friday, 19th July 2024, Lusaka, Zambia- Vedanta Resources Holdings Limited (“VRHL” or “Vedanta Holdings or Vedanta”) today confirmed that it has deposited USD 245.75 million into an escrow account as designated by the Hon.
High Court of Zambia in relation to the Konkola Copper Mines.
This paves the way for the imminent reinstatement of the Board of the Konkola Copper Mines (KCM) and the return of full-management control, which will allow Vedanta to take the necessary steps required to allow KCM to start to deliver to its full potential, and to fuel Zambia’s resurgence as a major copper producing nation.
The Konkola Copper Mines have one of the largest deposits of high-grade copper in the world, and substantial amounts of cobalt, both of which are expected to play an increasingly important role in the global energy transition in the years ahead.
Reinforcing Vedanta’s commitment to KCM and to Zambia, Chris Griffith, Chief Executive Officer, Vedanta Base Metals said: “We are delighted to confirm the transfer of funds into a designated Escrow account as per our earlier commitment. Vedanta is committed to Zambia and the Zambian people.
We are confident that with the full support of the government and other key stakeholders, we will soon be able to help KCM reach its full potential, both as a world-class Copper and Cobalt asset that is well equipped with a smelter and a robust Tailings Leaching Plant, and a growth engine for the robust social and economic development of Zambia.” Zambia is targeting to produce 3 million metric tonnes of copper over the next 10 years.
The injection of funds will have a far-reaching and transformative impact on Zambia as it revives local economic activity, creates jobs, and supports local businesses and communities through sustainable initiatives which will create a brighter future for generations of Zambians.
The funds in the escrow account will be used to:
• Settle creditor claims – including Class 2 creditors.
• Support local community development projects through the Community Trust.
• Provide a one-off employee bonus to KCM employees.
This payment comes within a week of Vedanta facilitating the signing of five landmark collective agreements between KCM and its workers unions in recognition of the importance of a positive and collaborative relationship at the Konkola Copper Mines.
Vedanta remains fully committed to partnering with the government, ZCCM IH, and the local community to deliver on a roadmap of shared progress and economic goals.
About Vedanta Resources Limited: Vedanta Resources Limited (“VRL”, parent of VRHL) is a diversified global natural resources company.
Its portfolio includes Zinc (world’s largest integrated producer), Aluminium (India’s largest producer of primary aluminium), Oil & Gas (India’s largest private producer of crude), Silver (6th largest producer globally), Copper, Iron Ore & Steel, battery metals: Nickel (India’s sole nickel producer) & Cobalt and Commercial Energy.
VRL is a former FTSE 100 company headquartered in London with operations in India, Zambia, Namibia and South Africa.
The Company uniquely covers traditional and leading-edge businesses.
For more information on Vedanta Resources, please visit www.vedantaresources.com
For any media queries, please contact: Sukanti Ghosh, President Global Policy and Communications, Vedanta Resources: E: sukanti.ghosh@vedantaresources.com / M: +44.7455.778.164 Or Masuzyo Ndhlovu: Director Corporate Communications E:mndhlovu@cpb.vedantaresources.co.za/ M:+260977853580
