Largest Zambian copper mine dodges liquidation

The largest copper mine in Zambia, has managed to dodge liquidation and received a cash injection of $1 billion from its parent company, ending a years long legal battle.

The majority owner of Zambia’s largest copper mining firm Konkola Copper Mines (KCM) is the London-listed Vedanta, and has been at the centre of a standoff with government. This is while the state-owned ZCCM-IH is a minority shareholder in KCM.

The government of Zambia government placed KCM in liquidation proceedings after accusing KCM of violating its operational licence and not paying all its taxes back in 2019, and that was the beginning of a four-year legal battle with Vedanta.

The Zambian government recently revealed that KCM’s liquidation process has now been halted and Vedanta would continue to run the mines as the majority shareholder with 79.4 percent stake. Zambian mining minister talking in a press conference in Lusaka, said: “The KCM board will be reinstated and Vedanta Resources Limited will return to its previous role as the majority shareholders.”

The mining minister Paul Kabuswe said the firm will enjoy “a renewed financing commitment towards investment in mine development and to increase production.”

Zambia is Africa’s second biggest copper-producing country on the continent after the Democratic Republic of Congo, and the sector is a major employer. Vedanta mentioned that it will be investing into developing KCM over the next five years, and it has also pledged to invest $20 million into the local mining community annually.