Vedanta Hires RMB to Raise Funds for Zambia Copper Expansion

According to a news report, Vedanta Resources Ltd. has engaged Rand Merchant Bank (RMB) to help raise up to $1 billion in debt financing. The funds are to expand operations at Konkola Copper Mines (KCM) in Zambia. The fundraising discussions are currently in the early stages.

As of 10:44 AM on May 12, 2025, Vedanta Ltd share price was trading at ₹423.85, a 3.91% increase, with a 10.57% decline over the past six months and a 1.46% drop over the past year.

Ownership and Investment Update

Ten months ago, Vedanta regained control of 80% of KCM after settling a long-running dispute with the Zambian government. As part of the resolution, the company committed to investing $1 billion into the asset. So far, $330 million has been invested, mostly used to pay off existing creditors.

Production Levels and Target Output

In 2023, KCM produced around 40,000 tonnes of copper under a court-appointed administrator. Vedanta now plans to scale up production to 300,000 tonnes annually. A major part of the investment is to go toward completing the Konkola Deep underground mine.

Financing Alternatives Being Explored

Apart from debt, Vedanta is evaluating other funding sources such as internal accruals, equity instruments, and prepayment deals with commodity trading firms. These discussions are part of efforts to secure capital for the expansion.

Vedanta is also considering a public listing of KCM, according to its Chief Financial Officer, Ajay Goel. This option is being evaluated alongside other funding strategies.

Read more: Vedanta Promoter Group Signs $530 Million Facility Agreement; No Direct Impact on Company Management!

Copper Sector Developments

Other mining firms such as Barrick Gold, First Quantum Minerals, and China Non-Ferrous Metals Co. are also investing in Zambia. The country is the second-largest copper producer in Africa and continues to attract mining investments.

Conclusion

Vedanta is in the process of securing funds to support planned expansions at KCM. The company has invested a portion of its pledged amount and is now working with RMB and other partners to arrange the rest through multiple funding avenues.

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