Vedanta scouts for fundraise options

Anil Agarwal-owned Vedanta Resources (VRL), which has hired Standard Chartered Bank to raise funds for its Konkola copper mine assets, says it is engaging with several potential partners for both short-term funds and longterm equity financing for the Zambian project.

A Vedanta official said its commitment to optimising capital allocation and driving expansion is a key cornerstone of its strategy for the mines. It will enhance value creation and operationalise the Konkola Copper Mines (KCM).

“We can confirm that Standard Chartered Bank is assisting Vedanta in its broader strategy to manage its capital structure and ensure the company has the funds to meet its obligations and continue its operations again. It is common practice for large corporations to engage with financial institutions for such purposes,” said a Vedanta spokesperson.

The company was responding to reports that Dubai-based fund International Resources Holdings (IRH) has offered to buy a 51 per cent stake in the Zambian project for $1 billion.

Vedanta Resources owns 80 per cent in the mining firm.

The company said it cannot disclose the names of partners or investors due to the sensitive stage these discussions are in. While VRL is unlisted, its Indian subsidiary Vedanta Ltd is listed on the Indian stock exchanges.

Vedanta Ltd closed at ~377 a share on Tuesday. VRL owns 61.95 per cent stake in the Indian company.

Vedanta further said it is committed to Zambia and the Zambian people and is fully aligned with the country’s vision of producing over 3 million metric tonnes of copper annually in the next 10 years.