VEDANTA ASSURES IT IS FINANCIALLY SOUND TO RUN KCM
VEDANTA ASSURES IT IS FINANCIALLY SOUND TO RUN KCM
By Tellah Hazinji and Michael Kaluba
Vedanta Resources Limited has assured that it is financially sound to run Konkola Copper Mines-KCM- and will continue to be the majority shareholder in the mine.
The global mining giant has also disclosed that it is exploring ways for the best corporate structure to raise financing without losing control of its stake in the mine.
This follows the continued doubts by some stakeholders of Vedanta’s capacity to run KCM owing to its financial difficulties and reports that the mining investment arm of Abu Dhabi’s IRH offered to buy a majority stake in Vedanta Resources in KCM as it recently made an offer of more than $1 billion to buy a 51% stake in it.
Vedanta Resources Corporate Communications Director, Masuzyo Ndhlovu says Vedanta remains committed to its $1.3 billion investment in KCM to expand and modernize the mine and increase its production capacity.
Mr. Ndhlovu says the company is in the process of raising funds to operationalize KCM adding that it is an entirely normal process in business used to drive business growth, profitability and expansion.
Meanwhile, Economic Freedom Fighters-EFF Leader Kasonde Mwenda says the proposed sale of 51% shares in KCM to IRH will be illegal and against competition and consumer protection laws.
Mr. Mwenda says the proposed move is a defacto merger of the two giant mines which is prohibited by the consumer protection act number 24 of 2010, section (24)(2) which also prevents anti-competitive tendencies.
PHOENIX NEWS