Vedanta Resources has deposited $245.7 million into an escrow account for payment of local creditors.

Vedanta Resources Holdings Limited has announced the depositing of $245.75 million into an Escrow account as designated by the High Court of Zambia in relation to Konkola Copper Mines-KCM-. 

This paves the way for the imminent reinstatement of the Board of KCM and the return of full-management control, which will allow Vedanta to take the necessary steps required to allow KCM to start delivering to its full potential, and to fuel Zambia’s resurgence as a major copper producing country.  

Vedanta Base Metals Chief Executive Officer Chris Griffith has said in a statement that the transfer of funds into a designated escrow account as per earlier commitment reinforces Vedanta’s commitment to KCM and Zambia.

Mr. Griffith says 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 and provide a one-off employee bonus to KCM employees.

He is confident that with the full support of government and other key stakeholders, Vedanta 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 tailing leaching plant, and a growth engine for the robust social and economic development of Zambia.

Mr. Griffith says 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.  

And reacting to this development, Mines Minister Paul Kabuswe emphasized the strategic importance of KCM, highlighting its potential in contributing to Zambia’s ambitious goal of producing 3 million metric tonnes of copper by 2031.

Addressing the media in Lusaka today, Mr Kabuswe has disclosed that government will next week launch the official handover of KCM back to Vedanta and has urged all contractors and suppliers to also pay their workers who have gone for months without salaries.