The Hindu : Business : Vedanta completes Zambian mines acquisition

Online edition of India's National Newspaper
Wednesday, Nov 10, 2004

Business

Business

Vedanta completes Zambian mines acquisition

NEW DELHI, NOV. 9. Vedanta Resources today said its acquisition of Konkola Copper Mines in Zambia is complete, making it the fifth largest producer of refined copper in the world.

"Along with the production capacity of Sterlite, the acquisition of one of the world's largest copper mines makes us the fifth largest producer of refined copper globally, Naveen Agarwal, Chairman of KCM (Konkola Copper Mines), told PTI. He said with 51 per cent stake in the company that contributes 15 per cent of the African country's gross domestic product, Vedanta had gained full control of management and operations.

Asserting that the management of the newly-acquired company would remain `by and large' the same, Mr. Agarwal, who is also the vice-chairman of the Sterlite group, said the thrust now would be on increasing output and efficiency along with value addition.

Vedanta, listed on the London Stock Exchange, has also set a target of 2.50 lakh tonnes annually from the current output of 1.90 lakh tonnes, Mr. Agarwal added. "The acquisition is a major achievement for us as an Indian company. The copper available there is high grade. The Zambian venture is a long-term investment for us," he said. The acquisition took place for a cash consideration of $48.2 million and received the approval of the shareholders of Zambia Copper Investments, holding 58 per cent of KCM before the takeover. The Zambian Government holds about 21 per cent of the total equity in KCM, Mr. Agarwal said. — PTI

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