Vedanta Resources secures $250 million to settle KCM creditors

Earlier this month Vedanta Resources announced the arrangement of USD 250 million in funding to pay creditors of Konkola Copper Mines (KCM), following the High Court’s decision on June 28, 2024. 

This milestone marks significant progress in Vedanta’s efforts to revitalize KCM, one of Zambia’s major mining assets.

The funds will be used to settle debts owed to contractors and suppliers, generating substantial cash flow throughout the Copperbelt Province, particularly benefiting the communities in Chingola and Chililabombwe. 

This influx of capital is expected to stimulate local economic growth and create much-needed employment opportunities for residents, reversing years of financial struggle in the region.

Gift Kaunda, Club Secretary, expressed optimism about the positive impact of Vedanta’s commitments. “This development reinforces our confidence in Vedanta’s ability to deliver on its other promises, including over $1 billion for capital injection, a one-time payment of K2,500 to workers, a 20% salary increment, and $20 million annually for CSR activities,” Kaunda said.

KCM has faced operational challenges for several years, and Vedanta’s return signals a potential turnaround for the company and the region. 

“This development shows us that with Vedanta Resources back, KCM will regain its former glory, and Zambia will benefit massively,” Kaunda added.

Community members have expressed strong support for Vedanta Resources, recognizing the company’s commitment to the well-being of local communities as it formalizes its takeover of KCM. The anticipated revival of KCM is seen as a crucial step towards economic rejuvenation in the Copperbelt.

“We are more than pleased to support Vedanta Resources as an investor dedicated to our communities’ prosperity. God bless,” Kaunda concluded.

This article originally appeared on Efficacy News