The discussions about the New York listing for KCM are still in the preliminary stages.
Vedanta Resources owns an 80% stake in KCM, while the Zambian government holds the remaining 20% through ZCCM-IH, a state-owned investment company. KCM is recognized for its high-grade copper deposits and approximately 400,000 tonnes of cobalt reserves, key materials for clean energy technologies.
A Vedanta spokesperson stated: “The company is considering various financing options including internal accruals, debt instruments and equity options to support growth across its global operations.” The potential IPO aims to fund the expansion of KCM’s operations, with a target to increase annual copper production to around 300,000 tonnes over the next five years.
KCM’s output was previously impacted by a legal dispute with the Zambian government, which led to the provisional liquidation of the company. However, Anil Agarwal regained control of KCM’s mines, smelter, and refinery within the past year. Since then, Vedanta has secured short-term financing, settled local debts, and increased investments in community initiatives to support the region’s development.
Vedanta has established a U.S.-based entity, Global Transition Resources, which focuses on copper, cobalt, and gold production in Africa, as announced on social media. It is unclear whether this entity will be used for the potential U.S. listing of KCM’s assets.
Previous efforts to divest a stake in KCM, including a failed deal with United Arab Emirates-based International Resources Holding and attempts to sell at least a 30% equity stake, have been unsuccessful. These challenges have made an IPO a viable option for raising capital to support KCM’s growth.
The exploration of a U.S. listing reflects Vedanta’s strategy to leverage KCM’s significant copper and cobalt resources to meet global demand for clean energy materials. By pursuing this financial avenue, the company aims to enhance its production capacity and contribute to the sustainable development of Zambia’s mining sector.
