IHC arm has its eyes on another Zambia mine acquisition

IHC’s International Resources Holding bids for Konkola Copper Mines in another Zambia acquisition: The International Holding Company’s (IHC) mining investment arm, International Resources Holding (IRH) reportedly bid over USD 1 bn for Mumbai-based Vedanta’s stake in Zambia’s Konkola Copper Mines, Reuters reports, citing unnamed sources. IRH has presented a non-binding offer to acquire London-based mining company Vedanta Resources’ 51% stake in the mines, Reuters says, with talks still ongoing.

IHC is doubling down on securing critical metal supplies from Africa: Last month, the natural resources extractive company snagged a 51% stake in Zambia’s Mopani Copper Mines for USD 1.1 bn. IRH is also reportedly looking to bid for private equity player EMR Capital’s 80% stake in Zambia’s Lubambe Copper Mine.

Stop in the tracks? Vedanta — which owns an 80% stake in KCM — is considering retaining its majority ownership of the Zambian copper field, owing to its longstanding desire to retain the assets under its belt, the sources said. The company hired Standard Chartered to seek investors with a minority interest in KCM, as opposed to IRH’s aim for a controlling stake.

Not entirely off the table: Vedanta is looking to raise USD 1 bn over five years for a Konkola-based deep mining project and USD 300 mn to settle local debts, which might make it look favorably to IRH’s bid. In 2019, the company entered into legal disputes with the Zambian government, which ended with its forced liquidation of KCM, a capital shortage and near operational standstill. Vedanta only recently gained back ownership of the copper assets in last September after pledging to invest USD 1 bn in Zambia.