Vedanta is expected to raise $1 billion through debt financing to fund a copper mine in Zambia.

According to Webstock Inc., citing foreign media on February 6, Chris Griffith, head of Vedanta Resources' base metal unit, stated that the company is attempting to raise approximately $1 billion in debt financing to fund the development of the Konkola Copper Mines (KCM) in Zambia.

The Indian company, which holds an 80% stake in KCM, announced last year that it is expected to sell at least 30% of its copper mine shares.

However, Griffith stated that the likelihood of selling the shares is relatively small.

"We are far more likely to raise funds through various financing options," Griffith said on the sidelines of the Cape Town International Mining Conference.

"We own 80% of the shares, and obviously, we would prefer to continue holding 80%."

Vedanta, owned by Indian billionaire Anil Agarwal, is weighing various debt financing options, though Griffith did not disclose details.

The company hopes that the $1 billion funding will increase KCM's copper production to approximately 300,000 mt annually over the next five years.

After a five-year battle to regain control of the copper mines and smelters seized by the government of former Zambian President Edgar Lungu, Vedanta regained control of these assets in 2024. The previous administration had accused Vedanta of failing to invest in expanding copper production.

The Zambian government holds the remaining 20% stake in KCM through the state-owned investment company ZCCM-IH.

UAE-based International Resources Holding withdrew its offer last year to acquire a 51% stake in these copper mines from Vedanta, citing disagreements over asset valuation.

Griffith stated that since then, Vedanta's debt situation has improved following the refinancing of bonds, which may help the company raise more cash internally while exploring external debt options.

He noted that the company has secured short-term financing to cover outstanding debts.