IRH didn’t instantly reply to emailed questions. It instructed Reuters in April it was within the KCM belongings and that it was “deeply dedicated” to increasing its presence in copper mining.
The KCM belongings have additionally attracted curiosity from different buyers, Griffith instructed Reuters on the sidelines of a mining convention in London, declining to supply names.
Vedanta, owned by Indian billionaire Anil Agarwal, needs to promote a stake within the copper mines to boost about $1.2 billion required to revive operations and increase copper output.
Vedanta waged a five-year battle to get well the copper mines and smelter that had been seized by Zambia’s earlier administration of former president Edgar Lungu after it accused the corporate of failing to spend money on increasing copper manufacturing.
Vedanta might promote as much as 30% of its shareholding within the Konkola belongings, Griffith mentioned. The miner owns an 80% stake within the KCM and Zambia state agency ZCCM-IH the steadiness.
“IRH have been in discussions with us and have been a part of the data-room course of,” Griffith mentioned in an interview.
He mentioned the corporate needed “a little bit bit extra than simply as much as 30%”, however believed negotiation was attainable.
IRH supplied to purchase a 51% stake within the KCM belongings for greater than $1 billion, Reuters reported in April, citing sources. The Abu Dhabi firm needs to construct up its copper mining enterprise in Zambia after shopping for a 51% stake in Mopani Copper Mines in a deal price $1.1 billion.
Griffith mentioned different long-term buyers had been additionally exploring the potential to spend money on the KCM belongings.
“We’ve allowed that course of to occur in parallel,” Griffith mentioned. “So we’ve superior down the street with quite a few companions already which might be in that technique of doing their due diligence.”
Vedanta is looking for to steadily spend money on rising copper output on the Konkola mines over the following 5 years, Griffith mentioned. The corporate is near securing an extra $270 million it must repay excellent KCM collectors and meet social commitments, the CEO added.
Though Vedanta needs to promote a stake in KCM, it needs to retain majority shareholding, Griffith mentioned.
(By Clara Denina and Felix Njini; Enhancing by Barbara Lewis)