Zambia's Konkola Copper Mine Seeks $1.2 Billion Equity Investment

Zambia's Konkola copper mine (KCM) has appointed Rand Commercial Bank (RMB) as a financial adviser to help the company find new investors to expand its copper mine and smelter, its state-appointed provisional liquidator said on Wednesday.

In May 2019, Zambia's previous government placed KCM under the control of liquidators, triggering a protracted legal dispute with KCM's parent company Vedanta Resources. Zambia and Vedanta agreed this month to seek an out-of-court settlement.

Provisional liquidator Celine Nair said KCM was looking for a new equity partner willing to invest $1.2 billion to expand the mine underground, and KCM aimed to secure the funds "as soon as possible".

Nair said the appointment of Rand Commercial Bank (RMB), a unit of South Africa's First Rand Bank, was part of the government's efforts to get KCM fully operational again.

Expanding and upgrading the KCM is seen as key to the government of President Hilhilema, which has set a target of more than quadrupling copper production to 3m tonnes a year over the next decade.

Zambia is also looking for a new investor to restart and expand the Mopani copper mine and smelter previously owned by Glencore.