Home - Konkola Copper Mines

What's the current situation?

Vedanta is committed to Zambia and to KCM and returning it to be a prosperous asset which benefits all people living on the Copperbelt. Vedanta is committed to significantly improving the investment outlook of KCM by returning and investing in its long-term future. The arbitration process between Vedanta and ZCCM-IH is ongoing. Arbitration is a confidential process and Vedanta has been advised that it is not permitted to say anything further about that process.

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#WeCare4KCM

Many things have been said over the past few months – in the media and elsewhere – about Vedanta and its operation of Konkola Copper Mines (KCM).
#WeCare4KCM

1

Vedanta is committed to

Zambia

and to KCM

and returning it to be a prosperous asset

which benefits all people living on the Copperbelt and the surrounding communities.
#WeCare4KCM

2

Vedanta has the

financial capacity

and goodwill

to further invest into KCM

and to commit to the long-term future of the mine.
#WeCare4KCM

3

In the current backdrop of financial and political

uncertainty

globally,

Vedanta signifies the diversified, international, FDI that Zambia desperately needs.
#WeCare4KCM

4

Continued strength of

India-Zambia

relations, with six MoUs agreed in 2019

following President Lungu’s State Visit to India.

These serve to increase intergovernmental cooperation across sectors, including Mining
#WeCare4KCM

5

We look to return to KCM with a

renewed focus

on CSR

and will continue our commitment community development projects.

CSR is embedded in the DNA of Vedanta and we will continue our Education, Health, Sports and Sustainable Livelihoods programmes at KCM.
#WeCare4KCM

6

Vedanta is a good corporate citizen and is committed to making a

positive

contribution

to KCM’s employees and their families;

business partners and suppliers and their employees; the communities where we operate; the people of the Copperbelt; and the people of Zambia. Over the 15-year period, KCM has employed, on average, 13,000 people. Direct employee earnings have amounted to around $900 million since 2014.
#WeCare4KCM

7

Under Vedanta, KCM provided jobs to approximately

12k people

in Zambia

paying employees a total of $2.3bn in wages.
#WeCare4KCM

8

Vedanta has a strong history of

significant investment

in the Copperbelt

and since 2006 has paid $1.3 billion in taxes, $1.2 billion to CEC for power costs;

and $2.3 billion in wages, with just $72 million received in the form of dividends. Vedanta also invested heavily to maintain KCM’s operations – dedicating US$1.3 billion of capital expenditure to increasing KCM’s overall life of mine.
#WeCare4KCM

9

Over the period of ownership, Vedanta has paid more than

$1.3bn

to the Zambian Exchequer in corporate tax

From 2008 – 2018, the average annual tax contribution was $104.8m, compared to $38m in 2006, when Vedanta first took ownership.
#WeCare4KCM

10

Vedanta is committed to

contributing

to the countries and communities it operates in.

In India, Vedanta directly contributes 0.4% to India’s GDP through its operations and has an indirect impact through its supplier network of 1% of India’s GDP.
#WeCare4KCM

11

In 2020, Vedanta Resources Limited, has made significant

improvements

in its Environmental, Social and Governance (ESG) performance.

This significant improvement has been recognised by the Dow Jones Sustainability Indices (DJSI) increasing Vedanta’s ranking to 12th in the metals and mining sector.
#WeCare4KCM

12

In India, Vedanta was one of the first to extend support to the Indian government in its fight against

COVID-19

Standing by its core value of ‘Care’

Vedanta has always put interest of the Nation first. Between March 2020 and August 2020, Vedanta spent Rs 153.9 crore ($20.9 million USD) on COVID-19 relief efforts.
#WeCare4KCM

13

Vedanta invested

US$1.7bn

to establish KCM’s fully integrated operations.
#WeCare4KCM

14

The integrated asset of

Konkola Mine

and the Nchanga Smelter

is of upmost importance to KCM.

Any split of the KCM business and sale would result in a substantial loss in revenue for the Zambian state and its people, as well as the potential long-term erosion of the individual assets’ value.
#WeCare4KCM

15

KCM’s

vertical integration

is its most valuable asset.

The Nchanga Smelter is uniquely designed to process the high-grade copper concentrate from the Konkola pits. There will be a significant decrease in the value of copper extracted if the high-grade concentrate from Konkola is sold to other smelters in Zambia that are not similarly equipped to process it.
#WeCare4KCM

16

The Nchanga

Smelter

is designed to process the cobalt

present in the Konkola ore body and produce cobalt alloy. There is not another smelter in Zambia that can administer this process.

What's the current situation?

#WeCare4KCM

#WeCare4KCM

1

Vedanta is committed to

Zambia

and to KCM

and returning it to be a prosperous asset

which benefits all people living on the Copperbelt and the surrounding communities.

#WeCare4KCM

2

Vedanta has the

financial capacity

and goodwill

to further invest into KCM

and to commit to the long-term future of the mine.

#WeCare4KCM

3

In the current backdrop of financial and political

uncertainty

globally,

Vedanta signifies the diversified, international, FDI that Zambia desperately needs.

#WeCare4KCM

4

Continued strength of

India-Zambia

relations, with six MoUs agreed in 2019

following President Lungu’s State Visit to India.

These serve to increase intergovernmental cooperation across sectors, including Mining

#WeCare4KCM

5

We look to return to KCM with a

renewed focus

on CSR

and will continue our commitment community development projects.

CSR is embedded in the DNA of Vedanta and we will continue our Education, Health, Sports and Sustainable Livelihoods programmes at KCM.

#WeCare4KCM

6

Vedanta is a good corporate citizen and is committed to making a

positive

contribution

to KCM’s employees and their families;

business partners and suppliers and their employees; the communities where we operate; the people of the Copperbelt; and the people of Zambia. Over the 15-year period, KCM has employed, on average, 13,000 people. Direct employee earnings have amounted to around $900 million since 2014.

#WeCare4KCM

7

Under Vedanta, KCM provided jobs to approximately

12k people

in Zambia

paying employees a total of $2.3bn in wages.

#WeCare4KCM

8

Vedanta has a strong history of

significant investment

in the Copperbelt

and since 2006 has paid $1.3 billion in taxes, $1.2 billion to CEC for power costs;

and $2.3 billion in wages, with just $72 million received in the form of dividends. Vedanta also invested heavily to maintain KCM’s operations – dedicating US$1.3 billion of capital expenditure to increasing KCM’s overall life of mine.

#WeCare4KCM

9

Over the period of ownership, Vedanta has paid more than

$1.3bn

to the Zambian Exchequer in corporate tax

From 2008 – 2018, the average annual tax contribution was $104.8m, compared to $38m in 2006, when Vedanta first took ownership.

#WeCare4KCM

10

Vedanta is committed to

contributing

to the countries and communities it operates in.

In India, Vedanta directly contributes 0.4% to India’s GDP through its operations and has an indirect impact through its supplier network of 1% of India’s GDP.

#WeCare4KCM

11

In 2020, Vedanta Resources Limited, has made significant

improvements

in its Environmental, Social and Governance (ESG) performance.

This significant improvement has been recognised by the Dow Jones Sustainability Indices (DJSI) increasing Vedanta’s ranking to 12th in the metals and mining sector.

#WeCare4KCM

12

In India, Vedanta was one of the first to extend support to the Indian government in its fight against

COVID-19

Standing by its core value of ‘Care’

Vedanta has always put interest of the Nation first. Between March 2020 and August 2020, Vedanta spent Rs 153.9 crore ($20.9 million USD) on COVID-19 relief efforts.