Trillion dollar question is whether India born mining tycoon Anil Agarwal, owner of the Vedanta Resources would be able to salvage his business interests in Zambia? The lucrative copper mines that he owns in Zambia –Konkola Copper Mines (KCM) is in docks allegedly for defaulting on tax payments.
Anil Agarwal may be at his wits end. But he is in no mood to give up without a fight. To evade liquidation of his precious assets, Anil Agarwal’s Vedanta Resources will do another round of reconciliatory meeting with Zambian President Edgar Chagwa Lungu today in New Delhi.
In May, the Zambian high court appointed a provisional liquidator to dissolve the company. But KCM got the reprieve from the High Court in Johannesburg, which is the seat of international arbitration in Africa. It has ordered to halt any sell-off of KCM assets. The Zambian authorities are apparently in no mood to abide by the order of the Johannesburg Court.
The company executives would meet the Zambian President Edgar Chagwa Lungu today, who is in India’s capital New Delhi. Earlier in Lusaka a week back or so, Agarwal had an unsuccessful meeting with the Zambian president. But the latter stood firm with his decision to dissolve KCM. President Lungu targets to enhance the tax revenue from global mining giants working there to repay the country’s growing domestic and international debts. KCM is not the only unit that is facing problem. There are others in the fray. Recently, as reported by www.trendsnafrica.com, Zambia has put on hold till the end of this year, the decision to impose a new form of tax-sales tax- on mining to realize more revenue from the deal.
Importantly, Zambian President is addressing the Indian industrialists today in New Delhi and the focus of his talk will be inviting more investors from India.Konkola Copper Mines (KCM) was exporting its products mainly to South East Asia, China and the Middle East. The refined cathode is sold to cable manufacturers.
The production of KCM from Zambian copper mines stood at 91,000 tonnes in 2017-18, about 3 per cent lower than the year ago period. However, the revenue was up by 47 per cent to US$1.3 billion during the same period, while earnings before interest, tax, depreciation and amortization (EBITDA) increased to US$73 million from US$6 million. Vedanta Resources, holding company has given a corporate guarantee to KCM for an amount of US$689 million in 2017-18 and US$709 million in 2016-17.
