UAE unit IHC withdraws bid for Vedanta's Zambian copper mines over price

It wanted the mines to consolidate its position in Zambia’s copper after buying a 51% stake in Mopani Copper Mines in a deal struck in March.

But the IRH said Reuters “it was not currently seeking to acquire a majority stake in the Zambian assets.”

“IRH terminated discussions on the transaction two months ago due to valuation differences,” he added in an emailed statement.

The United Arab Emirates and Saudi Arabia, an even larger regional oil power, are seeking to secure supplies of critical metals from Africa as they try to help drive the transition to green energy.

Vedanta owns 80% of KCM and the Zambian government holds the remaining stake through state-owned ZCCM-IH.

Chris Griffith, CEO of Vedanta Base Metals, said: Reuters In June, IRH was among investors conducting due diligence on Zambian assets.

IRH offered about $1 billion for a 51% stake in KCM, but Vedanta was only willing to sell a minority stake of about 30% for almost double the amount IRH offered for a larger stake, a source familiar with the matter said. ReutersThe source declined to be named because he was not authorized to speak publicly on the matter.

Vedanta, owned by Indian billionaire Anil Agarwal, took over KCM late last year after a five-year battle to reclaim the copper mines and smelter that were seized by the administration of former Zambian President Edgar Lungu after accusing the company of failing to invest in expanding copper production.

The miner has been trying to sell a stake in Zambian copper mines to raise about $1.2 billion needed to settle debts, restart operations and invest in advancing the Konkola deep mining project, home to one of the world’s richest copper deposits.

“Vedanta remains committed to exploring all financing options – both debt and equity – that align with what we believe to be in the best interests of KCM,” a spokesperson said via email.

The spokesman declined to comment on “any ongoing discussions or negotiations” with potential partners.

(By Felix Njini; edited by Veronica Brown and Barbara Lewis)