Vedanta’s Chief Anil Agarwal cites his willingness to invest in Zambia’s copper production

The founder and Chairman of Vedanta Resources Ltd., Anil Agarwal has big dreams with Zambia and the Zambians!

Recently, Vedanta Resources' Head, Anil Agarwal said that he was absolutely ready to invest in increasing Zambian copper production to 400,000 tonnes, creating another 10,000 jobs at Konkola Copper Mines, but said 'the right framework' had to be in place.

Vedanta is fighting Zambia's decision this month to name a provisional liquidator to run Vedanta Resources' KCM business. A few days back, Zambia's President, Edgar Lungu threatened to 'divorce' the domestic copper units of Vedanta Resources Plc and Glencore Plc after the companies said they would curb operations in the Southern African country.

The threat marks an escalation in tensions between the mining industry in Africa's second-biggest copper producer and the state, after an augmentation in royalties and plans to introduce new taxes.

The government of Zambia also accused Konkola Copper Mines of breaching its operating licence. Legal proceedings have been adjourned until June 4. It is one of Zambia's largest employees, creating work for around 13,000 people.

In an announcement published in Zambian newspapers, Anil Agarwal said he had told Zambia's president Edgar Lungu that, "with the right framework" Vedanta was prepared to increase output.

"I am prepared to invest what is required to increase production safely and sustainably to 400,000 tonnes, creating another 10,000 jobs at KCM and more social benefits," he said.

The 65-year old business tycoon, Anil Agarwal worked to comply with Zambia's laws and tax requirements and said he did not understand why state-controlled ZCCM-IH, which holds around 20 percent of Konkola Copper Mines, had gone to court to seek the appointment of a provisional liquidator.

According to him, 'the current position' of the government of Zambia would harm the country's 'investor-friendly status' and he said a lot of mining companies were considering leaving Zambia.

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