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Sector
Basic Materials
Size
Large Cap
Market Cap £4.99bn
Enterprise Value £8.96bn
Revenue £8.96bn
Position in Universe 61st / 3010

Production stalled at Vedanta Resources' Konkola Copper Mines

Fri 31st May, 2019 4:58pm
LUSAKA, May 31 (Reuters) - Zambia's Konkola Copper Mines
(KCM) is not producing copper, the chief executive of the mining
firm's owner Vedanta Resources said on Friday.
    Vedanta  VDAN.NS  is fighting Zambia's decision this month
to name a provisional liquidator to run Vedanta Resources'
90,000 tonnes KCM business and said in a statement that it was
seeking international arbitration.  urn:newsml:reuters.com:*:nL5N2301RK urn:newsml:reuters.com:*:nL5N2301RK
    Legal proceedings in Zambia have been adjourned to June 4.
Zambia's Chamber of Mines said last week that Africa's second
largest copper producer was at risk of a drastic fall in copper
output because of recent tax changes.  urn:newsml:reuters.com:*:nJ8N219029
    "From what we understand, there is not any production coming
out of the mine," Vedanta Resources CEO Srinivaan Vekatakrishnan
said on a conference call on Friday.
    A mining industry source with knowledge of KCM's operations
said it had not been in production for several weeks.
    "They owe a lot of money and with no mining taking place for
several weeks, even concentrate suppliers want first to be paid
outstanding amounts and upfront payments for fresh supplies,"
the source told Reuters on condition of anonymity.
    KCM miners were paid this week after a delay of around three
days. 

 (Reporting by Chris Mfula and Barbara Lewis; Editing by
Alexander Smith)
 ((chris.mfula@thomsonreuters.com;))
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