(Bloomberg) -- Vedanta Resources Ltd. has paid about $246 million to creditors to regain control of the Konkola Copper Mines in Zambia after about five years.
The payment paves the way for “imminent reinstatement” of Konkola's board and return of full management control to Billionaire Anil Agarwal's Vedanta, according to a statement. The mines in the African nation hold one of the largest high-grade copper deposits in the world, as well as cobalt reserves, according to Vedanta.
The metals and energy major plans to ramp up copper production from the mines to 300,000 tons a year and cobalt output to 6,000 tons.
Earlier, the company settled a long-standing dispute with the Zambian government after agreeing to clear debts owed to the mine's creditors through a court approved plan last month. Konkola Copper Mines was put into provisional liquidation after the previous government accused its owner of lying about expansion plans and paying too little tax.
Vedanta will turnaround the mines soon “as a world-class copper and cobalt asset that is well equipped with a smelter and a robust tailings leaching plant,” Chris Griffith, chief executive officer of Vedanta Base Metals, said in the statement.
Agarwal, who is looking to reduce the parent company's massive debt load, has pledged to invest $1 billion in the operation and double copper production, a move that could help shore up Zambia's flagging copper output, which is expected to hit a 14-year low in 2023.
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