The Vedanta Group has recently called upon Worley for a 1 billion USD copper cobalt blitz in Vedanta Zambia. As per the news, Vedanta Worley is expected to engage with international experts for backwards integration and identify partners for various critical mineral extraction projects. This will help give an excellent boost to Vedanta Group’s existing line of business. It will also ensure that the group’s business profitability increases substantially.
Vedanta’s Decision To Engage With Worley:
The mining giant, Anil Agarwal’s Vedanta Resources, which is a UK-based company, has recently roped in the global EPCM company Worley for project management. This is being done in order to expand the company’s mining and processing operations for critical minerals like copper and cobalt at its Konkola Copper Mines (KCM) in Zambia. Worley happens to be an Australia-based engineering, procurement and construction management player.
Worley will engage with international experts for backwards integration. It will also identify partners for critical minerals extraction projects for Vedanta Zambia. The company also has extensive plans to build an additional tailings processing plant. This will help in enhanced recovery from tailings. This step will further allow the company to market a strategy to improve resource efficiency and environmental sustainability.
Plans To Scale Up Production At Vedanta KCM:
Vedanta also plans to scale up production at Vedanta KCM. It is planning an investment of 1 billion USD. According to sources, the company could look at a possible US public listing for its Zambia unit. Among various other financial options, it is also looking forward to raising approximately 1 billion USD for mine development. Currently, it is also in talks with a lot of investment bankers. New York is among the probable listing options.
The Vedanta Zambia copper asset is one of the largest high-grade mines in the world. Vedanta is putting plans in motion to increase output at KCM to 3,00,000 tonnes annually. This will be made possible upon the completion of the 1 billion USD investment. Currently, Worley is not bringing in any capital for Vedanta. A spokesperson from Vedanta Zambia has also confirmed the onboarding of an international entity.
The Decision To Partner With An International Firm:
As per the spokesperson, Vedanta Resources has recently signed an international firm, Worley, to work at its extended project office. The company will engage international experts to deliver projects at Vedanta KCM. The primary objective of Worley would be to identify and engage the most suitable partner in order to deliver benefits from the backwards integration. Worley had a turnover of 11,616 million USD in FY24. It is among the major global players and is also a publicly traded company.
Almost a year back, Vedanta Resources Holdings Limited, the diversified global mining, metal, natural resources, energy, and technology company, secured control of Vedanta Zambia KCM. The company paid 271 million USD in line with its commitment under the KCM shareholders’ agreement, which allowed the reinstatement of the board of directors of the KCM. It also agreed upon the return of full management control to Vedanta. This was a necessary step before Vedanta ramped up its production at the plant.
Recent Plans To Make Significant Investments:
Currently, Vedanta Resources is making significant investments in critical minerals in Africa. The company has plans to invest 20 billion USD in various growth projects across the group, both in India as well as overseas. The company also plans to unlock greater value from Zambia’s copper and cobalt deposits. Both cobalt and copper are regarded as extremely critical minerals. Vedanta Zambia KCM has over 16 million tons of copper resources. The company’s average copper grade also exceeds 3%. It has a projected mine life of around 50 years. KCM also has over 4 lakh tons of coal resources. The company also has plans to invest in a dedicated cobalt processing plant. This will be done to capitalise on cobalt by products.
Conclusion:
The Vedanta Zambia project will have a significant role to play in ensuring that our country’s copper needs are met. The company will also be able to become one of the biggest names in the metal and mining sector.
