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UAE's IHC Unit Withdraws Offer for Vedanta's Zambian Copper Mines Due to Price Dispute

The UAE's International Resources Holding (IRH) announced on Wednesday that it has withdrawn its bid to acquire a stake in Vedanta Resources Ltd’s Zambian copper mines. The decision followed a breakdown in negotiations over the valuation of the assets.

IRH, a subsidiary of the UAE’s International Holding Company (IHC.AD), had proposed purchasing a 51% stake in Vedanta’s Konkola Copper Mines (KCM) for over $1 billion, as reported by Reuters in April. This move was intended to strengthen IRH’s position in Zambia's copper market, following their acquisition of a 51% stake in Mopani Copper Mines in March.

However, IRH has now stated, "IRH terminated the transaction discussions two months ago due to discrepancies in valuation," confirming they are "not currently pursuing the acquisition of a majority stake in the Zambian assets."

The UAE, along with regional power Saudi Arabia, is aiming to secure essential metal supplies from Africa to support the transition to green energy.

Vedanta holds an 80% share in KCM, with the remaining stake owned by the Zambian government through ZCCM-IH. Chris Griffith, CEO of Vedanta Base Metals, mentioned in June that IRH was among the investors conducting due diligence on the Zambian assets.

Sources familiar with the matter revealed that IRH offered approximately $1 billion for a 51% stake in KCM. However, Vedanta was only willing to sell a minority stake of about 30% for nearly double the amount IRH proposed. These sources declined to be named due to lack of authorization to speak publicly on the issue.

Last year, Vedanta, owned by Indian billionaire Anil Agarwal, regained control of KCM after a lengthy legal battle with the former Zambian administration, which had seized the mines citing a failure to invest in copper production expansion.

Vedanta is currently seeking to sell a stake in the Zambian copper mines to raise around $1.2 billion, required for debt settlement, operations revival, and investment in the Konkola Deep Mining Project, one of the world’s richest copper deposits.

A spokesperson for Vedanta emphasized the company’s commitment to exploring all funding options, both debt and equity, aligned with KCM's best interests, but declined to comment on ongoing discussions with potential partners.





Image credit: KCM.

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