The UAE’s International Resources Holding (IRH) has retracted its proposal to acquire a controlling stake in Vedanta Resources Ltd’s Zambian copper mines. The decision follows a failure to agree on asset valuation, IRH announced on Wednesday July 3, 2024.
IRH, a division of the UAE’s International Holding Company (IHC), had initially presented a $1 billion bid for a 51% stake in Vedanta’s Konkola Copper Mines (KCM). This move was aimed at consolidating its copper holdings in Zambia, following its acquisition of a 51% stake in Mopani Copper Mines earlier this year.
In an emailed statement, IRH confirmed, “IRH terminated the transaction discussions two months ago due to discrepancies in valuation,” and is no longer pursuing the acquisition.
This withdrawal is part of a broader context in which Gulf states, including the UAE and Saudi Arabia, are seeking to secure critical metal supplies from Africa to aid their transition to green energy. Vedanta, holding 80% of KCM, with the Zambian government owning the remaining shares through ZCCM-IH, is currently seeking investors to bolster its operations.
In June 2024, Vedanta Base Metals CEO Chris Griffith mentioned that IRH was among the investors reviewing KCM. Although IRH’s offer was substantial, Vedanta aimed to sell only a minority stake of about 30%, demanding nearly double the amount for the larger shareholding.
Vedanta, under Indian billionaire Anil Agarwal, regained control of KCM last year after a prolonged dispute with the Zambian government, which had previously seized the mines, and in 2023, Zambia returned control of Konkola Copper Mines (KCM) to Vedanta Resources, ending a long-standing ownership dispute. The mining company is looking to raise $1.2 billion to settle debts and advance the Konkola Deep Mining Project, one of the world’s richest copper deposits.
“Vedanta remains committed to exploring all funding options – both debt and equity – which are aligned with what we believe is in the best interests of KCM,” a spokesperson stated, while declining to comment on “any ongoing discussions or negotiations” with potential partners. In April 2024, Zambia’s cabinet approved the establishment of a special purpose vehicle (SPV) to manage the country’s mineral wealth, marking a significant shift in its approach to exploiting its natural resources.
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