Chinese mining conglomerate poised to take over KCM from Vedanta

Chinese mining conglomerate poised to take over KCM from Vedanta

Chinese firm China Nonferrous Metal Mining Co (CNMC) is poised to take over KCM assets belonging to Vedanta Resources.

According to Africa Mining Intelligence, the firm has ramped up its media presence over the past few days to proclaim the legitimacy of its purchase of KCM.

While the Zambian government’s request for KCM) to be liquidated has been put on hold by a court ruling, CNMC seems to be convinced that it will take over the sites.

In June, CNMC representatives took to the local newspapers to affirm that the company is the best suited, both in terms of technical and financial capacity, to buy the assets post-liquida- tion.

Guobin Hu, the managing director of Chambishi Nonferrous Africa Corporation, the CNMC subsidiary that operates a copper smelter near to the KCM sites, also recalled that the group has recently invested a further $800 million in Zambia.

CNMC would like to have a larger presence in the Copperbelt and is also keen to make acquisitions in neighbouring Congo where it has also built a copper smelter.

The Zambian government, which owes large sums to China, seems to have been won over by the move.

The Ministry of Mines is understood to have organised a trip for potential buyers to the KCM sites in late June.

The mines have been running at half-mast since the liquidation process began in May.

It will however be difficult to make any sale before the dispute between the government and Vedanta headed by Indian Anil Agarwal, has been settled.

The Lusaka court ruling on the matter called for the liquidation process to be suspended on June 27, while at the same time the mining firm intends to file for arbitration in South Africa.

Source :Diggers news