Latest news with #FelixNjini
Yahoo
23-04-2025
- Business
- Yahoo
Exclusive-Vedanta weighs US listing to raise $1 billion for Zambian copper assets
By Felix Njini JOHANNESBURG(Reuters) - Vedanta Resources, is considering a U.S. public listing for its Zambian unit Konkola Copper Mines as one of its options to try to raise about $1 billion for mine development, three sources familiar with the details, told Reuters. The miner, owned by Indian billionaire Anil Agarwal, has hired Barclays and Citigroup to advise on the plans for an initial public offering, said the sources, who declined to be named due to sensitivity around the discussions. Vedanta is considering New York as one of the options to list KCM, as the Zambian unit is known, the sources said. They said the discussions were at an early stage and a timeline had yet to be finalised. A spokesperson for Vedanta Resources declined to comment beyond saying various options were under consideration. "We continue to evaluate a range of financing options, including internal accruals, debt instruments, and equity options, as we invest and grow our operations across the world," the spokesperson said. Citigroup declined to comment, while Barclays did not respond to emailed questions from Reuters. Vedanta has said it wants to raise capital as part of its plans to gradually increase copper output to about 300,000 metric tons per year over the next five years. KCM's output dwindled as Agarwal fought a protracted legal battle to reclaim the assets after former Zambian president Edgar Lungu's administration forced KCM into provisional liquidation. It had accused Vedanta of failing to invest to boost copper production. Agarwal regained control of the copper mines, smelter and refinery last year. Vedanta has since established a U.S.-based entity, Global Transition Resources Inc., which it said in a post on Linkedin produces copper, cobalt and gold in Africa. Reuters could not immediately establish whether Global Transition Resources would be the entity to house the assets in question in the event of a U.S. listing. Copper, with uses from power to construction, is in demand from the electric vehicle sector and new applications such as data centres for artificial intelligence. Vedanta said KCM holds one of the world's highest grade deposits of copper, together with reserves of about 400,000 tons of cobalt, another mineral needed for the transition to cleaner energy. Since recovering the assets from the Zambian government, Vedanta has secured short-term financing and started paying debts to local creditors, including bills for supplies of electricity, which had built up during the period. It also increased spending on the communities surrounding the mines. Vedanta last year attempted to sell a stake to United Arab Emirates-based International Resources Holding (IRH), but the deal collapsed due to valuation differences, Reuters reported. A separate process to sell at least a 30% equity stake in the mines had not been successful, leaving listing as one of the most viable options, one of the sources said. Vedanta Resources, the UK-based parent of Indian miner Vedanta Ltd owns an 80% shareholding in KCM and the Zambian government holds the remaining 20% stake through state investment firm ZCCM-IH. Vedanta is splitting its oil-to-metals conglomerate into five separate businesses, with plans to separately list the units. Sign in to access your portfolio
Yahoo
27-02-2025
- Business
- Yahoo
Exclusive-Congo weighs cobalt export quotas to revive prices amid supply glut
By Sonia Rolley and Felix Njini JOHANNESBURG (Reuters) - The Democratic Republic of Congo is considering introducing cobalt export quotas as the world's biggest supplier of the battery metal seeks to curb oversupply and boost prices, three sources familiar with the details told Reuters. Cobalt prices are languishing at historically low levels amid slackening demand from automakers and as mines ramp up production of copper, from which cobalt is extracted as a by-product, to capitalize on high prices. The plan to introduce limits has been discussed within the Congolese government but no final decision has been taken yet, said the sources, who declined to be named discussing sensitive matters. Congo banned all exports of the battery metal for four months on Monday to contain a supply glut. The ban, announced by the Authority for the Regulation and Control of Strategic Mineral Substances' Markets, or ARECOMS, said the export curb would be reviewed in three months and could either be modified or terminated, depending on its results. The temporary ban is not enough to limit the flow of metal on the market and is unlikely to have a lasting impact on prices, which are expected to weaken further when companies release stockpiled metal, the sources and analysts said. The sources said that Congo's government eventually plans to introduce quotas on exports of the metal, which are going to be negotiated during the export suspension period. ARECOMS and Mines Minister Kizito Pakabomba did not immediately respond to emailed questions. Communication Minister Patrick Muyaya was not immediately available to respond to Reuters questions. Previous attempts by the government to persuade mining companies to voluntarily reduce the flow of the metal on the international market have not been heeded, the sources said. Two of the sources said attempts by state miner Gecamines to convince China's CMOC Group to manage the flow of cobalt on the market and limit the impact on prices, through their joint venture, had failed. CMOC DOUBLES COBALT OUTPUT CMOC, the world's biggest cobalt miner, more than doubled cobalt output last year to about 114,000 metric tons as it ramped up copper output at its Tenke Fungurume and Kisanfu mines in Congo. CMOC's Congo mines produced about 650,000 tons of copper. CMC said production at the mines is not affected by the temporary ban on shipments and spokesperson Vincent Zhou told Reuters the company did not anticipate a significant impact on business performance. Eurasian Resources Group and Glencore, which are also big cobalt producers in Congo, declined to comment. London Metal Exchange (LME) cobalt has plunged from a record high of $82,000 per metric ton in April 2022 to $21,000 per ton, the lowest level since the contract was launched in 2010. The ban could cut off about 65,000 tons of cobalt from the market and while it may send spot prices higher, the impact could be temporary as mining companies will continue to stockpile the metal, BMO Capital Market analysts said in a note. "We fully expect that this will lead to further supply controls in the future, with the most likely next step being production or export quotas," they said.
