Vedanta Resources Holdings Limited has confirmed that it has deposited USD $245 million into an escrow account as designated by the High Court of Zambia in relation to the Konkola Copper Mines.
The court had earlier ordered Vedanta Resources Holdings Limited to deposit into the Escrow Account US$225 million for creditor settlement, US$20 million for a once-off community support loan and US$750,000 for a once-off employee bonus by July 8, 2024.
Vedanta has as of 19th July 2024 has disclosed that it has deposited USD $245 million into an escrow account to pave the way for the imminent reinstatement of the Board of the Konkola Copper Mines (KCM) and the return of full-management control, which will allow Vedanta to take the steps required to allow KCM to start to operations at KCM.
An escrow account is set up by an escrow agency in which both the seller and buyer (or their solicitors) are joint account holders. Escrow accounts are often used to hold money, securities, funds or any other kind of asset, providing protection for all parties.
Konkola Copper Mines have one of the largest deposits of high-grade copper in the world, and substantial amounts of cobalt, both of which are expected to play an increasingly important role in the global energy transition in the years ahead.
“We are delighted to confirm the transfer of funds into a designated Escrow account as per our earlier commitment. Vedanta is committed to Zambia and the Zambian people. We are confident that with the full support of the government and other key stakeholders, we will soon be able to help KCM reach its full potential, both as a world-class Copper and Cobalt asset that is well equipped with a smelter and a robust Tailings Leaching Plant, and a growth engine for the robust social and economic development of Zambia.” said
Chris Griffith, Chief Executive Officer, Vedanta Base Metals.
Zambia is targeting to produce 3 million metric tonnes of copper over the next 9 years.
The injection of funds is expected to have transformative impact on Zambia as it revives local economic activity, creates jobs, and supports local businesses and communities through sustainable initiatives which will create a brighter future for generations of Zambians.
According to a statement seen by the Zambian Business Times – ZBT, The funds in the escrow account will be used to: • Settle creditor claims – including Class 2 creditors, Support local community development projects through the Community Trust, and Provide a one-off employee bonus to KCM employees.
