ZCCM says Vedanta IPO plans to accelerate $2.7 billion Zambia copper expansion

Zambia’s state-linked miner, ZCCM Investment Holdings, has said Vedanta Resources’ planned initial public offering of its copper unit could significantly accelerate the development timeline for their jointly owned $2.7 billion expansion project at Konkola Copper Mines.

The IPO, which will list CopperTech Metals, a U.S.-domiciled integrated copper and cobalt producer, comes as Vedanta seeks to strengthen financing for its flagship copper assets, including its 79% stake in Konkola Copper Mines in Zambia’s Copperbelt province. ZCCM Investment Holdings holds the remaining interest in the venture.

Expansion timeline moves forward

Zambia, Africa’s second-largest copper producer, is targeting a major production increase to 3 million metric tons by 2031, up from 890,346 tons last year. The country is positioning itself to benefit from rising global copper demand driven by the energy transition and the expansion of renewable energy infrastructure.

At the centre of this strategy is the Konkola Deep Mine Programme (KDMP), which aims to raise output at Konkola Copper Mines to 300,000 tons by 2031, compared with 80,215 tons last year. The project includes the development of one of Zambia’s deepest mining shafts, reaching depths of around 1,500 metres, along with major dewatering and processing infrastructure.

ZCCM board chairman Phesto Musonda said the planned listing could shorten the project’s ramp-up timeline by up to three years, as improved access to capital would allow faster execution of planned investments.

“The commitment by Vedanta was that they would spend $1.1 billion on the KDMP in the next five years, but with the listing now, we have adjusted the timeline,” Musonda said during ZCCM’s capital markets day in Paris. “We are saying this cash is available now; the investment we have brought it to 2028. We’re going to have the KDMP development way before the five years.”

Zambia’s copper growth ambitions gain momentum

Vedanta regained operational control of Konkola Copper Mines in 2023 after the asset was previously seized in 2019 under the administration of former president Edgar Lungu, a move that had stalled development plans at the site for several years.

ZCCM Investment Holdings, which is listed on the Lusaka, London, and Euronext exchanges, also said it is evaluating a potential share buyback programme to support its valuation, which it believes is undervalued on European markets.

If completed on schedule, the KDMP expansion would mark one of the most significant increases in Zambia’s copper output capacity in over a decade, reinforcing the country’s ambition to scale production and strengthen its position in the global copper supply chain.

Konkola project targets major production

The proposed IPO represents more than a financing event. For Zambia, faster development at Konkola could boost export earnings, attract foreign direct investment, and reinforce the country’s long-term target of becoming one of the world’s leading copper suppliers.

For Vedanta, earlier capital availability could accelerate production growth at a time when copper demand is increasingly linked to energy infrastructure expansion, AI-related industrial buildout, and global supply diversification.

The development also highlights how African mining assets are becoming increasingly central to global critical mineral strategies.

Shareholder considerations and market outlook

Alongside the expansion update, ZCCM said it is evaluating a stock buyback as part of efforts to support valuation after arguing that its shares remain materially undervalued on European exchanges.

ZCCM is listed on the Lusaka, London and Euronext exchanges and remains one of Zambia’s most influential investment vehicles across mining and industrial sectors.

The success of CopperTech’s planned listing could become an important test of investor appetite for African critical mineral assets as competition for long-term copper supply intensifies globally.