Zambia-based Konkola Copper Mines (KCM), a unit of UK-based miner Vedanta Resources, has announced a comprehensive refurbishment of its smelter as part of a broader initiative to enhance production capabilities, reported Bloomberg.
The planned shutdown and overhaul aim to “restore structural integrity and improve efficiency”, with the company targeting a significant increase in output by the start of the next decade.
However, the company has not disclosed the cost, start date or duration of the smelter refurbishment.
Despite ambitions to reach an annual production of 300,000 tonnes (t), KCM's current output is less than 10% of this target.
Zambia, Africa's second-largest copper producer, recently waived an export tax on 255,000t of copper concentrates, partly due to KCM's smelter's current inability to process the material.
KCM, with copper deposits exceeding 2.4% grade and significant cobalt reserves, has the potential to become one of the top five global cobalt producers.
It is claimed to be Zambia's largest integrated copper producer, encompassing a complete production value chain that includes both open-pit and underground mines, concentrators, a modern smelter, a tailings leach plant and a refinery.
Furthermore, KCM is the sole mining entity in Zambia with operations across four distinct locations, namely Chingola, Chililabombwe, Nampundwe and Kitwe.
Vedanta, led by Indian businessman Anil Agarwal, regained control of KCM approximately one year ago after settling a protracted dispute with the Zambian Government.
The resolution included a commitment to invest more than $1.2bn (£895.53m) over five years for operational upgrades and creditor settlements.
Since resuming management, Vedanta has already contributed more than $400m to KCM, including $250m for debt clearance and a $124m instalment.
These funds are also earmarked for completing the Konkola Deep underground mining project.
In April, Vedanta Resources announced that it is exploring a public listing in the US for KCM to raise approximately $1bn for mine development.
