Vedanta Resources has announced its decision to transfer its Zambian copper mine to a US-based subsidiary, CopperTech Metals, to leverage the Trump administration’s efforts to boost the domestic mining sector and cut imports.
The newly-launched US-based entity of the group, owned by Indian billionaire Anil Agarwal, will now manage the operations of its Konkola Copper Mines in Zambia. The move is an important strategic step towards linking Africa’s richest copper assets with the growing demand in the US for critical minerals crucial to its energy transition and infrastructure build-out.
A statement released by the company revealed that it plans to raise $1.5 billion for the project, which is aimed at boosting “America’s copper independence and support its growing infrastructure and clean energy ambitions”. “CopperTech Metals will build on Vedanta’s existing $3 billion investment in KCM with an additional $1.5 billion program to enhance production and operational efficiency through AI (artificial intelligence)-driven exploration and extraction technology,” the statement read.
Konkala Copper Mines (KCM) is among the world’s leading copper assets with ore grades averaging 2.9 per cent, and about four times the global average. Its US entity will be headed by Priya Agarwal-Hebbar, director at Vedanta and chairperson, Hindustan Zinc. As the global copper demand is expected to increase by over 40% by 2040, the company aims to expand its annual copper production from 140,000 tonnes in the financial year 2026 (FY26) to 300,000 tonnes by FY31, and eventually to 500,000 tonnes per year. Citing a US Geological Survey, the company stated that currently, China accounts for over 45% of the global copper production.
According to the company, the US relies on it for about 45% of its refined copper requirements. Besides, the country fulfils about half of its refined copper needs through imports. By establishing its copper business in the US, Vedanta Resources plans to leverage the US interest in non-China sources. At a time when copper producers globally are facing a decline in copper grades and an increase in costs, KCM’s high-grade ore and low extraction costs give Vedanta a competitive advantage.”This launch marks a historic and pivotal moment. CopperTech will play a significant role in connecting America’s critical mineral needs with Zambia’s historic copper legacy,” said Anil Agarwal, founder and chairman, Vedanta Group, in a statement. “This partnership will unlock a wave of innovation and advancement in clean energy, technology, and industrial progress on both sides of the Atlantic,” he added.
The development comes at a time when the US government has ramped up efforts to strengthen its mining sector. CopperTech Metals aims to profit from $10 billion US-backed Lobito Corridor project, which will connect Zambia’s Copperbelt to Angola’s Atlantic coast, while enhancing logistics for US industrial and technology markets. CopperTech Metals director, Tom Albanese, said that over the coming 25 years, the increase in copper demand will be unprecedented. He added that the company is well-positioned to serve as a strategic partner for America’s infrastructure needs.
