How Vedanta’s Zambian Copper Assets Help Meet Global Copper Demand

Copper plays the most important role in the modern world. Also, the global shift towards renewable energies and state-of-the-art technologies has resulted in a steep rise in this critical mineral’s demand, increasing the supply-demand gap. Even with increased recycling, copper supply is estimated to fall short by 1.7% by 2035. With the world moving towards cleaner energy and better infrastructure, Vedanta Ltd.’s copper assets in Zambia play a key role in meeting this global demand while also supporting Zambia’s economy.

The strategic return of Vedanta Zambia in the country’s mining scene through Konkola Copper Mines (KCM) will position it at the centre of the global copper race.

Rising Demand for Copper

Global demand for copper is anticipated to increase 2X in the next decade. The reasons for this are:

·         Medical: Copper’s ability to carry signals quickly makes it useful in medical devices. From diagnostic machines to tiny implants, fine copper wires are used to improve performance and accuracy.

·         Aerospace: Copper plays an important role in the aviation industry as well. From being used in Boeing to busbars and bonding materials, copper has wider applications.

·         Electronics: From copper conductors to external cables to printed circuit boards, copper is widely used in the electronics industry. Even in computer chips, several companies have switched from aluminium to copper, making chips faster and more efficient.

·      Automotive: Cars also depend heavily on copper due to its excellent electrical and thermal conductivity, durability, and flexibility. Copper also plays a vital role in EV components like batteries, motors, power controllers, and high-voltage wiring, ensuring efficient power delivery and charging.

With this rising demand, reliable sources of copper are essential.  With copper’s wider applications, nations across the world are developing strategies to build a resilient copper supply chain that meets their growing needs by optimising various stages of the supply chain.

Vedanta’s Role in Zambia

Vedanta Resources regained control of Vedanta Zambia KCM, one of the country’s biggest copper producers, by paying USD 245.75 million in line with its commitment under the KCM scheme of arrangement. This paves the way for the imminent reinstatement of the Board of Directors of the KCM and the return of full management control to Vedanta, an important step before Vedanta ramps up production and unlocks KCM’s full potential.

Vedanta, which has proven global experience in metals and minerals, remains committed to Zambia and the Zambian people, and extended support from the government and other key stakeholders will help KCM reach its full potential. Vedanta KCM is not just a strong copper producer but also a copper resource, a smelter and a robust Tailings Leaching Plant.

By operating Vedanta Zambia mines and plants, Vedanta becomes one of the major contributors to Zambia’s copper industry and a reliable supplier for international needs. Besides its footprint in Africa, it will unveil new opportunities and deeper economic cooperation between India and Zambia- making the partnership stronger on both economic and industrial fronts.

Why Zambian Copper Is Important

Zambia is Africa’s second-largest copper producer. Its copper is well known for quality and is exported worldwide. In 2023, Zambia produced 698,000 tons of copper, which made it the 7^th largest copper producer in the world, producing 4% of global copper. The Zambian government also plans to increase the copper output to 3 million tons by 2032 to cater to the growing demand and create wider job opportunities. As such, Vedanta KCM is uniquely placed to benefit from the strong government support and global market fundamentals.

So in a country like Zambia, where copper accounts for almost three-quarters of the country's export earnings and significantly contributes to its GDP, Vedanta Zambia operations will help the country in strengthening its global position.

Conclusion

Indeed, copper is the backbone of modern infrastructure, clean energy, and new technologies. Vedanta’s copper assets in Zambia will help meet the growing demand, while also supporting Zambia’s development.

By ensuring a steady and high-quality copper supply, Vedanta not only fuel global industries but also contributes to a greener and more sustainable future. Its role in Zambia highlights the balance between global growth and local development—making Vedanta a key contributor in global copper production.