China's CNMC, trader ETG and Turkey vie for KCM - source

LUSAKA (Reuters) - China's Nonferrous Metals Mining Corporation (CNMC), commodities trader ETG Group and a Turkish firm have expressed interest in buying a stake in Konkola Copper Mines (KCM), a senior government source said, on condition of anonymity. Vedanta Resources, partial owner of the Mumbai-listed Vedanta group of companies, is the majority shareholder of KCM. It is fighting Zambia's decision this month to name a provisional liquidator to run KCM after the government accused KCM of breaching its operating licence.

Reuters May 30, 2019 02:06:28 IST
China's CNMC, trader ETG and Turkey vie for KCM - source

Chinas CNMC trader ETG and Turkey vie for KCM  source

LUSAKA (Reuters) - China's Nonferrous Metals Mining Corporation (CNMC), commodities trader ETG Group and a Turkish firm have expressed interest in buying a stake in Konkola Copper Mines (KCM), a senior government source said, on condition of anonymity.

Vedanta Resources, partial owner of the Mumbai-listed Vedanta group of companies, is the majority shareholder of KCM.

It is fighting Zambia's decision this month to name a provisional liquidator to run KCM after the government accused KCM of breaching its operating licence.

A spokesman for Vedanta told Reuters KCM was not for sale.

"While we remain open to dialogue with the Zambian government, we will consider all options to preserve our legal rights," he said.

A government source speaking on condition of anonymity said CNMC had offered $2 billion for KCM, adding there had also been talks with ETG Group, a diversified commodity trader active across Africa.

"The race is still open because we also have a Turkish company which is interested in KCM although no formal discussions have been held," the source said, declining to name the Turkish company.

After Anglo American pulled out of KCM in 2002, citing substantial losses, CNMC was the runner-up to take on the mines, in which Vedanta bought a majority stake. That meant it has already done its due diligence, the source said.

CNMC and ETG Group could not immediately be reached for comment.

(Reporting by Chris Mfula in Lusaka and Barbara Lewis; Editing by Kirsten Donovan)

This story has not been edited by Firstpost staff and is generated by auto-feed.

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