Vedanta is regaining ownership and management control of Konkola Copper Mines (KCM). It might serve as a prelude to a broader expansion of Vedanta’s presence in Zambia and across the African continent
India’s growing focus on Africa is undergoing a significant test as it intensifies its pursuit of critical minerals, particularly copper. This heightened demand for copper stems from India’s ambitious goal of achieving net-zero carbon emissions by 2070. Anil Agarwal, Chairman of Vedanta Resources, made a noteworthy announcement on social media X, indicating the company’s intent to resume copper production in Zambia. This development follows Vedanta’s regaining of ownership and management control of Konkola Copper Mines (KCM). It might serve as a prelude to a broader expansion of Vedanta’s presence in Zambia and across the African continent.
Agarwal expressed his company’s ambitions on X, stating, “We have other significant projects in the pipeline related to the copper blocks we acquired through auctions, as well as smelters in international locations.” He further emphasized Vedanta’s vision of establishing a fully integrated copper vertical, ultimately aspiring to become a globally successful copper enterprise, comparable to Chile’s Codelco and Mexico’s Southern Copper.
The International Copper Association India (ICA India) reported a remarkable resurgence in India’s copper demand in the fiscal year 2021-22, witnessing a year-over-year growth of approximately 27.5%. The demand for this red metal reached 12.5 lakh tonnes in the previous year, up from 9.78 lakh tonnes in FY21.
It is imperative for India to proactively position itself to gain access to AfCFTA member countries. This strategic move aligns with New Delhi’s quest for dependable sources of critical minerals and rare earth elements, particularly as it seeks to bolster its trade ties in the region
While India’s investments in Africa have traditionally been concentrated in countries such as Egypt, Mauritius, Mozambique, Sudan, and South Africa, New Delhi’s appetite for natural resources, especially critical minerals, may drive it to explore new territories. Several resource-rich African nations, including the Central African Republic, the Democratic Republic of the Congo, Ghana, Nigeria, and Chad, offer immense potential due to their abundant natural resources, including critical and rare earth minerals.
Additionally, the inclusion of the 55-member African Union in the G20 framework during India’s presidency of this intergovernmental group is expected to enhance New Delhi’s role on the continent, where it shares longstanding civilizational ties.
The African Continental Free Trade Area (AfCFTA), heralded as one of the world’s most significant trade agreements, presents an opportunity for further intra-continental investments. This mega trade pact aims to establish a single market comprising 1.3 billion people with a combined GDP of approximately $3.4 trillion.
Given these developments, it is imperative for India to proactively position itself to gain access to AfCFTA member countries. This strategic move aligns with New Delhi’s quest for dependable sources of critical minerals and rare earth elements, particularly as it seeks to bolster its trade ties in the region.
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