London, England — MININGREVIEW.COM — 18 November 2010 – Vedanta Resources plc “’ a LSE-listed and London-based diversified resources company “’ says its majority-owned subsidiary Konkola Copper Mines plc in Zambia plans to raise US$1.1 billion (R7.6 billion) in an initial public offering in the English capital.
Revealing this in a statement issued here, Vedanta “’ which owns 79% of Konkola “’ said it would retain a majority shareholding in its subsidiary. Goldman Sachs International and JPMorgan Cazenove are joint sponsors, global coordinators and book-runners, the company added.
The money raised in the public offering would be used to expand Konkola’s mines in Zambia and pay off debts.
Konkola “’ which operates the Konkola and Nchanga mines in Zambia “’ produced about
173 000t of copper in the 12 months to 31 March 2010, and had earnings before interest, taxes, depreciation and amortisation of US$167.9 million in the period. It plans to produce more than 400 000tpa by 2014.
Konkola went on to say that it also planned a separate listing on the Lusaka Stock Exchange at a later date.