The news has rattled foreign investors already nervous governments in central African countries are seeking a much bigger share of resource revenues.
Vedanta Resources Mining News
Zambia’s Eurobond yields rose to record highs after the government of the cash-strapped copper producer said it’s planning to seize Vedanta’s mining assets.
Anglo American’s defense advisers are said to plan attacks on the quality of Vedanta’s portfolio compared to Anglo’s assets.
Vedanta has appointed Christopher Sheppard as the new chief executive officer for its Zambian unit Konkola Copper Mines.
Miners downed tools from Feb. 22 to March 6, affecting waste-stripping at the mine and mining of ore.
The current supply turbulence, however, promises more volatility ahead for cobalt as well as copper.
Shares in the company lost a fifth of their value on Friday as investors were sceptical of its foreign subsidiary Cairn India Holdings’ $200 million investment in the diversified miner.
The two-day hearing will be watched by other multinational companies with a base in London and facing legal challenges about their operations abroad.
Konkola Copper Mines (KCM), majority owned by Vedanta, suspended operations at its Nchanga mine following the introduction of an import duty on copper concentrates, the company said.
The case was filed in the Madras high court by anti-Vedanta campaigner Fatima Babu, challenging a decision by the national green tribunal.
The effective tax rate will range from 86% to 105%, with about 27,900 jobs at risk - Zambia Chamber of Mines.
State authorities permanently shut down the Tamil Nadu plant after police fired on protesters calling for the closure of the plant in May over concerns it was polluting their air and water.
Power restoration has started but it will be gradual.
Mining companies operating in Zambia will still meet their operational costs even after the government imposes higher taxes.
The copper market is currently experiencing a squeeze on physical metal which is unexpected.
Africa's second-largest copper producer said late last month that it would introduce new mining duties and increase royalties to help bring down mounting debt.
Belgian zinc producer Nyrstar issued a profit warning last week, citing "adverse market conditions".
Some in the industry see this move as a prelude to a potentially broader deal with bigger miner Anglo American.
Fitch Solutions Macro Research states that bauxite production growth will remain high over the coming years, as new projects come online in Australia, Indonesia expands exports, India’s production ramps up, and existing projects in Guinea drive growth.
He has been given more time to make a firm offer or walk away from a deal to buy out minority shareholders in Vedanta Resources for 778 million pounds ($1 billion).
Billionaire Anil Agarwal faces investor resistance to his $1 billion bid to buy out minority shareholders in Vedanta Resources and take the London-listed Indian miner private.
The new measure will affect global mining firms including First Quantum Minerals, Glencore, Barrick Gold Corp and Vedanta Resources which currently pay a flat rate of 9.30 cents/kWh.
Vedanta's Deshnee Naidoo told Reuters, adding that KCM is on track to produce 400,000 tonnes of copper a year in the next few years.
Deadly protests last week over alleged pollution from the Tuticorin smelter have prolonged a shutdown of the 400,000 tonnes-a-year operation. This time it seems to be forever.
Company is accelerating expansion of its African zinc operations to take advantage of a surge in zinc prices.