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To: LoneClone who wrote (11001)	11/29/2007 10:38:49 AM
From: LoneClone	Read Replies (1) \| Respond to of 194043

Vedanta to hike stake in Zambia's Konkola mines 28 Nov, 2007, 0519 hrs IST,Nevin John, TNN economictimes.indiatimes.com MUMBAI: The Anil Agarwal-controlled Vedanta Resources is close to increasing its stake in Konkola Copper Mines in Zambia to 79.4% by buying out a portion of the Zambian government’s holding. The London-listed Vedanta, which owns 51% stake in Konkola, wants to increase the stake by buying out Zambia Copper Investments’ (ZCI) 28.4% stake in the largest copper mine there. The state-run ZCCM Investment Holdings holds 20.6% stake in Konkola. “For the acquisition of 51% stake, Vedanta had paid $48.2 million in 2004. As the valuation of the copper mines doubled in three years, it will be curious to know how much Vedanta would be paying for ZCI’s stake,” said a source close to the development. Senior Vedanta officials said the process of acquiring the stake is on. They declined to reveal further details. Vedanta has been discussing with ZCI the call option, which was agreed when Vedanta bought a 51% stake from the Zambian government in 2004. The company could not exercise the call option as the two parties failed to agree on the valuation of ZCI’s shares. Adding fuel to fire, Zambian economists and investment analysts have voiced their opposition to Vedanta’s buy-out of national resource. ZCI has only Konkola stake as its asset at present. Vedanta chairman Anil Agarwal recently announced that the two parties had resolved their differences and that an independent valuation is in progress. While ZCI chairman Tom Kamwendo was quoted by a Zambian daily, “With the resolution of differences over valuation, the next step for the company is to offer its interest to Vedanta.” Vedanta shares were hoverng below 2,030 pence on London Stock Exchange on Tuesday, down 1.36% on speculation that ZCI may sell its stake through the Lusaka Stock Exchange. On November 23, the share had shot up 12% on market buzz that a Chinese mining company may buy out the promoters’ stake in Vedanta. “ZCI’s shares in Konkola are being offered to Vedanta rather than being sold through the Lusaka exchange or sold in any other way because that is the provision of the legal agreement that was reached at the time Vedanta was acquiring its current 51% shareholding in Konkola,” said Mr Kamwendo. On public misgivings about the stake increase, Mr Kamwendo said such concerns were better resolved between the Zambian authorities and Vedanta.