Vedanta delays Zambian Konkola Copper Mines listing on stock market volatility

Vedanta Resources Plc, the mining conglomerate controlled by UK-based billionaire Anil Agarwal, yesterday postponed the flotation of its Zambian copper assets in the London Stock Exchange (LSE) due to stock market volatility.

The miner's cause of concern is the current uncertainness of the markets, due to the Eurozone's financial crisis, especially that of Ireland, which were damping investor sentiment.

In February 2010, Vedanta had planned to spin-off six of its subsidiaries as separately listed companies, though it would retain controlling interests in each and had approached leading mining bankers to examine plans for the listings.

Vedanta, the FTSE 100-listed metals and mining company, had on 16 November announced that it would raise $1.1 billion (£693 million) by listing in the LSE its Zambian Konkola Copper Mines (KCM), which would value the Nehanga, Zambia based KCM up to $7.1 billion. (See: Vedanta Resources to raise $1.1 billion in London IPO for Zambian copper assets)

Vedanta, which holds a 79-per cent stake in KCM with the Zambian government owning the rest, said yesterday in a statement that its decision to postpone the listing was due to the ''year-end approaching and the current stock market volatility.''

Vedanta's Zambian operations comprise four mines, one at Konkola and Nampundwe, two at Nchanga where it also has a tailings leach plant, and a smelter at Nkana.