Vedanta Resources has secured the necessary financing to commence payments to creditors of its Konkola Copper Mines (KCM) in Zambia.
The company is now in the process of reviving operations following its reacquisition of the properties.
The mining company, which is owned by Indian billionaire Anil Agarwal, will have around $250 million available to settle small debtors in Zambia this week, according to Reuters citing a statement.
Vedanta is required to settle debts owed by KCM as part of a settlement with Zambian authorities.
The company regained control of KCM late last year after a five-year struggle to reclaim the copper mines and smelter that were confiscated by the former Zambian president Edgar Lungu's administration.
The administration had accused the company of neglecting to invest in the expansion of copper production.
Vedanta will still be required to raise an extra $1 billion to resuscitate the mining operations and invest in the Konkola Deep Mining Project, which is home to one of the world's richest copper resources.
The company holds 80% of KCM and has indicated that it may sell a 30% stake to obtain finance to increase copper production.
KCM is 20% owned by the Zambian government through the state-owned company ZCCM-IH.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
