Vedanta's Zambia unit to stop copper production, cut 2,500 jobs

Keeping the operation going would cost the company as much as US$40 million next year and Konkola is placing it under care and maintenance to protect the financial viability of its entire business, Vedanta said.

Vedanta Resources Plc said on Thursday that it’s Zambian unit, Konkola Copper Mines, will stop production at its loss-making Nchanga underground mine and cut 2,500 contractor jobs.

Keeping the operation going would cost the company as much as US$40 million next year and Konkola is placing it under care and maintenance to protect the financial viability of its entire business, Vedanta said.

While Konkola will redeploy direct employees at the mine to other company operations, it will end contracts with companies providing non-permanent staff that will affect 1,675 people immediately and a further 825 over the next three months, the Vedanta unit said in a statement.

Vedanta’s Chairman Anil Agarwal had said on 18th November that the slump in metal prices will force the company to cut costs by as much as 25%.

Zambia is Africa’s biggest copper producer after the Democratic Republic of Congo, and copper accounts for more than 75% of foreign exchange inflows.