Why Vedanta Shares Are Upbeat Today

Vedanta’s share price jumped back in the green on Wednesday surging up over 2% in early trade.

What Happened: The stock is upbeat today as the mining giant will be regaining control of the copper mines in Zambia. After a four-year-long legal battle, Vedanta Resources and government-owned ZCCM Investments Holdings have agreed to settle their disputes.

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As part of the agreement aimed at regaining ownership and control, once Konkola Copper Mines’ board is reinstated, Vedanta has made several commitments:

  1. Payment to Local Creditors: Vedanta has pledged to pay $250 million (₹205 crore) to Konkola’s local creditors.
  2. Community Investment: The company has committed to spending $20 million (₹164 crore) annually through a trust in local communities.
  3. Pay Increase for Workers: Vedanta has agreed to implement a 20% pay raise for workers.
  4. One-time Payment to Employees: In addition to the pay raise, Vedanta has promised a one-off payment of $121 (around ₹10,000) to all employees.

The company also will be investing $1 billion (₹8,200 crore) to expand operations. This has been a point of contention as the Zambian government accused the Anil Agarwal-led company of lying about the investments and paying little taxes. The Konkola Mines were put under provisional liquidation in 2019.

Price Action: Vedanta’s share price was up 1.99% to trade at ₹246.20 at open on Wednesday.

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Posted In: MoversTrading IdeasKonkola Copper MinesVedanta