...May 28, 2019 SINGAPORE (S&P Global Ratings) May 29, 2019--S&P Global Ratings said today that the liquidation proceedings initiated by the Zambian government on Konkola Copper Mines (KCM) are unlikely to affect the credit profile of its parent Vedanta Resources Ltd. This is mainly because of KCM's small contribution to the parent's operating cash flows. Vedanta Resources should also be able to receive waivers from banks, if needed, related to the liquidation proceedings. We believe KCM will be allowed to operate as usual until the legal proceedings are over. The company will likely function under the purview of a government-appointed liquidator. KCM is a large employer among natural resources companies in Zambia. It is one of the first to attract such action by the government. We expect KCM to be able to service its debt using its operating cash flows and support from Vedanta Resources. Still, lenders' support remains important for KCM to continue operating, given uncertainties around the...
