Fin24

Standard in Zambian mine loan deal

2011-09-30 14:12

Johannesburg - Standard Bank said on Friday it has provided a $500m loan facility to Zambia's largest mining company, Konkola Copper Mines, a unit of London-listed Vedanta Resources.

The loan will be used to refinance shareholder loans from Vedanta, the bank said.

"In addition, Standard Bank is also mandated to arrange and underwrite a $700m term loan facility to fund investment that will turn the Zambian copper miner into one of the world's leading copper producers, and provide further impetus for growth in the Zambian economy," it said.

"The funding to KCM is the single largest injection into the Zambian Copper Belt ever by a bank," said Brad Breetzke, head of mining finance at Standard Bank.

Last year Vedanta announced a $674m expansion at Konkola to increase output from 2 million to 7.5 million tonnes per year.