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“Copper is a key metal for world’s decarbonisation. Demand is growing rapidly. In India, growth is over 20% annually. Vedanta acquired KCM in 2004 and made good profits when global copper prices were only $4,000. Now, global copper prices are around $8,500 and technologies are much superior so profitability will be much higher,” he tweeted.
Vedanta shares started the year on a positive note but lost momentum in the last two months amid a slew of negative developments such as the withdrawal of Taiwan’s Foxconn from a $19.5 billion semiconductor joint venture. The renewed concerns about piling debt of its London-based parent, Vedanta Resources, which has to repay term debt worth $4.2 billion in the FY24, also dented sentiments.
Last week, S&P Global Ratings warned of possible downgrade of London-based Vedanta Resources amid changes in its financial policy regarding debt transactions. The global rating agency may downgrade Vedanta Resources’ current ‘B-’ rating to ‘CCC’ or ‘CC’ if the metals and mining firm tries a debt deal without enough compensation or buys back debt at a lower price than its face value in secondary markets, as per report.
According to a report, Vedanta Resources is exploring ways to meet its debt obligations and its management recently met investors in Singapore and Hong Kong to syndicate a $1 billion short-term loan.
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