Vedanta – KCM SHA Exposes VRL’s Immediate Funding Shortfall

Author: Viceroy Research Published on: November 25, 2025 Published in: Uncategorized

November 25, 2025 – Viceroy has obtained a copy of the 2023 Shareholder Agreement (SHA) between Vedanta Resources Limited (VRL) and ZCCM. The SHA shows that VRL is deliberately misleading bondholders, analysts and rating agencies about their contractual obligations to fund KCM.

VRL management has emphatically stated there is no funding requirement for KCM from VRL in the medium term. This is categorically untrue: $206m is due by December 31, 2025 with a further $270m in 2026.

This is a catch 22: either VRL is lying to the Zambian government, or it is misleading the market.

In stark contrast to affirmations provided to investors and ratings agencies: VRL must continue funding KCM to the tune of hundreds of millions of dollars in the near-term. This is unfortunate for VEDL shareholders, who will inevitably be footing the bill.
Vedanta is charging unlawful extra interest on $1bn in shareholder loans to KCM, in breach of the SHA’s cost-of-funding cap.
VRL is using its stake in Vedanta Limited (VEDL), which is already fully pledged, as de-facto collateral.

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