CAPE TOWN, Feb 6 (Reuters) – Vedanta Resources is trying to raise around $1 billion in debt financing to fund development of its Konkola Copper Mines (KCM) in Zambia, Chris Griffith, head of the company’s base metals unit, said.

The Indian company, which owns 80% of KCM, said last year it planned to sell at least 30% of its holding in the copper mines.

But Griffith said selling a stake looked less likely.

“We are in a much higher likelihood that we can raise the funds from a range of financing options,” Griffith told Reuters on the sidelines of the Mining Indaba conference in Cape Town.

“We own 80% of the business and clearly we’d prefer to continue owning 80% of the business.”

Vedanta, owned by Indian billionaire Anil Agarwal, is weighing various debt fund raising options, Griffith said without specifying details.

It wants the $1 billion in funding to boost copper output at KCM to about 300,000 metric tons per year over the next five years.

Vedanta regained control of the assets in 2024 after a five-year tussle to recover the copper mines and smelter that the government of former Zambian president Edgar Lungu had seized. The former administration accused Vedanta of failing to invest to expand copper production.

The Zambian government owns the remaining 20% stake in KCM through state investment firm ZCCM-IH.

United Arab Emirates firm International Resources Holding last year withdrew an offer to buy Vedanta’s 51% stake in the copper mines, citing differences in valuation of the assets.

Since then, Vedanta’s debt position has improved after it refinanced its bonds and this might help the company to raise more cash internally alongside external debt options, Griffith said.

He said it had secured short-term financing to pay outstanding debts.

(Reporting by Felix Njini in Cape Town; editing by Barbara Lewis)