Mining company Vedanta Resources is reportedly seeking approximately $1bn (£803m) in debt financing to fund the development of its Konkola Copper Mines (KCM) in Zambia.

The company's base metals unit head Chris Griffith told Reuters in an interview at the Mining Indaba conference in Cape Town that a stake sale now appears less likely.

"We are in a much higher likelihood that we can raise the funds from a range of financing options," Griffith said.

Vedanta aims to increase copper output at KCM to around 300,000 tonnes per annum (tpa) over the next five years.

Last year, Vedanta, which owns an 80% stake in KCM, had announced plans to sell at least a 30% interest in the copper mines.

However, the company now prefers to maintain its current ownership level, with Griffith stating: "We own 80% of the business and clearly we would prefer to continue owning 80% of the business."

While specifics were not disclosed, Griffith mentioned that Vedanta, owned by Indian billionaire Anil Agarwal, is exploring various debt fundraising options.

The pursuit of financing follows Vedanta's recovery of control over the assets in 2024 after a five-year legal battle. The Zambian Government had accused Vedanta of failing to invest in copper production expansion.

The remaining 20% stake in KCM is held by the Zambian Government through state investment company ZCCM-IH.

An offer from the United Arab Emirates company International Resources Holding to purchase a 51% stake in the copper mines was retracted in July 2024 due to valuation disagreements.

Since that time, Vedanta has improved its debt position by refinancing its bonds, which may enhance the company's ability to raise additional funds internally, in addition to external debt options.

Griffith also mentioned that Vedanta had secured short-term financing to settle outstanding debts.