LONDON: Volcan Investments Ltd, the majority shareholder of Vedanta Resources Plc, has said that it is planning to make further investment in Anglo American.
"Volcan Investments Ltd....intends to make an additional investment in Anglo American Plc shares of £1.25 billion to £1.5 billion," Vedanta Resources said in a statement.
In March this year, Volcan had made an investment of two billion pounds in Anglo American.
"The company confirms that the proposed investment is being made by Volcan alone, and that the company is not participating in this investment," Vedanta Resources said in a statement.
The independent directors of Vedanta Resources have given their approval to the proposed investment.
"The independent directors of the Company (who for these purposes did not include the Executive Chairman or Executive Vice Chairman) have consented to the proposed investment pursuant to the relationship agreement between, among others, Volcan and the company," the statement said.
Vedanta Resources' independent director were advised by Moelis & Company UK LLP and Ashurst LLP with regard to according this consent.
Volcan Investments is a personal investment arm of metals-to-mining magnate Anil Agarwal.
Anglo American, started in South African by Ernest Oppenheimer a century ago, has interests all over the world but has been struggling with its South African operations in recent years due to difficult operating environment challenges such as labour demands for higher wages as well as declining commodity prices globally.