* Zambia scraps import tax plan
* Vedanta expands in South Africa, Namibia, Zambia
By Barbara Lewis
CAPE TOWN, Feb 9 (Reuters) - Indian mining company VedantaResources is urgently trying to overcome technicalissues at its Zambian copper operations that it says have thepotential to produce the metal for another 50 years.
The mining industry as a whole has been frustrated by a lackof available high-quality copper assets at time demand for themetal is predicted to rise and Vedanta is wrestling with theneed to remove large amounts of water, amongst other issues.
"We're all here working with an element of urgency to find asolution. We're committed to Zambia. We want to invest," VedantaChief Executive Tom Albanese told Reuters at an annual miningconference in Cape Town.
"I continue to believe there's a 50-year vision for ourZambian copper operations. We have invested billions ofdollars," Albanese said.
The Vedanta chief said he had used the Cape Town event tomeet Zambian officials and the industry's best engineers becausea lack of alternative copper assets made it imperative toexploit the company's existing deposits.
Vedanta has a majority stake in Konkola Copper Mines (KCM),which Albanese said was "one of the largest copper depositsstill to be mined at one of the highest grades".
Vedanta has also faced legal and regulatory issues in thesouthern African country. Last year, the Zambian governmentproposed an import duty on copper concentrate imports to besmelted in Zambia, but decided against it.
"It was recognised it was a proposal that would only be atthe expense of the copper producers in Zambia and ultimatelyrefined copper exports from Zambia," Albanese said.
Vedanta has three smelters in Zambia, Africa's secondbiggest copper producer, and the import duty was expected todisrupt the supply of copper concentrate from neighbouringDemocratic Republic of Congo.
A $100 million payment to the Zambian government ordered byan English court over outstanding payments from a 2013 agreementhad also been dealt with, he said. Konkola Copper Mines paid $20million in January, will pay $22 million in February and thebalance in instalments over the next 24 months.
A legal battle over whether an English court hasjurisdiction to decide a claim on behalf of Zambian villagersseeking compensation for what they say is damage to their healthand land by KCM is unresolved.
Vedanta has appealed, saying Zambia is the appropriatejurisdiction, and expects to know the outcome this year.Albanese said he had no news on the case.
Vedanta is also expanding in the two other Africancountries. In South Africa, it is developing the Gamsberg zincmine, which it began last year with a capital investment of $400million and the aim of producing the first ore in mid 2018.
It is also seeking to extend its Skorpion zinc mine inNamibia via an underground development as the existing reserveis expected to be exhausted by 2020. (Editing by David Clarke)