ZCCM-IH, an investment arm of the Zambian government under the Industrial Development Corporation- IDC has acquired majority stake and retained ownership of Mopani Copper Mines – MCM.
In a statement availed to the Zambian Business Times – ZBT, MCM public relations manager Nebert Mulenga has confirmed that Glencore has sold its majority stake in Mopani to ZCCM-IH following the conclusion of the shareholding discussions.
He further stated that ZCCM-IH has been a shareholder in Mopani for over 20 years and is well placed to build on the significant investment undertaken by Glencore to help position Mopani as a Zambian copper champion.
Mulenga stated that “the shareholding transfer process is expected to be formally completed by the end of the first quarter of 2021. Glencore will continue to be in operational and financial control while the handover formalities are being undertaken by the involved parties”.
And ZCCM IH board chairman Eric Silwamba stated that ZCCM IH has acquired 90% shares in Mopani Copper Mines which were previously held by Glencore (73.1%) and First Quantum Minerals (16.9%), in line with ZCCM IH strategic plan to increase its holdings in existing mining firms.
Silwamba further stated that Mopani Copper Mine underground operations in Kitwe have a remaining life of 26 years and 16 years for Mufulira based Mines, with 110 million tons of proven copper ore reserves, with 1.89% of Copper grade.
And Mines Minister Richard Musukwa stated that this move has saved over 15,000 jobs as Glencore had intended to place the Mine on care and maintenance. He stated that the salient features of the transaction is that Mopani loans were US$4.8 billion to its group companies i.e Glencore Bermuda, Glencore International & Carlisa Investments and has been agreed to be reduced to US$1.5 billion.
The reduced loan of US$1.5 billion is to be paid back by Mopani to Glencore through an off taker agreement. Mopani will pay via 10% of production in the period of 10 to 17 years depending on the price of Copper.
Glencore had earlier announced that they were in discussion with the Zambian authorities and ZCCM-IH to sell out their stake after their relationship deteriorated. This was after the Mine had gone ahead to close the Mine without following the laid down procedures.
Mopani has Mines based in Zambia’s second largest city by population – Kitwe and in Mufulira, another key mining town on the Copperbelt. This is the second Mine after Konkola Copper Mines – KCM to be acquired by the Zambian authorities a-bait in a more negotiated manner.
