The Industrial Development Corporation (IDC)m the parent or holding company of ZCCM-IH has clarified that the US$1.5 billion debt accrued after the buy back of Mopani Copper Mines from Glencore and FQM does not add to Zambia’s sovereign debt.
In a statement issued to the Zambian Business Times – ZBT, IDC CEO Mateyo Kaluba stated the that “the payment of the US$1.5 billion transaction debt by Mopani to Glencore was the burden of the mining company itself [Mopani] and not the State. He added that the mine’s debt as a result of this transaction had no impact on the country’s sovereign debt.
And the IDC CEO further stated that ZCCM-IH has the capacity to efficiently operate Mopani Copper Mines. Kaluba said the mining company’s Board of Directors and Management would be competent enough to professionally run the newly acquired mine.
“In terms of our confidence that the mine will be professionally run, we have no doubt,” He added that the company would further seek a strategic equity and technical partner to enhance its capacity. He reiterated that the acquisition of Mopani Copper Mine by ZCCM-IH was consistent with the direction the mining conglomerate was taking to have more control of mining interests in the country.
On questions about who was involved in the deal process, Kaluba said the IDC, as ZCCM-IH’s holding company, was involved through an extensive consultation process to give the necessary guidance and approvals.
He explained that the deal was structured in such a way that Glencore would be the off taker of Mopani’s copper and that a 10% portion of the proceeds would go towards debt repayment. He said the debt would be fully paid over the next 10-17 years depending on the mine’s production capacity and fluctuations of the copper prices.
Kaluba urged Zambians to be more confident in taking up more challenging assignments, as the government had created an enabling environment where companies such as ZCCM-IH and IDC are able to be more assertive in taking control of national assets.
