A Mining expert has challenged ZCCM-IH and the Industrial Development Corporation – IDC to not wait for foreign equity partners but timely source for the required $300 million to return Mopani Copper mines to full production and expansion as they have the capacity to raise the needed funds.
Both Mopani Copper Mines Management and Mines Minister Paul Kabuswe have confirmed that Mopani needs about $300 million capital injection to make the mine fully productive and enable the company to complete its expansion project in a bid to double production.
At the time of the buy back transaction in January 2021, then 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 speaking in an exclusive interview with the Zambian Business Times –ZBT, Edward Simukonda a mining expert attributed the delay in sourcing for these funds to the responsible companies not seriously engaging with probable funders.
Simukonda said $300 million is not an amount of funding that can be said to big stretch for them to fail adding that ZCCM-IH and IDC have the capacity to source that funding. “There is need for patience yes but as for ZCCM-IH and the IDC, am not sure they are seriously negotiating or looking around to find the propable source of funding for both Konkola Copper Mine and Mopani copper.” He said.
Simukonda Said there is a lot that needs to be done and there is need to exercise a little bit of patience as the stakeholders have to be sure of what they are doing or what they will put themselves into. But own thing that is clear is that ZCCM-IH and IDC have the capacity to raise $300 million.
IDC has a serious balance sheet that is in billions of dollars, so raising the needed funds are within its reach. When the deal to buy back Mopani, there were indications that the mine would be locally run but that story has since died. See link for full article on buy back intensions ZCCM IH buys back Mopani
