28th August 2024, Lusaka Zambia: ZCCM Investments Holdings PLC (ZCCM-IH) is pleased to announce that it has reached an agreement with Jinchengxin Mining Management Company Ltd (JCHX) to acquire an additional 10% shareholding at US$1 in Lubambe Copper Mines Ltd (Lubambe). This transaction will increase ZCCM-IH’s ownership in Lubambe from 20% to 30%, and upon completion, JCHX’s stake will adjust from 80% to 70%. This transaction is expected to be finalized within the next six months.

In addition to the increased shareholding of 10%, ZCCM-IH will have marketing rights to copper ore concentrate output in proportion to its shareholding. This innovative arrangement is the first of its kind within ZCCM-IH portfolio and will ensure greater value extraction from the asset. The current Shareholder’s Agreement shall be revised accordingly to include other value extraction strategies for ZCCM-IH. This move aligns with ZCCM-IH’s ongoing strategic efforts to increase its stake in key mining and energy assets within Zambia. The increased equity will strengthen ZCCM-IH’s role in the governance, management and development of Lubambe Copper Mines, ensuring greater alignment with the interests of ZCCM-IH’s shareholders and Zambia’s national interests.

JCHX intends to invest approximately US$300 million into Lubambe for operations and extension of the life of mine. The mine is currently implementing initiatives to boost productivity and operational efficiency, and this partnership between ZCCM-IH and JCHX will further support these goals.