The Industrial Development Corporation (IDC) has said ZCCM-IH has the capacity to efficiently operate Mopani Copper Mines.

IDC Group CEO Mr Mateyo 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,” Mr Kaluba said, adding 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.

Mr Kaluba said the IDC, as ZCCM-IH’s holding company, was involved through an extensive consultation process to give the necessary guidance and approvals.

Regarding the payment of the US$1.5 billion transaction debt by Mopani to Glencore, Mr Kaluba said that the debt was the burden of the mining company itself 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.

Mr Kaluba 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.

Mr 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.

Ends

Issued by: (Original signed)

Ms. Namakau Mukelabai

Head – Corporate Communication

Industrial Development Corporation

Source : http://fizambia.com/?p=9626

LONDON, Jan 19 (Reuters) – Zambia hopes to attract investors to help fund mining and the expansion of Mopani Copper Mines, the mines minister said, as the cash-strapped country announced it was buying the rest of Glencore’s stake in the operation.

The state mining investment arm ZCCM-IH would make sure that operations are sustained and that new and fresh capital is injected into the mining operation, Richard Musukwa said. (Reporting by Chris Mfula, Writing by Zandi Shabalala, editing by Louise Heavens)

Source : https://www.reuters.com/article/zambia-mining-glencore/zambia-seeks-investors-to-help-fund-mopani-after-buying-glencore-stake-idUSJ8N2CO00K

GOVERNMENT has finally acquired a majority stake in Mopani Copper Mine following a conclusion in negotiations with Glencore last week.

And Mines Minister Richard Musukwa says $300 million is required to instantly revamp mining operations, increase production and extend the lifespan of the firm.

The State’s mining investment arm, ZCCM-IH, had been in talks to buy Glencore’s 73.1 per cent majority stake in Mopani since August, last year.

Confirming the development, Mopani public relations officer Nebert Mulenga stated that government’s acquisition, through ZCCM-HI, had been completed and that it was well-placed to build on the investment undertaken by Glencore to position the mine as a leading Zambian copper producer.

“Mopani Copper Mines Plc hereby confirms that Glencore has sold its majority stake in Mopani to ZCCM-IH following the conclusion of the shareholding discussions. 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,” stated Mulenga.

“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. Further updates will be communicated as appropriate.”

And speaking during a press briefing, Musukwa said $300 million was required to instantly revamp mining operations.

“Government would like to have significant stakes in selected mines. And Mopani is one of them that has provided this opportunity. I wish to assure the workers of Mopani that the government will ensure that in phase two, all matters relating to their welfare are addressed before we can move to another platform, for now, the workers of Mopani have a duty to ensure that this matter, and demonstrate that they can sustain production. I know that there are many questions at this stage on who the strategic partner will be, we will trigger phase two. We are pleased to announce that we several entities that have shown interest to partner with ZCCM-IH to run and manage Mopani and these are entities from Canada, United Kingdom, China, Qatar, South Africa, Turkey just to mention a few. We have a long list, and don’t be surprised that on that list we have a consortium of Zambians who will also come on board and offer what they want to do for us,” Musukwa said.

“I must say that currently, production at the mine is going on, and what we envisage to do is to ensure that the state of the infrastructure which needs upgrade to modern infrastructure in order to sustain the current levels of production is quickly addressed. In order for us to ensure that all these operations and plants which I have spoken to…the Anderson shaft and the concentrator and all the expansion projects are completed, we need a minimum of $300 million.”

He said rehabilitation of the firm’s infrastructure would extend the lifespan of the mine by 20 to 35 years.

“The new infrastructure and the rehabilitation of the infrastructure will extend the life of the mine by 20 to 35 years. It is expected that there will be an annual ramp up on Mopani’s own source of production by about 40 percent. The increase in production will make it easier to lower the loan which we have acquired through this facility in a much more quicker way than the stated time. It is also envisaged to show that as a result of these programs, sustainability of the mines will be guaranteed. Government will benefit from taxes and other forms of income through job creation. I wish to state that government is aware of the plight of the local mine suppliers’ contractors and this transaction allows a fresh start where the Zambian providers of goods and services will be prioritised. The Chamber of commerce should therefore expect more business going forward. The subject of local content promotion can only be overemphasised,” said Musukwa.

Source : https://diggers.news/business/2021/01/19/zccm-ih-completes-mopani-takeover/