Mines minister, Kabuswe, defends Mopani mine transaction, says no parliamentary oversight needed

Mines and Mineral Development Minister, Paul Kabuswe, has clarified in Parliament that the transaction involving Mopani Copper Mines (MCM) and International Resources Holdings (IRH) did not require parliamentary approval, as it did not involve the sale or transfer of a major state asset.

In a ministerial statement on Thursday, Kabuswe cited the Attorney General’s guidance, stating that Mopani was neither a parastatal nor a government-held equity before or after the transaction.

“The government did not hold any shares in Mopani and, therefore, was not capable of selling shares,” Kabuswe said.

The minister explained that a major state asset, as defined by the Constitution, includes parastatals and government-held equity, but in this case, there was no sale, transfer, or disposal of such assets.

Kabuswe’s statement was issued following a directive by Speaker of the National Assembly Nelly Mutti to reissue an explanation after Kalabo Central MP Chinga Miyutu raised dissatisfaction with the initial submission.

The minister further noted that the government negotiated with IRH and ZCCM-IH to reinstate a “golden share” in Mopani, giving the state a 49 percent stake.

He stated that the transaction did not involve the formalities of a sale, such as the execution of a share sale agreement, completion of share transfer forms, or payment of property transfer tax.

Instead, Kabuswe revealed that IRH, through its subsidiary Delta Mining Limited, subscribed to investor shares in Mopani in exchange for an investment of $1.1 billion.

The arrangement was structured as a subscription to shares rather than a transfer or sale.

The explanation aimed to address concerns raised by members of Parliament over the transaction’s transparency and compliance with constitutional provisions.

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