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The Economic Freedom Fighters (EFF) party has called on the government to reverse the allocation of 51 percent shares in Mopani Copper Mines (MCM) to International Resources Holdings (IRH), questioning the legitimacy of the transaction and its implications for Zambia’s mining sector.
EFF Secretary-General, Changala Siame, in a statement issued on Thursday, expressed concern that the controversy surrounding the acquisition undermined investor confidence in MCM’s operations.
“IRH has demonstrated little commitment to making significant investments in Mopani, apart from negotiating a $1.1 billion debt cancellation with Glencore, which has no direct impact on the mine’s operational sustainability,” Siame said.
He noted that MCM required a substantial capital injection of US$2.5 billion to modernise and restore its operations, a commitment IRH has yet to fulfill.
Siame claimed that legal uncertainties surrounding the acquisition discouraged IRH from committing resources, leaving the mine to benefit foreign interests while Zambians faced unemployment and economic stagnation.
“The much-anticipated target of producing three million metric tons of copper annually remains unattainable under the current circumstances,” he added.
Siame urged IRH to work collaboratively with the government to resolve ownership issues and ensure investment stability in the Copperbelt region.
“Addressing these issues is crucial for creating an environment of certainty, boosting investor confidence, and paving the way for sustainable development,” he stated.
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