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ZCCM-IH shareholders have unanimously approved the acquistion of 51 percent shares in Mopani Copper Mines Plc by Delta Mining Limited.
Delta Mining Limited (Delta), a subsidiary of International Resource Holdings (IRH), had agreed to acquire a 51 percent shareholding in Mopani, for a total investment of up to US$1.1 billion.
In a statement issued in Lusaka on Monday, ZCCM-IH Corporate Affairs Manager, Loisa Mbatha, said the approval was given at the Shareholders’ Extraordinary General Meeting held in Lusaka on February 23, 2024.
“ZCCM-IH would retain 49 percent shares in Mopani, with three out of nine board seats and thus continue to participate in the governance of Mopani and have full visibility of its operations,” Mbatha stated.
ZCCM-IH Board Chairperson, Kakenenwa Muyangwa, stated that the transaction was a landmark achievement that delivered significant value to ZCCM-IH, Mopani and Zambia.
Muyangwa stated that the deal unlocks the long-term sustainability of Mopani operations, which contributed to the revitalisation of the Copperbelt.
“It’s pleasing to note that IRH has committed to retain Zambian workers, including the management team, who will be complimented by new skills and expertise from Delta to facilitate the expansion of MCM production to 200, 000 tonnes per annum”, he said.
Muyangwa noted that IRH had proved its commitment by providing interim funding of US$130million, before they take over, that had allowed continued payment to suppliers and contractors.
ZCCM-IH Board Director, Phillippe Taussac, who represented minority shareholders said that “the extinguishing of the Mopani US$1.5billion debt that ZCCM-IH had guaranteed, would lead to significant improved financial performance.
Taussac expressed happiness that ZCCM-IH now had a strong long-term strategic equity partner in Mopani, whilst remaining a significant shareholder in the company.
“This transaction represents a major step for Zambia’s copper mining industry towards the achievement of the country’s 3 million metric tonnes of copper production per annum by 2030,” he stated.
Following the announcement of the transaction, the markets had responded positively with increased activity and share price appreciation.
On the Lusaka Securities Exchange ZCCM-IH shares soared by 11.9 percent from K42 to K47 per share.
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