mine needs US$1billion recapitalisation as chase for investors progresses, says Vibetti

ZCCM-Investment Holding Chief Executive Officer, Ndoba Vibetti, has said Mopani Copper Mine (MCM) requires US$1 billion funding to meet a five-year capital requirements.

According to Reuters, Vibetti confirmed that Zijin, a Chinese mining conglomerate and South African mining giant, Sibanye Stillwater are interested in the copper mine.

He said this at a mining conference in London on Monday.

The list of investors eyeing Mopani assets includes China’s Norinco Group and an investment vehicle owned by ex-Glencore officials, Reuters reported June 20, citing sources.

He said the search for a new investor for Mopani was likely to be concluded within the next two months.

“The mine would require at least $1 billion in funding over the next five to six years.

“The Mopani mine and smelter complex currently requires around $200-million to $300-million of short-term funding to make it sustainable,” Vibetti said.

He added that it had taken a long time to find a new investor because they needed a suitable company to takeover Mopani.

“Part of the reason that has taken so long is to get that packaging right.

“Somebody who can come, bring it out of water and then be able to invest for the long term,” Vibetti said.

Glencore sold a 73 per cent stake in Mopani to ZCCM-IH in 2021 for $1.5-billion in a deal funded by debt, but it retained offtake rights to Mopani’s copper production until the debt had been repaid in full.

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