Economy

Mopani puzzle ‘solved’?  Reuters reports four firms shortlisted in race to buy the mine

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A Chinese mining firm, Zijin Mining, Norinco Group, South Africa’s Sibanye-Stillwater and an investment vehicle owned by former Glencore officials are said to be eyeing Mopani Copper Mine (MCM).

Rothschild & Co, a South African company hired last year to find investors for Mopani, has reportedly trimmed down the list to four, according Reuters’ sources.

Two sources with knowledge of the matter told Reuters that four competing companies   had been shortlisted in the race to buy Mopani.

One of the sources said the investors, who conducted due diligence and submitted non-binding offers in May, are now completing all the work required before making binding offers, with Sibanye, Zijin and Norinco the three strong contenders.

The source added that an investor  was  expected to be selected before the end of July, and that separate proposals have also been made to Glencore, which is still owed money.

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

Read more :Govt won’t succumb to undue pressures from the opposition over Mopani, Konkola mines —Chanda

Glencore also made further loan advances to Mopani in 2022.

A spokesperson for Glencore declined to comment. Zijin also declined to comment, while Norinco and  ZCCM-Investment  Holdings ( ZCCM-IH)  did not immediately respond to emailed questions.

Sibanye chief executive  officer  Neal Froneman, who is seeking to expand in copper as part of the company’s push into green metals, is said to have  confirmed the company had submitted a proposal to acquire Mopani.

Froneman  told  Reuters  that  the copper mine, which could potentially produce about 225,000 tonnes  of copper per year , required considerable investment, but that the available deposits made Mopani a good asset to own.

“It’s a wonderful orebody, and a good mine starts with a good orebody and good people,” Froneman said.

President Hakainde Hichilema is seeking to attract new investors in Africa’s second-largest copper producer, and wants to triple output of the metal that is key to products from power lines and industrial machinery to electric vehicles.

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