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After more than two years of speculations, ZCCM-Investment Holdings has announced that an affiliated company of Abu Dhabi conglomerate International Holding Company PJSC (IHC) is the preferred bidder to take over Mopani Copper Mine (MCM).
In a market update on Thursday, ZCCM-IH Company Secretary, Charles Mjumphi, stated that after an extensive and thorough process, International Resources Holding RSC Limited , a subsidiary of UAE’s most valuable listed company, had been picked as a preferred bidder.
“IRH has a strategy to invest in critical minerals and develop a new entity that encompasses the entire metals and mining supply chain,” the company said.
It stated the proposed investment in MCM was the largest single investment to date by IRH and represented key step in the development of its strategy to become a major player in the African minerals sector.
Read more: Reuters reports govt expected to make final decision on sale of Mopani Copper Mines this month
According to ZCCM-IH, the proposed partnership between ZCCM-IH, IRH and MCM represented an important strategic step for the revitalisation of the Zambian mining industry and the Zambian economy and the continued development of the Copperbelt.
As the preferred SEP, the company said the subject to the definitive transaction documents being entered into, IRH would, inter alia, inject funds into MCM which would be used to stabilise short-term working capital.
Others would be funding the completion of the mine development projects and unlock the long-term potential of MCM as well as restructure its balance sheet and reset its existing relationship with Glencore.
“The capital investment combined with the industry experience of the IRH and MCM management teams should enable MCM to achieve its long-term potential and enable it to increase copper production to at least 200,000 tonnes per annum,” ZCCM-IH said.
The company further announced that the conclusion of the transaction was subject to entry into definitive transaction documents and would be subject to various conditions precedent commensurate to a transaction of this nature.
ZCCM IH would provide further details once all definitive transaction documents have been agreed.
Glencore handed over the mine in 2021 through a share buyout to the tune of US$1.5 billion debt payable between 10 to 17 years.
And, on June 15, 2022, ZCCM-IH appointed Rothschild & Co., South Africa (Pty) Limited to assist ZCCM-IH with a strategic review of Mopani to ensure its sustainability and continued development leading to the finding of a new strategic partner.
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