In a landmark deal poised to revitalize the Zambian copper industry, state-owned ZCCM Investments Holdings (ZCCM-IH) has secured a strategic partnership with International Resources Holding (IRH) for Mopani Copper Mines (MCM).
The $1.1 billion agreement, signed through IRH’s subsidiary Delta Mining, grants them a 51% stake in MCM, marking a significant shift in ownership and signaling renewed confidence in the mine’s future.
The deal comprises a $620 million injection of fresh equity capital, alongside $100 million earmarked for settling existing liabilities and $380 million in potential shareholder loans – subject to the fulfillment of specific conditions. This substantial investment aims to recapitalize MCM’s balance sheet, secure jobs, and propel the mine towards its ambitious production target of 200,000 tonnes of copper cathodes annually within the next three years.
ZCCM-IH, which acquired full control of MCM from Glencore in 2021, has long sought a suitable partner to fuel the mine’s expansion. IRH, with its focus on critical minerals across the mining value chain, aligns perfectly with this vision. The partnership promises to leverage IRH’s technical expertise and financial muscle to unlock MCM’s full potential.
The agreement extends beyond immediate benefits for MCM. ZCCM-IH and IRH plan to collaborate with MCM and the Zambian government to explore further opportunities within the country’s mining sector, attracting additional investment and fostering broader economic growth. This collaborative approach positions Zambia to capitalize on the rising global demand for critical minerals.
ZCCM-IH is preparing a comprehensive transaction circular outlining the financial and technical details of the deal for shareholder approval at an extraordinary general meeting scheduled for the first quarter of 2024.
This landmark partnership between ZCCM-IH and IRH marks a turning point for MCM and the Zambian copper industry. With renewed investment, strategic expertise, and a collaborative spirit, the future shines brighter for the mine and the nation’s economic prospects.