New Dawn Government To Choose New Mopani Copper Mine Owners In October

The Zambian government is at the cusp of a significant decision regarding the sale of Mopani Copper Mines, with an announcement expected later this month. Mines Minister Paul Kabuswe broke the news, underlining the importance of securing a new investor for the mines to ensure a profitable future.

The sale process faced delays due to the intricate negotiations, particularly concerning the debt owed from Mopani to its former owners, Glencore.

ZCCM Investments Holdings (ZCCM IH), a unit of the Zambian government, has sought advice from Rothschild & Co on the critical sale.

Several potential investors have presented proposals, including South African platinum miner Sibanye Stillwater, an investor from the United Arab Emirates with ties to International Holding Company (IHC), and China's Zijin Mining Group.

Zambia's President Hakainde Hichilema is advocating for new investors to bolster the country's position as Africa's second-largest copper producer, with a vision to triple metal output essential for clean energy transition and the growth of battery electric vehicles.

Among these investors, Sibanye stands out due to its success in revitalising struggling gold and platinum mines in South Africa.

Sibanye is refining its financing plans for Mopani, indicating a serious interest in the venture.

Neal Froneman, CEO of Sibanye, confirmed the ongoing sale process and expressed a sense of urgency to conclude the sale promptly.

The investor from the United Arab Emirates, though financially robust, lacks mining experience, potentially influencing the final decision. But the partnership with, China's Zijin offers a promising blend of financial strength and mining expertise. 

The decision on the Mopani Copper Mines sale holds immense importance for Zambia's economic trajectory, presenting an opportunity to bring in experienced investors and revitalise a vital sector in the nation's economy.

Photo: REUTERS/Shelley