By CHATULA KANGALI –
MOPANI Copper Mines (MCM) has spent $640 million in the payment of suppliers and contractors in the past three years, ZCCM-Investment Holdings (ZCCM-IH) has said.
Source: Times of Zambia
Mopani Copper Mines launches website and social media platforms
Mopani Copper Mines PLC is thrilled to announce the launch of its website – https://mopani.com.zm/, and social media platforms on Facebook, LinkedIn, Google Business and Youtube.
The social media pages are available on the following links:
- https://www.facebook.com/mopanicoppermines for Facebook;
- https://www.linkedin.com/company/mopani-copper-mines/ for LinkedIn; and,
- https://www.youtube.com/channel/UCprlmzSBpkfhdC-Rh0RtfcQ/featured for Youtube.
The website and social media accounts are aimed at providing the public with enhanced access to timely information about the Company’s operations, new developments and various ongoing corporate social responsibility programmes.
Launching the Company’s new digital media platforms, Mopani Copper Mines PLC Chief Executive Officer, Mr. Charles Sakanya says, “Mopani has been operating for 22 years without a presence on these digital platforms, and thus the launch of the new website and social media channels is long overdue in getting people to understand our Vision, Mission and Operating Philosophy, which will make it easier for them to fit into our new way of doing things as a Proudly Zambian Owned Mining Company”.
Mr. Sakanya further states, “Mopani believes that corporate communication is a strategic factor for the governance of our Company. And that is why we are moving towards a proactive stakeholder conscious governance model where communication is concerned to ensure corporate accountability and transparency”.
He has since invited all stakeholders to visit and explore the new website and follow the Company on its social media pages.
The website is designed to offer the ultimate user-friendly experience with easy navigation and functionality while allowing visitors to see the full portfolio of Mopani’s operations. Created with the user experience in mind, the website includes several features to help users to quickly and easily navigate the site and find the information or images that they need. These features include:
- Operations: provides an up-to-date overview of all our Mining and Processing facilities as well as ongoing Expansion Projects as the future of the mine.
- Services: provides essential information on our Medical, Education and World-class Laboratory facilities and services.
- CSR: profiles our award-winning robust community investment programme across the eight (8) thematic areas of our focus.
- Careers: details all available vacancies, procedures for submitting applications and the respective due dates.
- Commercial: provides a one-stop-shop for our Supply Chain programme inter-linked to our Supplier Portal with a step-by-step guidance on the Vendor Registration and Categorisation Process.
Released by:
Public Relations Manager
Phone: 0212247889
E-mail: public.relations@mopani.com.zm
ZCCM-IH hires Rothschild & Co for Mopani Copper Mines restructuring
Zambian mining investment firm ZCCM-IH has hired investment bank Rothschild & Co for a strategic review of Mopani Copper Mines “to ensure its sustainability and continued development”, the state-owned company said on Wednesday.
In April, ZCCM-IH said it was seeking a financial adviser to restructure Mopani and help find a new external investor for the mining complex, which Glencore had sold back to the state in January last year.
Copper production at the more than 90-year-old mine and smelter complex has fallen and it has been struggling to pay suppliers on time.
“ZCCM-IH is committed to see that MCM delivers to its optimal production levels in order to contribute to the national production target of 3 million metric tonnes of copper by 2030,” the state firm said in a statement.
Restructuring is expected to be completed in six months, it added, with the option of a six-month extension. Rothschild & Co’s involvement would not disrupt business operations at the mine, the state firm said.
ZCCM-IH said it chose Rothschild & Co after a competitive procurement process in which five other domestic and international companies participated.
Mopani plans to resume cobalt production as prices rise
Zambia’s Mopani Copper Mines (MCM) plans to resume cobalt production that was halted more than a decade ago after international prices collapsed, an executive at state-owned ZCCM-IH said on Tuesday.
Accelerating sales of electric vehicles have fuelled a scramble for nickel, cobalt and lithium, propelling prices of the battery materials to multi-year highs.
Brian Musonda, chief investment officer at ZCCM-IH, Zambia’s mining investment arm, said the rising prices were a strong economic reason to restart cobalt processing.
“Going into next year, Mopani will start to process concentrates for cobalt and our plan is to produce something between 4,000 and 5,000 tonnes per year,” Musonda told Reuters.
Mopani would later ramp up production of cobalt, which the company historically mined as a by-product of copper, Musonda added.
“We have some material sitting on the surface. It was mined already as part of the copper ores but it could not be processed because the cobalt price was too low.”
Copper production in Zambia dropped to 800,696 tonnes last year from 837,996 tonnes the year before, data obtained from the nation’s statistics agency showed in March.
Cobalt production also dropped to 247 tonnes last year from 316 tonnes a year earlier, according to the Zambia Statistics Agency.
ZCCM-IH last year agreed to buy Glencore’s majority stake in Mopani Copper Mines in a $1.5 billion deal funded by debt and said it would seek a new investor.
The sale followed Glencore’s attempt to suspend operations at Mopani due to low copper prices and Covid-19 disruptions, prompting a government threat to revoke the company’s licences.
Source: https://www.mining.com/web/mopani-plans-to-resume-cobalt-production-as-prices-rise/
‘New Dawn’ Mining Policy Excites Mopani
MOPANI Copper Mines (MCM) Plc is excited with the Government’s current policy direction in the mining sector which seeks to stir growth.
MCM chief executive officer Charles Sakanya says the mining company is confident with the current mining policies being put in place by the Government that will ensure that the three million tonnes of copper per annum is achieved through sustainable growth.
Read more: http://www.times.co.zm/?p=116863
Zambia’s ZCCM-IH to appoint adviser to restructure Mopani Copper Mines
Zambia’s state mining investment firm ZCCM-IH is in the process of appointing a financial adviser to restructure Mopani Copper Mines and help find an investor for the copper mine, board chair Dolika Banda said on Friday.
The appointment is “imminent”, Banda said, adding that ZCCM should find a new equity partner within the next six months to a year.
Zambia’s President Hakainde Hichilema on Monday said the government is “very close” to finding an investor for Mopani.
Zambia took on $1.5 billion in debt to buy Mopani from Glencore in January 2021 and has been looking for a new investor for the mine since as it needs significant investment to increase output.
“To own this mine requires billions of dollars and we can’t continue to be asking the Zambian treasury to be financing exploration, productivity and technology upgrades,” Banda told Reuters in an interview in Lusaka.
ZCCM-IH will continue helping the company service its loans and working capital, paying salaries and buying inputs, while it works on “long-term solutions”, Banda said.
Source: https://www.mining.com/web/zambias-zccm-ih-to-appoint-adviser-to-restructure-mopani-copper-mines/
WE’RE ON TOP OF THINGS IN TERMS OF RESOLVING KCM, MOPANI ISSUES – MUSOKOTWANE
FINANCE and National Planning Minister Dr Situmbeko Musokotwane says government is working behind the scenes to resolve issues surrounding Konkola Copper Mines (in liquidation) and Mopani.
In an interview, Dr Musokotwane said government was already dealing with legacy issues from existing mines in order to increase mining output.
“In the plan to increase mining output, the government is already dealing with legacy issues from the existing mines. You know when the PF left, they left a big mess in KCM, put it under liquidation, so the output from that mine is obviously adversely affected. Government is working behind the scenes through ZCCM to resolve the issues of KCM. I can’t go into more details because these are delicate issues. Similarly, under PF, Mopani was also left in a limbo, the previous investors Glencore left behind a debt of billion Dollars. So once again that is a problem, if we don’t deal with that all the money coming out from the mines [will go] to service that debt left behind by the PF. There will be no money to develop the mine further so that it produces more copper. So once again this is something that is being done behind the scenes to see how we can get partners so that the mine is properly funded and it can contribute towards copper production,” he said.
Dr Musokotwane said powerful steps were being taken to increase copper production in the country.
“These are very powerful steps that are being taken so that we produce more copper. Look, the Congolese, who 10 years ago were only producing half of Zambia’s copper, today they are producing double that, of what Zambia produces in copper. Hence you see all this money that is [being] thrown around in Congo DRC, because it is from Copper, meaning we are behind. The good thing is that the government is on top of things to resolve all the legacy issues. We have also said that we are negotiating with investors so that there is copper value addition. We have been speaking to investors to say ‘in Zambia, we have an opportunity of turning into a country that makes more of the car engines in the world’, because car engines are moving away from petrol, to electrical motors. So we can actually manufacture most of the car engines of the future. Those are discussions that are underway with investors,” said Dr Musokotwane.
MOPANI IN INCREASED PRODUCTION
Management at Mopani Copper Mine (MCM) has said that production has increased since Government took over ownership of the mine 12 months ago.
MCM General Manager – Technical Services, Jacob Banda says the company is improving and production is showing signs of increasing from the time Zambians took over the mine.
Mr Banda said this when ZCCM-Investments Holdings (ZCCM-IH) board and management toured MCM in Mufulira last week.
Before change of ownership, production of copper cathodes was at 3,500 tonnes per day but had now increased to 9,000 tonnes.
You can see from there that production is increasing and the company is progressing. We as Zambians can do it
We are assuring the board that we will not let them down bur we will work hard and take Mopani to greater heights,” Mr Banda said.
The Mining firm would work hard to raise copper production and contribute to the country’s target of 3 million tonnes per annum.
Mr Banda said MCM has spent US$14.2million from its internal resources to sustain operations and production at the mine this year. He said Mopani was targeting to produce 90,000 tonnes of copper cathodes per annum.
And ZCCM-IH board member John Mambo was impressed with operations and management of the mine by Zambians.
Bishop Mambo said Mopani should be a model to the world indicating that Zambians had the capacity to manage their own mines. He urged management to work extra hard to ensure it contributed to increased copper production target of 3 million tonnes.
Bishop Mambo also commended the company for effecting good safety measures that had led to the reduction of mine accidents.
Source: Times of Zambia
MCM HAS SHOWN POTENTIAL FOR RETURN ON INVESTMENT
THAT Mopani Copper Mines (MCM) produced 87, 618 metric tonnes of copper last year from which it raised US$853 million compared to 2020 when it mined 93,106 tonnes and made US$558 million, is testimony that copper mining will continue being the hen which lays the country’s golden eggs. From the disclosure by MCM chief executive officer Charles Sakanya on Thursday, copper is an asset promising this country huge returns considering the technological advancements in terms of the motor industry and information and communications technology developments. Increasing revenue by 53 percent against a reduced output of six percent points to the viability of the mining sector. Better still, MCM has used these funds prudently in empowering the local economy via settling local debt of US$40 million against a long-standing balance of US$68 million.
Most businesses were initially shunning working with MCM after Glencore left because they all thought it was the end of the mine. MCM has demonstrated the potential for return on investment. It is also a sure sign that mining is still attractive in Zambia and a lot can be done to make extractive industries contribute much more meaningfully to economic development.
The country must position itself to exploit high demand and attractive prices of copper, particularly in view of the automotive industry transitioning to electric vehicles (EVs). Glencore ended its involvement in copper mining in Zambia by agreeing to the sale of its interests in MCM in 2021 for just US$1 to mining company ZCCM Investment Holdings. The transaction was regarded as a reputational damage for Zambia, which lost a blue-chip mining company as an investor in the country.
But MCM’s performance since the departure of Swiss-based Glencore has been outstanding. In 2021, the company exceeded its target of producing 75,000 tonnes of copper and instead excavated 87,618 tonnes of the mineral. By exceeding, MCM has demonstrated that there are enough skill sets among Zambians to run mines efficiently and profitably. The Zambianisation of 48 senior jobs by MCM is not a mean achievement. Expatriates contribute to pressure on the country’s exchange market as they externalise most of their earnings, thereby increasing forex demand and eroding the value of the Zambian Kwacha. Mr Sakanya said this year, MCM needs US$160 million to complete some of its projects, which are key to increasing copper production.
The US$160 million offers local banks to contribute to the success story of MCM, a wholly-owned ZCCM-IH mining firm.
The previous owners, Glencore, were seemingly denying Zambians and the local banking financial system of the much-needed liquidity for investment. Multinationals engage in a lot of transfer pricing and other tax avoidance schemes. The fact that Mopani plans to raise finances for projects from the local banking system also goes to confirm several benefits which will accrue to our financial markets. If so much money can be made available by local banks to syndicate financing at a single mine, banks must be encouraged to also innovatively finance other economic undertakings, especially where competitive advantages exist, in order to diversify the economy from extractive and wasting sectors. The K2 billion Zambia Revenue Authority owes MCM in Value Added Tax (VAT) refunds is a source of worry. Tax reforms should be speeded up to avoid productive companies being out of pocket for extended periods of time and stifling their production and eventually the contributions to economic development Given the favourable copper prices and the Government’s fragile cash-flow situation, it might be an opportunity for capable Zambians to organise a consortium or joint venture and take over the running of the mine. Indeed, Mopani appears to be driving at becoming a success story. All it needs is Government’s support But the US$1.5 billion debt to Glencore has to be reviewed or renegotiated, if legally possible, so that the mine can redirect resources to is operations. The author is editorials editor at the Zambia Daily Mail.
Source: http://www.daily-mail.co.zm/mcm-has-shown-potential-for-return-on-investment/
ZCCM-IH SHAREHOLDERS ENDORSE 90% ACQUISITION IN ZAMBIA’S MOPANI
LUSAKA (Reuters) – Shareholders in Zambia’s ZCCM-IH have overwhelmingly supported its acquisition of a 90% stake in Mopani Copper Mines (MCM), the state-owned mining investment firm said on Wednesday.
Glencore agreed the sale of its majority stake in Mopani to ZCCM-IH in a $1.5 billion deal, the miner and trader said in January.
The extraordinary general meeting vote on the resolution was the last condition towards the completion of the transaction and ZCCM-IH now holds 100% ownership of Mopani, ZCCM-IH said in a statement.
The deal is funded by borrowings from Carlisa Investments Corp – a British Virgin Islands-based company through which Glencore holds its stake – and other members of the Glencore group.
With increased ownership, ZCCM-IH would now be an active participant in the global industry as copper becomes a critical metal, ZCCM-IH Chief Executive Mabvuto Chipata said.
“Mopani will repay the remaining debt of $1.5 billion from its own cashflows and the repayment is expected to happen well within the remaining life of mine,” Chipata said.
Glencore said in a separate statement it would continue to retain offtake rights in respect of Mopani’s production.
ZCCM-IH has said it expects to find a new investor for Mopani by the end of the year as it looks to boost copper output from a little more than 34,000 tonnes to 150,000 tonnes.
Source: https://www.reuters.com/article/uk-mopani-copper-m-a-zccm-ih-idUSKBN2BN1UZ