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 Plc Extract from 2023 Annual Report
For the year ended 31st December 2023, Mopani Copper Mines (MCM) recorded cumulative net revenue of ZMW11.55 billion (US$562.87 million), (2022: ZMW11.85 billion (US$695.25 million)). The net loss for the year under review was ZMW8.96 billion (US$435.29 million) (2022: ZMW5.05 billion (US$292.55 million)).
During the year under review, MCM produced a total of 65,602 tonnes of finished copper (2022: 72,694 tonnes). The lower production during the year under review was mainly due to low equipment availability, and limited ore sources to mine due to delayed development. In addition, there were multiple outages of the fixed plants across all shafts.
After the year ended 31 December 2023, ZCCM-IH achieved a significant development on Mopani involving a new partnership and an investment that marks a transformative chapter for Zambia’s mining sector and its economy at large. Zambia selected the United Arab Emirates’ International Resources Holdings (IRH), a unit linked to Abu Dhabi’s most valuable listed company, International Holdings Company (IHC), as the new strategic equity partner for Mopani Copper Mines. This partnership is aimed at investing funds into Mopani to help with short-term working capital and finance the completion of the mine development to unlock its long-term potential. Additionally, this move is expected to restructure the Mopani’s balance sheet and increase copper production to at least 200,000 metric tons per annum in future.
In 2024, ZCCM-IH has a 49% equity stake in Mopani Copper Mine, with IRH through its subsidiary Delta Mining Limited (Delta) holding a 51% equity stake after an initial investment of US$1.1 billion was made. This agreement included financing MCM’s Project Development Plan (PDP) by providing working capital and restructuring certain existing Glencore liabilities. A new Board of Directors reflecting the revised shareholding structure has been established, and further capital has been made available as shareholder loans based on future working capital requirements.
There were no dividends declared during the period under review (December 2022: Nil)
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/
Mopani Copper Mines Plc Extract from 2022 Annual Report
For the year ended 31st December 2022, Mopani Copper Mines (MCM) recorded cumulative net revenue of ZMW11.85 billion (US$695.26 million), (2021:ZMW14.16 billion (US$877.38 million)). The net loss for the year under review was ZMW5.05 billion (US$296.36 million), (2021:ZMW76.82 billion profit (US$3.90 billion)).
During the year under review, MCM produced a total of 72,694 tonnes of finished copper (2021: 87,618 tonnes). The smelter underwent a 45-day shutdown from August 2022 to September 2022 for maintenance, refurbishment of critical components and replacement of refractory bricks. The maintenance works set up the smelter to operate for another two-year campaign.
ZCCM-IH engaged Rothschild & Co, a globally renowned investment bank, in June 2022 to assist with the strategic review of Mopani for the purposes of sustainability, expansion and growth. Rothschild & Co undertaking the assessment in two phases. Under Phase 1, Rothschild & Co. will undertake the restructuring of Mopani in a phased approach with assistance from appropriate legal and technical advisors to maintain Mopani as a going concern and build resilience. Under Phase 2, Rothschild & Co will assist ZCCM-IH in finding a Strategic Equity Partner.
During the year under review, ZCCM-IH continued to support MCM by providing Corporate Guarantee of up to US$45 million to various banks for the provision of Mopani’s working capital facilities from various banks.
There were no dividends declared during the period under review (December 2021: Nil).
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