Mopani Copper Mines

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Mopani to make $60m profit for first time in 20 years

MWILA NTAMBI, Kitwe
WHILE the situation at Konkola Copper Mines (KCM) looks depressing with the company needing a short-term capital injection of US$88 million, the outlook at Mopani Copper Mines (MCM) is more encouraging with the firm projecting to make US$57 million profit, the first-ever in 21 years.
The revelation is significant. State mining investment company ZCCM-IH took on US$1.5 billion in debt in January to take over Swiss metal trading company Glencore International AG’s majority stake in Mopani.
In April 2000, Mopani purchased assets of the Zambia Consolidated Copper Mines (ZCCM) comprising underground mines, concentrator, smelter, and refinery at Mufulira mine site. It did the same with those at the Nkana mine site in Kitwe.
The price was US$20 million cash and US$23 million in deferred payments, US$159 million new investment commitment, and an additional “conditional investment” commitment of some US$200 million.
But this came with many privileges and tax advantages.
In 2009, Zambia Revenue Authority (ZRA) commissioned Grant Thornton, Norwegian consulting and engineering group ECON Poyry to do a pilot audit of the operational costs, revenues, transfer pricing, employee expenses, and CLICK TO READ MORE 

Source: http://www.daily-mail.co.zm
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Increasing production & not finding equity partner for Mopani is our focus – ZCCM IH

ZCCM Investments Holdings (ZCCM-IH) has dispelled assertions that they are more focused on finding an equity partner than driving production and keeping Mopani Copper Mines in local Zambian hands.

ZCCM IH acquired Mopani Copper Mines from Glencore and FQM. The move received wide ranging support from the mining unions, suppliers and communities on the Copperbelt and accross the country as it was seen as a move to have a wholly owned Zambian Coppper mine. But comcerns have been raised after indications from the mines ministry that that foreign equity partners have expressed interest in taking over the mines.

However, ZCCM IH which is the holding company has told the Zambian Business Times – ZBT that they are currently focusing on ensuring the development and growth of Mopani Copper Mine Plc’s production to generate more revenue for the company. ZCCM-IH Public Relations Manager Loisa Mbatha-Kakoma said the focus for Mopani Coper Mine was on mining and producing copper to ensure more revenue was generated for both current and future operations.

When asked on how far plans have gone to get onboard an equity partner and if the move confirmed fears that a local Zambian management cannot run the large copper mine, Mbatha-Kakoma said, “As you can understand, this is a high quality asset of which there are not many out there in the world. “Therefore it is not surprising that we were approached by several interested parties.

“Our focus for now is to ensure the development and growth of the mine in terms of production by the current Mopani management team who have so far had a provided a good track record,” she said. Mbatha-Kakoma said post deal closure, Mopani has continued operating normally and able to meet its operational needs.

She said all jobs have been retained with a new collective agreement concluded in record time. Mbatha-Kakoma said the Company is currently using its sales revenue to sustain its operations.

“Both Mining and Processing have continued without disruptions and the focus now is on mining and producing Copper so that more revenue is generated for both current and future operations,” he said. Government through ZCCM-IH acquired a majority stake in Mopani Copper Mine following a conclusion in negotiations with Glencore recently.

Source: https://zambianbusinesstimes.com/increasing-production-not-finding-equity-partner-for-mopani-is-our-focus-zccm-ih/
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ZCCM-IH advised to take good care of miners

National Union for Miners and Allied Workers ( NMAWU ) has appealed to Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH), new owners of Mopani Copper Mine, to ensure that it takes a good care of the mine employees when operations of the company resumes.

ZANIS reports that NMAWU president James Chansa in an interview in Ndola today said that ZCCM-IH as the new mine owners need to realize that workers are key in operations of the mine hence the need for them to look into the plight of the employees.

“The mining sector can only improve if the workers are taken care of by giving them incentives such as increased salaries and allowances,” he said.

Mr. Chansa also echoed on the need for MCM to quickly give miners their terminal benefits.

He added that miners are eager to get their benefits as MCM resumes its operations as soon as ZCCM-IH finds partners to work with.

He observed that although MCM is fully owned by Zambia, miners need to be paid their dues urgently.

Mr. Chansa has since called on all mining companies in the country to start doing more corporate social responsibilities (CSR ) following the rise in Copper prices on the international market.

Communities where mines operate from can only benefit from the country`s minerals if companies give back to the community through working on some developmental projects such roads, he said.

Government, recently completed the 100% acquisition of Mopani Copper Mines (MCM) following its negotiations with Glencore Corporation.

In April 2020, Glencore Corporation had announced its intention to place the mine under care and maintenance sighting the impact of the COVID-19 pandemic and low copper prices.

However, this was rebutted by Government because it would have resulted in the loss of employment for 15,000 employees.

 

Source: https://www.lusakatimes.com/2021/04/22/zccm-ih-advised-to-take-good-care-of-miners/
Investee Companies

Continued Stakeholder Engagement Key to the Success of Mopani-ZCCM

ZCCM Investments Holdings (ZCCM-IH) has continued to engage various stakeholders past the close of the Transaction on 31st March 2021 to acquire the 90% shares in Mopani Copper Mines.

One of the key stakeholders engaged is the Association of Mine Suppliers and Contractors.

During a meeting held in Lusaka the Association of Mine Suppliers and Contractors President Augustine Mubanga praised ZCCM-IH for taking a bold step in acquiring the 90% shares on behalf of the Zambians.

Mr Mubanga said that the move has immense economic and social benefits for the country as the mine is still viable, and believes ZCCM-IH will help drive mineral beneficiation, industrialization and actualize the local content implementation for the greater benefit for citizens.

He also presented a number of key issues that ZCCM-IH working with the Mopani Board and management need to look into, to ensure transparency in the procurement process at Mopani.

And ZCCM-IH Chief Executive Officer Mabvuto Chipata has reiterated the Company’s commitment to ensure that the procurement process is reviewed and that all key stakeholders will be engaged in this process.

Mr Chipata siad that priority for now is to ensure operations at Mopani are stabilized and production is increased.

 

Source: https://tiozambia.com/continued-stakeholder-engagement-key-to-the-success-of-mopani-zccm/

 
 
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Zambia: Continued Stakeholder Engagement Key to the Success of Mopani Copper Mines Plc.

ZCCM Investments Holdings Plc (ZCCM-IH) has continued to engage various stakeholders past the close of the Transaction on 31stMarch 2021 to acquire the 90% shares in Mopani Copper Mines Plc (Mopani) previously held by Carlisa on behalf of Glencore and First Quantum Minerals. One of the key stakeholders engaged is the Association of Mine Suppliers and Contractors.

During a meeting held in Lusaka yesterday, the Association of Mine Suppliers and Contractors President Augustine Mubanga praised ZCCM-IH for taking a bold step in acquiring the 90% shares on behalf of the Zambians. Mr. Mubanga states that the move has immense economic and social benefits for the country as the mine is still viable, and believes ZCCM-IH will help drive mineral beneficiation, industrialisation and actualise the local content implementation for the greater benefit for citizens.

He further presented a number of key issues that ZCCM-IH working with the Mopani Board and management need to look into, to ensure transparency in the procurement process at Mopani.

In response, ZCCM-IH Chief Executive Officer Mabvuto Chipata has reiterated the Company’s commitment to ensure that the procurement process is reviewed and that all key stakeholders will be engaged in this process. Mr Chipata states that priority for now is to ensure operations at Mopani are stabilised and production is increased.

Left to right: Brian Musonda, ZCCM-IH Chief Investments Officer; Augustine Mubanga Association of Mine Suppliers and Contractors President; Mabvuto Chipata, ZCCM-IH Chief Executive Officer and George Jere General Secretary of the Association

Source: https://miningconstruction-sadc.com/zambia-continued-stakeholder-engagement-key-to-the-success-of-mopani-copper-mines-plc/
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ZCCM Investments Holdings (Zambia) – EGM Resolutions & Completion of Transaction

1. Introduction
Shareholders are referred to the cautionary announcements released on the Stock Exchange News Service (“SENS”) of the Lusaka Securities Exchange (“LUSE”) on the 9th of March 2021 and the announcements by ZCCM-IH released on SENS on 21st December 2020, 8th January 2021 and 20th January 2021 regarding the acquisition of the 90% stake not currently held by ZCCM-IH in Mopani Copper Mines Plc (“Mopani”) (“the Transaction”). The Company distributed a Transaction circular (the “Circular”) on the 9th of March 2021 incorporating a notice of Extraordinary General Meeting (“EGM”) to consider the Transaction. The Board of Directors of ZCCM-IH (“the Board”) is pleased to provide a further update in relation to the Transaction.

2. Results of the General Meeting
At the EGM of ZCCM-IH held virtually on Tuesday, 30 March 2021 and hosted in Lusaka, Zambia,shareholders of ZCCM-IH (“Shareholders”) considered the resolution proposed at the EGM as set out below:

THAT the Transaction be and is hereby approved and the directors of the Company (the “Directors”) be and are hereby authorised to:

  1. do or procure to be done all such acts and things as they consider necessary, expedient or appropriate in connection with the Transaction and this resolution (including for the purpose of obtaining any approval, consent, clearance or permission that is a condition to the Transaction or that the Directors consider necessary or expedient); and
  2. to agree such modifications, variations, revisions, waivers or amendments to the terms and conditions of the Transaction (provided that such modifications, variations, revisions,waivers or amendments are not of a material nature), to any documents, and arrangements relating thereto, as the Directors may, in their absolute discretion, think fit.

The proposed resolution was approved by the Shareholders.

3.0 Completion of the Transaction
The Board is pleased to confirm that all the Conditions Precedent to the Transaction have now been satisfied, allowing for the completion of the Transaction on 31 March 2021. ZCCM-IH is now the holder of 100% of the issued shares in Mopani, transforming the Company from an investment company to owning and operating a multi-billion-dollar mining asset in Zambia. The Board looks forward to providing Shareholders with further updates on Mopani in the coming months.

Accordingly, the Cautionary Announcement in force since 4th September 2020 is hereby withdrawn.

By Order of the Board

Chabby Chabala

Company Secretary

Source: https://africanfinancials.com/zccm-investments-holdings-zambia-egm-resolutions-completion-of-transaction/
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RESULTS OF RESOLUTIONS PASSED AT THE EXTRAORDINARY GENERAL MEETING OF ZCCM INVESTMENT HOLDINGS PLC, COMPLETION OF TRANSACTION & WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT

1.0 Introduction

Shareholders are referred to the cautionary announcements released on the Stock Exchange News Service (“SENS”) of the Lusaka Securities Exchange (“LUSE”) on the 9th of March 2021 and the announcements by ZCCM-IH released on SENS on 21st December 2020, 8th January 2021 and 20th January 2021 regarding the acquisition of the 90% stake not currently held by ZCCM-IH in Mopani Copper Mines Plc (“Mopani”) (“the Transaction”). The Company distributed a Transaction circular (the “Circular”) on the 9th of March 2021 incorporating a notice of Extraordinary General Meeting (“EGM”) to consider the Transaction. The Board of Directors of ZCCM-IH (“the Board”) is pleased to provide a further update in relation to the Transaction.

2.0 Results of the General Meeting

At the EGM of ZCCM-IH held virtually on Tuesday, 30 March 2021 and hosted in Lusaka, Zambia,

shareholders of ZCCM-IH (“Shareholders”) considered the resolution proposed at the EGM as set out below:

THAT the Transaction be and is hereby approved and the directors of the Company (the “Directors”) be and are hereby authorised to:

  1. do or procure to be done all such acts and things as they consider necessary, expedient or appropriate in connection with the Transaction and this resolution (including for the purpose of obtaining any approval, consent, clearance or permission that is a condition to the Transaction or that the Directors consider necessary or expedient); and
  2. to agree such modifications, variations, revisions, waivers or amendments to the terms and conditions of the Transaction (provided that such modifications, variations, revisions, waivers or amendments are not of a material nature), to any documents, and arrangements relating thereto, as the Directors may, in their absolute discretion, think fit.

The proposed resolution was approved by the Shareholders.

3.0 Completion of the Transaction

The Board is pleased to confirm that all the Conditions Precedent to the Transaction have now been satisfied, allowing for the completion of the Transaction on 31 March 2021. ZCCM-IH is now the holder of 100% of the issued shares in Mopani, transforming the Company from an investment company to owning and operating a multi-billion-dollar mining asset in Zambia. The Board looks forward to providing Shareholders with further updates on Mopani in the coming months.

Accordingly, the Cautionary Announcement in force since 4th September 2020 is hereby withdrawn.

By Order of the Board

Chabby Chabala

Company Secretary

Issued in Lusaka, Zambia on 31 March 2021

 

Source: http://fizambia.com/results-of-resolutions-passed-at-the-extraordinary-general-meeting-of-zccm-investment-holdings-plc-completion-of-transaction-withdrawal-of-cautionary-announcement/
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ZCCM-IH shareholders endorse 90% acquisition in Mopani

Shareholders in ZCCM-IH have overwhelmingly supported its acquisition of a 90% stake in Mopani Copper Mines (MCM).

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.

ZCCM-IH said in a statement that 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.

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.

ZCCM-IH Chief Executive Mabvuto Chipata said with increased ownership, ZCCM-IH would now be an active participant in the global industry as copper becomes a critical metal.

“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,” Mr. Chipata said.

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.

Glencore said in a separate statement it would continue to retain offtake rights in respect of Mopani’s production.

“The Board is pleased to confirm that all the Conditions Precedent to the Transaction have now been satisfied, allowing for the completion of the Transaction on 31 March 2021. ZCCM-IH is now the holder of 100% of the issued shares in Mopani, transforming the Company from an investment company to owning and operating a multi-billion-dollar mining asset in Zambia. The Board looks forward to providing Shareholders with further updates on Mopani in the coming months,” the statement read.

 

Source: https://www.lusakatimes.com/2021/04/02/zccm-ih-shareholders-endorse-90-acquisition-in-mopani/
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Mopani Mine Acquisition Formalities Completed

Kennedy Bwalya-Government has announced that all the formalities for the total acquisition of Mopani Copper Mine by ZCCM-IH have been completed.
 
Mines Minister RICHARD MUSUKWA says ZCCM IH has been tasked to inject new capital and revamp all  production lines at the mine.
 
And Mr MUSUKWA says there has overwhelming interest from international firms seeking to become equity partners for ZCCM IH in running Mopani Mine.
 
He was speaking to ZNBC news in a telephone interview today.
 
And Mr MUSUKWA said government will strictly monitor the operations at Mopani to ensure total adherence to good corporate governance.
 
He said local contractors and suppliers will be prioritised in the award of contracts as a means of ensuring citizens benefit from their mineral wealth.
 
Mr MUSUKWA also said all qualified staff are assured of job security and management changes take effect.
 
He said the Mine will thrive through highest levels of professionalism and commitment.
 
Mr MUSUKWA said President EDGAR LUNGU wants citizens to fully benefit from their mineral wealth as the PF government usheres the country on a new economic trajectory where nobody is left behind.
 
ZCCM INVESTMENTS HOLDINGS PLC announced in January its plans to
buy Glencore’s stake in Mopani Copper Mine.
 
Glencore’s subsidiary Carlisa Investments Corporation later signed an agreement with ZCCM Investments Holding to transfer its 90% interest in Mopani Copper Mines to ZCCM IH
 
 ZCCM IH already holds a 10% stake in Mopani.