Good morning

Today’s event is a momentous occasion for ZCCM-IH and the country, as we pen down an agreement with our counterparts  to acquire 90%  of their shares in Mopani Copper Mines Plc.

In September last year, we announced to the market that  ZCCM-IH was in discussions with Glencore Finance (Bermuda) Ltd regarding the future of Mopani Copper Mines Plc

This move is in line with one of our new strategic pillars in our new strategic plan for 2020 to 2026, that aims at increasing our stakes in existing mining firms were we have minority stakes.

Hence, the acquisition of the 90% shares previously held by Carlisa Investments Corporation representing Glencore (73.1%) and First Quantum Minerals (16.9%) is a strategic move as we look to maximising shareholder value for the benefit of all stakeholders.

In line with the requirements of Section 9 of the Lusaka Securities Exchange Listing Requirements, we will give a detailed announcement in the course of this week, that sets out the salient features of the Acquisition.

Ladies and Gentlemen

As you may know, Mopani Copper Mines assets include operations that consist of four underground mines, a concentrator and a cobalt plant in Kitwe, and an underground mine, concentrator, smelter and refinery in the town of Mufulira, among others.

The remaining life of mine is 26 years for Nkana and 16 years for Mufulira, with 110 million tonnes in total, of proven ore reserves and copper grade of 1.89% as at 31^st December 2019.

Suffice to say, Mopani has been operating for the past nine months without any capital injection from shareholders.

Our priority then is to turn around this asset  through  cost containment and Increased production output by bringing on line new production areas.

We will continue to give support to the hospital, the school and other social activities.

We will ensure continued operations of the mine, safeguarding of jobs and growth for the betterment of the country.

Ladies and Gentlemen

In line with our vision of being a world class investment holding company with a focus on mining, ZCCM-IH  will uphold the highest institutional standards in Environmental, Social and Governance principles and Transparency, driven by our extensive and deep industry knowledge and technical expertise in mining, financial and investment management.

As I conclude, I would like to express gratitude to Government through the Ministry of Mines, for the support rendered during the whole process, and to Glencore for its cooperation and patience.

And we also applaud Mopani management for keeping the mine afloat in the past months.

Thank you, and God bless you all.

Source: http://fizambia.com/?p=9588

iversified miner Glencore’s subsidiary Carlisa Investments Corporation has signed an agreement with ZCCM Investments Holding to transfer its 90% interest in Mopani Copper Mines to ZCCM for $1 and the transaction debt of $1.5-billion.

Zambian State-owned mining investment company ZCCM already holds a 10% interest in Mopani.
Glencore, as an 81.2% shareholder of Carlisa, expects regulatory and shareholder approvals to be finalised within the next three months.

Mopani had been funded by borrowings from Carlisa and other members of the Glencore group.

On completion of the transaction, $1.5-billion of debt will remain owed by Mopani to Glencore group creditors. The debt has been structured to be repaid through certain percentages of revenue and earnings before interest, taxes, depreciation and amortisation at the end of each quarter.

After completion of the sale, Glencore will retain offtake rights in respect of Mopani’s copper production until the debt has been repaid in full.

Glencore announced in April 2020 that it planned to place Mopani on care and maintenance, which sparked a backlash from the Zambian government, which said it had not given enough notice and threatened to revoke the company’s mining licences.

In May, Mopani said it would resume mining operations for 90 days but still expected to put the mine into care and maintenance.

On July 16, the company said it would appeal the Mines Ministry’s decision to reject its proposal to suspend operations.

It was reported, at the time, that the government was working closely with stakeholders, such as labour unions and suppliers, to ensure that operations continue to run smoothly during the negotiations.

Deutsche Bank Research has commented that the sale is a positive step in the Glencore story and that the transaction removes a cash draining, high cost, poor safety and high country risk asset from the portfolio.

The bank believes that the sale is in line with the company’s business simplification strategy.

Source :https://www.miningweekly.com/article/zccm-to-buy-glencores-stake-in-mopani-2021-01-19/rep_id:3650

GOVERNMENT has finally acquired a majority stake in Mopani Copper Mine following a conclusion in negotiations with Glencore last week.

And Mines Minister Richard Musukwa says $300 million is required to instantly revamp mining operations, increase production and extend the lifespan of the firm.

The State’s mining investment arm, ZCCM-IH, had been in talks to buy Glencore’s 73.1 per cent majority stake in Mopani since August, last year.

Confirming the development, Mopani public relations officer Nebert Mulenga stated that government’s acquisition, through ZCCM-HI, had been completed and that it was well-placed to build on the investment undertaken by Glencore to position the mine as a leading Zambian copper producer.

“Mopani Copper Mines Plc hereby confirms that Glencore has sold its majority stake in Mopani to ZCCM-IH following the conclusion of the shareholding discussions. ZCCM-IH has been a shareholder in Mopani for over 20 years and is well placed to build on the significant investment undertaken by Glencore to help position Mopani as a Zambian copper champion,” stated Mulenga.

“The shareholding transfer process is expected to be formally completed by the end of the first quarter of 2021. Glencore will continue to be in operational and financial control, while the handover formalities are being undertaken by the involved parties. Further updates will be communicated as appropriate.”

And speaking during a press briefing, Musukwa said $300 million was required to instantly revamp mining operations.

“Government would like to have significant stakes in selected mines. And Mopani is one of them that has provided this opportunity. I wish to assure the workers of Mopani that the government will ensure that in phase two, all matters relating to their welfare are addressed before we can move to another platform, for now, the workers of Mopani have a duty to ensure that this matter, and demonstrate that they can sustain production. I know that there are many questions at this stage on who the strategic partner will be, we will trigger phase two. We are pleased to announce that we several entities that have shown interest to partner with ZCCM-IH to run and manage Mopani and these are entities from Canada, United Kingdom, China, Qatar, South Africa, Turkey just to mention a few. We have a long list, and don’t be surprised that on that list we have a consortium of Zambians who will also come on board and offer what they want to do for us,” Musukwa said.

“I must say that currently, production at the mine is going on, and what we envisage to do is to ensure that the state of the infrastructure which needs upgrade to modern infrastructure in order to sustain the current levels of production is quickly addressed. In order for us to ensure that all these operations and plants which I have spoken to…the Anderson shaft and the concentrator and all the expansion projects are completed, we need a minimum of $300 million.”

He said rehabilitation of the firm’s infrastructure would extend the lifespan of the mine by 20 to 35 years.

“The new infrastructure and the rehabilitation of the infrastructure will extend the life of the mine by 20 to 35 years. It is expected that there will be an annual ramp up on Mopani’s own source of production by about 40 percent. The increase in production will make it easier to lower the loan which we have acquired through this facility in a much more quicker way than the stated time. It is also envisaged to show that as a result of these programs, sustainability of the mines will be guaranteed. Government will benefit from taxes and other forms of income through job creation. I wish to state that government is aware of the plight of the local mine suppliers’ contractors and this transaction allows a fresh start where the Zambian providers of goods and services will be prioritised. The Chamber of commerce should therefore expect more business going forward. The subject of local content promotion can only be overemphasised,” said Musukwa.

Source: https://diggers.news/business/2021/01/19/zccm-ih-completes-mopani-takeover/

Zambian President Edgar Lungu on Friday said the government has concluded talks with Glencore, the Anglo-Swiss multinational commodity trading and mining company, regarding its desire to increase its stake in its mining operations in the country.

The government, through its investment agency, the Zambia Consolidated Copper Mines-Investment Holdings (ZCCM-IH) currently holds 10 percent in Mopani Copper Mine while Glencore owns 73.1 percent with the other 16.9 percent owned by First Quantum Minerals.

The Zambian president said the conclusion of talks will bring certainty to the workers and the industry.

The Zambian president was speaking when he addressed workers at the mining firm in Kitwe city on the Copperbelt Province, according to the state broadcaster, the Zambia National Broadcasting Corporation.

The government, he said, will next week sign an agreement with Glencore following the conclusion of the talks and that the government will do its part to ensure the mining firm remains afloat.

The government recently expressed its desire to increase its stake in some of the mining operations in the country.

Minister of Mines and Minerals Development Richard Musukwa said recently that the 10 percent stake held in some mining firms was not sufficient. Enditem

Source: https://newsghana.com.gh/zambia-concludes-talks-with-glencore-on-mine-operations/