IHR to take over Mopani by end of February – Dr Musokotwane

FINANCE and National Planning Minister, Situmbeko Musokotwane, has announced the handing over of Mopani Copper Mines (MCM) to its new investors, International Holdings Resources (IHR) by the end of this month, as Government receives US$80 million from the project to pay off the creditors.

And ZCCM-IH has announced that it has entered into an agreement with IRH through its wholly owned subsidiary Delta Mining Limited which has committed up to US$1.1 billion for Mopani Copper Mine (MCM).

Dr Musokotwane has explained that the new investors, IHR, have already started sending money to pay off creditors, with US$80 million so far received.

Dr Musokotwane revealed that an additional US$50 million was expected from the new investors in the next few weeks.

He expressed confidence that the investment, coupled with the expected US$220 million from Vedanta Resources, would assist to stabilise the exchange rate which has been on a free fall and is trading at K27 for a dollar.

Dr Musokotwane said this in Lusaka yesterday at a symposium on the 2023 Budget Performance and Economic Developments.

“By end of February, we will be handing over Mopani Copper Mines to the new investors who are already sending money into the company to pay off the creditors. We have so far received US$80 million in the past one week. The company has already started paying some of the creditors in foreign currency and we expect US$50 million in the next week,” Dr Musokotwane said.

On Konkola Copper Mines (KCM), he explained that Government and Vedanta Resources were yet to agree on how creditors would be paid.

“Vedanta promised to pay US$220 million as they takeover to pay the creditors. This will help to stabilise the exchange rate,” Dr Musokotwane said.

He also noted that much as the exchange rate was under pressure, it was important to know that the crash was something that was happening in countries often times.

This, according to Dr Musokotwane, was what was happening all over the world.

And ZCCM-IH has announced that it has entered into an agreement with IRH through its wholly owned subsidiary Delta Mining Limited which has committed up to US$1.1 billion for Mopani Copper Mine\.

The investment includes a 51 percent interest in MCM and the formation of a strategic partnership with ZCCM-IH.