ZCCH-IH APPROVES DELTA’S ACQUISITION OF MOPANI AT US1.1BN

ZCCM Investments Holdings Plc (ZCCM-IH) have approved the Mopani Copper Mines Plc (Mopani) transaction where Delta Mining Limited (Delta) will acquire a 51 percent shareholding in the mining firm for a total investment of up to US$1.1 billion.

The approval was made by ZCCM-IH shareholders at the Shareholder’s Extraordinary General Meeting (EGM) held in Lusaka on February, 23 2024.

Delta, a subsidiary of International Resource Holdings (IRH), has agreed to acquire a 51 percent shareholding in Mopani.

IRH have already proved their commitment by providing interim funding of US$130 million, before they take over, that has allowed continued payment to suppliers and contractors.

Commenting on the development, ZCCM-IH Board Chairperson, Kakenenwa Muyangwa, said the transaction is a landmark achievement that delivers significant value to ZCCM-IH, Mopani, and Zambians.

Mr Muyangwa said the development unlocks the long-term sustainability of Mopani operations, which contributes to the revitalisation of the Copperbelt.

“It is pleasing to note that IRH has committed to retain Zambian workers, including the management team, who will be complemented by new skills and expertise from Delta to facilitate the expansion of MCM production to 200, 000 tonnes per annum,” he said.

And ZCCM-IH Board Director, Phillippe Taussac, representing minority shareholders expressed happiness that ZCCM-IH now has a strong long-term strategic equity partner in Mopani, whilst remaining a significant shareholder in the company.

“The extinguishing of the Mopani $1.5 billion debt that ZCCM-IH had guaranteed, will certainly lead to significant improved financial performance for all ZCCM-IH’s shareholders,” Mr Taussac said.