51PC SHARES IN MOPANI NOT SOLD, SAYS KABUSWE

GOVERNMENT has clarified that the 51 percent shares in Mopani Copper Mines have not been sold.

Minister of Mines and Minerals Development, Paul Kabuswe, said the UPND government is a government of laws therefore if any transaction was made, the laid procedure should have been followed.

Mr Kabuswe said ZCCM-IH has not sold the 51 percent shares to Delta Mining Limited, a subsidiary of International Resource Holding (IRH). Instead, the investor subscribed for new shares in Mopani in line with shareholders’ agreement.

This means that ZCCM-IH owns 49 percent shares in Mopani.

Mr Kabuswe said the composition of the board include IRH with five, ZCCM-IH, three and GRZ one.

“Shareholders of ZCCM-IH approved the transaction facilitating the investment of up to US$1.1 billion capital in Mopani by IRH, through its owned subsidiary Delta Mining Limited.

The investment represents 51 percent interest in Mopani by way of a strategic partnership with ZCCM-IH. The investment will comprise US$620 million in new equity capital, US$100 million in settlement of existing letter of credit and US$380 million of shareholder loans,” he said.

Mr Kabuswe said so far, US$220 million has already been injected to liquidate overdue payment for suppliers and contractors.

He also said “The investment by IRH of US$1.1 billion includes financing Mopani’s project development plan by providing working capital and restructuring the Glencore existing debt burden. Mr Kabuswe said the investment will facilitate Mopani’s growth objectives to achieve its copper production target of 225, 000 tons per annuum.

He said the mine’s success will have a multiplying effect not only in Copperbelt Province but across the country.

And Mr Kabuswe assured that IRH has agreed that no redundancy will occur during its tenure.

“IRH has also committed to work with ZCCM-IH and Mopani to optimise the local supply chain to benefit the Zambian economy and ensure Mopani is managed by the local management.”

Mr Kabuswe has since assured Zambians that Mopani was safe and it will continue running as planned.