MOPANI: ZCCM-IH SET TO TAKE OVER MOPANI
ZCCM- IH is in the process of acquiring additional shares in Mopani Copper Mines from Glencore International, the majority shareholder.
Mopani, which runs assets in Mufulira and Kitwe in June tendered a notice to suspend operations, citing low copper prices, high operational costs and negative impact of the Covid-19.
The Zambia holding firm, a minority shareholder in the mine, submitted an expression of interest to Glencore which has responded favourably to the interest.
As a result, Government has constituted a team to liaise with ZCCM-IH on negotiations with Glencore International.
The Zambia Government, through ZCCM-IH, holds 10 percent shares in Mopani while Glencore Plc has 73.1 percent with 16.9 percent residing with First Quantum Minerals Limited.
ZCCM-IH is therefore in a process of engaging a transaction advisor to assist with the evaluation of a potential transaction.
Mines and Minerals Development Minister, Richard Musukwa, said that Government was working closely with the trade unions to ensure that the welfare of the employees was safeguarded.
Mr Musukwa was speaking in Kitwe yesterday.
"Government is committed to protecting the jobs of all the employees of Mopani, contractors and suppliers. We also want to assure all stakeholders that during the negotiations, operations at Mopani will continue in the current manner for both Kitwe and Mufulira," he said.
The minister reaffirmed Government's commitment to the promulgating dialogue and negotiations as a platform of generating an all draw situation for the employees, Mopani mine and all stakeholders.
Mr Musukwa also disclosed that the request for care and maintenance from Mopani had led to a slowdown in both mining and procurements at the mine.
He observed that this had caused anxiety among stakeholders as contracts for some service providers were only done up to the end of August 2020.
Mr Musukwa said that the care and maintenance would not be tolerated as mineralisation at Mopani allowed the mine life of the operations to continue beyond 25 years with room for further exploration.
He said it was therefore not in question that the mine had potential to continue producing and that the capital projects by Glencore had further made this dream of a continued mining reality.
Mr Musukwa appealed to all stakeholders to be patient as the Mopani transaction details would be given in due course.
"The negotiating teams have since commenced the talks and is expected that the transaction will be concluded as soon as possible.
“The talks are meant to ensure that in the transition period, aspects affecting various stakeholders are reviewed to ensure a smooth takeover of the controlling stake by ZCCM-IH that guarantees the future of Mopani and all stakeholders," said Mr Musukwa.
In April 2000, Mopani bought assets of the Zambia Consolidated Copper Mines Limited (ZCCM) comprising underground mines, a concentrator, a smelter and a refinery at Mufulira mine site.
The firm also acquired underground mines, open pits, a concentrator and a cobalt plant at Nkana mine site in Kitwe.