Closure of Zambia’s Mopani Copper Mine Deal Anticipated Soon
Zambian Minister of Mines Paul Kabuswe has stated that the Mopani Mines deal is anticipated to conclude by the end of the first quarter of 2023, in a declaration made on the sidelines of the Africa Mining Indaba on February 6, 2023. According to him, 10 firms have displayed an interest in the mine and smelter complex.
Minister of Mines Paul Kabuswe expressed confidence that the asset owned by ZCCM-IH, the State Mining Investment firm, will find a suitable buyer to provide the required capital and expertise to modernize the plant, given the considerable interest shown.
“There is interest from all over world. Zambia does not differentiate between investors provided they bring value into the country. We are dealing with the Arab world, we are dealing with the US, we are dealing with China; we are not biased towards anyone. We are friendly to everybody.” Kabuswe said.
The Zambian government is currently negotiating with Vedanta Resources over Konkola Copper Mines. Last year, both parties reached an out-of-court settlement after a lengthy legal battle. Minister Kabuswe is optimistic that a deal will be reached soon.
Zambia is heavily burdened by debt and is looking to the mining sector to replenish its finances. It has set a target of producing at least 3 million tonnes of copper annually by 2030. It is worth noting that Zambia was the first African country to default on its debt following the COVID pandemic.
Being a landlocked country, mining development is expected to have positive effects on transport and logistics infrastructure as well. As extraction and smelting operations increase, there will be a strong demand for electricity, roads, and railways, creating significant opportunities for infrastructure development.
