Abu Dhabi’s IRH Selected as Strategic Partner to Revitalize Mopani Mine
International Resources Holding RSC Limited (IRH), an affiliate of Abu Dhabi’s conglomerate International Holding Company PJSC (IHC), the UAE’s most valuable listed company and the GCC region’s second most valuable, has been chosen as the preferred strategic equity partner (SEP).
IRH has set a strategy to invest in crucial minerals and establish a new entity covering the entire metals and mining supply chain.
The proposed investment in Mopani Copper Mines (MCM) stands as IRH’s most substantial single investment so far. It signifies a pivotal move in their strategy to emerge as a significant player in Africa’s minerals sector.
Zambia’s ZCCM-IH (ZCCM.LZ), the miner’s owner, confirmed the selection of United Arab Emirates’ International Resources Holdings (IRH) as Mopani’s new strategic equity partner.
IRH, associated with Abu Dhabi’s most valuable listed company, International Holdings Company (IHC), will inject funds into Mopani.
This financial infusion aims to aid short-term working capital, facilitate the completion of mine development to unlock Mopani’s long-term potential, and restructure the copper miner’s balance sheet, according to ZCCM.
Mopani currently falls under the ownership of ZCCM, the Zambian government’s investment arm. The new investor is expected to overhaul Mopani’s existing relationship with Glencore (GLEN.L), as outlined by ZCCM.
Mines Minister Paul Kabuswe stated that comprehensive details regarding IRH’s investment and equity participation levels in Mopani will be disclosed upon completion of negotiations.
Zambia has been actively seeking a new investor for Mopani since assuming control of the assets from Glencore in 2021, facilitated by a $1.5 billion payment to the Swiss commodities giant through debt financing. Glencore retained off-take rights for copper from Mopani as part of the agreement.
The anticipated partnership aims to boost Mopani’s copper production to a minimum of 200,000 metric tons per annum, as confirmed by ZCCM.
Mopani requires a $300 million investment to expand output over the next three years, coupled with an additional $150 million to sustain operations, according to ZCCM’s statement released in September.
The UAE firm is strategically investing in critical metals and planning the establishment of an entity covering the entire metals and mining supply chain, indicating a proactive approach towards their intended investments.
