Revitalized Mopani Copper Mines Projected to Boost Employment and Economic Growth
Minister of Mines and Minerals Development, Paul Kabuswe, has announced that the rejuvenated Mopani Copper Mines (MCM) is poised to create 2,000 direct job opportunities and an additional 1,000 indirect employment avenues.
Today, President Hakainde Hichilema is set to formally transfer Mopani to its new equity partners, International Resources Holding (IRH) from Abu Dhabi, who have acquired a 51 percent stake in the mine.
The IRH agreement, valued at US$1.1 billion, earmarks a significant portion for settling outstanding dues to contractors, suppliers, and addressing debt obligations to Glencore.
In 2021, the Zambian government, through ZCCM-IH, assumed control of Mopani from the Swiss commodities giant Glencore, financing the transaction through a US$1.5 billion debt.
Mr. Kabuswe revealed that under the New Dawn administration, Mopani’s debt has been slashed from US$1.5 billion to US$300 million, demonstrating a commitment to financial stability and prudent management.
He further disclosed that the new equity partner has injected US$130 million into the mine and will retain the current Chief Executive Officer, Charles Sakanya, along with over 80 percent of the existing workforce, ensuring continuity and stability.
Speaking during an interview on Sun FM and TV, Mr. Kabuswe expressed optimism about the prospects, even amidst the challenges posed by the ongoing drought disaster. He described the revitalization of Mopani as a significant milestone for the mining sector in the Copperbelt region.
Mopani, with a history spanning almost a century, encompasses mine complexes in Mufulira and Kitwe, as well as a smelter, boasting a production capacity of 225,000 tonnes of copper annually, nearly triple its current output.
Mr. Kabuswe emphasized that the community can anticipate a resurgence of Mopani and a revitalized mining sector, heralding a new era of growth and prosperity.
SOURCE: Zambia Daily Mail
