Zambia to Finalize Mopani Copper Mines Sale Amid Complex Negotiations
The Zambian government is poised to make a decisive choice this month regarding the sale of Mopani Copper Mines, securing new investors for the assets acquired from Glencore in 2021, according to an insider familiar with the situation.
The country’s Mines Minister, Paul Kabuswe, had initially set a target of selecting new investors for the struggling copper mines by the end of July.
However, complex negotiations have caused delays in the process. It also involves Glencore, to which Mopani owes money. ZCCM IH, a Zambian government unit, is being advised by Rothschild & Co on the Mopani sale.
They have presented investment proposals to the government from potential investors, including South African platinum miner Sibanye Stillwater, an investor from the United Arab Emirates with links to International Holding Company (IHC), and China’s Zijin Mining Group.
The selection process is expected to conclude this month, bringing an end to the uncertainty surrounding the sale. President Hakainde Hichilema is seeking new investors to boost Zambia’s copper production and support the clean energy transition and growth in battery electric vehicles.
Sibanye stands out among the investors being evaluated, given its experience in revitalizing struggling gold and platinum mines in South Africa.
The sale process is still ongoing, with all parties eager to conclude it promptly. The UAE investor boasts a strong financial position but limited mining experience, while China’s Zijin offers a combination of financial strength and mining expertise but faces challenges due to the global economic climate and commodity market uncertainties.
