Zambia’s Minister of Mines Declares Glencore’s Exit from Mopani Copper Mines

The Minister of Mines and Mineral Development, Paul Kabuswe, has announced a significant development in the operations of Mopani Copper Mines (MCM).

According to Mr. Kabuswe, Glencore, the Swiss mining and commodity trading giant, has completely disengaged from Mopani following the resolution of a substantial debt issue by International Resources Holdings (IRH).

Initially, Glencore was owed a substantial sum amounting to US$1.7 billion. However, through negotiations with the government, this debt was successfully reduced to US$400 million.

This negotiation paved the way for Glencore to sever its ties with Mopani, signaling a pivotal shift in the ownership and management of the mining complex and smelter located in Mufulira and Kitwe.

In 2021, Glencore divested its stake in Mopani to the state-mining investment firm, ZCCM-IH. This transfer of ownership was facilitated by a deal financed by a US$1.5 billion debt from Glencore’s subsidiary, Carlisa Investments Corporation.

Despite the change in ownership, Glencore retained the exclusive right to sell Mopani’s production, maintaining a significant presence in the operation.

However, with the emergence of International Resources Holdings (IRH) as a new investor, the landscape of Mopani’s operations has undergone a profound transformation.

The minister stated, “As part of the settlement, the government ensured that Glencore received its dues in cash during the transition period.” This payment effectively concluded Glencore’s involvement with Mopani, paving the way for new leadership and direction under IRH.

Amidst the evolving landscape of the mining industry, the minister’s declaration signifies a crucial juncture in Zambia’s mining sector narrative.

SOURCE:Zambia Daily Mail