ZCCM-IH Acquires Additional 10% Shareholding in Lubambe Copper Mines Ltd
28th August 2024, Lusaka, Zambia – ZCCM Investments Holdings PLC (ZCCM-IH) has secured a deal with Jinchengxin Mining Management Company Ltd (JCHX) to acquire an additional 10% stake in Lubambe Copper Mines Ltd (Lubambe) for $1.
This transaction will raise ZCCM-IH’s ownership in Lubambe from 20% to 30%, while JCHX’s stake will decrease from 80% to 70%. The deal is expected to be completed within six months.
With this increased shareholding, ZCCM-IH will gain marketing rights to copper ore concentrate output proportional to its ownership. This is a groundbreaking move for ZCCM-IH and will enhance value extraction from the asset.
The existing Shareholder’s Agreement will be updated to include new value extraction strategies for ZCCM-IH.
This acquisition aligns with ZCCM-IH’s strategy to bolster its position in Zambia’s mining and energy sectors. The expanded stake will enhance ZCCM-IH’s influence in Lubambe’s governance, management, and development, aligning with both shareholder and national interests.
JCHX plans to invest approximately $300 million into Lubambe for operational enhancements and extending the mine’s life. The partnership aims to boost productivity and operational efficiency.
