The Zambian government is expected to make a final decision on the sale of Mopani Copper Mines this month, securing a new investor for the assets it bought from Glencore in 2021, according to a source with knowledge of the matter, as reported by Reuters.
Zambia’s Mines Minister, Paul Kabuswe, had initially stated that a new investor for the struggling copper mines would be selected by the end of July. However, the process has been delayed due to complex negotiations, involving Glencore, to which Mopani owes money. Glencore has previously stated that it will not comment on the sales process as it has exited the assets.
ZCCM IH, a unit of the Zambian government, is being advised by Rothschild & Co on the Mopani sale. They have presented investment proposals to the government, 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 nearing completion, and ZCCM and the government are expected to make the final decision this month.
ZCCM took control of Mopani from Glencore after agreeing to pay the Swiss commodities giant $1.5 billion in a deal funded by debt. Zambia’s president, Hakainde Hichilema, is seeking new investors in Africa’s second-largest copper producer to increase output and support the clean energy transition, including growth in battery electric vehicles.
Sibanye Stillwater stands out among the potential investors due to its experience in reviving struggling gold and platinum mines in South Africa. The company is fine-tuning its financing plans for Mopani.
Neal Froneman, CEO of Sibanye Stillwater, confirmed the ongoing sale process and expressed a sense of urgency in concluding it.
The UAE investor has a strong financial position but limited mining experience, while China’s Zijin combines financial strength and mining expertise but may be cautious due to the global economic environment and commodity market uncertainties.
