Investment
ZCCM-IH Shareholders Endorse 90% Acquisition in Zambia's Mopani By Reuters Staff
SHAREHOLDERS IN ZAMBIA’S ZCCMIH (Zambia Consolidated Copper Mines) have overwhelmingly supported its acquisition of a 90% stake in Mopani Copper Mines (MCM), the stateowned mining investment firm said on Wednesday. Glencore agreed the sale of its majority stake in Mopani to ZCCM-IH in a $1.5 billion deal, the miner and trader said in January. The extraordinary general meeting vote on the resolution was the last condition towards the completion of the transaction and ZCCM-IH now holds 100% ownership of Mopani, ZCCM-IH said in a statement. The deal is funded by borrowings from Carlisa Investments Corp - a British Virgin Islands-based company through which Glencore holds its stake and other members of the Glencore group. With increased ownership, ZCCM-IH would now be an active participant in the global industry as
copper becomes a critical metal, ZCCM-IH Chief Executive Mabvuto Chipata said. “Mopani will repay the remaining debt of $1.5 billion from its own cashflows and the repayment is expected to happen well within the remaining life of the mine,” Chipata said. Glencore said in a separate statement it would continue to retain offtake rights in respect of Mopani’s production. ZCCM-IH has said it expects to find a new investor for Mopani by the end of the year as it looks to boost copper output from a little more than 34,000 tonnes to 150,000 tonnes. www.reuters.com/ article/uk-mopanicopper-m-a-zccm-ih/ zccm-ih-shareholdersendorse-90-acquisitionin-zambias-mopaniidUSKBN2BN1UZ
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March-April 2021
DAWN
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