ZCCM-IH in discussions with Glencore to buy shares in Mopani Copper Mines

Richard Musukwa, mines minister, Zambia

ZAMBIA’S state-owned base metals miner, ZCCM-IH, was in talks with Glencore about acquiring more shares in Mopani Copper Mines, said Reuters citing Richard Musukwa, the country’s mines minister.

“The government has constituted a team to liaise with ZCCM-IH for the negotiations with Glencore,” Musukwa said in a media briefing. “Furthermore, ZCCM-IH is in the process of engaging a transaction advisor.”

ZCCM-IH holds a 10% stake in Mopani Copper Mines. Glencore is the majority owner with 73.1% and First Quantum Minerals owns 16.9%, said Reuters.

Glencore said in a statement discussions with ZCCM-IH “… and other shareholders” were progressing and further updates would be issued as appropriate. Neither Musukwa nor Glencore said how many shares ZCCM-IH was looking to acquire.

In July, the Zambian government has rejected a proposal by Glencore to shut its Mopani Copper Mines.

Mopani restarted mining in May, and provided a 90-day notice period of its intention to place the operations on care and maintenance which it said was necessary owing to the twin pressures of a low copper price and the COVID-19 virus.

An earlier attempt to mothball the mines was opposed by Musukwa, who threatened to revoke the firm’s mining licence.

“Mopani remains of the belief that the only way to protect the company’s value and preserve the option to deliver its growth projects when conditions further improve is to transition the operations to care and maintenance,” said Glencore at the time.