Glencore and ZCCM-IH are in talks about ZCCM-IH acquiring additional shares in Glencore subsidiary Mopani Copper Mines, Glencore and Mines Minister have revealed.
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%.
Mines Minister Richard Musukwa told a media briefing on Tuesday that ZCCM-IH submitted an expression of interest to acquire additional shares in Mopani and Glencore responded favourably.
“The government has constituted a team to liaise with ZCCM-IH for the negotiations with Glencore. Furthermore, ZCCM-IH is in the process of engaging a transaction advisor,” Mr. Musukwa said.
Mr. Musukwa said the government is working closely with stakeholders, such as labour unions and suppliers, to ensure that operations continue to run smoothly during the negotiations.
Glencore said in a statement discussions with ZCCM-IH “and other shareholders” were progressing and further updates would be issued as appropriate.
John Gladston, a First Quantum spokesman, declined to comment.
“Glencore can confirm that it is in discussions with existing Mopani shareholder ZCCM-IH and other shareholders regarding the potential acquisition of additional shares by ZCCM-IH from Glencore,” the global commodities company said.
“The discussions are progressing and further updates will be issued as appropriate.”
Neither Mr. Musukwa nor Glencore said how many shares ZCCM-IH was looking to acquire.
Glencore’s announcement in April that it planned to place Mopani on care and maintenance sparked a backlash from Zambia’s government, which said it had not given enough notice and threatened to revoke the company’s mining licences.
In May, Mopani said it would resume mining operations for 90 days but still expected to go into care and maintenance – a term for a temporary production halt during which a mine site is maintained ahead of an eventual restart.
On July 16 the company said it would appeal the mines ministry’s decision to reject its proposal to suspend the operations.
The majority shareholding of all our mines should be owned by government through ZCCM-IH on behalf of the people of Zambia.
We cannot be contracting debt when we have mineral resources that are not benefiting our zambian economy but foreigners and a few dishonest and unpatriotic zambians.
Spot on, Long Overdue!! Imagine, exporting over $7bn worth of minerals but have to borrow money to build hospitals and road?? The MMD economic model is a super let down and failure, their IMF/WB prescriptions have stripped Zambians of their wealth unlike KKs UNIP model which empowered citizens from their resources and safeguarded our assets. I like the direction PF is taking. Get back our mines, Chagwa.
Policy wise no foreign investment in mining should more than 49% shareholding.
This can be a welcome move only if we had a serious govt in power! SO FAR GOVT THROUGH THE LIQUIDATOR IS RUNNING KCM, BUT THE PUBLIC IS NOT INFORMED ABOUT HOW THE MINE IS PERFORMING!!. Statement to get more shares without explaining the procedure to be followed if at all they have done a due diligence, may just leave us with toxic assets, acquiring something that is about to lose its financial viability!
What shares? Controlling shares or what? ZCCM-IH has no money to buy significant shares in Mopani. Anything short of controlling shares is a waste of time and resources. Secondly, what is the state of remaining ore reserves? I sense a situation whereby viable ore reserves are almost depleted, and Glencore wants to make a kill from the a rotting cow. This appears to me to be a toxic asset acquisition. Extreme due diligence needs to taken.
Ba LT So many of your readers have asked you millions of times to employ them as proof readers or Subs but you keep ignoring them. Should we just ignore your blunders the way we ignore Lungu’s blunders at election time?
ZCCM-IH opens talks with Glencore as it seems to increase Mopani stake