Shareholders in ZCCM-IH have overwhelmingly supported its acquisition of a 90% stake in Mopani Copper Mines (MCM).
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.
ZCCM-IH said in a statement that 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.
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.
ZCCM-IH Chief Executive Mabvuto Chipata said with increased ownership, ZCCM-IH would now be an active participant in the global industry as copper becomes a critical metal.
“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 mine,” Mr. Chipata said.
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.
Glencore said in a separate statement it would continue to retain offtake rights in respect of Mopani’s production.
“The Board is pleased to confirm that all the Conditions Precedent to the Transaction have now been satisfied, allowing for the completion of the Transaction on 31 March 2021. ZCCM-IH is now the holder of 100% of the issued shares in Mopani, transforming the Company from an investment company to owning and operating a multi-billion-dollar mining asset in Zambia. The Board looks forward to providing Shareholders with further updates on Mopani in the coming months,” the statement read.