By Amb. Emmanuel Mwamba
Introduction
Mopani Copper Mines, once a flagship of Zambia’s mining industry, has become a subject of heated debate and controversy. The mine’s recent sale to International Resources Holdings (IRH), a United Arab Emirates-based entity, has raised serious constitutional, legal, and financial concerns. At the core of the controversy is whether the transaction violated Article 210(2) of Zambia’s Constitution, which mandates parliamentary approval for the disposal of major state assets.
Key Issues in the Mopani Sale
- Constitutional Breach: The sale of Mopani Copper Mines bypassed the constitutionally required two-thirds parliamentary approval, a move many legal experts deem unconstitutional.
- Non-Bidding Buyer: IRH, the entity acquiring a 51% stake in Mopani, did not participate in the competitive bidding process.
- Financial Transparency: No cash payment was made for the shares. Instead, the buyer pledged a $1.1 billion investment, raising questions about the fairness and prudence of the deal.
- Undervalued Asset: Mopani, with a $4.5 billion investment in state-of-the-art infrastructure between 2014 and 2021, was sold under terms critics argue do not reflect its true value.
Timeline of Events
2020-2021: Glencore, Mopani’s former majority shareholder, announced plans to exit Zambia’s mining sector amid legal troubles. In 2021, Glencore sold its 90% stake in Mopani to ZCCM Investments Holdings (ZCCM-IH) for $1, with Zambia assuming a $1.5 billion debt.
2022-2023: Zambia sought a strategic equity partner for Mopani, hiring Rothschild & Co to oversee the process. Despite shortlisting several bidders, including China’s Zijin Mining and South Africa’s Sibanye Stillwater, the government surprised many by selecting IRH a non-bidder with questionable credentials.
February 2024: IRH’s subsidiary, Delta Mining Limited, was officially approved as the new partner, acquiring 51% of Mopani’s shares. The deal includes pledges of investment rather than direct cash payments, sparking outrage among stakeholders.
Legal and Governance Questions
Attorney General opinions have complicated the debate. In a controversial statement, the Attorney General claimed Mopani was not a state-owned entity, attempting to sidestep constitutional provisions. However, under Article 266 of Zambia’s Constitution and Section 7 of the Minister of Finance (Incorporation) Act, Mopani, as a ZCCM-IH subsidiary, qualifies as a state institution under government control.
Concerns Over IRH and Delta Mining
The choice of IRH as the buyer has been met with skepticism. Industry experts point to the lack of public information about IRH and its subsidiary Delta Mining, raising fears that they could be shell companies with undisclosed beneficial owners. Furthermore, IRH’s failure to provide upfront capital for the transaction undermines Zambia’s fiscal interests.
The sale of Mopani Copper Mines is more than a financial deal; it is a matter of national interest and constitutional integrity. The lack of transparency, legal ambiguities, and potential undervaluation of one of Zambia’s most vital assets demand a thorough investigation. The government owes Zambians a full explanation to address growing fears that this transaction represents a betrayal of public trust.
This issue is not just about Mopani it is about safeguarding Zambia’s resources and upholding the rule of law.
The Kettle calling the pot black
Critical and urgent issues that President Hichilema must address include whether Delta Mining Ltd serves as a channel for funneling commissions and future profits to Zambian politicians.
‘A move many legal experts deem unconstitutional..’
GO TO COURT WITH YOUR LEGAL ‘EXPERTS’
Emmanuel likes to SHOW OFF as if he is very knowledgeable. Why not take the matter to court?
He is not showing off. If he gives you an ignorant narrative you will be calling for evidence and information. He is raising issues around this so-called investment that you Zambians should be concerned about. Why all these breaches for this favoured “investors”? Someone obviously was bribed. These issues need investigating not the dismissal of the information because of the harbinger.
Mwamba is just a failure. He worked in the Bank before where he was fired and went to Evelyn Hone to do journalism. He thinks he knows it all, same mentality as John Shangwe. Mwanawasa sold a mine for 25 million US dollars. Did he take it to parliament. He actually phoned the investors and gave them the mine at a giveaway price.
Thanks, but so that we do what.
Okay, tamvela. Tayambo vina.
It is clear that who is in power is the potential beneficiary of this illegal deal.
Kabuswe has failed to answer this, meaning he’s just a rubber stamp. In Parliament he referred the questioner to some write up somewhere and for the time the speaker cautioned a Upnd official. On some studio he claimed that it was not a sale but a transaction…… which again he failed explain the difference between a sale and a transaction.
Just go and read Wikileaks on Mwanawasa’s oil deal facilitated by Josephine Mapoma then Permanent Secretary of Energy Ministry and you will see how such thefts are done. Our government officials are enticed by big money offers to sell their countries. In the LM deal there was a direct theft on our treasury of K838.645 billion.
This was a debt deal needing someone in government corrupt enough to falsely admit and pass it over to Zambians but which would actually be pocketed by a select few. In that deal Mapoma, then PS in The Ministry of Energy and Water Development certified so that the Zambian Government would take it over, but who actually received the money? Kabuswe is the signatory in this deal.
From that Mwanawasa deal $ 36 million value of ZNOC crude oil in TAZAMA Pipelines was not accounted for. Obviously there is a line of criminals from the Ministry of Energy inside TAZAMA up to Saudi Arabia who were oiled as Zambia lost 36 million US dollars. Noone talks about this loss or theft. Its either we are so ignorant we dont care or everyone involved gets oiled.
About US$ 240 million in form of ZNOC profits was siphoned out of Zambia through TST and Total Outre MER arrangements. People like Mwamba Mmembe Sishuwa Sishuwa and media like The Mast are needed for Zambia to get to the bottom of this ongoing corruption
3rd World Govts are Corrupt
If you know so much……..
And are confident in your information………
Why don’t you plaster all forigne embacies in zambia and radio stations like VOA and the BBC with this info ???
Instead of just lamenting like that chap above…..??
Forwadee 2031…….
@Spaka: The information is not hidden. Like I ve just said, just go to wikileaks enter in ZNOC or Mwanawasa or Mapoma and you will find what I have talked about.
#3rd World …. the funny part is Mwanawasa is dead and that money is no use to him….so why do we go to such lengths to steal money which won’t make us live forever….all one needs is a decent house, a car and food I used to tell my colleagues at work to depend on their salaries or do some business instead of doing deals at work…. most of them have now agreed with me.
That mopane was sold to zambia to burden zambia……
Some one got paid massive to make zambia take on that debt………..
Then no one wanted to touch Mopani……..
This UPND GRZ did well to make it work again……….
then now the kokorochi mwamba , who was part of the GRZ that made zambia take on that debt , crying foul ????
Maybe he even benefited from the kickbacks that were paid to make zambia take on the debt……….
Forwadee 2031
The information is not hidden. Like I ve just said, go to wikileaks and you will find what I have talked about.
Just look at the person writing the article: Part of the failed former regime that closed mines & stole the whole treasury
We what Kabuswe is saying is like you have a car and then people notice another person driving it. When they ask if you have sold it, you respond that you haven’t but just changed ownership from yourself to the new person. So people have to figure out how what’s yours becomes his if it were not a sale. Confused
Methodical kleptocracy
Eat a fat dick Emmanuel.
Ka S*x pest Mwamba, foesek. It’s been years since you were recalled from Ethiopia, why do you still call yourself ambassador? You’re behaving like Mr Miyanda who still wants to be called Brig. General even if he was unceremoniously ejected from the army and stripped of his rank for alleged coup plotting! U masipa a pombwe wena.
What I find amazing is how this man HH has cheated Zambians out of their livelihoods, enslaved them and taken many to prison while he invites his friends to plunder the country. All Zambians do is just complain and wait for 2026. I can not understand how one man can cause so much damage to the economy and people do nothing, just watch hopelessly!!
Mr. Know it All, the armchair critic. Just sit down. Enough of your yapping. The President is doing a great job bringing life to the Copperbelt Province. Just be grateful for once. Not everyone who serves in government survives on criminality like the people you are currently patronizing. Let the president and minister of mines work.