On Monday, Zambia’s state-owned ZCCM Investment Holdings (ZCCM.LZ) stated that China’s Zijin Mining (601899. SS) and Sibanye Stillwater (SSWJ.J) are shortlisted to buy Mopani Copper Mines.
According to Reuters, China’s Norinco Group and an investment entity owned by ex-Glencore officials are on the list.
At a London mining conference, ZCCM-IH CEO Ndoba Vibetti told Reuters that Mopani would likely find a new investor within two months. Vibetti said the mine would need $1 billion over five to six years.
The government’s 10-year ambition to quadruple copper output in Africa’s second-largest producer includes attracting a new partner at Mopani.
Vibetti said the Mopani mine and smelting complex needs $200 million to $300 million in short-term investment to be sustainable. Finding a new investor has been difficult because they wanted a qualified firm to take over Mopani.
“Getting that packaging right took so long,” Vibetti remarked. “Someone who can come, bring it out of water, and invest long-term.”
In 2021, Switzerland-based commodities major Glencore (GLEN.L) sold a 73% ownership in Mopani to ZCCM-IH for $1.5 billion in a debt-funded sale. Still, it kept offtake rights to Mopani’s copper production until the debt was repaid.
