President Hichilema Set to Unveil Strategic Partner for Mopani Copper Mines
President Hakainde Hichilema is slated to unveil the new strategic equity partner for Mopani Copper Mines in Kitwe tomorrow, March 21st, 2024. This announcement comes amidst a flurry of anticipation following key insights shared by Mines and Minerals Development Minister, Hon. Paul Kabuswe, MP, earlier today on Sun FM.
The newly revealed investor, International Resources Holding (IRH), has already demonstrated a robust commitment to the growth of Mopani Copper Mines by injecting a substantial $130 million into the operation.
This infusion of capital is expected to breathe new life into the mine, generating approximately 2,000 direct jobs and an additional 1,000 indirect employment opportunities, a significant boon for the local economy.
Maintaining continuity and stability, Mopani Copper Mines will retain its current CEO, Charles Sakanya, and over 80% of its existing workforce. Moreover, the efforts to settle outstanding payments to contractors and suppliers have shown promising progress, with roughly 80% of obligations already met.
The new shareholding structure of the mine, with IRH holding 51% and the Zambian Government retaining 49%, reflects a balanced partnership geared towards mutual benefit.
A considerable portion of IRH’s $1.1 billion investment will be allocated to clearing arrears owed to various stakeholders and resolving debt obligations, particularly to Clencore.
Under President Hichilema’s stewardship, the Zambian Government has made significant strides in reducing Mopani’s debt from a staggering $1.5 billion to a more manageable $300 million, showcasing a commitment to financial stability and responsible management.
Looking ahead, the Ministry of Mines is poised to spearhead a comprehensive minerals mapping exercise across the country, bolstering transparency and oversight in the mining sector.
Additionally, stringent measures will be implemented through the Minerals Regulation Commission to address any irregularities, ensuring fair practices and maximizing benefits for all stakeholders.
