Zambia Secures $1.1 Billion Investment Deal with International Resources Holding for MCM
President Hakainde Hichilema has announced that the Zambian government has successfully entered into a strategic partnership with International Resources Holding (IRH), securing a significant $1.1 billion investment for the revitalization of Mopani Copper Mines (MCM).
The details of this transformative agreement were unveiled during the End of Year Press Conference.
Key Points of the Transaction:
- 1. Investment Breakdown:
- IRH commits to injecting $1.1 billion into MCM.
- $620 million in new equity capital grants IRH a 51% stake in MCM, dedicated to funding capital projects and stabilizing the business’s working capital.
- 2. Debt Restructuring:
- Approximately $400 million provided as a Shareholder Loan, facilitating the settlement of the original Glencore Transaction Debt of $1.5 billion plus interest and Glencore Super Senior procured letters of credit.
- 3. Flexibility in Capital Provision:
- Additional shareholder loans may be extended to MCM in the future, addressing evolving working capital needs.
- 4. Government Stake and Management Structure:
- ZCCM-IH, representing the Zambian government, will retain a 49% equity stake in MCM.
- The existing executive management of MCM will be retained and augmented by industry experts from IRH to oversee capital projects and enhance operational performance.
- 5. Governance Changes:
- A new Board of Directors will be constituted to align with the revised shareholding structure.
- 6. Interim Funding:
- IRH, subject to meeting certain conditions precedent, will provide up to $220 million in interim funding to ensure MCM’s liquidity until Closing.
This strategic partnership signifies a turning point for Mopani Copper Mines, marking a collaborative effort between the Zambian government and IRH to revitalize the mining sector, create jobs, and drive economic growth.
The infusion of funds, coupled with expertise from IRH, is expected to position MCM for sustainable success and contribute significantly to Zambia’s economic development.
The deal represents a bold step towards harnessing the potential of Zambia’s natural resources and fostering international collaboration for mutual benefit.
