Matambo Urges Mopani Copper Mines to Settle Debts
Elisha Matambo, the Minister of Copperbelt Province, has issued a stern call to Mopani Copper Mines (MCM) to promptly settle their outstanding debts owed to the Kitwe City Council (KCC), following the recent reactivation of the mining firm.
MCM’s significant indebtedness to the local authority has reportedly hampered the delivery of vital municipal services.
Last month, ZCCM-IH shareholders unanimously greenlit the acquisition of a 51 percent stake in Mopani Copper Mines Plc by Delta Mining Limited, a subsidiary of International Resource Holdings (IRH), representing an investment commitment of up to US$1.1 billion.
Despite ZCCM-IH maintaining a 49 percent ownership in Mopani and securing three out of nine board seats, interim financial support of US$130 million from IRH has been injected to ensure ongoing payments to suppliers and contractors.
Minister Matambo stressed the urgency of MCM settling its overdue dues to the council, urging the mining giant to exhibit a steadfast commitment to gradually clearing the outstanding debts.
This move is deemed critical for optimizing operations, particularly in light of efforts to bolster investor confidence in MCM’s activities.
The directive from Minister Matambo underscores the government’s determination to ensure responsible corporate conduct and financial accountability within the mining sector, fostering sustainable economic development in the region.
Additional source: Zambia Daily Mail
