ATTORNEY GENERAL CLARIFIES MOPANI COPPER MINES (MCM Plc) TRANSACTION
In case you missed it, the Attorney General Mulilo Kabesha, SC says Government followed the laid down procedure in the transaction involving the Partnership and Investment Agreement between ZCCM-IH and Delta Mining, a subsidiary of International Resources Holdings Limited (IRH), to capitalize and revive the troubled Mopani Copper Mines Plc. Article 210 of the Constitution which requires the approval of the National Assembly by a vote of at least two-thirds of the members of Parliament was not violated.
Below are highlights from the Statement;
✅ The transaction involving Mopani Copper Mines PLC is not covered under Article 210 of the Constitution. Therefore, there is no need to subject it to the approval of the National Assembly as prescribed under the said Article.
✅The correct position of the law is that Article 210 of the Constitution applies in cases involving the sale, transfer, or disposal of a “Major State Asset” which for purposes of the said Article includes a parastatal and equity held by Government.
✅Mopani Copper Mines PLC (“Mopani”) is neither a parastatal nor is it a Company in which Government has equity.
✅Mopani is a Company incorporated under the Companies Act which is a separate legal entity from Government and transactions involving its issued shares are governed by the Regulatory Framework covered by the said Act.
✅ Government did not have any shares or equity in Mopani prior to the transaction and it is only through this transaction that Mopani issued and Government subscribed to 1 Special share in Mopani which will allow for Government to have a seat on the Board and be involved in the decisions of Mopani going forward.
✅The transaction has restored the position that existed post the privatization process when Government held a special share which expired in 2015.
✅The transaction by Mopani, involving Delta Mining, a subsidiary of International Resources Holdings Limited (IRH), was in conformity with all the regulatory requirements including the corporate governance procedures which included the holding of Extraordinary Meetings to seek the approval of the shareholders for the transaction involving USD1.1 billion investment by International Resources Holdings RSC Limited (“IRH”) through its wholly owned subsidiary, Delta Mining Limited (“Delta”) for a 51% interest in Mopani Copper Mines PLC (“Mopani”).