GOVERNMENT HANDS OVER MOPANI TO NEW INVESTOR AS EQUITY PARTNER
GOVERNMENT has handed over Mopani Copper Mine to International Resources Holding as the equity partner.
IRH has taken up 51 percent of the Mine’s shares while ZCCM-IH returns 49 percent.
ZANIS reports that speaking during the handover ceremony in Kitwe today, President Hakainde Hichilema disclosed that the delay in unlocking Mopani Copper Mine was due to hidden debt complications that were shipped on the mine by the previous government.
Mr. Hichilema said a debt of over USD $1.7 million was dumped in Mopani which the government had to clear before an investor could take up the Mine.
President Hichilema said his government has since reduced the debt to USD $576 million.
“In this deal, Mopani is not only receiving capital injection but it will also see a sustainable debt restructuring, our government inherited debt not only from private and official creditors but in Mopani also, people saw Mopani as a place for dumping liabilities,” he said.
The Head of State noted that the handover of Mopani to the IRH will rejuvenate the Copperbelt province to its old glory.
The President assured the mine suppliers and contractors of better job opportunities and job stability to the Mine workers.
Meanwhile, Mines Minister Paul Kabuswe challenged the new investor to improve Mopani Copper Mine into a world class asset.
Mr. Kabuswe said he was happy that a good deal was arrived at after a protracted search and negotiations for an equity partner for Mopani.
And International Resources Holdings Chief Executive Officer Ali Alrashdi expressed the company’s commitment to creating value from the mine asset for the benefit of various stakeholders.
Mr. Alrashdi said his company’s goal is to serve the people, the community and ensure sustainability in the operations of the asset.
ZCCM-IH Board Chairperson Kakenenwa Muyangwa announced the clearance of the USD $1.5 million debt that was left by Glencor at Mopani which he said makes the company’s balance sheets clean and stronger going forward.
Mr. Muyangwa also stated that the money that has so far been injected into Mopani will help the mine complete the on-going expansion project and other capital projects to sustain the 11,000 jobs the company has.
Earlier, Copperbelt Minister Elisha Matambo assured the new investor of the local people’s support and readiness to work with them.
Mr. Matambo said his office is also open for any consultation.
He stated that the handover of Mopani to United Arab Emirates’ International Resources Holdings (IRH) brings relief to the people of Copperbelt who have been suffering economically because of reduced productions at Mopani Copper Mine.
