International Holdings Resources (IHR) is the new investor in Mopani Copper Mine and is expected to pump in US$1.1 billion dollars in the mining operation.
President Hakainde Hichilema announced the completion of the Mopani Copper mine transaction during a press conference at Mulungushi International Conference centre in Lusaka.
The Head of State disclosed that the investment will be split between equity and debt.
President Hichilema explained that about US$400 million dollars will be provided as a shareholder loan to Mopani Copper Mine as part of the consideration to settle the original Glencore debt of US$1.5 billion dollars.
The president said that this is the first time that a transaction has been able to agree a new equity capital with a share factor of 51 percent stake in Mopani copper mines and 49 percent to the government through ZCCM-IH.
President Hichilema stated that there was need to amend the wrong transactions
, and pointed out that in the near future, transactions should not take longer because it costs money and time.
President Hichilema reiterated the government’s commitment to serving the interests of citizens to the best of the State’s ability, stressing the need for private sector skills to be engaged in future mining transaction negotiations.
And President Hichilema said that the government will continue driving the necessary changes in the mining sector in an effort to achieve the three million tonnes production target.
Mr Hichilema thanked the committee of ministers and other stakeholders for the successful conclusion of the Mopani transaction.
Not new owners but equity partners. They’ll hold 51 percent