MOPANI SHARES HELD LITTLE VALUE BEFORE EQUITY PARTNER ACQUISITION
Minister of Mines Says Mopani Shares Held Little Value Before Equity Partner Acquisition
Minister of Mines and Minerals Development, Paul Kabuswe, has stated that Mopani Copper Mine’s shares were virtually worthless, as the company was insolvent.
This came in response to a question from Luena Constituency Member of Parliament, who asked whether ZCCM-IH had gained or lost value in the allotment of shares, particularly in light of the 1.5 billion liability inherited from Glencore and the debts owed to suppliers.
Mr Kabuswe explained that Mopani Copper Mine sought a strategic equity partner due to its insolvency.
He revealed that during the share allotment process, new shares were introduced, diluting the company’s previous 100% ownership to 49%. He emphasized that this dilution had resulted in a more valuable stake than the original 100%.