By Kennedy Mupeseni –

AFTER more than two years of stakeholders’ anxieties since the Government took over the operation of Mopani Copper Mine (MCM) from mining giant, Glencore, the direction on the revamping of the Zambian ‘gem’ is now clear.
Last week, President Hakainde Hichilema announced that some funds have been sourced to revamp the operations of Mopani.
Mr Hichilema said during a radio programme in Ndola that money has been sourced to boost operations at MCM.
“Mining is the main artery of the country, this is the blood vein. We want to unlock these assets at a better price, we are extremely ambitious and we are tackling the issues so that we restore business,” he says.
Mr Hichilema says his Government is working on the technicalities of ensuring smooth running of the mines in the country.
It should be noted that since the deal involving the acquisition of 100 per cent shares from mining giant Glencore by ZCCM-Investment Holding (ZCCM-IH) in April, 2021, stakeholders’ anxieties to see the revival of Mopani have been high.
Glencore sold Mopani to ZCCM-IH for $1.5 billion, after its plans to place the mining assets under care and maintenance flopped as the government refused to grant a go-ahead for fear of job losses at a time the country was grappling with COVID-19 effects.
The 100-per cent shares were acquired by ZCCM-IH from Glencore’s subsidiary Carlisa Investments through the US$1.5 billion debt.
The roadmap started emerging after Mines and Minerals Development Minister Paul Kabuswe said in Cape Town, South Africa on February 9, 2023 that a lot of investors are eying Mopani.
Mr Kabuswe announced that over 10 investors were interested in taking over operations at MCM.
He, however, did not name the companies that are interested in Mopani but said one or two Chinese firms are also bidding for Mopani takeover.
Johannesburg-based Sibanye Stillwater Limited almost immediately disclosed to Bloomberg that it was currently pushing to acquire Mopani as it pushed to secure metals key to the green-energy transition.
Founded in 2013, Sibanye Stillwater is South Africa’s largest gold producer as well as the third largest producer of palladium and platinum.
Sibanye Stillwater chief executive officer Neal Froneman states that the gold giant is interested in acquiring Mopani.
He says Zambian mining assets would be used as a springboard into Africa’s second-largest copper producer, after the company pulled out of a Brazilian deal a year ago.
Sibanye is involved in a sales process organised by Rothschild & Co.South Africa on behalf of ZCCM-IH.
“We like copper. Mopani is obviously of interest to us and Zambia is in our backyard so we like what we see. “We have got a number of entry points into Zambia. Mopani is just one of the entry points we are looking at,” maintains Mr Froneman.
Mr Froneman says while the money owed to Glencore made the potential transaction “a complex issue,” a deal could be finalised by the middle of this year.
He says the company has already signed a non-disclosure agreement as part of the sales process.
“We have a good relationship with Glencore, we work together in chrome here in South Africa, so I think we are very well positioned, but we have to compete with other companies,” adds Mr Froneman
Mopani, which allegedly struggled to pay its bills last year even as copper prices remained elevated, needs about $300 million of investment to complete expansion projects started by Glencore.
Mr Froneman is encouraged by President Hakainde Hichilema’s efforts to attract investors and hopes the government plays a “constructive” role in the potential acquisition.
“We are also a company that can deal with adversity, if I can call it that,” Mr Froneman says. “There are not many companies that have a balance sheet to tolerate or to take on a risk like this.”
Key stakeholders have welcomed the new twist to the future of Mopani.
United Mineworkers Union of Zambia (UMUZ) says miners can now see the ’light at the end of the tunnel’ following revelations by Mr Kabuswe that 10 firms want Mopani.
UMUZ president Wisdom Ngwira says the prolonged uncertainty around Mopani operations have been a source of concern for the miners and communities on the Copperbelt Province whose livelihood largely depends on the good performance of the mining company.
He says indications that more than 10 firms are interested in taking over operations, are exciting because they entail that jobs and livelihoods will be preserved.
“We are very hopeful because we know that any investment in MCM will help to turnaround the economic fortunes for the people on the Copperbelt and the nation at large,” he says.
Mr Ngwira calls for caution from all players as the process of finding an investor to run MCM goes on as indicated by the minister.
“As a nation, we need to be very careful even as we choose an investor for Mopani,” he said.
As a union, he says an investor that is not only going to recapitalise the mines but also someone that will respect employees and be accommodative to local suppliers and contractors is desirable.
Unions in the mining sector do not want to experience the trouble they went through with some investors in the past.
He says on the other hand the investors should be told that local suppliers and contractors are important players in the economy and that whoever takes over the mine should consider their plight.
“When suppliers and contractors are taken care of, our economy will improve,” he says.
Finance and National Planning Minister Situmbeko Musokotwane assures that the Government will carry due diligence in selecting the investor to take over Mopani.
Dr Musokotwane says the government will uphold accountability and transparency to allow a fair and competitive selection process.
He says a well-managed mining industry will continue leading in job creation, while providing other economic opportunities for the country through increased copper production.
It is hoped that the investor will be known before the end of the first quarter of 2023 for full production to start at Mopani as the country races with time.
The country is on the road towards achieving the anticipated three million tonnes of copper per year, in a decade.