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.
And speaking during the handover ceremony in Kitwe today, President 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 US1.7 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 US 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.
He noted that the handover of Mopani to the IRH will rejuvenate the Copperbelt province to its old glory.
The President further assured the mine suppliers and contractors of better job opportunities and job stability to the Mine workers.
And 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.
” As we begin this journey, we know that there will be challenges along the way but with vision, commitment and expertise we shall overcome,” He pledged.
ZCCM-IH Board Chairperson, Kakenenwa Muyangwa announced the clearance of the US 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.
“As ZCCM-IH we are confident that Delta Mining will turn Mopani Copper Mine into a world class mining asset, this will also ensure that the country attains the three million tonne annual copper production by the year 2032,” He said.
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.
Mr. Matambo said the challenges at mopani led to loss of jobs to thousands of Mines and reduced job opportunities for mine suppliers.
Mine Suppliers and Contractors appealed to the President and the new investors to give them fair job opportunities while the union leaders appealed for increased salaries and job stability for workers.
And Mopani Chief Executive Officer, Charles Sakanya said once fully capitalised, Mopani will increase its production to 3.3 million to over 8million tonnes by 2027 to 2030.
Mr. Sakanya also stated that Mopani will also go in value addition.
