Zambia's Mopani Copper Mines reported a massive financial loss and decreased output last year, according to state-owned ZCCM Investment Holdings.
ZCCM said in a financial report that its losses increased to $298 million from $74.2 million in 2021.
It said the loss was due to reduced copper production levels from 72,694 tonnes in 2022 to 87,618 tonnes in 2021.
The lower production levels recorded in 2022 were on account of the smelter's shutdown for 45 days from August to September 2022. This shutdown was necessitated by maintenance, refurbishment of critical components, and replacement of refractory bricks.
“Mopani's future growth prospects hinge on its planned completion and commissioning of expansion capital projects,” it said.
“The company has planned for a ramped-up production profile as these projects are expected to be commissioned to full capacity by 2027.”
Rothschild & Co, which was recruited by the ZCCM last year to identify new investors for Mopani, has selected companies such as China's Zijin Mining Group and Sibanye-Stillwater to acquire the assets.
The process of selecting a new investor is expected to be finished within the next two months, according to ZCCM.
Bringing in a new investor might aid the government's ambition to quadruple output in Africa's second-largest copper producer over the next decade.
ZCCM acquired a 73% share in Mopani from commodities major Glencore in a debt-financed purchase in 2021 for $1.5 billion.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
