ZCCM-IH has entered into an agreement with International Resources Holding (IRH), under which it has committed to invest a total of $1.1 billion in Mopani Copper Mines (MCM) as a strategic equity partner (SEP).
It said $620 million will be provided in the form of new equity capital in return for a 51% stake in MCM, which will be used for MCM's capital projects and to stabilise the working capital position of the business.
ZCCM-IH said at least $400 million will be provided as a shareholder loan to MCM by way of novation of the Glencore debt, which will be used as part of the consideration to settle the original Glencore transaction debt of $1.5 billion.
Further capital may be made available to MCM as shareholder loans, if required, based on the future working capital requirements of the business, it said.
ZCCM-IH took full control of MCM from Glencore in 2021, with a plan to find a suitable SEP to contribute to the expansion of the business and provide the necessary capital for growth.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
