ZCCM-IH TAKES OVER MOPANI
By Sharon Kunda- ZCCM-IH has taken over 100 percent shareholding in Mopani Copper Mines PLC after the transfer of 90 percent shares from Carlisa.
This is in addition to the 10 percent shares that ZCCM-IH previously held in the Mine.
The 90 percent shares were previously held by Carlisa Investments Corporation representing Glencore with 73.1 percent and First Quantum Minerals with 16.9 percent.
And addressing the media in Lusaka today, Mines Minister Richard Musukwa said the 4.8 billion dollars loan owed by Mopani Copper Mines has been agreed to be reduced to 1.5 billion dollars.
Mr. Musukwa said Mopani was owing Glencore Finance, Glencore International and Carlisa.
He said the loan will be repaid through an off-take agreement granted to Glencore International using 10 percent of the production.
Mr. Musukwa said the transaction is important for Government because it guarantees production and jobs at the Mine.
He assured the community on the Copperbelt that Government stands with them to ensure that their livelihoods are safeguarded, jobs are preserved and commerce is promoted.
Mr. Musukwa has assured the Copperbelt community that the exit of Glencire does not spell the end of the Mine life as Mopani has a proven copper resource at over 281 million tons.
He said there are no separation packages for workers at this stage as there is no money exchanging hands during the transaction.
And ZCCM – IH Board Chairperson Eric Silwamba said the priority is to turn around the asset through cost containment and increased production output by bringing on line new production areas.
Mr. Silwamba said ZCCM – IH will continue to give support to the hospital, the school and other social activities.
Meanwhile, Mine Workers Union of Zambia president Joseph Chewe said the acquisition of 100 percent shares in Mopani by ZCCM – IH comes as a relief to the mine workers.
Mr. Chewe thanked President Edgar Lungu for taking into consideration the plight of the workers.
He said it is the desire of the workers that Government carefully scrutinizes potential equity partners for the Mine as it is a pillar of the country.
And National Union of Mines and Allied Workers President James Chansa said the mine workers will support the candidature of President Lungu as he has listened to their plea.