REPUBLIC OF ZAMBIA
MINISTRY OF MINES AND MINERALS DEVELOPMENT
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PRESS STATEMENT BY THE MINISTER OF MINES AND MINERALS DEVELOPMENT HONOURABLE PAUL C KABUSWE MP DURING THE MEDIA BRIEFING ON THE APPOINTMENT OF THE STRATEGIC EQUITY PARTNER FOR MOPANI COPPER MINES (MCM) PLC ON FRIDAY, 08 :00 HOURS THE 1ST OF DECEMBER, 2023 AT THE MINISTRY OF MINES AND MINERALS DEVELOPMENT.
LADIES AND GENTLEMEN, I WISH TO WELCOME YOU ALL TO THIS MEDIA BRIEFING THIS MORNING.
I WISH TO BEGIN BY STATING THAT THE BOARD OF DIRECTORS OF ZCCM INVESTMENTS HOLDINGS PLC APPOINTED ROTHSCHILD AND COMPANY OF SOUTH AFRICA ON 15TH JUNE 2022 TO ASSIST ZCCM-IH WITH A STRATEGIC REVIEW OF MOPANI COPPER MINES PLC. THIS WAS TO ENSURE ITS SUSTAINABILITY AND CONTINUED DEVELOPMENT.
THE STRATEGIC REVIEW WAS FOCUSED ON ASSESSING MCM’S BALANCE SHEET GIVEN ITS HIGH LEVEL OF INDEBTEDNESS AND THE LIQUIDITY REQUIREMENTS NECESSARY TO RUN, AND FURTHER DEVELOP THE MINE. THE OUTCOME OF THE STRATEGIC REVIEW IDENTIFIED TWO KEY INITIATIVES AIMED AT ENSUIRNG SUSTAINABILITY AND CONTINUED DEVELOPMENT OF MCM. ONE, FOCUSED ON MCM’S IMMEDIATE LIQUIDITY REQUIREMENTS, AND THE OTHER ON A LONG-TERM SUSTAINABLE FUNDING SOLUTION AND SECURING A NEW STRATEGIC EQUITY PARTNER TO INVEST IN MCM AS PART OF RESTRUCTURING MCM’S BALANCE SHEET AND IMPLEMENTING A TURNAROUND PLAN.
LADIES AND GENTLEMEN
TODAY, IAM GLAD TO ANNOUNCE THAT AFTER AN EXTENSIVE AND THOROUGH PROCESS, GOVERNMENT THROUGH THE BOARD OF DIRECTORS OF ZCCM -IH HAS APPOINTED A STRATEGIC EQUITY PARTNER FOR MOPANI COPPER MINES.
THE PREFERRED STRATEGIC EQUITY PARTNER WHICH HAS BEEN SELECTED IS INTERNATIONAL RESOURCES HOLDING LIMITED (IRH), AN AFFILIATE COMPANY OF ABU DHABI CONGLOMERATE INTERNATIONAL HOLDING COMPANY.
LADIES AND GENTLEMEN
AS THE PREFERRED STRATEGIC EQUITY PARTNER, AND SUBJECT TO THE DEFINITIVE TRANSACTION DOCUMENTS BEING ENTERED INTO, IRH WILL INTER ALIA, INJECT FUNDS INTO MCM TO STABILIZE SHORT-TERM WORKING CAPITAL REQUIREMENTS, COMPLETION OF MINE DEVELOPMENT PROJECTS AND UNLOCK THE LONG-TERM POTENTIAL OF MCM. IN ADDITION IT WILL RESULT IN THE RESTRUCTURING OF ITS BALANCE SHEET AND RESET ITS EXISTING RELATIONSHIP WITH GLENCORE. FURTHER DETAILS ON THE PLANNED RESTRUCTURING WILL BE PROVIDED ONCE ALL THE DOCUMENTATION HAS BEEN FINALIZED.
LADIES AND GENTLEMEN
THE CAPITAL INVESTMENT COMBINED WITH THE INDUSTRY EXPERIENCE OF THE IRH AND MCM MANAGEMENT TEAMS WILL ENABLE MCM TO ACHIEVE ITS LONG-TERM POTENTIAL AND INCREASE COPPER PRODUCTION TO AT LEAST 200,000 TONNES PER ANNUM WHILST PROMOTING INCREASED INDUSTRIALIZATION ON THE COPPERBELT AND STABILIZING EMPLOYMENT AND LOCAL SUPPLY CHAINS.
AS SUCH, GOVERNMENT THROUGH ZCCM-IH AND IRH ARE COMMITTED TO ENSURING THAT MCM DELIVERS ITS OPTIMAL PRODUCTION LEVELS, BECOME A LEADING ZAMBIAN PRODUCER OF COPPER AND CONTRIBUTE TO THE 3 MILLION TONNES OF COPPER PRODUCTION PER ANNUM BY 2031 AS SET BY GOVERNMENT. THE CONCLUSION OF THE TRANSACTION IS SUBJECT TO ENTRY INTO DEFINITIVE TRANSACTION DOCUMENTS AND WILL BE SUBJECT TO VARIOUS CONDITIONS PRECEDENT COMMENSURATE TO A TRANSACTION OF THIS NATURE.
GOVERNMENT THROUGH ZCCM-IH WILL PROVIDE FURTHER DETAILS ONCE ALL DEFINITIVE TRANSACTION DOCUMENTS HAVE BEEN FINALIZED.
LADIES AND GENTLEMEN
I WISH TO CALL UPON THE PEOPLE OF ZAMBIA IN GENERAL, AND OUR PEOPLE ON THE COPPERBELT TO CONTINUE TO EXERCISE PATIENCE AS MY GOVERNMENT WORKS TOWARDS ACTUALIZING THIS DEAL FOR THE BENEFIT OF CITIZENS.
IN CONCLUSION, I WISH TO THANK THE PRESIDENT OF THE REPUBLIC OF ZAMBIA, MR. HAKAINDE HICHILEMA FOR PROVIDING THE MUCH NEEDED LEADERSHIP ON THIS MATTER. I ALSO THANK THE PEOPLE OF ZAMBIA FOR GIVING MY GOVERNMENT TIME TO DILIGENTLY PURSUE THE RESUSCITATION OF MCM RESULTING IN THE ANNOUNCEMENT OF THE NEW EQUITY PARTNER TODAY.
THANK AND MAY GOD BLESS YOU ALL
DATED AT LUSAKA, FRDIAY, 1ST DECEMBER, 2023