Luanshya is back as shaft 28 attracts US$ 1 billion investment.
This means that 3000 direct and indirect jobs are on the way.
Shaft 28 has been non operational for over 20 years.
The Mopani Copper Mines (PLC) deal has equally been sealed.
Zambia through ZCCM-IH (PLc), now has 49% equity stake.
International Resources Holding of United Arab Emirates will possess 51% equity stake.
IRH will invest about 1.1 billion dollars into Mopani Copper Mine.
President Hakainde Hichilema has assured the people of Zambia that they will reap more benefits from the Mining sector going forward and the new dawn government means well.
He says, unlike in the past when the sector was in confusion, his government has done its part to restore sanity.

(Brief Particulars of the Mopani Transaction)

• IRH to invest a total of US$1.1 billion into MCM to fund MCM’s Project Development Plan (“PDP”),
provide working capital and restructure certain existing Glencore liabilities as set out below:

US$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;

Approximately US$400 million will be provided as a Shareholder Loan to MCM by way of
novation of the Glencore debt, that will be used as part of the consideration to settle the
original Glencore Transaction Debt of US$1.5 billion plus interest and the Glencore Super
Senior procured letters of credit;
Further capital may be made available to MCM as shareholder loans, if required, based on
the future working capital requirements of the business.

• ZCCM-IH will retain a 49% equity stake in MCM at Closing;
• The executive management of MCM will be retained and will be supplemented by industry
experts from IRH with the relevant skills and expertise to complete MCM’s capital projects and
turnaround its operational performance;
• A new Board of Directors, reflective of the revised shareholding structure, will be constituted;
• IRH will, subject to certain conditions precedent being met, provide up to US$220 million in
interim funding. This funding will be available to MCM prior to the Closing, to ensure that the
business has sufficient liquidity until Closing. The interim funding will form part of the US$620 million
new equity investment.

The total consideration is US$1.1 billion which will be split between equity and debt in the following

• US$620 million in new equity;
• US$300 million as a shareholder loan by way of novation of part of the Glencore Transaction
• Up to US$100 million for settlement of the Glencore procured letters of credit;
• Up to US$80 million in shareholder loans, if required.

#Zambiamines #mmmd #fouthquaterpresser

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