World Markets
FM

Zambia's ZCCM-IH in talks with Glencore over Mopani Copper Mines stake

Credit: REUTERS/ARND WIEGMANN

Glencore and Zambia's mining investment arm ZCCM-IH are in talks about ZCCM-IH acquiring additional shares in Glencore subsidiary Mopani Copper Mines, Glencore and Zambia's mines minister said on Tuesday.

Adds details, background, mines minister quote

LUSAKA/JOHANNESBURG, Aug 25 (Reuters) - Glencore GLEN.L and Zambia's mining investment arm ZCCM-IH ZCCM.LZ are in talks about ZCCM-IH acquiring additional shares in Glencore subsidiary Mopani Copper Mines, Glencore and Zambia's mines minister said on Tuesday.

ZCCM-IH holds a 10% stake in Mopani Copper Mines. Glencore is the majority owner with 73.1% and First Quantum Minerals FM.TO owns 16.9%.

ZCCM-IH submitted an expression of interest to acquire additional shares in Mopani and Glencore responded favourably, Mines Minister Richard Musukwa told a media briefing on Tuesday.

"The government has constituted a team to liaise with ZCCM-IH for the negotiations with Glencore. Furthermore, ZCCM-IH is in the process of engaging a transaction advisor," Musukwa said.

Glencore said in a statement discussions with ZCCM-IH "and other shareholders" were progressing and further updates would be issued as appropriate.

Neither Musukwa nor Glencore said how many shares ZCCM-IH was looking to acquire.

Glencore's announcement in April that it planned to place Mopani on care and maintenance sparked a backlash from Zambia's government, which said it had not given enough notice and threatened to revoke the company's mining licences.

In May, Mopani said it would resume mining operations for 90 days but still expected to go into care and maintenance - a term for a temporary production halt during which a mine site is maintained ahead of an eventual restart.

On July 16 the company said it would appeal the mines ministry's decision to reject its proposal to suspend the operations.

The government is working closely with stakeholders, such as labour unions and suppliers, to ensure that operations continue to run smoothly during the negotiations, Musukwa said.

(Reporting by Chris Mfula in Lusaka and Helen Reid in Johannesburg. Editing by Jane Merriman and Barbara Lewis)

((Helen.Reid@thomsonreuters.com; +27 66 156 5214))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

FM

Latest World Markets Videos

Shanghai Resumes Work in Some Factories Amid Virus

May 13, 2022

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More