https://en.sputniknews.africa/20240202/zambia-to-restructure-15-bln-debt-of-state-owned-copper-mining-company-with-uae-investor-1064891770.html
Zambia to Restructure $1.5 Bln Debt of State-Owned Copper Mining Company With UAE Investor
Zambia to Restructure $1.5 Bln Debt of State-Owned Copper Mining Company With UAE Investor
Sputnik Africa
The acquisition of Mopani Copper Mines by state-owned mining company ZCCM-Investment Holdings (ZCCM-IH) in 2021, has left the state indebted to Swiss-based... 02.02.2024, Sputnik Africa
2024-02-02T17:19+0100
2024-02-02T17:19+0100
2024-02-02T17:34+0100
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Zambia has agreed to restructure a $1.5 billion debt owed by Mopani Copper Mines to Swiss mining company Glencore with the help of a new investor, UAE-based International Resources Holdings (IRH), ZCCM-Investment Holdings, said in a statement on Friday.Last November, Zambia selected IRH as the new strategic investor in Mopani, which will receive a 51% stake in exchange for a capital injection of $1.1 billion. IRH's stake in Mopani will be held through its subsidiary Delta Mining.The parties have also agreed to a royalty agreement under which Glencore will receive an unspecified share of Mopani's profits if the copper price exceeds $12,000 per ton, the company added.ZCCM-IH noted that "the relationship between Glencore and Mopani will be restructured" following the agreed settlements and "there shall be no indebtedness between Glencore and Mopani."Meanwhile, a Glencore representative told Western media that the Swiss company had written down Mopani's debt to $596 million in 2022 as the copper miner failed to meet production targets, partly due to a lack of financing.The miner produced 72,694 metric tons of copper in 2022, down from 87,618 metric tons in 2021.
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zambia, southern africa, mining, economy, debt, debt restructuring, industry, finance, united arab emirates (uae)
Zambia to Restructure $1.5 Bln Debt of State-Owned Copper Mining Company With UAE Investor
17:19 02.02.2024 (Updated: 17:34 02.02.2024) The acquisition of Mopani Copper Mines by state-owned mining company ZCCM-Investment Holdings (ZCCM-IH) in 2021, has left the state indebted to Swiss-based Glencore, which previously held a 90% stake in Mopani.
Zambia has agreed to restructure a $1.5 billion debt owed by Mopani Copper Mines to Swiss mining company Glencore with the help of a new investor, UAE-based International Resources Holdings (IRH), ZCCM-Investment Holdings, said in a statement on Friday.
Last November, Zambia selected IRH as the new strategic investor in Mopani, which will receive a 51% stake in exchange for a capital injection of $1.1 billion. IRH's stake in Mopani
will be held through its subsidiary Delta Mining.
"The gross debt owed by Mopani to Glencore consisting of $1.5 billion plus accrued interest that was put in place when ZCCM-IH took control of Mopani, and a further $100 million of third-party letters of credit underwritten by Glencore, will be replaced by the above shareholder loan owed to Delta of up to $400 million, resulting in an overall net reduction in Mopani debt of over $1.2 billion," ZCCM-IH said.
The parties have also agreed to a royalty agreement under which Glencore will receive an unspecified share of Mopani's profits if
the copper price exceeds $12,000 per ton, the company added.
ZCCM-IH noted that "the relationship between Glencore and Mopani will be restructured" following the agreed settlements and "there shall be no indebtedness between Glencore and Mopani."
Meanwhile, a Glencore representative told Western media that the Swiss company had written down Mopani's debt to $596 million in 2022 as the copper miner failed to meet production targets, partly due to a lack of financing.
The miner produced 72,694 metric tons of copper in 2022, down from 87,618 metric tons in 2021.
