Four companies shortlisted for Mopani Copper Mines in Zambia
Four companies have been shortlisted to acquire the Mopani Copper Mines (MCM) in Zambia. These companies are: Zijin Mining, a Chinese company that specializes in the exploration and production of gold, copper, zinc, and other mineral resources, Sibanye Stillwater, a South African mining company primarily engaged in the extraction of precious metals, including gold and platinum group metals, the Norinco Group, a Chinese state-owned enterprise involved in various industries, including mining, defense, and manufacturing and Investment vehicle owned by ex-Glencore officials: This refers to a group of investors associated with former officials of Glencore, a multinational mining and commodity trading company.
Mopani Copper Mines Plc is a Zambian registered copper mine owned by ZCCM-IH. In April 2000, Mopani purchased assets of the Zambia Consolidated Copper Mines Limited (ZCCM) comprising underground mines, a concentrator, a smelter and a refinery at Mufulira mine site and underground mines, open pits, a concentrator and a cobalt plant at Nkana mine site in Kitwe.
Shortlisting process
The shortlisting of these companies was done by investment bank Rothschild & Co, which was hired to find potential investors for MCM. The investors completed due diligence and submitted non-binding offers in May 2023. They are currently working on the necessary steps to make binding offers for the acquisition.
The final investor for the Mopani Copper Mines is expected to be selected before the end of July 2023. Sibanye Stillwater’s CEO, Neal Froneman, confirmed that the company has submitted a proposal to acquire MCM as part of its plan to expand copper production.
Mopani, which is more than 90 years old, has the potential to produce 225,000 tonnes of copper annually. Zambia’s President Hakainde Hichilema has set a target to increase domestic copper production from approximately 850,000 tonnes per year to three million tonnes by 2032. The acquisition of MCM by one of these companies could contribute to achieving this goal.
