Four firms shortlisted in race to buy Zambia's Mopani Copper Mines - sources

Rothschild & Co SCA

19/06/2023 16:07

* 
      Sibanye, Zijin Mining, Norinco Group among shortlisted
firms
    

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      Consortium of ex-Glencore officials also in the running
    

  
    By Felix  Njini
       June 19 (Reuters) - China's Zijin Mining  601899.SS  and
Norinco Group, South Africa's Sibanye Stillwater  SSWJ.J  and an
investment vehicle owned by ex-Glencore officials have been
shortlisted in the race to buy Zambia's Mopani Copper Mines, two
sources with knowledge of the matter told Reuters.
    Zambia's mines minister Paul Kabuswe said in February there
were 10 suitors for the mine and smelter complex that is owned
by state firm ZCCM-IH.
    Rothschild & Co, hired last year to find investors for
Mopani, has whittled down the list to four, the sources said.
    Switzerland-based commodities giant Glencore  GLEN.L  sold a
73% stake in Mopani to ZCCM-IH in 2021 for $1.5 billion in a
deal funded by debt, but retained offtake rights of Mopani's
copper production until the debt had been repaid in full.
    One of the sources said the investors, who conducted due
diligence and submitted non-binding offers in May, are now
completing all the work required before making binding offers,
with Sibanye, Zijin and Norinco the three strong contenders.
    The source added that an investor is expected to be selected
before the end of July, and that separate proposals have also
been made to Glencore, which is still owed money.
    Glencore also made further loan advances to Mopani in 2022.
    Reuters was not able to establish the value of the deal.
    A spokesperson for Glencore declined to comment. Zijin also
declined to comment, while Norinco and ZCCM-IH did not
immediately respond to emailed questions.
    Sibanye CEO Neal Froneman, who is seeking to expand in
copper as part of the company's push into green metals,
confirmed the company had submitted a proposal to acquire
Mopani.
    "We are willing to invest, we are willing to be there for
the long term," Froneman told Reuters in an interview.
    Froneman said the copper mine, which could potentially
produce about 225,000 tonnes of copper annually, required
considerable investment, but that the available deposits made
Mopani a good asset to own.
    "It's a wonderful orebody, and a good mine starts with a
good orebody and good people," Froneman said.
    Zambia's President Hakainde Hichilema is seeking to attract
new investors in Africa's second-largest copper producer, and
wants to triple output of the metal that is key to products from
power lines and industrial machinery to electric vehicles. 

 (Reporting by Felix Njini, additional reporting by Nelson Banya
in Harare, Chris Mfula in Lusaka, Siyi Liu in Beijing and
Beijing newsroom; Editing by Olivia Kumwenda-Mtambo and Jan
Harvey)
 ((Felix.Njini@thomsonreuters.com;))