Zambia's Mopani Copper Mine H1 losses worsen as output slumps

Rothschild & Co SCA

04/09/2023 10:02

LUSAKA, Sept 4 (Reuters) - Zambia's Mopani Copper Mines'
output declined in the first-half of this year contributing to
deeper losses at the operation bought from Glencore  GLEN.L  in
2021.
    Mopani's losses worsened to $196 million in the six months
through June, compared to $120 million in the prior period, as
output dropped and costs rose, parent company ZCCM-IH said in a
statement. Copper output during the period declined to 14,946
tons from 20,000 tons in the same period last year. 
    The loss is a further blow to the company's finances after
it suffered a $298 million loss last year compared to $74.2
million in 2021.
    Zambia's state-owned ZCCM took control of Mopani from
Glencore in 2021 after agreeing to pay the Swiss mining giant
$1.5 billion in a deal funded by debt.
    Since then, ZCCM has been searching for a new investor to
take over the Mopani assets. A process to sell the mines is
being managed by Rothschild & Co and could be completed by
December, ZCCM said. 
    The new investor is expected to invest in completing
projects that Glencore had been working on that could raise
copper output to about 200,000 tons per year by 2027.
    Rothschild has narrowed the list of Mopani's potential
buyers to Sibanye Stillwater and Zijin Mining Group. 
    Mopani requires $300 million investment to expand output
over the next three years and an additional $150 million to
sustain operations, ZCCM said. 

 (Reporting by Chris Mfula; Editing by Felix Njini and Sharon
Singleton)
 ((chris.mfula@thomsonreuters.com;))