Zambia to decide on new Mopani Copper Mines investor in October - source

Rothschild & Co SCA

10/10/2023 13:05

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      Mopani bidders are Sibanye, Zijin, IHC-linked investor -
source
    

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      Copper assets sale delayed by complex negotiations -
source
    

  
    By Felix  Njini
       JOHANNESBURG, Oct 10 (Reuters) - The Zambian government
is expected to make a final decision on the sale of Mopani
Copper Mines this month, securing a new investor for the assets
it bought from Glencore  GLEN.L  in 2021, a source with
knowledge of the matter told Reuters.
    Zambia's Mines Minister Paul Kabuswe had initially said a
new investor for the copper mines, which are struggling to make
a profit, would be selected by the end of July. 
    The process has been delayed by complex negotiations, as it
also involves Glencore, which Mopani owes money, the source
said. Glencore has previously said it will not comment on the
sales process as it has exited the assets.
    ZCCM IH  ZCCM.LZ , a unit of the Zambian government, is
being advised by Rothschild & Co on the Mopani sale.
    It has presented investment proposals to the government that
include South African platinum miner Sibanye Stillwater
 SSWJ.J , an investor from United Arab Emirates with links to
International Holding Company (IHC), and China's Zijin Mining
Group  601899.SS , the source said.
    The process is nearing completion, with ZCCM and the
government expected to finally make the selection this month.
    ZCCM took control of Mopani from Glencore after agreeing to
pay the Swiss commodities giant $1.5 billion in a deal funded by
debt.
    Zambia's president Hakainde Hichilema wants new investors in
Africa's second-largest copper producer and aims to triple
output of the metals key to the clean energy transition and to
driving growth in battery electric vehicles.
   ZCCM, when approached for comment on the timeline for a sale,
referred Reuters to a Sept. 29 speech by Finance Minister
Situmbeko Musokotwane, in which he said the selection of an
investor for Mopani is "imminent".
    Among the investors that ZCCM has been evaluating, Sibanye
stands out because of its experience reviving some of South
Africa's oldest and struggling gold and platinum mines, the
source said.
    Sibanye is now fine-tuning its financing plans for Mopani,
the source added. 
    Neal Froneman, the CEO for the Johannesburg-based precious
metals miner, which confirmed its bid for Mopani earlier this
year, told Reuters on Wednesday the sale process was still
ongoing.
    "I sense that they now do want to bring it to a close quite
quickly," Froneman said in an interview.
    The UAE investor has a strong financial position, but
limited mining experience, the source added. IHC did not
immediately respond to requests for comments.
    China's Zijin offers a good blend of financial strength and
mining expertise, but the global macro-economic environment and
uncertainty in commodities could be limiting its interest in
Mopani, the source added.

 (Reporting by Felix Njini; Additional reporting by Chris Mfula
in Lusaka and
Hadeel Al Sayegh in Dubai; Editing by Jan Harvey)
 ((Felix.Njini@thomsonreuters.com; Reuters Messaging:
felix.njini@thomsonreuters.com))