ZCCM Investment Holdings PLC on Friday announced its agreement with a UAE mining company, which has bought a 51% interest in Mopani Copper Mines PLC.
ZCCM, a Lusaka-based mining and energy investor, agreed in late December to sell the 51% stake to International Resources Holding RSC Ltd.
ZCCM said however that it will retain a 49% stake in Mopani.
ZCCM previously in November named Abu Dhabi-based IRH as the preferred strategic equity partner for Mopani, which operates the Mopani copper mine in Kitwe, Zambia.
ZCCM said IRH has through its subsidiary Delta Mining Ltd committed $1.1 billion for the 51% interest in Mopani, primarily to fund its project development plan.
The investment comprises $620 million in new equity capital, up to $100 million to settle existing third-party letters of credit, and up to $380 million of shareholder loans subject to the fulfilment of certain conditions.
Once those conditions are satisfied, ZCCM said the restructuring of the relationship betweem Mopani and Glencore International AG will be complete. Glencore subsidiary Carlisa Investments Corp previously owned a 90% interest in Mopani, which it sold to ZCCM in 2021 for a nominal $1 plus $1.5 billion in transaction debt. Glencore was to retain offtake rights for Mopani’s copper output until the debt was paid in full.
ZCCM estimates that the transaction will close and take effect during the first quarter of 2024.
Shares in ZCCM were down 6.0% at €1.42 in Paris on Friday afternoon.
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