Zambian copper mining company ZCCM Investments Holdings (ZCCM-IH) and Abu Dhabi miner International Resources Holding RSC (IRH) have acquired a 51% interest in Mopani Copper Mines (MCM) in Zambia.

The two companies are investing via their wholly-owned subsidiary Delta Mining Limited. They were advised by Baker McKenzie.

Delta will invest US$620 million in new equity capital, as well as up to US$96 million in settlement of existing third-party letters of credit and US$396 million of shareholder loans. The transaction, completed in late March, sees Glencore exit from its loan to MCM. According to the investors, the acquisition represents a major step for Zambia’s copper mining industry, which aims to achieve 3 million metric tonnes of copper production per annum by 2030. Mopani is central to the performance of the Zambian copper belt, which underlies President Hakainde Hichilema’s economic national development plan for the country.

Under the deal, ZCCM-IH will retain a 49% stake in Mopani, with three out of the nine board seats (five by Delta and one by the Zambian government), and thus continue to participate in the governance of Mopani and have full visibility of its operations. 

ZCCM-IH took full control of Mopani from Glencore in 2021 and, alongside IRH, will work with Mopani and the Zambian government to pursue further opportunities in the Zambian mining industry, thus attracting further investment into the region.