Glencore puts entire Mopani stake up for sale in Zambia
2020-08-28 15:42:21 [Print]
Glencore likely will sell its entire 73.1% stake in Zambia's Mopani Copper Mines to the government's ZCCM mining investment company rather than becoming a minority stakeholder.
The country's effort to take control of Mopani is part of its strategy shift away from minority stakes and towards running mines as an operator, but Zambia's lack of funds to pay for the stake and fund the mine's operating costs is a major hurdle to clinching the deal, according to the report.
Mopani produced 51,275 metric tons of finished copper in 2019 including purchased materials, accounting for 13.9% of Glencore's African copper production and 3.7% of its overall copper output.
Zambia's mines minister said earlier this week that the government's mining investment arm was in talks to increase its stake in Mopani well beyond its current 10% stake.
The country's effort to take control of Mopani is part of its strategy shift away from minority stakes and towards running mines as an operator, but Zambia's lack of funds to pay for the stake and fund the mine's operating costs is a major hurdle to clinching the deal, according to the report.
Mopani produced 51,275 metric tons of finished copper in 2019 including purchased materials, accounting for 13.9% of Glencore's African copper production and 3.7% of its overall copper output.
Zambia's mines minister said earlier this week that the government's mining investment arm was in talks to increase its stake in Mopani well beyond its current 10% stake.
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