Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Zambia’s Konkola Copper Mines (KCM) has appointed Rand Merchant Bank (RMB) as financial advisor as the government searches for a new investor to expand the copper mine and smelter, the company’s state-appointed provisional liquidator said on Wednesday.
Zambia’s previous government put KCM in the hands of a liquidator in May 2019, triggering a legal dispute with Vedanta Resources, KCM’s parent company. Zambia and Vedanta agreed this month to seek an out-of-court settlement.
KCM is looking for a new equity partner willing to invest $1.2 billion to expand the mine underground, provisional liquidator Celine Nair said, adding that KCM aims to secure the capital “as soon as possible”.
The appointment of RMB, a division of South Africa’s FirstRand Bank, is part of government’s efforts to bring KCM back into full operation, Nair said.
Expanding and upgrading KCM is seen as key for Zambian President Hichilema’s administration, which has set a target of boosting the country’s copper production more than three-fold, to 3 million tonnes a year, within the next decade.
Zambia is also seeking a new investor to reboot and expand its Mopani copper mine and smelter, previously owned by Glencore.
(By Chris Mfula and Helen Reid; Editing by Louise Heavens)
Comments
Charles K.Mulila
KCM must quickly look for an equity partner so that production of Copper is enhanced.The Government must also increase Shareholding portfolio to allow equal CSR Contributions