Mopani Copper Mines losses deepen amid search for new investor

Zambia’s Mopani Copper Mines posted a deeper financial loss last year and lower output, state owner ZCCM Investment Holdings said.

Its financial losses widened to $298 million from $74.2 million in 2021, ZCCM said in a financial report published late on Thursday.

Copper output at the operations declined to 72,694 tons from 87,618 tons, impacted by a 45-day smelter maintenance shutdown, it said. Rothschild & Co, hired by the ZCCM last year to find new investors for Mopani, has shortlisted companies including China’s Zijin Mining Group and Sibanye Stillwater to acquire the assets, Reuters reported on June 20, citing sources.

The process to select a new investor is likely to be completed within the next two months, ZCCM CEO Ndoba Vibetti told Reuters on Monday.

Attracting a new investor could help boost the government’s plan to triple output in Africa’s second-largest copper producer over the next decade.

“Mopani’s future hinges on its planned completion and commissioning of expansion capital projects,” ZCCM said.

“The company has planned for a ramped-up production profile as these projects are expected to be commissioned to full capacity by 2027.”

ZCCM bought a 73% stake in Mopani from commodities giant Glencore Plc in 2021 for $1.5 billion in a deal funded by debt.

Switzerland-based Glencore retained copper offtake rights until the debt was repaid in full and made further loan advances to Mopani in 2022.

ZCCM said Mopani requires $300 million to complete expansion projects over the next three years and raise copper output to more than 200,000 tons.

An additional $150 million is required to sustain the operations during the same period, ZCCM said.

(By Felix Njini and Chris Mfula; Editing by Jason Neely)