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Mining News January 20, 2021 04:35:07 PM

Glencore Announced $1.5 Million Stake Sale in Zambia Copper Mine

Paul Ploumis
ScrapMonster Author
Once fully operational, the Mopani Copper Mines is expected to produce nearly 140,000 tons of copper per annum.

Glencore Announced $1.5 Million Stake Sale in Zambia Copper Mine

SEATTLE (Scrap Monster):  Glencore plc announced that it has agreed to sell its stake in Zambia’s Mopani Copper Mines to the country’s government. The company has been in talks with the government on the future of the mine since last year.

According to company press release, its subsidiary Carlisa Investments Corp. has reached an agreement with ZCCM Investments Holding plc to transfer its 90% interest in the mine to ZCCM, who owns the remaining 10% interest. The deal is worth $1.5 million, but Glencore will get only $1 as upfront payment.

The completion of sale is subject to regulatory approvals and the approval by shareholders and board of directors of ZCCM, which is expected within three months. Upon completion of the transaction, Mopani will owe its previous owners $1.5 billion, which will be repaid from sales and profits. Until the full repayment of the debt, Glencore will retain offtake rights for copper production at the mine.

ALSO READ: Glencore Announced Q3 2020 Production Report

Zambian Mines Minister Richard Musukwa said that it will take around 10-17 years of time to repay the loan. The government has already received interest from several companies to partner with it on running the mine. As per estimates, nearly $300 million will have to be invested to complete projects that Glencore has started.

Once fully operational, the Mopani Copper Mines is expected to produce nearly 140,000 tons of copper per annum.

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