The shortlist for the bid to purchase Zambia’s Mopani Copper Mines includes China’s Zijin Mining and Norinco Group, South Africa’s Sibanye Stillwater, and an investment firm managed by former Glencore officials.
The mining and smelter complex, which is held by the state corporation ZCCM-IH, has attracted 10 bidders, according to Zambia’s minister of mines, Paul Kabuswe, who stated this in February.
Four companies remain on the list after Rothschild & Co. was retained by Mopani last year to recruit investors, according to the sources.
In a deal funded by debt in 2021, the Swiss commodities company Glencore sold a 73% share in Mopani to ZCCM-IH for $1.5 billion, but it kept off-take rights to Mopani’s copper production until the loan was repaid in full.
According to one of the sources, the investors are now finishing up all the work necessary before making binding proposals, with Sibanye, Zijin, and Norinco being the three leading competitors. In May, the investors conducted due diligence and submitted non-binding offers.
The source further mentioned that separate approaches have also been made to Glencore, which is still owed money, and that an investor is anticipated to be chosen before the end of July.
Glencore continued to issue Mopani loans in 2022.
A Glencore representative declined to comment. Zijin likewise declined to comment, while emails to Norinco and ZCCM-IH went unanswered.
Neal Froneman, the CEO of Sibanye, acknowledged the business had submitted a proposal to acquire Mopani. Sibanye is looking to expand in copper as part of its drive into green metals.
“We are willing to invest, and we are willing to be there for the long term,” Froneman said in an interview.
Froneman claimed that although Mopani was a desirable asset to own, the copper mine, which has the capacity to produce roughly 225,000 tonnes of copper annually, required significant investment.
It’s a fantastic orebody, and excellent people plus a good orebody go hand in hand to make a good mine, according to Froneman.
Zambia’s president, Hakainde Hichilema, aims to triple production of the metal, which is essential for items like power lines, industrial gear, and electric vehicles, as well as entice new investors to the continent’s second-largest copper producer.
