Bloomberg News has reported that Zambian Mines Ministry was likely to announce a deal in December on the government’s ongoing discussions to acquire the interest held by Glencore in Mopani Copper Mines.
Glencore mines for copper in Zambia through its majority shareholding in Mopani Copper Mines – situated in the north of the country near the city of Kitwe, in the African Copperbelt. At present, ZCCM holds a 10% stake in Mopani, while Glencore and First Quantum Minerals Ltd. hold 73.1% and 16.9%, respectively.
“The resource attracts money, so the issue of financing is the least of the worries for the Zambian government,” Ministry said, referring to Mopani’s copper mines. It also did not disclose the size of the equity that the government, through state-owned ZCCM Investments Holdings PLC, has in mind to secure.
Glencore is one of the world’s largest globally diversified natural resource companies. Founded in the 1970s as a trading company, the company has grown to become a major producer and marketer of commodities – employing 160,000 people around the world. Its operations comprise around 150 mining and metallurgical sites and oil production assets.