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