- Write by:
-
Wednesday, January 31, 2024 - 22:54:17
-
73 Visit
-
Print
Zambia is seeking to restructure a $1.5 billion debt owed by Mopani Copper Mines to Glencore, which arose from its acquisition of Mopani in 2021, state-owned mining firm ZCCM-Investment Holdings (ZCCM-IH) said on Friday.
A Glencore spokesperson said discussions on the debt restructure were ongoing.
“No final agreement has been reached,” the spokesperson wrote in an email to Reuters.
The global commodities giant had already written the Mopani debt down to $596 million in 2022, he added, as the copper miner failed to meet production targets, partly due to lack of funding.
Last November, Zambia picked the United Arab Emirates’ International Resources Holdings (IRH) as the new strategic equity investor in Mopani, to take up a 51% stake in return for a $1.1 billion capital injection. IRH’s interest in Mopani will be held through its wholly-owned subsidiary, Delta Mining Ltd.
As part of the deal, IRH, a unit of Abu Dhabi’s most valuable listed company, International Holdings Company (IHC), will provide $400 million as a shareholder loan towards clearing Mopani’s debt. Of that, $300 million is earmarked for the Glencore debt and the remaining $100 million will be used to settle third-party letters of credit secured by Glencore for Mopani.
“The effect of this is that the gross debt owed by Mopani to Glencore … will be replaced by the above shareholder loan owed to Delta of up to $400 million, resulting in an overall net reduction in Mopani debt of over $1.2 billion,” ZCCM-IH said.
The parties had also agreed on a royalty agreement which will see Glencore receiving an unspecified share of Mopani’s profit in the event that the copper price exceeds $12,000 per ton.
ZCCM-IH said “the relationship between Glencore and Mopani will be restructured” following the agreed settlements and “there shall be no indebtedness between Glencore and Mopani”.
IRH’s investment will provide funding to support Mopani’s target to raise its output to 200,000 tons of copper annually in the next three years, ZCCM-IH said.
The miner produced 72,694 metric tons of copper in 2022, down from 87,618 metric tons in 2021.
Short Link:
https://www.miningnews.ir/En/News/627943
Anglo American Plc said it is has received an unsolicited non-binding combination proposal from BHP Group.
Toronto-listed miner OceanaGold Corp said on Wednesday it will raise 6.08 billion pesos ($106 million) through an ...
A key measure of Chinese copper demand just sank to zero, another indication that global prices are not balanced with ...
Canadian miner First Quantum Minerals (TSX: FM) believes it will be able to take the already mined 121,000 tonnes of ...
Canadian miner First Quantum Minerals said on Tuesday that it has cut its debt by $1.14 billion in the first quarter.
Chile is expected to produce a record 5.8 million metric tons of copper in 2025, the state-run Chilean Copper Commission ...
Copper traded near $10,000 a ton, hitting a new two-year high on its way, as investors continue to pile in on a bet that ...
A Native American group has asked all members of a US appeals court on Monday to overturn an earlier ruling that granted ...
Codelco is exploring more partnerships with the private sector as Chile’s state copper behemoth looks to recover from a ...
No comments have been posted yet ...