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Glencore's negotiations to sell Zambian copper are drawing to a close

According to the news of January 8 from the news agency of Peng Bo. Glencore said it had agreed to sell its shares in Mopani copper mines to the Zambian government, selling 90% of its shares with first quantum minerals Ltd. to zccm Investments Holdings PLC, a Zambian state-owned company that already owns the other 10%. But details about the value of the sale were not disclosed.
Since last year, the two sides have had disputes over the future development of the mine. Mopani copper mine used to be the core of Glencore's plan to reverse its copper business in Africa. The company plans to invest billions of dollars to build a new shaft, which can produce about 140000 tons of copper per year after completion and operation, compared with 51000 tons in 2019. In April 2020, after the Zambian government intends to revoke its mining license, Glencore plans to suspend the operation and maintenance of the mine. The Zambian government asked the mine to maintain production to ensure the employment of miners.
The growing tension between the Zambian government and major mining investors reflects the trend of President Rengo before this year's election. The government has applied for arbitration on the Konkola copper mine confiscated from Vedanta Resources Ltd. in 2019.
Covid-19, Zambia became the first African country to default on its debt since the new crown outbreak. The government defaulted in November after failing to obtain the consent of bondholders to postpone the payment.
President Lungu says Zambians have the ability to manage their mining industry
Lusaka times, January 7. During his visit to Konkola copper mines, Zambian President Lungu said that Zambians have the ability to manage their mining industry efficiently and promote its development.
President Lungu told copper workers that he was glad that Konkola copper mine increased production during the liquidation period, which means Zambians have the ability and technology to operate the mining industry. At present, Zambian mines are generally owned by foreign investors, and the government hopes that more Zambians will manage their mining industry and make positive contributions to the development of mining industry. He also called on the mining association and other organizations to cooperate with the government to promote the further development of the mining industry.
Zambian mining minister Richard musukwa said that President Lungu and his government are concerned about the employment security of mining workers and will continue to work hard to protect the interests of miners.
Joseph chewe, chairman of the Zambian miner's Association, thanks the government for its support to Konkola's miners during the turbulent period and for fighting for the rights and interests of the miners from its shareholder, Vedanta Resources, an Indian mining giant. Miners will also continue to support the ruling Patriotic Front (PF).
Konkola copper mine was liquidated in May 2019. On December 29, 2020, it announced the reorganization and establishment of Konkola smelting Co., Ltd. and Konkola Mineral Resources Co., Ltd., two independent subsidiaries. The relevant decision will take effect in February 2021.
President Lungu visits Copper Mine Enterprises
Comprehensive information of Zambia daily mail and Zambia times.
From January 7 to 9, 2021, Zambian President rangoo inspected lubambe copper mine, Konkola copper mine and Mopani copper mine during his working inspection in tongdai province.
During the inspection of lubangbi copper mine, President Lungu said that in order to promote economic recovery and national development, the government would provide necessary support for the expansion project of lubangbi copper mine, and he hoped that Tony Davis, the director of operations of the copper mine, would provide relevant details.
During his inspection of Konkola copper mine, President Lungu announced that Vedanta Resources Ltd., which once held the mine, had withdrawn from Zambia and could not come back no matter how many times it let the court intervene. In addition, the union of Zambian miners (MUZ) believes that the Konkola copper mine is divided into two business entities, Konkola smelting Co., Ltd. and Konkola Mineral Resources Co., Ltd., which helps to improve the output and operation efficiency.
During the inspection of Mopani copper mine, President Lungu said that no matter what the outcome of the negotiation between the government and Glencore international company on the ownership structure of Mopani copper mine, there will be no loss of jobs in the copper mine; the negotiation between the two sides is coming to an end, and the government is waiting for attorneys general The government will sign an agreement with Glencore international next week, when Richard musukwa, Minister of mining, will issue a comprehensive statement on the content of the agreement.
Source: Economic and Commercial Office of the Chinese Embassy in the Republic of Zambia