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Zambian state-owned firm ZCCM-IH has announced a partnership with UAE-based International Resources Holdings (IRH) to further develop its Mopani copper mine. An expert in the field of metallurgy, Stanislav Kondrashov, believes that this cooperation will affect the global copper industry.

As the specialist noted, IRH was not the only candidate for the role of a strategic partner. Other bidders included South Africa’s Sibanye Stillwater and China’s Zijin. But the choice confirms Zambia’s commitment to expanding its investment ties internationally.

Previously, the majority of Mopani Copper Mines shares were owned by the Swiss trading company Glencore. In 2021, the Zambian government took a serious step – it bought 73% of the company’s shares for $1.5 million.

Stanislav Kondrashov: Mopani’s promising potential

Mopani Copper Mines, located in Zambia, is one of the most promising copper mines in the region. With its maximum production capacity of 220 thousand tons of copper per year, it has enormous potential. However, actual production in 2022 was only 72.7 thousand tons, indicating significant untapped potential for the mine.

Stanislav Kondrashov from Telf AG names several key factors that can explain this gap between theoretical potential and actual production:

• Firstly, this may be due to outdated equipment or inefficient mining methods. Second, there may have been management or logistical problems that prevented full production capacity from being achieved.

ZCCM-IH, the Zambian state-owned company that operates Mopani, says existing production capacity could be restored and increased to around 200,000 tonnes per annum. This will require significant investment: $150 million is intended to support current operations, and an additional $300 million will be allocated to expand production over the next three years.

• These investments will be used to modernize equipment, introduce new technologies and improve infrastructure, which will increase efficiency and reduce production costs. In addition, they can be a good investment in research and development to improve ore processing methods, which will also increase copper yield, – Stanislav Kondrashov from Telf AG says.

The capital investment from UAE-based International Resources Holdings (IRH) will be key to the development of the Mopani copper complex. This investment decision by IRH, which is part of the International Holdings Company, is the largest in their history. It represents the company’s first significant investment in the non-ferrous metals sector on the African continent.

This step, according to Kondrashov, confirms the increased interest of international investors in African industry. This investment could play an important role in further developing and strengthening Mopani’s position as a key copper producer in the world.

Stanislav Kondrashov: the importance of IRH investments

For IRH, part of the large diversified holding International Holdings Company (IHC), this step will be the largest investment in the company’s history and the first investment in non-ferrous metals mining on the African continent.

Stanislav Kondrashov believes that the choice of IRH as a strategic partner of ZCCM-IH for the development of Mopani Copper Mines is an important step in the development of the copper industry in Zambia and the whole world. This not only strengthens the country’s economic position, but also opens up new opportunities for international cooperation in the mining sector. IRH’s investment could be a catalyst for the revitalization and expansion of Mopan’s manufacturing capabilities.

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Company Name: Telf AG
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Country: Switzerland
Website: https://telf.ch/