Glencore said its 73.1%-owned Mopani had transitioned its operations to care and maintenance. All Posts, Industry News, ZCCM-IH, ZCCM-IH News Glencore Plans Exit From Mopani. Mopani Copper, in which Glencore has a 75% stake, drew the anger of the Zambian government last month when it announced plans to mothball production, forecast earlier this year to be 50,000 to 70,000 tons of copper. Zambia wants to raise its holding after clashing with Glencore earlier this year over the company’s plan to mothball Mopani’s operations. Zambia Says Glencore, First Quantum Willing to Sell Mopani “The resource attracts money, so the issue of financing is the least of the worries … Z ambia expects to conclude talks over buying Glencore Plc’s stake in Mopani Copper Mines Plc within a month, according to Barnaby Mulenga, permanent secretary in the Ministry of Mines.. Mulenga declined to disclose the size of the stake that state-owned ZCCM Investments Holdings is trying to acquire. ZCCM-IH currently has 10% of Mopani, with Glencore holding 73.1% and Vancouver-based … Operations stymied through on… https://t.co/ynnLcPq58H, Gold exports increased by 35.9 percent in the year ending November, 2020 on account of increased export volume and… https://t.co/ht68cWiNUB, Underground mining boasts one of the largest initial #investments in any leg of industry today. (Kitco News) - Glencore has been locked in a bitter dispute with the other owners of the mine its plan to mothball Mopani’s operations. Investing in African Mining Indaba is honoured to announce that His Excellency, Cyril Ramaphosa, President of South… https://t.co/UyKVAgyL9i, [BUSINESS]: Xylem is a leading water technology company committed to “solving water” by creating innovative and sma… https://t.co/FWDdbrewBN, The impact of the #Covid19 on the #mining sector has been like many other industries. Mopani produced 51,275 tonnes of finished copper in 2019 including purchased materials – accounting for 13.9% of Glencore’s African copper output and 3.7% of its overall copper output. And Musukwa says ZCCM-IH will galvanise resources to ensure they manage and operate Mopani … Mopani’s total liabilities exceeded its total assets by $2.562 billion in 2019, the company reported in a financial statement, indicating “a material uncertainty in relation to the going concern assumption”. Mopani’s 2019 financial statement shows operating expenses of $931 million. Replace the attached chart with a new chart ? Zambia’s move to acquire controlling stake in the mine is triggered by a disagreement over a plan to suspend operations by Glencore. A spokesman for Glencore declined to comment. “Following Mopani’s recent announcement regarding the transition of its mining operations to care and maintenance, Glencore is currently in discussions on the way forward with the Government of Zambia,” it said. Bond yields rise on possible Georgia 'blue sweep', oil rallies. Mopani’s 2019 financial statement shows operating expenses of $931-million. ZCCM-IH’s cash and term deposits together amounted to 828.9 million Zambian kwacha ($43 million) by March 31 2019, according to the latest financial statements on its website. Mulenga declined to disclose the size of the stake that state-owned ZCCM Investments Holdings is … Are you sure you want to block %USER_NAME%? Two sources with direct knowledge of the negotiations said Glencore is looking to exit the asset entirely. A spokesman for Glencore declined to comment. This would go some way to recoup impairments of $1.14 billion at Mopani which contributed to Glencore posting a first-half loss. Mopani's 2019 financial statement shows operating expenses of $931 million. By doing so, you and %USER_NAME% will not be able to see Glencore will likely sell its entire 73.1% stake in Zambia’s Mopani Copper Mines to the government’s mining investment arm ZCCM-IH rather than becoming a minority stakeholder, two sources with direct knowledge said. The African Mining Market offers insights into key market and commodity trends, in-depth analysis of resources and prospects and licensing and policy decisions affecting the mining industry in Africa. Zambia Says Glencore, First Quantum Willing to Sell Mopani “The resource attracts money, so the issue of financing is the least of the worries for the Zambian government,” Mulenga said in an interview on Thursday, referring to Mopani’s copper-mining operations. Glencore's plans to put Mopani on care and maintenance prompted the Zambian government to threaten in April to revoke the firm's mining licences. Zambia expects to conclude talks over buying Glencore Plc’s stake in Mopani Copper Mines Plc within a month, according to Barnaby Mulenga, permanent secretary in the Ministry of Mines. Operating expenses of the mine stood at $931m in 2019, according to its financial statement. Please note that all comments are pending until approved by our moderators. MINES Minister Richard Musukwa says Glencore is planning to offload around 90 per cent of its collective shares in Mopani Copper Mines Plc to government through ZCCM-IH. Zambia wants to raise its holding after clashing with Glencore earlier this year over the company’s plan to mothball Mopani’s operations. He didn’t give further details. Zambia’s total foreign exchange reserves stood at $1.43 billion at the end of June, equivalent to just 2.3 months of import cover, according to the central bank. Thanks for your comment. Zambia's total foreign exchange reserves stood at $1.43 billion at the end of June, equivalent to just 2.3 … 16.9%.) Mopani's total liabilities exceeded its total assets by $2.562 billion in 2019, the company reported in a financial statement, indicating "a material uncertainty in relation to the going concern assumption". Apple (NASDAQ:AAPL) stock fell 1.8%, Facebook... (Reuters) - U.S. drug wholesaler AmerisourceBergen (NYSE:ABC) Corp said on Wednesday it would buy Walgreens Boots Alliance (NASDAQ:WBA)'s drug distribution business for $6.5... We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. We have invested more than $1 billion in the Mopani mine since 2014 – extending its life by a further 25 to 30 years. ZCCM-IH currently has 10 per cent of Mopani, with Glencore holding 73.1 per cent and Vancouver-based First Quantum Minerals Ltd 16.9 per cent. Glencore has assigned a value of $704 million to the operations. A Glencore spokesman declined to comment. A major hurdle to clinching the deal is Zambia’s lack of funds to pay for the stake and fund the mine’s running costs, sources say. Currently, ZCCM-IH owns a 10% stake in the mine. A ZCCM-IH spokeswoman did not reply to Reuters' questions about how it would finance the stake purchase. And Musukwa says ZCCM-IH will galvanise resources to ensure they manage and operate Mopani Copper Mines prudently. JOHANNESBURG/LONDON (Reuters) - Glencore (OTC:GLNCY) will likely sell its entire 73.1% stake in Zambia's Mopani Copper Mines to the government's mining investment arm ZCCM-IH rather than becoming a minority stakeholder, two sources with direct knowledge told Reuters. © Copyright 2021, All Rights Reserved  |  African Mining Market. The Zambian government threatened to cancel Glencore PLC's mining licenses in the country after the company closed its Mopani Copper Mines PLC unit, Bloomberg News reported April 14. Glencore’s plans to put Mopani on care and maintenance prompted the Zambian government to threaten in April to revoke the firm’s mining licences. ZCCM-IH currently holds a 10% stake in Mopani Copper Mines. Glencore wrote off the value of Mopani by $1.144 billion in its half-year earnings report earlier this month, saying the estimated recoverable value was $704 million, including tax receivables. He didn’t give further details. A Glencore spokesman declined to comment. MINES Minister Richard Musukwa says Glencore is planning to offload around 90 per cent of its collective shares in Mopani Copper Mines Plc to government through ZCCM-IH. Mopani's 2019 financial statement shows operating expenses of $931 million. Are you sure you want to delete this chart? Glencore guided to production of between 50,000 to 70,000 tons of copper from Mopani Copper in the 2020 financial year. Glencore shelved its plans to place the operations under care and maintenance for 90 days, after Zambia threatened to revoke its mining licence in April. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion. Zambia expects to conclude talks over buying Glencore Plc’s stake in Mopani Copper Mines Plc within a month, according to Barnaby Mulenga, permanent secretary in the Ministry of Mines. News News; Insights & stories Insights & stories; Social media Social media; Image & video library Image & video library; Subscribe Subscribe; Media contacts Media contacts; RSS feed RSS feed; Updates regarding Covid-19 Updates regarding Covid-19; Updates regarding illegal mining at KCC Updates regarding illegal mining at KCC “The government may have threatened expropriation in the past, but the need for copper revenues likely precludes that option.”. In April 2020, Mopani halted operations at the mine, citing the coronavirus pandemic and various other issues. Glencore puts entire Mopani stake up for sale in Zambia talks - Reuters. “Mopani has been a big headache for Glencore, the mine has never delivered anything for shareholders,” a Glencore shareholder, who asked not to be identified, said, citing numerous accidents and operational issues. Aug. 27, 2020 4:58 PM ET Glencore plc (GLCNF) By: Carl Surran, SA News Editor 3 Comments. Glencore values its stake in Mopani at $514.6m. Glencore said that the onset of the COVID-19 virus, and subsequent decline in the copper price, had created one too many problems for Mopani to sustain. GLENCORE was in discussions with the Zambian government regarding plans to place the firm’s Mopani Copper Mines on care and maintenance. © 2007-2021 Fusion Media Limited. Zambia’s total foreign exchange reserves stood at $1.43-billion at the end of June, equivalent to just 2.3 months … "The government may have threatened expropriation in the past, but the need for copper revenues likely precludes that option.". Meanwhile, Musukwa says Konkola Copper Mines (KCM’s) operational performance has improved … ZCCM-IH currently has 10% of Mopani, with Glencore holding 73.1% and Vancouver-based First Quantum Minerals Ltd. Zambia expects to conclude talks over buying Glencore Plc’s stake in Mopani Copper Mines Plc within a month, according to Barnaby Mulenga, permanent secretary in the … Glencore values its stake in Mopani at $514.6m. Glencore wrote off the value of Mopani by $1.144 billion in its half-year earnings report earlier this month, saying the estimated recoverable value was $704 million, including tax receivables. Glencore’s stake in Mopani is worth $514.6-million, according to its valuation. Please wait a minute before you try to comment again. any of each other's Investing.com's posts. Glencore wrote off the value of Mopani by $1.144 billion in its half-year earnings report earlier this month, saying the estimated recoverable value was $704 million, including tax receivables. But it’s unclear how the cash-strapped government, which last week defaulted on a Eurobond interest … Investing.com -- Stocks in focus in premarket trade on Wednesday, January 6th. Zambia and Swiss-based Glencore are at “cross purposes” over Mopani, Zambian Mines Minister Richard Musukwa had said on Tuesday when he announced ZCCM-IH aims to increase its shareholding in Mopani to 51% “or even more”, from 10% currently. Your status will be reviewed by our moderators. Zambia’s total foreign exchange reserves stood at $1.43-billion at the end of June, equivalent to just 2.3 months of import cover, according to the central bank. However, lots of questions remain as it remains unclear how the cash-strapped government, which last week defaulted on a Eurobond interest payment, would finance any deal. The conflict flared last week when Glencore said it was temporarily closing its giant Mopani mines as they hemorrhaged cash following a collapse in the copper price. %USER_NAME% was successfully added to your Block List. In 2018, we paid more than USD84 milion in taxes, royalties and other payments to government. One of the sources was quoted by the news agency as saying: “As of now, we are discussing a potential sale of their stake in Mopani.” Recently, Zambia’s mines minister Richard Musukwa revealed that ZCCM-IH will look to buy a controlling stake in Mopani. 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