Zambia makes up with Gulf investor in major copper mine
The expansion of the copper sector is a cornerstone of the country’s economic growth plan.
Zambia's national mining company and Abu Dhabi-based International Resources Holding (IRH) have resolved their financing disagreement over Mopani Copper Mines, a project crucial to the Southern African nation's economic growth strategy. In September, Zambia's ZCCM-IH accused IRH of not providing the required equity funding and taking on unapproved debt.
The most recent statement avoided discussing the funding issue, instead focusing on new joint-exploration projects and reiterating their "long-term alignment" on developing the mine, but did not provide clarity on funding matters. The reconciliation came after a meeting between Zambian President Hakainde Hichilema and IRH's CEO in Abu Dhabi, the day the letter became public.
IRH acquired a 51% stake in Mopani in 2024 for $620 million, as part of a deal exceeding $1 billion. Neither party can afford conflict: Zambia, the world's second-largest copper producer, requires Gulf capital to more than triple its output to 3 million tons annually, while IRH aims to increase Mopani's production from 66,369 tons in 2025 to 300,000 tons by 2029.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
