Mopani Copper Mines in Zambia Attract Major Interest from UAE’s IHC

Zambia’s state-owned investment vehicle ZCCM took control of Mopani Copper Mines back in 2021, after global commodities powerhouse Glencore sold its stake for $1.5bn. Since then, ZCCM have been searching for new investors and received a lot of interest.

Mopani Copper Mines is a prized national asset in Zambia, managing one of Africa’s largest copper deposits. Despite unprecedented difficulties in the past year and mismanagement by the previous government under Edgar Lungu, the mine remais an appealing asset for global investors.

This is especially the case in view of current President Hakainde Hichilema’s major efforts to revamp the Zambian economy towards prosperity, for which mining plays a major role.

Mopani Copper Mines Facility.

President Hichilema has placed specific emphasis on copper production, setting an ambitious target of producing over three million tonnes of copper nationally by 2032. His recognition of copper’s significance has played a major part in the renewed interest of external investors in Zambia, putting the country emphatically back on the map.

Copper is a crucial component in everything from power lines, to electric cars and renewable energy infrastructure. It is an essential component for lithium-ion batteries, demand for which is soaring thanks to the electric vehicle boom. Mopani is therefore a pivotal asset for technological development both globally and within Zambia.

Abu Dhabi’s International Holding Company has now emerged as the newest outfit looking to invest in Mopani, according to reports by the Financial Times. The IHC is the UAE’s largest listed company. Its bid rivals the efforts of Sibanye-Stillwater, the multi-national mining company based in South Africa.

IHC’s head office in Abu Dhabi.

Since two Chinese corporations, Zijin Mining and Norinco (a defence company), which both initially contended for the mine, recently dropped out, Sibanye-Stillwater had been the main contender. Zijin withdrew because of delays on the Zambian side of the process, while Norinco had sanctions imposed on it by the US government.

The fresh interest from IHC signals the growing influence of Middle Eastern wealth in the global mining industry as well as the increasingly diversified investment in the Zambian economy.