Glencore is in the last stage to sell its share in Mopani Copper Mines to the Zambian government. After Mopani mines turned unprofitable, Glencore had been reconsidering its future since last few years.
The Anglo-Swiss commodity trading and mining company had earlier announced that it is considering selling off 90pc stakes that it owns with First Quantum Minerals, Vancouver, to ZCCM Investments Holdings, a state-owned company having 10pc stakes. Glencore did not declare the value of the sale.
The company made a large investments in new shafts, but produced 51,000mt copper in 2019 against the initial expectation of 140,000mt.
Glencore’s plan to move the mine under care and maintenance were unsuccessful after the Zambian government threatened to revoke its mining licence in April to protect the jobs at the site.
The Zambian government is also in arbitration over mining assets it seized from Vedanta Resources Ltd in 2019.
In 2020, Zambia defaulted on debt following the COVID-19 pandemic.