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South African multinational precious metal mining company, Sibanye-Stillwater, led by renowned businessman Neal Froneman, has emerged as one of the four entities shortlisted in the race to acquire Zambia’s Mopani Copper Mines, signifying the company’s strategic expansion into copper and green metals.
The other contenders include China’s Zijin Mining, Norinco Group, and an investment vehicle owned by ex-Glencore officials. The selection process was conducted by Rothschild & Co., which narrowed down the long list of interested parties to the final four contenders.
In February, Zambia’s mines minister, Paul Kabuswe, revealed that ten interested parties were vying for the mine and smelter complex, which is currently owned by the state firm ZCCM-IH.
Previously, in 2021, Switzerland-based commodities giant Glencore sold a 73-percent stake in Mopani to ZCCM-IH for $1.5 billion, retaining offtake rights until the debt was fully repaid. The upcoming deal would mark the return of Mopani Copper Mines to foreign ownership.
Froneman, Sibanye-Stillwater’s CEO, confirmed the company’s interest in acquiring Mopani, expressing a long-term investment outlook. Froneman acknowledged the substantial investment required but emphasized the lucrative potential of Mopani’s copper deposits, projecting an annual copper production of approximately 225,000 tonnes.
The South African mining group initially registered its interest in Mopani Copper Mines about a year ago and has remained committed to the opportunity. If the deal between Sibanye-Stillwater and ZCCM is finalized, it will align with the mining company’s strategic focus on green metals, particularly battery metals like lithium and nickel.
Sibanye-Stillwater has strategically expanded its presence in this sector through various acquisitions, including its majority ownership of Keliber, a Finnish mining and battery chemical company.
The Mopani Copper Mine, with a history spanning more than 90 years, can produce 225,000 tonnes of copper annually, presenting substantial growth prospects. However, realizing this potential requires an investment of at least $300 million to finance a challenging underground expansion.
As the selection process progresses, the outcome of the acquisition of the Mopani Copper Mine will not only impact the future of the Zambian mining industry but also serve as a pivotal move in Sibanye-Stillwater’s pursuit of diversifying its mineral portfolio and embracing the green metals revolution under the leadership of Froneman.
