South African tycoon Neal Froneman anticipates Mopani Copper bid outcome in September

South African mining tycoon Neal Froneman, CEO of Sibanye-Stillwater, announced today at the London Indaba conference on “investing in resources and mining in Africa” that the company is about two months away from finalizing the offer to acquire Zambia’s Mopani Copper Mines.

This comes just a week after Sibanye-Stillwater emerged as one of the four shortlisted contenders vying for the acquisition, marking the company’s strategic expansion into the copper and green metals sector.

Alongside Sibanye-Stillwater, the other three contenders in the race to acquire Mopani Copper Mines are China’s Zijin Mining, Norinco Group, and an investment vehicle owned by former Glencore officials. The selection process, led by Rothschild & Co., meticulously narrowed down the extensive list of interested parties to these final four contenders.

Addressing the audience at the conference, Froneman expressed his confidence in the nearing completion of the offer for Mopani Copper Mines, highlighting the company’s desire for a favorable value proposition that aligns with the interests of its shareholders.

He emphasized that this move presents an opportune entry point into the copper market and eagerly awaits the outcome.

Drawing parallels to Sibanye-Stillwater‘s 2019 acquisition of Lonmin, Froneman stated, “I wouldn’t say Mopani is an asset that has huge ESG (Environmental, Social, and Governance) issues, but it does have significant issues. We have a competitive edge in deep-level mining, we can take on the risks, and Zambia is a good mining destination.”

With a rich history spanning over 90 years, Mopani Copper Mines has the capacity to produce 225,000 tonnes of copper annually, offering substantial growth prospects.

However, fully realizing this potential requires a minimum investment of $300 million to support a challenging underground expansion.

In 2021, Glencore, the Switzerland-based commodities giant, sold a 73-percent stake in Mopani to ZCCM-IH for $1.5 billion while retaining offtake rights until the debt was fully repaid. If the forthcoming deal reaches completion, it will mark the return of Mopani Copper Mines to foreign ownership.

Froneman had previously confirmed Sibanye-Stillwater’s interest in acquiring Mopani in 2022, expressing a long-term investment outlook.

Despite acknowledging the substantial investment required, he underscored the mine and smelter complex’s lucrative potential, which is presently owned by the state firm ZCCM-IH.