An arm of International Holding Company (IHC), Abu Dhabi’s most valuable entity, is keen on acquiring Zambia’s Lubambe Copper Mine, an asset already earmarked for purchase by China’s JCHX Mining, according to three sources familiar with the matter who spoke to Reuters.
International Resources Holding recently informed EMR Capital of its desire to bid for the private equity manager’s 80 per cent share in the Lubambe copper project, currently on sale. This development could complicate an already ongoing sale process, as reported by two of the sources.
acquisition of a 51 per cent stake in Zambia’s Mopani Copper Mines last month marked its inaugural mining deal in Africa’s second-largest producer of the metal, vital for various products ranging from power lines to electric vehicles.
The Abu Dhabi-based company emerged as the Zambian government’s preferred investor for Mopani mines, surpassing contenders like Sibanye Stillwater and China’s Zijin Mining Group after a prolonged selection process.
EMR, owner of the Lubambe mine since 2017, intends to divest its interest in the project as its funds approach maturity, following delays caused by COVID-19, according to insider sources. Additionally, it recently sold a 51 per cent stake in the adjacent Mingomba copper project to California-based start-up KoBold Metals for a substantial sum. EMR still retains a 28 per cent stake in Mingomba, in collaboration with Zambia’s ZCCM.
Lubambe, previously under the ownership of African Rainbow Minerals and Vale, produced approximately 15,000 tons of copper last year but aims to boost output to around 2,500 tons per month for sustainability, according to its website.
JCHX Mining had proposed in January to acquire EMR’s 80 per cent stake for $1, along with assuming the project’s $857M debt.
Zambia’s Ministry of Mines did not immediately respond to emailed queries, according to Gulf Business.
