MOPANI COPPER MINES: Teamwork Moves Business Forward in Copperbelt

Copper from Zambia’s prolific copper belt, and the critical local company Mopani Copper Mines (MCM), is flowing once again after a significant equity deal was struck with an Abu Dhabi-based group to secure the future of the previously beleaguered business.

Following the global pandemic and a difficult 2020, the company was hit by a wave of macroeconomic challenges that saw operations shuttered and supply chains halted. Most importantly, the future of work for thousands of local people was left in doubt. Local and national government was rightly concerned about the impact of closing the mine, and a plan was put in place to secure investment and develop a long-term plan that would help to sustain MCM into the future.

In 2024, Enterprise Africa reported on a new deal that saw MCM sell a 51% stake to International Resources Holding RSC Ltd (IRH) – a subsidiary of 2PointZero, a transformational investment platform. 

Now, the team on site in Zambia’s Copperbelt province, in the north of the country, is busy reigniting the potential that was locked away. Expansion projects are underway, the supply chain is engaged once again, workers are back on site, and the expectations for annual production are impressive. 

CEO, Charles Sakanya, who was lauded as the Mining Executive of the Year by the CEO Africa RoundTable in 2024, said he is excited about what MCM can now deliver for Zambia.

“We have a good deal. The Glencore debt is paid. We have money to complete the expansion projects. There will be more jobs, and we are going to create capacity to produce copper underground – we are targeting 3.3 million tonnes this year. After we complete the projects in the coming years, we will have the capacity to hoist 10 million tonnes. We will grow three times over where we are today and that is a great opportunity for Zambia.” 

ACQUISITION COMPLETE

Officially completed in March 2024 after a complex transactional process, a celebration took place in Kitwe, with President Hichilema present alongside delegates from MCM and IRH. The Abu Dhabi outfit made no secret of the fact it wants to grow further in the minerals space as it looks to build a sustainable supply chain across the wider clean energy business. Copper forms an important part of the renewables industry and is an essential element in the development of electric transportation and electrification more widely. The copper price is expected to gradually increase over the next decade as the supply of copper is outweighed by demand following a steady climb over the past 25 years. 

“Today we celebrate a landmark cooperation with Mopani Copper Mines. This acquisition marks a crucial step in our strategic journey in the mining industry, emphasising our unyielding dedication to innovation, eco-friendly practices, and collaborative advancement,” said IRH CEO Ali AlRashdi following official completion of the acquisition. 

A comprehensive modernisation programme has been started, alongside the company’s existing expansion plans, including initiatives such as powered advanced process control, drone-based cavity monitoring systems, advanced technologies like real-time locating systems (RTLS) and fleet management system (FMS) for optimised tracking, AI-powered predictive maintenance to minimise downtime, and five centralised control rooms for enhanced monitoring and oversight. 

In October 2024, he said that progress had been quick and IRH was looking forward to an exciting period in Zambia. 

“We are very pleased with the progress recorded to date at Mopani. Our strategic initiatives are not only boosting our output but also ensuring we do so sustainably. By enhancing connectivity and operational efficiency, we are paving the way for a more innovative and responsible operation. 

“The implementation of cutting-edge technology is playing a crucial role in this transformation. IRH is leading the charge in mining tech innovations, introducing state-of-the-art AI powered automated systems and real-time monitoring solutions. These technological improvements are not only enhancing productivity but are also reducing environmental impact, aligning with our goal of creating a greener copper operation,” he added. 

“Creating real in-country value for all stakeholders, with a focus on local employment and community socio-economic upliftment, remains a priority goal for IRH. It is through collaboration with our stakeholders and in-country partners that we can build a brighter, more sustainable future.” 

ZAMBIAN TO THE CORE 

Today, MCM operations employ almost 6600 people, 99% of whom are Zambian. The spend across the supply chain is also helping long-term partners to employ more people and further the ripple effect of economic success emanating from the Copperbelt. 

Surmpy Engineering and Services is the perfect example of mutually beneficial partnership that has blossomed from MCM success. An expert in specialised hydraulics, mechanical, electrical and civil engineering, Surmpy has grown alongside MCM and is now a local industry leader, employing local people, and growing its reach every year. 

With IRH onboard, and with local leadership championing a Zambian approach to growth, the family feel of growing something bigger than itself is back in the business, and the team is confident about the future. 

Tamara Nyirenda, Electrical Superintendent, said of the challenges: “We really felt it because we had just finished constructing the plant only to be told we cannot commission and the plant would be shut down. You just have to go to a town where a mine has closed down and look at the effect. We know that, given the choice to fight to keep the company running or to close, the choice is always to fight. 

“The Mopani community is like a family,” she added. “We have seen a lot of problems here but people band together to help each other. That is why it is such a hard decision to leave this place; it’s not just a job, there are so many other things we get from this company that improve our lives. 

“The mood is upbeat. We now know that we can push this plant to achieve what it was designed to achieve.” 

Sakanya, an engineer with many years’ experience, agreed, saying: “I have never seen such teamwork in my life. The whole team was resolved, including the unions, and they understood that closure was not an option. The unions came on board, at the forefront, supporting management and supporting employees in survival. Zambia did not want Mopani to sink. Our vision was that the equity partner would find Mopani in an operable condition. We did not take our eyes off, we just wanted to work. 

“We are moving the business forward environmentally, cost-effectively, safely, and contributing to the treasury of the government of Zambia.” 

The Copperbelt is essential in the future development of societies around the world, and Zambia has, once again, a primed asset ready to deliver.