Thursday 26 October 2023

#UAE’s IHC signals interest in Zambian copper mine

UAE’s IHC signals interest in Zambian copper mine

Abu Dhabi’s International Holding Company has expressed interest in taking over a key Zambian copper mine that is up for sale, according to four people familiar with the matter. 

The approach by the United Arab Emirates’ largest listed company comes as South African miner Sibanye-Stillwater is vying to take on Mopani Copper Mines, a prized but struggling state-owned asset in Africa’s second-biggest producing country, these people added. 

Mopani produces the metal used in power lines, electric cars and renewable power. Two Chinese groups, Zijin Mining and Norinco, a defence company, which were initially part of the auction process for the mine, have dropped out, three of the people said. 

Zijin’s departure was due to delays on the Zambian side of the process, while Norinco has had sanctions imposed on it by the US government, one of the people added. 

The sale of the mine also comes amid heightening geopolitical tensions between China and the US, which is stepping up its efforts to secure strategic minerals such as copper, cobalt and graphite. In particular, Washington is placing a growing emphasis on preventing Chinese companies from tying up important supply sources in Africa.

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