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* Zambia takes on $1.5 bln debt to buy Mopani from Glencore
* Glencore to retain offtake from Mopani mine until debt is
repaid
* Zambia to look for new investor in Mopani to finance
expansion
(Adds details, quotes from mines minister)
By Chris Mfula
LUSAKA, Jan 19 (Reuters) - Zambia's state mining investment
arm ZCCM-IH has agreed to take over Glencore's majority
stake in Mopani Copper Mines in a $1.5 billion deal funded by
debt, and will look for a new investor, the government said on
Tuesday.
The sale comes after Glencore last year tried to suspend
operations at Mopani due to low copper prices and COVID-19
disruptions, angering the government, which threatened to revoke
the company's mining licences.
Zambia defaulted on a debt payment in November, becoming
Africa's first pandemic-era sovereign default, but will take on
more debt to finance the Mopani deal. Glencore said ZCCM-IH will
borrow the $1.5 billion from Carlisa Investments Corp, a
British Virgin Islands based company through which Glencore
holds its stake, and other unspecified members of the Glencore
group.
At a ceremony in Lusaka, Zambia's mines minister Richard
Musukwa said the country will try to attract a new investor in
Mopani, adding that "several entities" from Britain, Canada,
China, Turkey, and Qatar have expressed interest.
Musukwa said ZCCM-IH needs about $300 million to complete
expansion projects started by Glencore.
Zambia is Africa's second-biggest copper producer and mining
is its main generator of hard currency.
Mopani's current production of "over 34,000 tonnes" of
copper has increased over the last year, Musukwa said, and the
expansion projects will boost output beyond 150,000 tonnes a
year.
After the sale of its 73% stake for an indicative $1 is
complete, Glencore will retain offtake rights of Mopani's copper
production until the transaction debt has been repaid in full,
the company said.
ZCCM-IH Chairman Eric Silwamba said the company would
acquire 90% of Mopani from Carlisa Investments Corp, bringing
ZCCM-IH full control of the company. ZCCM-IH previously held 10%
of Mopani.
More than 15,000 workers would have lost their jobs if the
mine was closed, Musukwa said.
Glencore said it holds 81.2% of the shares in Carlisa. First
Quantum Minerals, which previously held 16.9% of Mopani,
did not immediately respond to a request for comment.
(Reporting by Chris Mfula in Lusaka; Writing by Helen Reid in
Johannesburg; Editing by Louise Heavens and Susan Fenton)
