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* Zambia's ZCCM-IH aims to find Mopani investor by end-2021
* External investor expected to take stake and fund mine
expansion
* IMF looking at deal, says it was not consulted on it
(Adds IMF statement)
By Chris Mfula
LUSAKA, Jan 20 (Reuters) - Zambia's mining investment arm
ZCCM-IH said it expects to find a new investor for
Mopani Copper Mines by the end of the year, as the International
Monetary Fund looks into Zambia's deal with Glencore,
Mopani's majority stakeholder.
Zambia became Africa's first pandemic-era sovereign default
in November, but ZCCM-IH agreed on Tuesday to take on $1.5
billion in debt for Glencore's stake, making it the sole owner
of the mine.
ZCCM-IH and government agency IDC say the debt, owed to
Carlisa Investments Corp, a British Virgin Islands-based company
controlled by Glencore, is guaranteed by Mopani, not by the
government, and is therefore not part of Zambia's sovereign
debt.
But analysts say the Mopani deal could compromise Zambia's
drive for debt sustainability required as part of any support
from the IMF.
"The Fund is working on understanding the details of the
transaction," the IMF told Reuters, adding that it was not
consulted about the deal.
Zambia's IDC, charged with promoting industry, holds 60% of
ZCCM-IH while the ministry of finance has a 17% stake and the
National Pension Scheme Authority holds 15%.
EXTERNAL INVESTOR
An external investor in Mopani would help ZCCM-IH pay off
its debt to Carlisa, and is expected to fund expansion projects
to boost annual copper output from a little more than 34,000
tonnes to 150,000 tonnes.
"We expect a strategic equity partner will be identified
before the end of 2021," the IDC told Reuters. ZCCM-IH Chief
Executive Mabvuto Chipata said he agreed with that target.
The investor will be expected to take a stake in Mopani and
complete expansion projects at a cost of $300 million, mines
minister Richard Musukwa said on Tuesday, adding that companies
from Britain, Canada, China, Qatar, South Africa, and Turkey
have shown an interest.
As part of President Edgar Lungu's policy of greater state
control over mines, the stake on offer will not be as high as
the 90% held by Glencore and First Quantum Minerals
through Carlisa. Glencore holds 81.2% of Carlisa, with First
Quantum holding the remaining 18.8% of Carlisa.
The minister did not specify how large a stake was on the
table, but private companies will typically not want to be the
minority shareholder in a state-owned entity.
(Reporting by Chris Mfula in Lusaka
Additional reporting by Joe Bavier and Helen Reid in
Johannesburg;
Editing by David Goodman and Steve Orlofsky)
