Zambia Shutters Seized Copper Mine as Prices Soar Toward Record
Felix Njini and Taonga Clifford Mitimingi, Bloomberg News BC-Zambia-Shutters-Seized-Copper-Mine-as-Prices-Soar-Toward-Record , Felix Njini and Taonga Clifford Mitimingi
(Bloomberg) Zambia said a lack of capital halted production at a copper mine it seized from Indian billionaire Anil Agarwalâs Vedanta Resources Ltd., just as the metal surges toward a record.
The standstill at Konkola Deep, a high-grade underground pit that also contains cobalt, was triggered by a shortage of funds to develop new mining areas, said Barnaby Mulenga, permanent secretary in the Ministry of Mines. The lack of capital is also curbing output at other operations of Konkola Copper Mines Plc, which was placed under provisional liquidation in 2019 after the government alleged Vedanta lied about expansion plans and paid too little tax.
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In other markets, nickel fell 0.2% and aluminum rose 1.2%.
By Bloomberg News
6 May 2021 09:58
Image: Bartek Sadowski/Bloomberg
Copper rose above $10 000 a ton amid mine-supply growth concerns and as the return of Chinese investors from a three-day break put the spotlight on the strength of demand in the worldâs top consumer.
The metal climbed to the highest in a decade this week, fueling bets it will rally further to take out the record of $10 190 set in February 2011, as the reopening of major industrial economies sparks a surge across commodities markets from iron ore to lumber.
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Glencore is close to selling troubled Zambian copper mine
Thomas Biesheuvel and Taonga Clifford Mitimingi, Bloomberg News Glencore , Bloomberg
Glencore Plc said itâs in the final stages of agreeing to sell its stake in Mopani Copper Mines Plc to the Zambian government, ending months of uncertainty over the future of the troubled asset.
Glencore has been in talks with the state about Mopani since last year after the two clashed on the future of the mine, which has been unprofitable for years. Despite the challenges, the operations are a vital employer for Zambia.
Glencore said Friday it is in final-stage negotiations to sell the 90 per cent holding it owns with Vancouver-based First Quantum Minerals Ltd. to state-owned ZCCM Investments Holdings Plc, which already owns the other 10 per cent. Glencore did not provide details on the value of the sale.