The Centre for Trade Policy and Development says Glencore stands to benefit more from the sale of its’ 90% shares in Mopani Mine than ZCCM-IH.
Last week the Zambian government announced its strategic step to own 100% shares in Mopani Copper Mine through the state mining investment arm, ZCCM-IH. However, CTPD Senior Researcher Extractives, Webby Banda says the sketchy details of the deal suggest that Glencore has transmitted all technical and market risk to ZCCM-IH.
Mr. Banda says the trend of undervaluing and overpricing of mining assets will continue in perpetuity if Zambia does not craft its own mineral asset valuation code.
Mr. Banda also reminded government to ensure that the mine is kept free from political interference, corruption and that only trained and competent personnel should be at the helm of the management process.