ZAMBIA’S state-owned ZCCM Investments Holdings (ZCCM-IH) has accused Abu Dhabi’s International Resources Holding (IRH) of “pervasive and sustained” breaches of agreements under which it acquired control of the Mopani copper complex in early 2024.
In an 18 September letter to IRH unit Delta Mining, which holds 51% of Mopani, ZCCM-IH CEO Kakenenwa Muyangwa said the failures had caused “material additional costs and loss of revenue”, Bloomberg News reported.
The alleged breaches include failing to provide required equity funding and incurring unapproved, high-cost related and third-party debt. By end-March Delta had spent only $62.3m, or 20%, of Mopani’s $308.1m project development budget, and appointed contractors lacking expertise and qualifications. Last year’s cathode output missed the business plan by more than 50%.
Delta’s 2025 payments into Mopani were $61m below the required minimum, and ZCCM-IH is unaware of any transfers towards its $140m funding obligation for this year.
Muyangwa said ZCCM-IH preferred an amicable resolution but would “not hesitate to invoke the full range of contractual rights and remedies”, including damages claims and arbitration, without good-faith engagement. Delta was summoned to a consultation meeting.
IRH said it had a “strong and constructive relationship” with ZCCM-IH, though “shortcomings on either side” could arise. President Hakainde Hichilema met IRH CEO Ali Rashed Alrashdi in Abu Dhabi on Monday.
IRH, part of Sheikh Tahnoon bin Zayed Al Nahyan’s $224bn International Holding Co, agreed to pay $620m in instalments for its stake (its maiden investment) and made shareholder loans so that Mopani could settle debts to Glencore. Glencore, which sold Mopani to ZCCM-IH for $1 upfront in 2021, received more than $400m.
Mopani produced just over 5,000 tonnes of cathode in June. IRH is targeting 300,000 tonnes a year by 2029, said Bloomberg News.