ZAMBIA STRIKES GOLD WITH MOPANI DEAL: 1,900 JOBS CREATED, 3,000 ON THE WAY, AND A BOLD STEP TOWARD ECONOMIC SOVEREIGNTY

Reported by: The Agency Media.
Date: 26th March, 2025.
Lusaka, Zambia.

In a bold and strategic move, the UPND-led government has successfully negotiated a transformative deal for Mopani Copper Mines, securing a 49% government stake, a $1.1 billion capital injection, and a job-creating framework that sets a new precedent in Zambia’s mining sector.

The agreement, forged with International Resources Holding (IRH), is being hailed as a significant economic victory, addressing past failures while positioning Zambia as a key player in the global copper industry.

One of the deal’s most immediate impacts is on employment.

1,900 new jobs have already been created, safeguarding livelihoods in the Copperbelt.

A further 3,000 jobs are set to be added within the next two years, marking the largest employment expansion in Zambia’s mining sector since privatization.

The agreement prevents layoffs that could have seen one-third of the workforce dismissed under alternative bidders.

Mines Minister Paul Kabuswe underscored the government’s commitment, stating, “This isn’t just business – it’s about Zambian families. Where others saw balance sheets, we saw livelihoods at stake.”

For decades, Zambia’s mining sector has suffered from imbalanced foreign deals that left the country with little control over its own resources.

This agreement directly corrects past injustices by:

1. Securing a 49% government stake, compared to previous symbolic ownership structures.
2. Eliminating Glencore’s dominant control, a condition that competing bidders sought to maintain.
3. Writing off $1 billion in legacy debt, cleaning up Mopani’s financial standing.

By negotiating these terms, the government has reclaimed Zambia’s economic sovereignty, ensuring that mining revenues contribute directly to national development.

Beyond mining operations, the deal incorporates a strong local content mandate, ensuring that Zambians benefit directly from Mopani’s growth:

60% of procurement will be allocated to Zambian suppliers once the Local Content regulation is enacted.

In 2024, 82% of the 1,089 suppliers of goods and services to Mopani were local businesses—demonstrating early compliance.

A Copperbelt SME Development Fund will be established using mine royalties, fostering entrepreneurship in mining communities.

These measures align with the New Dawn Government’s “Zambia First” approach, reinforcing local economic participation.

The government firmly rejected bids that would have:

1.✗ Reduced Zambia’s stake to below 30%, keeping the government as a minority player.

2. ✗ Maintained foreign control over copper marketing.
3. ✗ Provided weaker job security guarantees.

Instead, the UPND administration structured a financially responsible solution, which included:

1. Paying $400 million to settle Mopani’s inherited Glencore debt.
2. Negotiating a debt-to-equity swap, minimizing financial strain on taxpayers.
3. Ensuring IRH’s capital investment covered operational needs, preventing new public debt.

This approach balances economic revitalization with fiscal prudence, ensuring long-term sustainability.

The impact of the Mopani deal is already being felt:

1. K85 million in overdue payments to Kitwe City Council have been cleared.
2. 1,200 contractors who had lost their jobs have been reinstated since November.
3. A new skills training center will open in Ndola next month, preparing the next generation of mining professionals.

These developments restore confidence in Zambia’s mining future, demonstrating tangible benefits for communities.

Analysts see the Mopani deal as:

1. A first major test of the UPND’s mining reform strategy.
2. A template for future negotiations, particularly for Konkola Copper Mines.
3. A shift away from exploitative mining contracts that prioritized foreign investors over Zambian interests.

While opposition figures claim this is “privatization by stealth,” economic experts argue that the 49% state ownership and job guarantees make it the most worker-centric mining agreement since independence.

What’s Next?

With the Mopani deal in motion, Zambia’s mining future is being reshaped:

The mine is expected to significantly contribute to the country’s target of 3 million metric tonnes of copper production by 2031.

Quarterly local hiring audits will ensure Zambians benefit first.

Supplier development programs will further strengthen the local mining value chain.

This agreement is more than just a business transaction; it is a recalibration of Zambia’s mining social contract, ensuring that the country’s vast mineral wealth benefits its people for generations to

The Agency.