Inside the Strategic Move That Secured 49% Ownership, $1.1B Investment & Protection for Zambian Workers – And Why Previous Administrations Failed.
In a defining victory for President Hakainde Hichilema’s economic agenda, the Ministry of Mines and Minerals Development has revealed how its strategic negotiation with International Resources Holding (IRH) achieved what previous governments could not:
1. THE JOBS RESCUE MISSION 
- The existing workforce was retained and 1,900 new jobs have been created at Mopani Mines (contrary to competitors’ plans for potential layoffs of one third of the workforce)
- 3,000 new jobs to be created within 24 months from the date of recapitalization – the largest jobs pledge in Zambia’s mining sector since privatization
- $1.1 billion investment guarantee with strict performance clauses to ensure delivery
“This isn’t just business – it’s about Zambian families,” stated Mines Minister Paul Kabuswe. “Where others saw balance sheets, we saw livelihoods at stake.”
2. REVERSING PAST EXPLOITATION
The deal deliberately corrects historical imbalances:
- 49% government stake (vs. symbolic shares in previous deals)
- No more Glencore dominance (competing bidders wanted their off-take control to continue)
- $1 billion debt write-off cleaning up legacy liabilities
3. THE LOCAL EMPOWERMENT FRAMEWORK
Crucially, this agreement:
- Mandates 60% local procurement once the Local Content regulation passes. This is already being implemented even before the regulation as in 2024 with regards to supplier engagement, 82 % of the 1,089 total suppliers of goods and services to Mopani were local Zambians.
- Links investment phases to Zambian hiring/supply targets.
- Establishes a Copperbelt SME Development Fund from mine royalties.
POLITICAL CONTRAST
Government confirm the rejected bids would have:
- Reduced government to minority partner (all offered <30%).
- Maintained foreign control over mineral marketing.
- Provided weaker job guarantees.
THE FINANCIAL ENGINEERING
The UPND administration:
- Paid $400 million to settle toxic Glencore debt.
- Structured a debt-to-equity swap for the balance.
- Avoided new taxpayer burdens through IRH’s capital commitment.
COPPERBELT IMPACT
Early benefits visible:
- K85 million in overdue payments to Kitwe City Council cleared.
- 1,200 contractors already recalled since November.
- Skills training center to open in Ndola next month.
What This Means Strategically.
Analysts view this as:
🔹 First real test of UPND’s “Zambia First” mining policy.
🔹 Blueprint for future mine negotiations (Konkola next).
OPPOSITION REACTION
While PF officials call it “privatization by stealth,” economists counter that the 49% stake + jobs guarantee makes this the most worker-centric mining deal since independence.
THE ROAD AHEAD
With:
- First production to contribute significantly to the 3million metric tonnes copper production target by 2031.
- Local hiring audits every quarter.
- Supplier development programs launching.
This transaction is a recalibration of Zambia’s entire mining social contract.
Issued by the Ministry of Mines and Minerals Development.
