ZCCM-IH defends Mopani share deal, says no state asset was sold

ZCCM Investment Holdings Plc (ZCCM-IH) has defended the 51 percent share transaction in Mopani Copper Mines Plc to Delta Mining Limited, arguing before the Constitutional Court that the deal was lawful and did not require approval from Parliament.

In an affidavit filed on July 14, ZCCM-IH Chief Executive Officer, Kakenenwa Muyangwa, submitted that the transaction was not a sale or disposal of a state asset, but rather a strategic move to recapitalise Mopani through the issuance of new shares.

The submission was made in response to a petition by Matero Member of Parliament, Miles Sampa, who is seeking a declaration that the transaction was unconstitutional and should be declared null and void.

Sampa had cited the Attorney-General, ZCCM-IH, Mopani, and Delta Mining as respondents in the matter.

Muyangwa, however, argued that Delta Mining subscribed to 7,181,633 newly issued and previously unallotted shares in Mopani.

Prior to this transaction, ZCCM-IH had acquired 100 percent ownership in Mopani following Glencore’s exit.

However, the issuance of new shares to Delta diluted ZCCM-IH’s stake from 100 percent to 49 percent.

He stated that ZCCM-IH retained its original 6.9 million shares in Mopani and that the newly issued shares did not involve the sale of existing government-owned shares or assets.

As such, Muyangwa argued, the deal did not require legislative approval.

“The second respondent obtained the legal opinion of the Attorney-General before proceeding, and the opinion confirmed that the transaction was lawful,” the affidavit stated.

Muyangwa argued that the deal brought in critical capital to Mopani, helping to secure its operational viability and protect national economic interests.

He added that Mopani was not a parastatal and that the Government of the Republic of Zambia hold no direct equity in the company, thereby reinforcing that the transaction did not constitute the disposal of a state-owned enterprise.

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