Executive Insight talks with CEO Charles Sakanya about the positive impact of their partnership with IRH and how this will secure the future development of their world-class assets.
With a new strategic equity partner, Zambian company Mopani Copper Mines PLC, one of the biggest copper exporters in the world, is set to significantly expand its operations, ensuring its continuing contribution to Zambia’s economic development.
Zambia, in southern Central Africa, has been a mining powerhouse for well over 100 years and is one of the largest copper producers in Africa. Mining is crucial to the Zambian economy and generates three-quarters of Zambia’s export earnings. The main copper mining region in Zambia is the Copperbelt Province, centred on the cities of Kitwe and Ndola.
Inara Investments has carved out a pivotal role in Zambia’s economic advancement by expertly channelling strategic investments across varied sectors. Its remarkable distinction in the bustling Zambian economy stems from its proficiency in logistics—a crucial factor that greatly enhances its influence.
As the linchpin of any prosperous investment initiative, logistics is where Inara shines. The company has established a robust logistics system tailored to facilitate seamless operations, reduce costs, and guarantee the timely delivery of goods and services, thus boosting efficiency and investment returns.
Navigating Zambia’s distinct geographic and infrastructural complexities, Inara Investments employs stateof-the-art technology and forges strategic alliances to surmount logistical challenges. Its strategy encompasses the optimization of routing plans, the adoption of real-time tracking for in-transit goods, and the application of predictive analytics to avert disruptions. Significantly, Inara also prioritizes sustainable logistics, integrating environmentally friendly practices and technologies to diminish its ecological footprint.
These sophisticated logistics approaches, when merged with Inara’s investment activities, not only enhance its venture outcomes but also materially aid in building Zambia’s economic infrastructure. Inara’s logistical expertise positions it not just as an investor, but as a catalyst for efficiency and growth, leading to a more interconnected, robust, and thriving Zambia. By combining astute investment insight with logistics innovation, Inara Investments is actively sculpting Zambia’s economic future.
Inara Investments Limited is a leading provider of end-to-end logistics service solutions across Eastern, Central, and Southern Africa. Inara offers a comprehensive set of services, including warehousing, transportation, and customs clearing. Our transportation and haulage services span across Zambia, Tanzania, the Democratic Republic of Congo, Mozambique, and Namibia.
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This is also where Mopani Copper Mines PLC (MCM) started nearly a century ago, and developed, in various forms and under various owners, to emerge as a significant mineral supplier to the world’s manufacturers, concentrating its operations in the Kitwe and Mufulira districts of the Copperbelt.
Zambia has also seen copper mining companies setting up operations in the North West Province as evidenced over the last decade.
With a rich history in mining and processing dating back to the 1930s, Mopani’s assets in Kitwe and Mufulira include underground mines, concentrators, a smelter and a refinery. The company continues to upgrade its infrastructure by investing
in new technologies to increase production and improve efficiencies.
The new infrastructure includes three deep shafts (Synclinorium, Mindola and Henderson), which were sunk and equipped between 2014 and 2021 to extend the life of the mine by over 25 years, safeguard the existing jobs at both mine sites and ensure Mopani’s continuous contribution to Zambia’s economic development.
Over the last few months, the company has undergone a significant change. Until very recently, Mopani Copper Mines PLC was owned by ZCCM Investment Holdings PLC, which assumed ownership of the company in 2021 after buying off the majority stake from Carlisa Investments – a joint venture
Timaja Drilling, a prominent company based in Zambia, has carved a niche for itself in the field of drilling and exploration services, significantly contributing to Zambia’s growing mining and water management sectors. As a key player in the industry, Timaja Drilling specializes in providing comprehensive drilling solutions, including exploration drilling, borehole drilling, and water well drilling, catering to both the mining industry and agricultural sectors.
In the mining sector, Timaja Drilling plays a crucial role by offering exploration drilling services that are fundamental for mineral exploration. Their expertise enables mining companies to locate and delineate mineral deposits, which is a critical step in the mining process. By utilizing advanced drilling techniques and stateof-the-art equipment, Timaja ensures efficient and effective exploration activities, thereby aiding Zambia’s status as a major mining country with rich deposits of copper and other valuable minerals.
Moreover, Timaja Drilling is deeply involved in enhancing water accessibility through its borehole and water well drilling services. Their commitment to utilizing sustainable drilling practices further underscores their role in promoting environmental stewardship and supporting Zambia’s agricultural development.
Through its diverse range of drilling services, Timaja Drilling not only supports the mining and agricultural industries but also contributes to the socio-economic development of Zambia. Their dedication to quality, safety, and environmental sustainability positions Timaja as a key contributor to Zambia’s growth and development in these sectors.
As such, the Company monitors the appropriate IMS (Integrated Management System – ISO 45001:2018, 14001:2015 and 9001:2015) and discard the obsolete Safe Working Procedures and replace with the updated ones to suit the international Standards.
between Swiss commodity trader Glencore and Canadian-based First Quantum Minerals – which ran Mopani from its privatisation in 2000.
Since assuming control of Mopani from Glencore in 2021, Zambia has actively sought a new investor for the assets. The search was completed in December 2023, when the government selected United Arab Emirates’ International Resources Holdings (IRH) as the new strategic equity partner in Mopani Copper Mines PLC. Through its subsidiary, Delta Mining Ltd, IRH has committed $1.1 billion for a 51% interest in Mopani.
“The transaction was ultimately closed and took effect at the end of March 2024, with Zambia’s president officially making the announcement to the general public,” says Mopani’s CEO Charles Sakanya, explaining that the investment will primarily help with short-term working capital and finance the completion of the expansion projects to unlock Mopani’s long-term potential.
He affirms that the future of Mopani lies in the expansion projects that the company has been
undertaking since 2013. “As a proudly Zambian mining company, our desire is to continue investing in infrastructure development and our employees to ensure we make Mopani a world-class mining operation. The expansion projects, worth some $400 million, are expected to resume short-
ly with the ultimate objective to increase annual production from 3.5 million tonnes of ore to some 8.5 million in the next 6 to 7 years.”
He himself has witnessed the company’s turbulent development first hand. An accomplished
mechanical engineer with over 39 years of mining engineering experience in Zambia, Canada, South Africa, , Australia, and Kazakhstan, and a former president of the Engineering Institution of Zambia (EIZ), he joined MCM in 2004 when he returned from abroad.
Prior to his appointment as MCM’s Chief Executive Officer in 2020, he was Chief Engineer at Mopani. Having worked at Konkola Copper Mines, Hudson Bay Mining and Smelting Company (Canada), Nkana Mine, and other locations, he possesses the extensive knowledge and experience needed to steer Mopani to new heights.
“Back then, it was a good decision to come back to Zambia, and it’s been a privilege to participate in Mopani’s development. We have some exciting times ahead, with the new investor committed to supporting business growth,” he says.
Looking back at the difficult years, he reflected that even when Glencore left in 2021, the management always believed in Mopani’s future. “Instead of worrying about the company, we knew a major partner was on the horizon. We sat back and drew our vision – not something one would normally do when they are waiting for an equity partner, but we were determined to plan for the completion of the expansion projects and envisaged a successful outcome.”
The operations in the mine are well established. Mopani owns the Mufulira ISA smelter, where concentrates coming from Mufulira and Nkana concentrators are blended with toll concentrates from other sources to produce copper anodes containing 99.6% copper.
The upgraded smelter is equipped with two acid plants; the operating one captures up to 95% sulphur dioxide and converts it to sulphuric acid as part of Mopani’s commitment towards maintaining a clean atmospheric environment. The second acid plant will have to be upgraded from a single contact and single absorption plant to double contact and double absorption to treat increased gas flows when production is ramped up after completion of the expansion projects.
Further down the line, Mopani’s refinery has the capacity to produce 225,000 tonnes of copper cathode per annum. At the refinery, copper anodes coming from the smelter are electro-refined to produce cathodes with 99.999% copper, conforming to LME grade ‘A’.
Our stateof-the-art
Centre (MCTC), a project worth $21 million that was accomplished under Glencore ownership, is one of the best miningorientated training facilities in Zambia and beyond
Mr Sakanya affirms that the investment is aimed not only at increasing production but also at adding value. “New technology will enable us to convert copper cathodes into copper rods and wire bars to be exported to global manufacturers, primarily for EV production and other associated products. When we add renewable energy to the offering, Mopani’s product, widely reputed to be the purest copper in the world, can sell at a premium for almost $185 per tonne.”
Mining technology is not the only area that the investment is to cover – environmental measures are just as important. With less rain as a result of climate change, the company is considering installation of photovoltaics to supplement traditional hydropower, so far the major energy source in the country. In addition, Mopani is looking at making use of its important by-product, sulphuric acid, to produce fertilisers, a substantial percentage of which is currently imported into Zambia, thus contributing to supporting local agriculture.
Mr Sakanya points out that with regards to its waste, Mopani is now in a process of initiating a major project for slag processing and recovery and has moved from tailing dams to tailings buttressing, again important steps to save resources and the environment.
While investing in growth and environmental measures, Mopani remains committed to supporting the social-economic development of the host communities through its robust Corporate Social Responsibility (CSR) programmes.
The company supports the development of sports, local enterprises, education, health, basic infrastructure as well as water and sanitation in the communities of Kitwe and Mufulira, and is well-known for its focus on training and human resources development.
“Our state-of-the-art Mopani Central Training Centre (MCTC), a project worth $21 million that was accomplished under Glencore ownership, is one of the best mining-orientated training facilities in Zambia and beyond,” says Mr Sakanya.
The training centre offers long- and short-term courses in mechanical, metallurgical and mining engineering, and has both full-scale underground and surface simulations so that all theoretical courses are also seen and experienced in practice on-site. The Zambia Chamber of Mines, an association of all mining companies, has mandated MCTC to train all Mine Rescue proto teams in the country while the Zambian government continues to sponsor thousands of youths under its skills development programme and fiscal decentralisation scheme, the Constituency Development Fund for training at MCTC.
“The Centre attracts students from across the sub-region and from as far as Liberia in West Africa. We have students from Botswana this year. . We are also working with the Chamber of Commerce of Germany on both course design and preparation for future student exchanges and skills transfer.”
It goes without saying that the company’s own staff are
also trained at the Centre, and Mr Sakanya acknowledges that Mopani is proud of its high calibre employees. “The vast majority of our 5,500 employees are Zambians and highly-skilled, with many educated abroad.”
The focus on enhancing local skills is strong, he affirms. Mopani has implemented various reforms to its supply value chain programme to promote inclusiveness and fairness as well as to create opportunities for increased local participation under its new deliberate ‘Buy Local, Buy Zambian’ policy. Foreign contractors are used only for highly specialized works while the rest of the goods and services are procured locally.
“We want to grow our local supplier base, which today includes nearly 3,000 companies, and also want to support Zambian manufacturers. Investing in Zambia and its sustainable development is what drives us forward, and is the purpose of expanding our operation.”
It is evident that the coming months will be both exciting and challenging for the company,
with many tasks to be accomplished within a relatively short time frame. Mr Charles Sakanya, an experienced, well travelled and internationally educated leader, is aware that succession planning, and developing talented individuals into the next generation of industrial and economic leaders, will be an integral part of the way forward.
What would he say to young enthusiasts striving to lead prosperous businesses into the future?
“My advice is simple – when you get an opportunity to perform a task, do it to the best of your ability. A good understanding of the business is key, and start from the bottom up – engagement with the shop floor is essential, as sometimes the best solutions come from the bottom.”
“Stay abreast with technological advances, work smarter, not harder, and have an open mind. The higher you go, the more you need to open up your horizon,” he says, affirming that supporting and growing the next generation who will face up to the challenge of taking over the baton, will be essential for Mopani’s continued success and growth.
