Lusaka - Zambia: Good morning Sir/Madam My name is Chileshe, NRC No. /6 /1 and live in Luanshya in the Copperbelt Province. I started work and contributions in 1988
Zambia mortgages the future by taking over Glencore copper debt
State-owned Zambia Consolidated Copper Mines Limited (ZCCM) this week agreed to take on $1.5bn of debt and pay a nominal $1 to take over a 73% stake in Mopani Copper Mines from Swiss commodities trader and mining company Glencore.
The agreement adds to the debt liabilities of a country that in November became the first African country to default during the COVID-19 pandemic. ZCCM will repay the loan by giving Glencore creditors 3% of Mopani’s revenue to 2023, which then rises to between 10% and 17.5%.
That’s on top of quarterly interest of LIBOR plus 3%, and a requirement for ZCCM to pay 33.3% of earnings before interest, taxes, depreciation and amortization (EBITDA), less some deductions.
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