Mopani opts for plan adjustment

Glencore’s Zambian arm Mopani Copper Mines (MCM) has decided to resume mining for 90 days, though it it is still planning on putting the operations on hold.
Mopani opts for plan adjustment Mopani opts for plan adjustment Mopani opts for plan adjustment Mopani opts for plan adjustment Mopani opts for plan adjustment

Copper cathode at a fellow Mopani mining complex

According to a Reuters report, the miner's initial decision to place MCM on care and maintenance last month was met with opposition from Zambian government officials.

Government officials said the operator could lose its mining licence because it did not give enough notice.

MCM told Reuters is it in talks with the government and will use the 90-day period to look for potential solutions to its "current challenges".

The company said last month it had been impacted by a sharp drop in copper prices in addition to coronavirus virus concerns, and stoppages in international transport and supply chains had also played a role.

"A multisectoral team will work with Mopani to critically analyse the entire mine value chain to structure a survival plan," Mines minister Richard Musukwa told the news service.

Additionally, Zambia government officials are planning to form a conducive investment climate to promote growth and sustainability along with a reduction in costs.

Mopani still has not confirmed when its portfolio could return to normal.