Zambia’s state miner accuses Abu Dhabi’s IRH of breaching Mopani deal, threatens arbitration

Lusaka turns up the pressure on IRH: Zambia’s state-owned ZCCM Investments Holdings (ZCCM-IH) accused Abu Dhabi’s International Resources Holding (IRH) of breaching the agreements behind its takeover of the Mopani copper complex, warning that it might seek damages or go to arbitration, Bloomberg reports, citing a copy of a letter from ZCCM-IH CEO Kakenenwa Muyangwa to IRH unit Delta Mining.

REFRESHER- IRH took control of Mopani in March 2024, completing its purchase of a 51% stake from ZCCM-IH, which kept the other 49%. It was IRH’s first investment. The Emirati firm agreed to pay USD 620 mn for the stake in installments. It also extended shareholder loans that let Mopani settle its debts to Glencore, which had run the mines until ZCCM-IH bought them for USD 1 in 2021. Glencore received more than USD 400 mn when the transaction closed.

The letter makes four charges, according to Bloomberg:

• #1- Funding: Delta’s payments into Mopani in 2025 fell USD 61 mn short of the required minimum. ZCCM-IH says it knows of no transfers toward Delta’s USD 140 mn funding obligation for this year. The letter also objects to “unapproved (high cost)” debt taken on from related parties and third parties;
• #2- Capex: By the end of March, Mopani has spent only USD 62.3 mn of its USD 308.1 mn project development budget, or c. 20%;
• #3- Contractors: The letter says some contractors lack the expertise to do the work they were hired for;
• #4- Output: Copper cathode output last year fell more than 50% short of the business plan. Mopani produced just over 5k tons in June. That is an annualized pace of c. 60k tons, a fifth of IRH’s target of 300k tons a year by 2029.

IRH denies there is a rift. A spokesperson said the two sides “maintain a strong and constructive relationship.” The spokesperson added that any partnership will have “shortcomings on either side” and that these would be handled through normal engagement between shareholders. ZCCM-IH has asked Delta to a consultation meeting and says it prefers an amicable resolution, but it added that it will “not hesitate to invoke the full range of contractual rights and remedies available to it” if needed.

Zambian President Hakainde Hichilema’s public line was warmer, but it came with conditions. Hichilema met IRH CEO Ali Rashed Alrashdi on the sidelines of a two-day working visit to Abu Dhabi on Monday, he said on Facebook. He called Mopani central to Zambia’s target of 3 mn tons of copper a year and pressed for a ramp-up of production, even as he expressed encouragement over Mopani’s progress.

Zoom out

Mopani was the first step in a wider IRH push into African critical minerals. A month after closing the Mopani transaction, IRH made a non-binding offer of more than USD 1 bn for Vedanta Resources’ 51% stake in Zambia’s Konkola Copper Mines (KCM). IRH was also reportedly looking at EMR Capital’s 80% stake in the nearby Lubambe Copper Mine, as we’ve noted, although neither acquisition materialized.

IRH has since moved beyond copper and beyond Zambia. In June 2025, it agreed to buy 56% of Alphamin Resources for c. USD 367 mn. Alphamin owns the Bisie tin complex in eastern DRC, which supplies around 6% of the world’s tin. Bisie sits in North Kivu, where advances by M23 rebels forced a temporary halt earlier that year. IRH has also signed a collaboration with South Africa’s Public Investment Corporation covering mining, green energy, and logistics.

Abu Dhabi’s other African mining wager went further before it was resolved. Guinea seized Emirates Global Aluminium’s (EGA) bauxite mining lease last year, accusing the firm of failing to build the alumina refinery it had promised. The two sides settled in May. Under the agreement, Guinea pays a lump sum, and EGA’s local assets go to state-linked Nimba Mining.