The Green Party Calls For The Sale Of -ZCCM-IH- Shares In The Mines To Liquidate Zambia’s Debt
By Michael Kaluba
Green Party Leader Peter Sinkamba has proposed that Zambia Consolidated Copper Mines Investments Holdings-ZCCM-IH- sales off its shares in the mines to liquidate Zambia’s debt before creditors obtain a global order to seize the country’s assets.
Mr. Sinkamba says the current negotiations for government to take over Mopani Copper Mines from Glencore and the imminent sale of the mine to another investor is not a priority at the moment because funds from the sale will end up going to pay Glencore while the country remains with a debt repayment problem.
He explains that Zambia has not been getting dividends from its shares in various mines for over 20 years hence the need to sale them off to use the money to pay the debt as opposed to acquiring Mopani with a government facing fiscal challenges meant to pay Glencore for its shares.
Mr. Sinkamba tells Phoenix News that Zambia’s fiscal situation is in dire stress and has accused the government of not preparing adequately to pay back loans especially the Eurobond which has led the country to the brink of default.
Recently, Glencore wrote off the value of Mopani by $1.144 Billion in its half-year earnings report in August 2020, saying the estimated recoverable value was US$704 Million, including tax receivables with Mopani’s total liabilities exceeding its total assets by US$2.562 Billion in 2019 while ZCCM-IH’S cash and term deposits together amounted to just over US$43 Million by March 31, 2019.
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