Miles Sampa, a Zambian opposition lawmaker for Matero, has initiated legal proceedings against the Zambian government concerning the 2024 sale of Mopani Copper Mines to International Resources Holding (IRH), an Emirati firm. Sampa argues that the transaction violated Article 210 of the Zambian Constitution, which mandates parliamentary approval for the disposal of significant state assets. He contends that the deal, structured as a subscription of shares rather than a direct sale, was a deliberate attempt to circumvent constitutional safeguards.
Sampa has requested the Constitutional Court to declare the transaction unconstitutional, null, and void, and to order its reversal, returning Mopani Copper Mines to the Zambian people. He emphasizes that the substance of the transaction, rather than its form, should determine its legality and adherence to the constitution. The lawmaker also seeks an order for the government to ensure future transactions involving major state assets strictly comply with constitutional provisions, particularly those requiring parliamentary approval and public accountability.
The transaction, approved by ZCCM-IH shareholders on February 27, 2024, involved IRH acquiring a 51% stake in Mopani. The financial terms included an equity component valued at $620 million, with $220 million payable at closing. Additionally, $130 million had been advanced as interim financing, and a further $380 million was structured as a shareholder loan. Proponents of the deal aimed to ensure Mopani’s long-term operational sustainability, expand its annual production capacity to 200,000 tonnes of copper, and extinguish Mopani’s $1.5 billion debt, which ZCCM-IH had guaranteed.
ZCCM-IH, the Zambian state-controlled entity that previously wholly owned Mopani, has been joined as a party to the Constitutional Court matter. The company is contesting the petition, asserting that the Mopani transaction did not fall under the purview of Article 210 of the Constitution. Meanwhile, IRH Zambia has stated its intention to keep all copper concentrate output local, feeding it into its processing operations, despite being granted a waiver to export semi-processed copper. The Emirati firm is also reviewing investment plans for Mopani with ZCCM to finalize recovery efforts at the mining site.
