PF faction president Miles Sampa has petitioned the Constitutional Court to nullify the transfer of a 51% stake in Mopani Copper Mines (MCM or Mopani) to Delta Mining Limited, a subsidiary of Abu Dhabi’s International Resources Holding.
Sampa alleges that the transaction violates Article 210 of the Zambian Constitution, which mandates parliamentary approval of the sale or disposal of major state assets.
ZCCM-IH, owned 87% by the Industrial Development Corporation, an arm of the government, issued additional shares in Mopani to enable Delta to become a strategic equity partner in Mopani.
Sampa claims the transaction is unconstitutional because the transfer did not receive parliamentary approval, as mandated for transactions involving significant state assets.
He alleges that the process was conducted without adequate governance, undermining constitutional principles of accountability and argues that the transaction was framed as a “subscription to shares” rather than a sale to avoid compliance with constitutional requirements.
Sampa seeks a declaration that the transfer is unconstitutional, null and void.
He also seeks a ruling that the Ministry of Mines and Minerals Development breached Article 210 by bypassing parliamentary oversight and wants an order nullifying the transaction and ensuring future compliance with constitutional provisions for state asset transactions.
Mopani, formerly majority-owned by Glencore International, became fully owned by ZCCM-IH in 2021 following Glencore’s exit.
ZCCM-IH assumed a US$1.5 billion debt as a result of the transaction.
To address this financial burden, ZCCM-IH sought a strategic investor through a competitive bidding process, resulting in the issuance of additional 7,181,633 shares, enabling Delta Mining to acquire 51% of the mine in February 2024.
ZCCM-IH retained a diluted 49% stake and three board seats.
The transaction, worth US$1.1 billion included a payoff to Glencore, US$220 million paid at closing,US$130 million in interim financing and US$380 million structured as shareholder loans.
