KCM Financial Advisors Begin Search For Long-Term Finance
Konkola Copper Mines (KCM) has announced that its financial advisor, Rand Merchant Bank (RMB), has commenced the search to provide long-term finance.
On September 28th KCM announced the appointment of the financial advisor in order to bring the company back into full operation following months of uncertainty.
Ms Nair, the provisional liquidator for RMB, is hopeful that she can oversee the revival of KCM. “We are optimistic that this process will fulfil the objectives to ensure KCM operations step up to the next level through the implementation of key projects such as the Konkola Deep Mine to desired levels of production.
RMB won the government tender ahead of ten other local and international firms which were invited to participate in the process. The RMB team is currently collecting information at KCM and conducting meetings with senior management figures in order to properly value the company’s assets. Further, RMB has set up a dedicated service to deal with questions from potential investors.
KCM is seeking to increase its proportion of the country’s forecast copper production of 3 million tonnes. Instrumental to the growth of KCM is the Konkola Deep Mining Project. The project requires $1.2 billion USD of investment in order to construct additional pump chamber facilities in order to unlock new areas within the rich ore reserves.
KCM has released the following statement: “In relation to the appointment of Rand Merchant Bank (RMB) as financial advisor to Konkola Copper Mines plc (KCM), the Company is pleased to inform stakeholders that RMB has commenced preliminary works at KCM leading to the search for a provider of long-term financer has been appointed through the Government’s efforts to secure medium to long-term funding for KCM. The RMB team is currently collecting information and data at KCM and conducting meetings with Management to enable the team to commence the valuation of the asset. The banker is also setting up a data room to assist in dealing with queries from potential providers of long-term funding,” Nair said on Tuesday.
“The Merchant banker will also attend to enquiries already received from entities that have indicated willingness to meet KCM’s long-term financial requirements,” commented the KCM Provisional Liquidator.
Historic uncertainty surrounding the ownership of Mopani and KCM has hindered capital injection into the mines. President Hichilema has recently criticised the Patriotic Front (PF) regime for liquidating KCM and purchasing Mopany Copper Mines from Glencore.
Zambia has recently agreed with Vendenta Resources Limited to pause hearings on their dispute over KCM in order to seek an “amicable settlement”. Hichilema has emphasised the New Dawn government is restoring sanity in the mining sector that was left in disarray by the PF.
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