By Isaac Zulu
Andyford Mayele Banda has in accordance with the recently enacted Access to Information (ATI) Act demanded full disclosure of the investor in Mopani Copper Mines (MCM), which he says has no traceable operations of any sort including in mining.
In a letter dated December 26, addressed to the Chief Executive Officer of ZCCM-IH, People Alliance for Change (PAC) president Banda stated that there are some gaps in the profile of International Resources Holdings of Abu Dhabi, stating that his preliminary checks have revealed that International Holding Company has nothing to do with International Resources Holdings and they do not have any mining business in the sector.
“Firstly, congratulations on finally finding a strategic equity partner in Mopani Copper Mines. This is indeed great news for Zambia and the people of Mufulira. We hope that this deal is completed and that the new partner moves on site as soon as possible to inject the much needed capital and human resource. In as much as this may be exciting, it is also concerning as we have noticed some gaps in the profile of the International Resources Holdings of Abu Dhabi. For starters when the deal was announced to the nation, I the undersigned personally tried to look them out on the internet and couldn’t find them anywhere. The closest I could find was International Holding Company which from preliminary checks has nothing to do with IRH and they don’t have any business in the mining sector,” Banda stated. “After the deal was announced on Friday by the President, I rechecked again and found the website with so many gaps and just generic information. It is for this reason that we have been compelled to write your office to request for more information which definitely must have within your custody looking at the fact that you completed your due diligence. As a publicly listed company with government owning 75% of the shares and the recent passage of the Access to Information Law, we would appreciate if you can furnish us with more information on your preferred strategic partner in the interest of the public and other private stakeholders.”
He further stated that the strategic equity partner that has been identified for Mopani Copper Mines has no traceable operations of any sort including mining, value addition, commodity trading as well as refinery as claimed by their website.
“Who are the shareholders of IRH to minute detail? What I mean if it’s a corporate body, we want to know all the shareholders of the corporate bodies to the minute detail. This must be accompanied by documentation. We noticed that the company has no traceable operations of any sort including mining, value addition, commodity trading, refinery and other areas as claimed by their website. From your due diligence, kindly provide information they provided you with as regard to experience and their areas of operations. When was the company incorporated in Abu Dhabi? The announcement indicates that IRH will leverage on the experience of subsidiaries. Who are the subsidiaries? How come they are not named on the website? Which mines are they running? And a question for you ZCCM-IH, especially the team that was conducting the due diligence, did you physically visit any of these subsidiaries they claim to have? Who are the top management/key people and what experience do they possess in running and resuscitating operations?” he queried.
He pointed out that Mopani Copper Mines is a critical asset that requires a right strategic equity partner with proven track record and capital.
“We would like to dig into their five year financial statements which I must assume you have as an investor of this magnitude you need to do at least 5 years’ assessment of their financials. The announcement indicates that IRH has 120 professionals. What does this mean? Are they consultants or who do they work for? Who owns the mines where the 120 professionals operate from? I am sure you understand that Mopani Copper Mine is a critical asset for the country with proven material deposits. It is for this reason that those the President entrusts with such a task they care to find the right strategic equity partner with proven track record and capital,” stated Banda.
