ZCCM-IH has accused Abu Dhabi’s International Resources Holding (IRH) of breaching agreements under which the Emirati company acquired control of the Mopani copper mining complex in early 2024, Bloomberg reports. According to Bloomberg, ZCCM Investments Holdings Plc wrote to IRH unit Delta Mining Ltd earlier this month, outlining alleged financial and operational failures, according to […]

ZCCM-IH has accused Abu Dhabi’s International Resources Holding (IRH) of breaching agreements under which the Emirati company acquired control of the Mopani copper mining complex in early 2024, Bloomberg reports.

According to Bloomberg, ZCCM Investments Holdings Plc wrote to IRH unit Delta Mining Ltd earlier this month, outlining alleged financial and operational failures, according to a letter seen by the international news organisation.

The companies co-own Mopani Copper Mines through a joint venture in which Delta holds a 51 percent stake.

“The letter indicates a deterioration in the relationship between the partners since the landmark deal that represented IRH’s maiden investment. It gave the firm, the mining arm of a vast conglomerate headed by a senior member of the Abu Dhabi royal family, access to a large resource of one of the world’s most coveted metals. At the same time, the fresh capital promised to revive the troubled Mopani assets and further Zambia’s ambitions to more than triple copper production,” Bloomberg stated.

Bloomberg indicated that the letter, which ZCCM-IH Chief Executive Officer Kakenenwa Muyangwa wrote to Delta on September 18, raised concerns about the progress of the turnaround project.

ZCCM-IH’s “preferred outcome remains an amicable resolution of all outstanding issues between the parties,” Muyangwa wrote.

However, “in the absence of constructive and good faith engagement,” the state company “will not hesitate to invoke the full range of contractual rights and remedies available to it,” he said.

Bloomberg stated that ZCCM-IH did not wish to publicise the matters highlighted in the letter, preferring to resolve them in private, according to a person familiar with the matter who asked not to be named because they were discussing confidential matters.

President Hakainde Hichilema met IRH Chief Executive Officer Ali Rashed Alrashdi in Abu Dhabi on Monday, the Head of State said in a post on his Facebook page.

Delta and IRH “maintain a strong and constructive relationship” with ZCCM-IH, IRH said. “As with any major partnership and complex operation, there may from time to time be shortcomings on either side or matters that require further discussion,” a spokesperson said by email.

IRH is a subsidiary of International Holding Co., a sprawling US$224 billion group chaired by Sheikh Tahnoon bin Zayed Al Nahyan, whose brother is President of the United Arab Emirates.

“The firm bought its majority interest in Mopani from ZCCM-IH in a deal that required IRH to pay US$620 million in instalments. The company also made shareholder loans which allowed Mopani to settle debts owed to previous owner Glencore Plc,” the article read further.

According to Muyangwa’s letter, ZCCM-IH has noted Delta’s “pervasive and sustained” instances of non-compliance with contractual agreements, which have “resulted in material additional costs and loss of revenue” to Mopani.

The CEO cited “breaches around funding, including failures to make equity funding available as required and unapproved (high cost) related and third party debt being incurred.”

More specifically, those “shortcomings” include spending only 20 percent of Mopani’s project development budget, US$62.3 million out of US$308.1 million, by the end of March and appointing contractors lacking the “expertise and qualifications to perform” the relevant work.

The letter referenced “significant operational underperformance” against the mine’s business plan, alleging that last year’s copper cathode output fell short by more than 50 percent.

Muyangwa also said in the letter that Delta’s payments into Mopani during 2025 were US$61 million less than the minimum requirement, adding that ZCCM-IH “is not aware” of any transfers by the IRH subsidiary to fulfil its funding obligation of US$140 million for this year.

“Mopani operates two sites in Zambia’s Copperbelt Province, including underground shafts, a smelter and a refinery. While the facilities produced only a little over 5,000 tonnes of copper cathodes in June, IRH officials have said they are targeting rapid expansion to reach annual output of 300,000 tonnes in 2029. Those volumes would transform Mopani into one of the biggest sources of copper globally at a time when the outlook for global mine supply is constrained and demand is forecast to surge. Glencore controlled Mopani until 2021, when ZCCM-IH acquired the long-unprofitable assets for US$1 upfront. The Swiss commodity giant received more than US$400 million from the company when IRH completed its takeover,” Bloomberg stated.

According to the letter, Muyangwa has asked Delta to “attend a consultation meeting,” while reserving all available rights, including claiming damages for losses and commencing arbitration proceedings.

IRH said it continued to address any issues with ZCCM-IH “constructively” through the “normal course of engagement between shareholders”.

Spokespersons for ZCCM-IH and Mopani did not respond to Bloomberg’s requests for comment.