Glencore to invest $1.1bn to develop Mopani mine shafts in Zambia

30 March 2016 (Last Updated March 30th, 2016 18:30)

Switzerland-based Glencore reportedly plans to make an investment of more than $1.1bn in Zambia between 2016 and 2018.

Switzerland-based Glencore reportedly plans to make an investment of more than $1.1bn in Zambia between 2016 and 2018.

The latest investment aims to develop Mopani Copper Mines' three copper mine shafts, including Synclinorium, Mindola and Mufulira, to extend their mine life by more than 25 years.

Reuters quoted Mopani Copper Mines saying in a statement: "We firmly believe that we shall be able to overcome the challenges that we face today as a company and become profitable and operationally efficient."

Following the investment, Mopani Copper Mines is expected to turn into a new mining operation by 2023.

"We firmly believe that we shall be able to overcome the challenges that we face today as a company and become profitable and operationally efficient."

Since 2000, Glencore is believed to have invested more than $3bn in modernising infrastructure and capital expansion programmes.

In October 2015, Glencore announced an investment of $950m over three years in a bid to expand operations at Mopani Copper Mines.

The announcement was made as part of the company's plan to lower production costs in Zambia.

Mopani Copper Mines is owned by Carlisa Investments, which is a joint venture company consisting of Glencore International (73.1%), First Quantum Minerals (16.9%) and ZCCM-IH (10%).

Mopani produces and sells copper and cobalt for markets worldwide.

In February 2016, Zambia increased power tariffs for mining companies by 26% in a bid to persuade companies to invest in power generation.