Zambia’s ZCCM-IH Accuses IRH of Breaching Mopani Copper Agreements

Zambia’s state-owned ZCCM Investments Holdings (ZCCM-IH) has accused Abu Dhabi-based International Resources Holding (IRH) of breaching key agreements linked to its takeover of Mopani Copper Mines, raising fresh uncertainty around the future of one of the country’s most important copper assets.

The allegations were outlined in a letter sent to Delta Mining, an IRH subsidiary that owns a 51% stake in Mopani, while ZCCM-IH retains the remaining 49%.

According to the letter, ZCCM-IH alleges that Delta failed to provide required equity funding and allowed Mopani to take on expensive loans without the necessary approvals. The Zambian state miner also raised concerns over the pace of project development and the expertise of some contractors involved in the operation.

ZCCM-IH said only $62.3 million of a $308.1 million project development budget had been spent by the end of March, while questions have also been raised over progress against Delta’s funding commitments.

Mopani’s copper production also fell significantly short of expectations. According to ZCCM-IH, copper cathode production in 2025 was more than 50% below the agreed target.

The state miner further alleged that Delta’s payments into Mopani during 2025 were $61 million below the minimum required under the agreements. ZCCM-IH said it was also unaware of any payment towards Delta’s $140 million funding obligation for 2026.

IRH has said it maintains a strong relationship with ZCCM-IH and is addressing the issues through normal discussions between the shareholders.

ZCCM-IH has called for discussions to resolve the dispute but has reserved the right to seek damages or pursue arbitration if the matter cannot be settled.

The dispute comes as Zambia seeks to significantly increase copper production and attract further investment into its mining sector. Copper remains central to Zambia’s export earnings and is a major contributor to the country’s economy.

Zambia ranked as the world’s eighth-largest mined copper producer in 2024, accounting for about 3.6% of global output. The country is targeting higher production in the coming years as it seeks to strengthen its position in the global copper market.

For Mopani, the dispute places renewed attention on funding, production performance and the implementation of its development plans under its current ownership structure.