Zambia's Mopani Copper Mines suffered worsening financial losses and declining production last year, according to state-owned ZCCM Investment Holdings.
In a financial report released late Thursday, ZCCM said its financial losses widened to $298 million from $74.2 million in 2021.
ZCCM said copper production fell to 72,694 tonnes from 87,618 tonnes, affected by a 45-day shutdown of the smelter.
ZCCM, which hired Rothschild & Co last year to find new investors for Mopani, has shortlisted companies such as China's Zijin Mining Group and Sibanye Stillwater to buy Mopani's copper assets, Reuters quoted sources as saying on June 20.
Recommended reading: Zijin Mining, Northern industries into Zambia Mopani copper mine candidate investors; Zambia's Konkola copper mine closes Nchanga smelter.
ZCCM chief Executive Ndoba Vibetti said on Monday that the process of selecting a new investor could be completed within the next two months.
Attracting new investors could help boost the government's plan to triple its output over the next decade. Zambia is Africa's second largest copper producer.
"Mopani's future depends on the planned completion and commissioning of its expansion capital projects, and as these projects are expected to come on stream at full capacity in 2027, the company has plans to ramp up production," ZCCM said.
In 2021, ZCCM bought a 73% stake in Mopani from Glencore for $1.5 billion in a deal financed by debt.
Glencore retains an offtake right on the copper until the debt is repaid in full, with a further advance loan to Mopani in 2022.
ZCCM said Mopani needed $300 million to complete the expansion project over the next three years and increase copper production to more than 200,000 tonnes. During the same period, an additional $150 million was needed to maintain operations.
