Africa-Press – Zambia. Former Economic Association of Zambia (EAZ) president Lubinda Habazoka has observed that the Mopani Copper mines deal by government will catapult into inflow of forex into the country.
Dr Habazoka says the hand over majority shares of Mopani Copper mines to an equity partner, International Resources Holdings (IRH) by government is a welcome move he adds will enhance the needed liquidity in the country.
He explains that the International Resources Holdings is a serious and renowned company which will put in a lot to grow the 51 percent shares by growing the mine to a profitable status.
Speaking in an interview in Kitwe, the local economist said the revival of Mopani will bring in the much-needed forex and stabilize the financial fundamentals such as the local currency performance against the U.S Dollar once exports are escalated.
“International Resources Holdings is a big company and its acquisition of the majority shares in the mine will compel it to escalate the business operations as such this will bring in more forex into the country, the country will also gain through mineral royalty tax as it may not pay much in corporate tax in the short term,” he said.
The new investor will give more business opportunities to local suppliers so that there will be cash flow in the local communities. Equally, financial analyst Trever Hambayi noted that the coming of the investor at Mopani will create jobs for a lot of people that were retrenched.
Mr Hambayi also noted that the development will also boost business for other businesses as the mine operations will ensure liquidity in the province. He was optimistic that once in full operation, Mopani Copper Mines will push up the country’s overall revenue generation.
Recently, President Hakainde Hichilema officially handed over 51 per cent of Mopani Copper Mines to International Resources Holdings, a United Arab Emirates company, as an equity partner. The development has cheered various stakeholders who are optimistic that the development will lead to a positive turnaround of the Copperbelt.
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