Abu Dhabi's mining company, International Resources Holding RSC Limited (IRH) has agreed to invest $1.1 billion to boost operations in Zambia's Mopani Copper Mines in return for 51% ownership, with multiple law firms advising the parties involved.

Mopani was previously owned and operated by Glencore, a Swiss mining giant but was taken over by government-owned ZCCM Investments Holdings (ZCCM-IH) through a debt-funded deal in 2021.

Since the government took over, there have been concerns over the future of the mines and the need for a strategic equity partner.

For instance, the mine's output declined in the first half of 2023 and its losses worsened to $196 million in the six months through June—much more than the $120 million loss it incurred in the period prior.

But according to the details of the new agreement with IRH's, the investment includes a $620 million private equity to provide working capital for the mine's operations and a $400 million loan to settle existing debt obligations.

At the closing of the transaction, due by the first quarter of the year, ZCCM-IH will retain a 49% equity stake in Mopani and IRH will own the remaining 51%.

However, the deal is contingent on certain conditions including approval of regulators, shareholders and restructuring of the long-term relationship between Glencore and Mopani.

ZCCM-IH was advised by a cross-section of Baker McKenzie's team in London and Johannesburg led by corporate partner Richard Blunt. White & Case and Linklaters represented IRH and Glencore respectively.

Commenting on the transaction, Blunt said: "We are delighted to have played a part in this exciting transaction, which is testament to the opportunity the Zambian market offers. The energy transition is accelerating and the global race for copper and cobalt is under way."