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(HERALD) Back off, Zimbabwe Copper suitors told

Back off, Zimbabwe Copper suitors told
Business Reporter

HULIMIN (Private) Ltd and the Industrial Development Corporation, the shareholders in Zimbabwe Copper Industries, have raised a stop sign to suitors who were targeting a significant stake in the copper processing giant. IDC has a 51 percent controlling stake while Hulimin, a South African company, holds the remainder. Zimbabwe Copper operations director Mr Jan de Beer told Herald Business on Monday that a number of investors had been pursuing the company.

But shareholders preferred to recapitalise the company first before bringing new investors on board.

The company resumed operations in May last year following six years of inactivity. Operations had ceased in October 2000 when it was hit by severe shortages of raw materials. It started operations in 1985.

Zimbabwe Copper Industries is involved in the manufacture of copper products such as refrigeration and plumbing tubes, air-conditioning tubes and solid high conductivity busbars.

The plant, located in the Willowvale industrial area, about 8km southwest of Harare’s central business district, was resuscitated thanks to funds availed by the Reserve Bank of Zimbabwe under its Productive Sector Facility.

Since then, capacity utilisation has significantly improved from only 5 percent to 30 percent. Mr de Beer said the company would focus on enhancing production levels.

To that end, Zimbabwe Copper Industries was seeking offshore loans from foreign financiers to further boost production levels.

"We are currently pursuing offshore funding," said Mr de Beer. "We are doing this so that we will be able to get foreign currency to import pure copper for processing to augment the scrap copper metal that we are currently using. But our capacity has significantly improved since May last year."

He revealed that Zimbabwe Copper Industries was pursuing a toll manufacturing deal with a South African company.

"There is a company in South Africa interested to buy copper products from Zimbabwe.

"Because of foreign currency shortages facing the country, we are looking at an option of them supplying us with raw materials and then we will produce the final product for them," said Mr de Beer.

Sales for the company last year stood at 28 tonnes versus a budget of 495 tonnes. Profit for the year was $61 million against a budget of $113,8 million.

Labels: COPPER

posted by MrK @ 10:44 PM