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Zambia Claims Interim Victory in Glencore Mine-Closure Fight

Zambia Claims Interim Victory in Glencore Mine-Closure Fight

(Bloomberg) --

Zambia says it persuaded Glencore Plc to reverse what the southern Africa country had called an illegal decision to close its copper mines there. At least for now.

The world’s biggest commodities trader will instead give the government the legally required 90 days notice before placing its Mopani Copper Mines unit under care and maintenance, according to an emailed statement Monday from the mines ministry. Glencore said in a statement that it had submitted a proposal to the government, and that if an agreement was reached it will restart mining operations and notify the government of its intention to mothball the assets.

“The government applauded the gesture of goodwill from Glencore to rescind its earlier decision and opting for dialog,” the mines ministry said.

The announcement could help diffuse a dispute that had rapidly deteriorated after Glencore said it would halt output at Mopani due to falling copper prices and the coronavirus pandemic. The government blocked Mopani Chief Executive Officer Nathan Bullock’s exit from Zambia last week, saying he was attempting to flee the country. Glencore said he was going to see his family in Australia. Bullock is now free to go and will be replaced on an interim basis by Charles Sakanya, according to the mines ministry.

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