Africa’s largest copper producing nation, Zambia, has agreed to sell its stake in 2.28% stake in Equinox Minerals for $160 million. This is part of Barrick Gold Corporation’s unconditional approval for taking over Equinox Minerals.
The money generated from the sale will be used to finance other mining interest as per the Finance Minster Situmbeko Musokotwane. He added that part of the money would be used to pay off state owned mining company Consolidated Copper Mines Investment Holdings Plc’s debt.
Minster Situmbeko Musokotwane was speaking on phone from Lusaka when he made the statement. He did not however mention which mining projects they were looking to invest in. As the deal goes through Barrick Gold Corporation will take over the Lumwana mine in Zambia as well.
Initially the government had resolved to keep its 2.28% stake in Equinox Minerals but the new owners were reluctant to agree to the condition. The back step by the government has not gone unnoticed in parliament where a demand for the decision to sell its stake is being sought by interested members of parliament. Opposition members feel that the money may end up being spent on election campaigns rather than in sensible mining ventures as investment.