Namibia’s debt-ridden copper mining company Ongopolo was saved from a severe financial crisis by selling nearly 60% to British company Weatherly International plc. The agreement was signed this week. Weatherly has copper interests in the Luanshya project in Zambia and is listed on the London stock exchange. The British will inject N$180 million into Ongopolo. Some N$60 million is to pay off the undisclosed debt of Ongopolo and N$120 million to buy shares, giving Weatherly altogether a 56% stake. "All remaining debt is to be converted to equity, giving Ongopolo a clean balance sheet and the capacity to expand its existing operations", said André Neethling, managing director of Ongopolo.

The Namibian copper company struggled with its large capital com-mitments at its new mine at Kombat, which affected its ability to sustain production at its other mining sites. "Weatherly is keen to develop the Tsumeb area as a smelting hub for other copper mines in the region", Ongopolo said, "including for Weatherly’s own future copper production in Zambia". Ongopolo has 2 other copper mines apart from Kombat – Otjihase and Matchless, both near Windhoek.