COMPANY NEWS IN BRIEF

Zambia takes US$1.5 bln debt to buy Glencore

Zambia's state mining investment arm ZCCM-IH has agreed to buy Glencore's majority stake in Mopani Copper Mines in a US$1.5 billion deal funded by debt and will seek a new investor, the government said on Tuesday.

The sale follows Glencore's attempt to suspend operations at Mopani last year because of low copper prices and Covid-19 disruptions, prompting a government threat to revoke the company's mining licences.

Zambia defaulted on a debt payment in November, becoming Africa's first pandemic-era sovereign default, but will take on more debt to finance the Mopani deal.

The takeover coincides with Zambia's preparations for elections in August, with President Edgar Lungu courting voters in the copper belt. More than 15 000 workers would have lost their jobs if the mine was closed, Mines Minister Richard Musukwa said.

Glencore said that ZCCM-IH will borrow the US$1.5 billion from Carlisa Investments Corp, a British Virgin Islands-based company through which Glencore holds its stake, and other unspecified members of the Glencore group. - Nampa/Reuters

Vedanta settles Zambia copper mine pollution claim

Vedanta Resources has agreed to settle all claims brought against it by Zambian villagers following pollution by a copper mine run by Konkola Copper Mines Plc (KCM), Vedanta and law firm Leigh Day said on Tuesday.

The claim, centring on pollution from the Nchanga Copper Mine, was brought by more than 2 500 Zambian villagers against KCM Zambia's biggest private employer and its UK-based parent company Vedanta Resources.

"Without admission of liability, Vedanta Resources Limited and Konkola Copper Mines Plc confirm that they have agreed, for the benefit of local communities, the settlement of all claims brought against them by Zambian claimants represented by English law firm Leigh Day," Vedanta said in the joint statement.

The Zambian claimants, including more than 600 children, alleged toxic discharge from the Nchanga mine damaged land and waterways, and were seeking damages, remediation and the cessation of the alleged pollution.

Britain's Supreme Court ruled in 2019 that the case could be brought against Vedanta in the English courts because the company owed villagers a duty of care. - Nampa/Reuters

US agency orders Ford to recall vehicles

Ford Motor Co must recall 3 million vehicles with potentially defective driver-side Takata air bags, the US auto safety regulator said on Tuesday, rejecting a bid by the second-largest US automaker to avoid a recall.

The National Highway Traffic Safety Administration (NHTSA) said it was denying petitions filed by Ford and Mazda Motor Corp in 2017 seeking to avoid recalling vehicles with potentially dangerous inflators. The decision also will require Mazda to recall and repair driver air bags in approximately 5 800 vehicles. The recalls will cover various vehicles from the 2006 through 2012 model years.

The defect, which leads in rare instances to air bag inflators rupturing and sending potentially deadly metal fragments flying especially after long-term exposure to high humidity prompted the largest automotive recall in US history of more than 67 million inflators.

Earlier this month, the auto safety agency said at least 17 million vehicles with Takata air bags remain unrepaired. - Nampa/Reuters

Some US airlines resume pilot hiring

American Airlines’ wholly owned regional subsidiary PSA Airlines and budget carrier Frontier Airlines plan to resume pilot hiring this year, a positive sign for an industry ravaged last year by the coronavirus pandemic but now preparing to ramp up flying.

As Covid-19 vaccines roll out, airlines are hoping for a significant improvement in domestic air travel by the summer, even if demand does not fully yet recoup pre-pandemic levels.

“As we continue to work with American Airlines to identify our flying needs this year, and in combination with recent attrition numbers for our Pilot group, we will be initiating hiring efforts for First Officer team members,” Keith Stamper, vice president of PSA’s air operations, said in a memo reviewed by Reuters.

A PSA spokeswoman confirmed the plans, which also include flight attendant hiring, but said: “We are declining disclosing specific hiring numbers at this time.”

Ultra-low-cost carrier Frontier Airlines, which is owned by private equity firm Indigo Partners, intends to restart recruiting in July, with a plan to hire about 100 pilots this year provided passenger demand recovers, a spokeswoman told Reuters. - Nampa/Reuters

Disney cuts bonuses for top executives

Walt Disney Co said on Tuesday it had eliminated performance-based bonuses last year for top executives, including Executive Chairman Bob Iger, as the media company looks to soften the impact of the Covid-19 fallout.

The pandemic dealt a major blow to the company’s theme parks and movie studio business, while people sheltered at home during the lockdown pumped up sign-ups on its Disney+ streaming service.

Iger received a total compensation of US$21 million for fiscal year 2020, significantly lower than the US$47.5 million he had received in the prior year, Disney disclosed in a regulatory filing.

The compensation package of Chief Executive Officer Bob Chapek, who took on the role last February, totalled to US$14.2 million.

Last year, Disney said Iger would forgo his salary while Chapek took a 50% pay cut amid the coronavirus crisis. - Nampa/Reuters