LUSAKA, Dec. 1 -- Zambia has selected International Resources Holding Limited from the United Arab Emirates (UAE) as a strategic partner for Mopani Copper Mines, a senior government official said Friday.

The company, an affiliate of Abu Dhabi-based conglomerate International Holding Company, has been chosen as a strategic partner, said Minister of Mines and Minerals Development Paul Kabuswe, adding that it will inject funds to stabilize the Zambian mining firm in the short term.

This strategic partnership would also oversee the completion of mine development and unlock its long-term potential, Kabuswe said in a statement during a press briefing.

He said that this collaboration would lead to the restructuring of the mine's balance sheet. "We will provide further details on the planned restructuring once all the documentation has been finalized."

Kabuswe highlighted that the capital investment and industry expertise of both partners would enable Mopani to realize its long-term potential, aiming to increase copper production to at least 200,000 tons per year.

He stressed the government's commitment to ensuring that Mopani achieves its optimal production levels, becoming a leading copper producer in the country, and contributing to the national target of reaching 3 million tons of copper production annually by 2031.

Since assuming control of Mopani Copper Mines from Glencore in 2021, Zambia has been on the lookout for a new investor for the assets, following an agreement to pay the Swiss commodities company 1.5 billion U.S. dollars in a debt-funded deal.