This was posted to Stockhouse
Zambia says First Quantam bids for Nkana mine
By Manoah Esipisu
LUSAKA, Nov 1 (Reuters) - Zambian officials said on Monday that Canada's First Quantum Minerals was one of three companies that have submitted bids for the purchase of Nkana copper mine, a key asset to be sold in Lusaka's privatisation programme.
Mines Minister Syamukayumbu Syamujaye also told a news conference that talks with Polish concern KGHM for Zambia Consolidated Copper Mines' (ZCCM) Mufulira division would be concluded and an announcement made this week.
``We expect to complete the sale of Mufulira to KGHM by the end of the week,' Syamujaye told reporters.
He also said he saw a decision on Nkana coming ahead of schedule.
``If it were done in a week's time I would be very happy,' said Syamujaye, who has set November 30 for the conclusion of the talks and December 15 for announcing the bid winner for Nkana.
Last week, Zambia ratified an agreement under which a subsidiary of Anglo American Plc (quote from Yahoo! UK & Ireland: AAL.L) will take an 80 percent stake in ZCCM's Nchanga and Konkola divisions and Nampundwe mine.
ZCCM will receive $30 million in cash upon closure of the deal on January 31, 2000, and another $60 million in deferred paymement.
``We are burning the midnight oil in Lusaka, Johannesburg and London to ensure a speedy resolution of the outstanding issues,' he said.
Syamujaye said that First Quantum Minerals had also put in a bid for Nchanga, which was being considered despite Zambia's heads of agreement with Anglo American.
Nkana and Nchanga are Zambia's biggest copper operations and account for 65 percent of the output of largely state-owned ZCCM.
Anglo plans to invest about $208 million to refurbish the mines and another $523 million is slated to develop the rich Konkola Deep project.
Copper mining is one of Zambia's largest employers and accounts for 85 percent of its foreign currency earnings.
But the mines had been in steady decline since the 1970s and desperately need foreign investment.
Copper output has dropped to about 250,000 tonnes annually from a peak of over 700,000 tonnes in the early 1970s. |
