FYI/
Mining News
October 4, 1997
The Government of Zambia has announced that the transfer of the Luanshya/Baluba and Chibuluma mines to Binani Group of India and the Metorex Consortium of South Africa respectively has been accomplished. This is considered a significant accomplishment because of criticisms that the Zambia Consolidated Copper Mines (ZCCM) were not being privatized fast enough. These two mines are operational mines and employ some 7,000 people who produce over 50,000 tons of finished copper and about 1,000 tons of finished cobalt per year. The
Luanshya/Baluba mine is to be known as the Roan Antelope Mining Corporation of Zambia Plc while the Chibuluma assets, including the south ore body, will be called Chibuluma Mines Plc. Marius Bosch reported for Reuter on October 1 that the Kafue consortium
comprising South Africa's Avmin Ltd (AVMJ.PA), Noranda , Phelps Dodge and the Commonwealth Development Corp. is negotiating for the acquisition of ZCCM's Nkana and Nchanga divisions, which reportedly
account for half of ZCCM's production capacity.
Negotiations are also underway to sell off the Mufulira mine. There is also considerable activity underway involving Konkola Deep Mine, and Chambisi Mine.
The Times of Zambia reported on October 3 that the Bwana Mkubwa mine in Ndola will be commissioned in January 1998 and is expected to produce about 10,000 tons of copper cathodes annually for export. Minestone will reportedly be responsible for civil engineering while
Genrec will carry out mechanical, electrical and instrumentation projects. More equipment is expected in November to accelerate construction of the acid and process plant.
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Comment: Despite the fact that Binani is still having difficulties raising the financing, it closed? Looks like the legal option (i.e. injunction) will be pursued re. Luanshya/as reported in an earlier article. Its not a done deal yet!
Also, the Bwana Mkubwa mine will be a real boost to cashflow starting in Jan. The merger or International ballater and FM and the recent financing should generate some additional news in the short term.
DRT |
