Trevor, I got this from Reuters on March 3
(LUSAKA)Canada's Colossal Resource corp has suspended operations at its Kabwe Minerals Procesing Plant for re-engineering work, colossal's director for African operations, Nic Money, said on tuesday.
Money said the plant at kabwe, north of lusaka, would be shut down for up to six months.
"the kabwe plant is being shut for between four and six months while the re-enginnering work is being done," Money said.
"the reengineering work has been necessitated be the fact that, at present, only about 50 percent of the stuff we produce is good. It has not been very economical," he added.
Money said the re-enginnering would cost between $2 million and $3 million and would be carried out by an international firm.
The plant, co-owned by Colossal and Zambia's Quasim Mining Enterprise Limited, processes slag left from Zambia consolidated Copper Mines smelter activities to produce a cobalt alloy.
Its water granulated and milled powder product typically contains 10 to 12 percent cobalt and is sold to customers in South Africa, Europe and Asia.
Zambia is the world's second largest producer of cobalt after neighboring Democratic Republic of the Congo.
Copyright 1998 Reuters Limited. All rights reserved
In my opinion the facilities will be disposed of either voluntarily or involuntarily through a liquidation proceeding. They owe a good deal of money to several creditors down there in Zambia. QMEL actually owns the plant and cobalt concession and Colossal owns 60% on QMEL , which s a local zambian company.
Stayed tuned as their should be pending developments from their creditors.
As whether or not it makes sense to but their stock at .125 why not, It wouldn't take much to get it to go back to .25 or .375. Maybe an announcement that they have found a buyer for their South African facility. Best of Luck |
