Friday, March 29, 2024

Kabwe mine offered to South African firm

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ZCCM -Investments Holdings (ZCCM-IH) Plc has offered Kabwe Mine to Alberg Mining and Minerals Limited, a South African mining firm.

The Zinc mine in Kabwe has been closed since 1994.

ZCCM-IH chief executive officer, Joseph Chikolwa announced in a statement in Lusaka the ZCCM-IH offer for sale of its retained assets of the Kabwe mine to Alberg Mining and Minerals Exploration.

Mr Chikolwe said ZCCM IH would soon commerce negotiations with Alberg Mining and Minerals Limited on the terms and conditions of sale for the retained Kabwe Mine assets.

He noted that value for the mine would be subject to negotiations that would take into account the assets to be sold and provision for environmental liabilities in case of default.

Mr Chikolwa said ZCCM-IH has been implementing rehabilitation and decommissioning plan for the mine since its closure.

He also said that some of the retained assets that were part of the rehabilitation and decommissioning plans have drawn interest from several mining companies who showed interest in reopening of Kabwe Mine.

“The upturn in the base metal prices of Lead and Zinc has changed the value of these assets in Kabwe and hence the interest of developers,’’ he said.

Mr Chikolwa said the opening of the mine expected in December next year meant economic emancipation of Kabwe town, which has seen economic decline since the mine closed down.

“It is our sincere hope that developers will move quickly to create the much needed jobs for the people of Kabwe,’’ he said.

Recently, Perilya Limited, an Australian based mining company was quoted by Mineweb as having embarked on a feasibility study aimed at determining the revival prospects for Zinc production at the mine.

The study was expected to be concluded by mid 2008.

According to Perilya Limited, should the study come out positive, the company would ensure that production starts by 2009.

But, Mr Chikolwa noted that when tenders for the development of the mine were advertised, bids were received from only five mining companies.

Companies that bidded for Kabwe mine include, Alberg Mining and Mineral Limited, Congo Border Resources, Ilifa Commodities Limited, Leopard Exploration & Mining and Pochy Mining Limited.

He said a standard process was applied to select developers who expressed interest in the reopening of Kabwe Mine.

The criteria used in the selection of the successful developer included the processing ability of the developer, response to environmental issues and ability to finance operations.

Other criteria that ZCCM-IH looked at included ability to finance environmental remediation and local participation by Zambian citizens.

6 COMMENTS

  1. Tiyeni tuleshitishe chalo fino fine, we’ll definitely pay the price some day. Abakwato lupiya busy investing pa south and overseas instead of ploughing back that money into our economy(if we do have one)

  2. Alot of reasons were given for the closure of the Kabwe Mines one among them being the mines were flooded. Now there is a newer reason for opening them beacause Lead and Zinc are fetching well internationally. Looks bogus to me. These seem to know how to trick us at every turn with new lies in offing. Shame on you!!!

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