Mopani Copper mines Plc is to invest more than KR142, 000,000 ($27,000,000) to upgrade its Nkana Cobalt Plant which will result in an increase in production capacity from 2,800 tonnes to 7,000 tonnes of cobalt metal per annum.

The upgrade will also improve the quality of the metal produced.

Additionally and more importantly, this investment will secure and sustain more than 300 jobs.
 
This project upgrade is critical to Zambia’s economy as the government seeks ways of creating more jobs and sustaining existing ones. The Minister of Labour and Social Security, Honourable Fackson Shamenda, commended Mopani for the initiative. He said:
 
“What Mopani has done is one of the best industrial practices we are looking at as government. I wish all companies could take a leaf from Mopani and invest in production and protect jobs for our people. This is how any responsible company should behave. Some companies are looking at every opportunity to retrench people, but Mopani has shown commitment to creating and sustaining jobs.”    
 
The upgrade of the plant will enable processing of intermediate cobalt hydroxide from third-party concentrates to produce cobalt metal. The Cobalt plant will also have expanded cobalt electrowining capacity, full nickel removal and manganese rejection process and improved filtration technology.

The investment will also facilitate production of a nickel by-product from third party concentrate feed. The plant is expected to be commissioned in June 2014.
 
Mopani Copper Mines Plc Chief Executive Officer, Danny Callow, commented:
 
“I’m happy that our Cobalt Plant will resume operations next year following the approval of KR142, 000,000 investment into the upgrade of the plant. This investment will not only more than double production, but will also secure more that 300 jobs as well as sustain government revenue, not to mention other spillover benefits for suppliers, contractors and the surrounding  communities. The upgrade is in line with our Company’s objectives and government plans to increase investment so as to create more jobs and sustain existing ones. This investment will make a significant contribution to Zambia’s economy.”
 
Kitwe Mayor, Chileshe Bweupe, commented, “The imminent reopening of the Nkana Cobalt Plant following investment by Mopani is the best news we have received so far this year as Kitwe City Council, especially looking at the number of jobs that will be secured and the obvious trickledown effect to the economy of the city.”

He added, “We are confident that with such investment as Mopani is making in Kitwe, the future of our city is secured. We can breathe a sigh of relief that we are not hearing about job losses, instead jobs are being secured. Well done to Mopani. We will continue to partner with Mopani in the development of our City.”

The Zambia Chambers of Commerce and Industry ( ZACCI ) has urged the Zambia Consolidated Copper Mines Investment Holdings ( ZCCM-IH) to take over the operations of the embattled Collum coal mine.

ZACCI Vice President –South Chabuka Kawesha says his organization ZCCM-IH should consider taking over operations to ensure continuity of all operations at the coal mine.

“ ZCCM-IH must address the flows that lead to government’s decision being that of repossessing the mine, “ he said.

ZANIS reports that Dr. Kabwesha said this in a statement in Lusaka , today.

He explained that operations of Collum coal mine as represented through various media reports over the past years have raised concerns.

“ And we believe the appropriate ministries and other government offices had more detail and information hence the decision taken by Government, “ he said.

He added that his Institute believes that ZCCM-IH may within its powers and in the shortest possible time, appoint or select a small group of local Zambian mining experts to manage the facility by going forward.

“ We believe that ZCCM-IH may within its powers and in the shortest possible time, appoint or select a small group of local Zambian mining experts to manage the facility going forward and bring it to profitable levels with the right framework of employee engagement and sustained visible philanthropic support to the local community, “ he said.

He explained that as a nation we have the capacity to identify local or internationally based professional Zambians with credible credentials to manage the mine and the new managers should go to the local and international finance markets for operational capital for Collum Coal Mine going forward.

Dr Kawesha suggested that the appointed team should first identify a revival strategy for the operations and enable sustainable operations with minimal government support. Thereafter look for equity partners in addition to working with ZCCM-IH.

It is not a secret that foreign run mining companies go for syndicated finance options or to international capital or financial institutions like the IFC, African Development Bank and many others to finance huge projects which are capital intensive, he explained.

“ Therefore, the team of Zambian managers should put up a bankable document and obtain finance from either local or foreign financial institutions so as not to place any burden on the government,” said Dr. Kawesha.

The Chamber says the Ministries of Finance and Mines and the ZCCM-Investment Holding (IH) should appoint a team of professional Zambian in the areas of administration, mining and finance to revive and operate the Munali Nickel mine in Mazabuka.

It adds that the team should also consider restoring national assets at the coal mine in similar lines like at Zambia Railways led by an ably qualified Zambian engineer can be replicated to our mining facilities.

We all know it’s a long stretch for government to finance Professor Chirwa’s positive and well-intended project. And at some stage local or international financial institutions have to come into play by way of financing the national and inter-town rail networks.

The ZACCI Vice President –South has further suggested that the Ministry of Finance, Ministry of Mines and ZCCM-IH should appoint separate teams of Zambian experts in the areas of administration, engineering, finance and mining to undertaken the operations of the Collum Coal Mine and Munali Nichel Mine both located in Southern Zambia.

“ Each team should, just like foreign mining operators based in Zambia or elsewhere do, go to the international or local capital markets to raise operational capital or indeed invite in an equity partner or two,” he said.

Alternatively ZCCM-IH should call for “expressions of interest” or “request for proposals” as a matter of urgency for both mines. EOI or RFP opens the playing field and guarantees strong partners, he concluded.

Government recently took over a Chinese-run coal mine where managers once opened fire on its Zambian workers during a labor dispute.

Mines and Minerals minister Yamfwa Mukanga explained that that government had seized control of Collum Coal Mining Industries Ltd.

Mr. Mukanga said the Chinese managers had not addressed safety, health and environmental concerns at the mine, had also failed to declare production and had not paid royalties to the government.

There has been a history of problems at this mine. Two Chinese managers were accused of shooting coal miners there during a labor dispute in 2010.

Clashes at the mine in August reportedly saw one Chinese worker killed and two others injured.

Labor conflicts at Chinese businesses in Zambia are pointed to as examples of problems with Chinese investors across Africa.

ZANIS

KANN Utility Company Limited, a 50% joint venture of the Copperbelt Energy Corporation PLC has signed an agreement to acquire a 60% interest in the Abuja Electricity Distribution Company.

The agreement was signed in the Nigerian capital, Abuja, on Thursday 21st February, between KANN Utility Company Limited, the Bureau of Public Enterprises and the Ministry of Finance of Nigeria.

The consideration payable for the 60% interest in AEDC is US$164 million, out of which 25% which is about US$41 million is payable within 15 days of signing the Agreement, with the balance of 75% which is US$123 million payable after six months.

The financing plan for the acquisition has been developed with Standard Bank of South Africa, and it is intended to finance the acquisition with a combination of debt and equity.

The transaction is expected to be finalised and shares transferred when the final payment is made which is anticipated to be around August 2013.

KANN, comprising CEC PLC and XerXes Global Investments as the other joint venture partner, was confirmed as preferred bidder to acquire AEDC in November 2012 following a rigorous international bidding process that commenced with the submission of an Expression of Interest in March 2011, and submission of a bid on 31st July 2012.

AEDC has a franchise for distributing electricity in four states, comprising the Federal Capital Territory of Abuja, Niger State, Kogi State and Nasarawa State.

Serving 133,014sq km with a population of 10.5 million people in 2.3 million households, the AEDC covers a relatively lightly populated area dominated by the Federal Capital.

It has around 600,000 customers and an average electrification rate of 27%.

Approximately 3,000 people are employed by AEDC.

AEDC purchases power from the Nigeria Bulk Electricity Trading Plc and is connected to various power generation plants by the Transmission Company of Nigeria.

During the interim period, preparations will be made to take over the management of AEDC.