ZCCM-IH to take over LCM only after concluding exit option programme

ZCCM-IH to take over LCM only after concluding exit option programme
Written by Kabanda Chulu
Wednesday, February 11, 2009 10:08:39 AM

MINISTER of Mines Maxwell Mwale yesterday said ZCCM-IH will only take over Luanshya Copper Mines (LCM) after concluding the exit option programme with current shareholders.

Last month, President Rupiah Banda disclosed that the Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) would temporary take over the mines in Luanshya whilst an investor was being sought.

Giving an update on the progress of the negotiations between the government and the LCM management, Mwale said in Lusaka that the technical committee was making progress to conclude the exit option.

He also disclosed that the government had received expressions of interest from investors from China, United Kingdom and South Africa.

“Actually negotiations have reached advanced stages to conclude the exit option for the current shareholders and that is when ZCCM-IH will take over whilst government looks for an investor but I cannot tell you the time frame but we shall conclude negotiations soon,” said Mwale.

“Also we have received expressions of interest from companies from China, UK, and South Africa that are showing willingness to invest in the Luanshya mines but these are just offers of interest and not actual investment pledges.”

However, some mining experts who preferred anonymity observed that it would take a long time for the government’s technical team to conclude exit option negotiations and consequently look for an investor.

“It will take a very long time because there will be need to evaluate assets to see if they are in good condition and also if there are liabilities such as debts owed by LCM and also there is need to provide viable information to all those that have shown interest and this information should include issues of depth (how to go deep when mining the copper), among other issues,” said the experts.

Luanshya Copper Mines has closed operations and has since been placed under care and maintenance, which has resulted in over 3,000 miners being declared redundant.