Maravi

Govt to conclude negotiations with new LCM investor

Govt to conclude negotiations with new LCM investor
Written by Chiwoyu Sinyangwe
Saturday, April 11, 2009 5:58:06 AM

GOVERNMENT is by June this year expected to conclude negotiations with a new investor to take over the running of the financially troubled Luanshya Copper Mines (LCM), mines minister Maxwell Mwale disclosed yesterday.

In an interview yesterday, Mwale said a number of local and international firms had continued to show interest in taking over both the Baluba Shaft and the US $354 million greenfield Mulyashi copper project.

Mwale also disclosed that 86 per cent of LCM creditors had agreed on the payment of liabilities which would be settled at an agreed rate and time.

Mwale explained that following the meeting with the mine creditors, the assets of the mines had now been surrendered to government while LCM would continue to look after the mines in care and maintenance status.

He also said following the April 6 meeting, LCM creditors and the mine management agreed on the payment of liabilities which would be settled at an agreed rate and time.

“LCM management came to brief me about the meeting they had on the 6th of April with the creditors and they told me it went on very well. 86 per cent of the creditors agreed to the scheme while 14 per cent did not,” Mwale said. “Now the scheme will proceed to the [High] Court as by law.” Mwale also said the government wanted to expedite the selection of the new investor to ease the suffering of the people of Luanshya.

“We should come up with the new investor by June,” said Mwale. “We can’t keep the issue of Luanshya mine for too long...the people of Luanshya have suffered for so long.”

Labels: LCM, MAXWELL MWALE

posted by MrK @ 4:59 AM