Maravi

NFC, Vedanta among favourites to take over LCM operations

NFC, Vedanta among favourites to take over LCM operations
Written by Chiwoyu Sinyangwe
Friday, May 01, 2009 9:52:56 PM

CHINESE Non-Ferrous Corporation (NFC) and Vedanta Resources Plc are among the favourites to take over operations of closed Luanshya Copper Mines (LCM) units, mines minister Maxwell Mwale disclosed yesterday.

And Mwale has confirmed that Zambia Copper Investment (ZCI) is not among the companies that had lodged in their bids to take over the mine, which has been closed since last January.

In interview, Mwale said the government was currently evaluating the bids received so far and that by next week, an announcement of the preferred company to commence negotiations with the government would be made with a view to reopening the mine next month.

Mwale named the other companies that had successfully filed the bids to take over running of the mining units which include Baluba Shaft and greenfield Mulyashi project as Exco Corporation of Luanshya and another local company called Luanshya Minerals Resources which is also based in Luanshya.

The mines minister who declined to give details on the two mines, however, stressed that the two local companies had partnered with foreign mining firms in their bids.

"The other bids we have received are from NFC, the operators of Chambishi Copper Mines, and then Vedanta guys, the Konkola Copper Mines [KCM]," Mwale said. "The close of bids was yesterday [Thursday] at 17:00 and by 17:15, the bids were opened. So, right now, our technical committee is currently evaluating the bids and we hope by next weekend, we should come up with a company to open negotiations with. We can't wait any longer because the people of Luanshya have suffered for too long."

And Mwale dismissed complaints from ZCI that the former minority shareholders in KCM were not given adequate notice to enable them take part in the bids for LCM units.

Last week, ZCI which is based in Bermuda complained that there was not enough time for mining companies that operate outside the country to submit bids for LCM, which had been under care and maintenance since January by its previous owners, Switzerland-based International Mineral Resources AG and Bein Stein Group.

Until last year, ZCI owned 28.4 per cent stake in KCM which it controversially sold off to Vedanta Resources under a "Call Option Deed", making Vedanta KCM's largest shareholder.

"In fact, we first approached them (ZCI) when we had the problem in Luanshya so that they could partner with ZCCM Investment Holdings (ZCCM-IH) but all along they have been delaying to come up with a technical partner," said Mwale. "So, they can't blame us for their failure to find a partner. We can't wait any longer, the people of Luanshya need to get their jobs back."

LCM units include the Baluba Shaft and Mulyashi project, which LCM had planned to complete building in 2010 at a cost of US$354 million and would have produced up to 60,000 tonnes in its initial stage.

Labels: LCM, NFC, VEDANTA

posted by MrK @ 8:54 PM