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Chinese group to take over Munali Nickel mine

Chinese group to take over Munali Nickel mine
Written by Chiwoyu Sinyangwe
Tuesday, June 16, 2009 7:35:46 AM

CHINESE influence in the country’s mining sector is steadily increasingly with China’s giant metal producer, Jinchuan Group set to take over operations of Munali Nickel mine from Australian-based Africa-focused exploration and development company, Albidon.

Just last week, the government announced that China Nonferrous Mining Corporations (CNMC) was to take over 80 per cent of the stake in Luanshya Copper Mines (LCM) which was placed on care and maintenance last January by its previous owners, Enya Holdings, citing low copper prices at the time.

According to mines minister, Maxwell Mwale, the country’s inaugural and sole nickel mine was expected to re-open next month after operations were suspended in January owing to low nickel prices.

Mwale said Jinchuan Group, the off-take partners for Albidon Zambia, was considering increasing its stake in the mine to about 80 per cent from the current 20 per cent.

“Within the next one month they should be on course...as I was leaving (Zambia) they had already agreed on the scheme of arrangements,” Mwale told Reuters in an interview on the sidelines of the World Economic Forum for Africa in Cape Town.

Prior to the shutdown of the mine, Jinchuan had a life-of-mine off-take agreement with Albidon.

At full capacity, the mine, which came on stream in May 2008, was expected to produce about 10,500 tonnes of nickel annually.

By the time the mine was suspended, nickel prices on the London Metal Exchange had plummeted by about more than 80 per cent.

Labels: CHINESE, CNMC, ENYA HOLDINGS, FDI, LCM, MAXWELL MWALE, MUNALI NICKEL MINE

posted by MrK @ 6:35 AM