Maravi

Chambishi Metals set to resume operations

Chambishi Metals set to resume operations
Written by Chiwoyu Sinyangwe
July 03, 2009 3:12:08 PM

CHAMBISHI Metals is set to resume operations this month-end after failure to clinch deals for the vital raw materials delayed the scheduled reopening last May, chief executive officer Derek Webbstock said yesterday.

In an interview, Webbstock said management of the country’s largest cobalt producer was currently negotiating with some mining companies in Zambia and the neighbouring Democratic Republic of Congo (DRC) for the supply of cobalt and copper concentrates.

“We expect to conclude the negotiations with some mines both here in Zambia and DRC and we expect to sign the contracts during the course of this month for resumption of operations at the end of July,” Webbstock said.

He however did not disclose the mines Chambishi Metals was negotiating with for the supply of the inputs into the mine which was placed under care and maintenance in December in tandem with Luanshya Copper Mines (LCM) after the collapse of metal prices on the international market.

Enya Holdings – a consortium of Bein Sten Group Resources (BSGR) and International Mineral Resources (IRM) – own Chambishi Metals and are the immediate past owners of LCM in Luanshya which has now been sold to China Non Ferous Corporation Africa (NFCA).

Webbstock said Chambishi Metals would look to LCM as a possible source for concentrates once the mine expected to be re-opened next January comes on stream.

“We are also considering the Chinese in Luanshya but those would take time before they resume production,” said Webbstock.

Last March, LCM announced that it was going to keep Chambishi Metals and promised to resume operations within two months after securing supply for concentrates from Zambia and the DRC.

The company further announced that Chambishi Metals would re-employ 500 to 600 of the 900 workers that were fired last December.

Chambishi produced about 2,500 tonnes of cobalt before its closure although its owners had wanted to raise output to about 3,400 tonnes. It had also planned to produce 20,000 tonnes of B-grade copper.

This week, former workers of Chambishi Metals complained of the delayed re-opening of the mine and demanded that the government takes over the mine from Enya Holdings LCM and seek a new investor to ensure the speedy resumption of its operations.

Labels: BENY STEINMETZ GROUP RESOURCES, CHAMBISHI MINE, DRC, ENYA HOLDINGS

posted by MrK @ 2:13 PM