Maravi

Govt sells Maamba Collieries Limited

Govt sells Maamba Collieries Limited
By Chiwoyu Sinyangwe
Sat 19 Dec. 2009, 04:01 CAT

GOVERNMENT has sold 65 per cent of Maamba Collieries Limited (MCL) to Nava Bharat as the Singaporean company pledges to invest over US $510 million to revamp operations and build 300 megawatts thermal power station.

Maamba Collieries Limited, which is estimated to have a capacity of two million tonnes of washed coal per annum is expected to start operating on March 1, 2010 after the new investors, Nava Bharat, completes the financial closure.

According to the terms of the deal, Nava Bharat would pay ZCCM-Investment Holdings (ZCCM-IH) US $26 million for the shares while the government would return 35 per cent shares and a Golden Share to ensure Maamba Collieries continued to develop.

“It should however be noted that because liabilities of Maamba Collieries have been increasing, the actual consideration payable to government through ZCCM–IH will be determined by the outcome of the completion audit to be finalised by mid-January,” finance minister Dr Situmbeko Musokotwane told a press briefing yesterday.

Dr Musokotwane said since Maamba Collieries was currently insolvent owing to huge debt, which was estimated at over US $50 million, the government would no longer be directly responsible for the liability.
He said Maamba itself and Nava Bharat management working with ZCCM–IH would work towards liquidating the indebtedness once the company’s cash flows improved.

Dr Musokotwane said the government was also looking at listing 25 per cent Maamba Collieries shares to the Zambian public through the Lusaka Stock Exchange.

He did not indicate the timeframe but stressed that both Nava Bharat and government would downsize their shareholding although the significant portion of the equity to be listed would come from the government.
Dr Musokotwane said mine redevelopment is estimated to cost US $93 million and further development of upstream project, 300 megawatts thermal power station would cost estimated US $420 million.

And Nava Bharat chairman Ashok Devinemi said over US $510 million needed to develop the mine would be sourced through debt finance and equity through the Nava Bharat.

Devinemi said Nava Bharat would need two years to bring the mine to the capacity of two million tonnes of washed coal.
Nava Bharat would develop the power plant at Maamba and it would be fed to the main national power transmission line through Zesco.

Labels: MAAMBA COLLIERY, NAVA BHARAT VENTURES

posted by MrK @ 5:03 AM