Mining firms invest K15bn in 3 manganese mines

Mining firms invest K15bn in 3 manganese mines
By Chiwoyu Sinyangwe in Mansa
Mon 28 June 2010, 08:10 CAT

TWO local mining firms, Luapula Base Metals Limited and Genesis Group of Companies have invested US $3 million (about K15 billion) in developing three manganese mines with an annual output of 60,000 tonnes.

Genesis Group of Companies managing director Willie Crook said the joint venture mines wanted to ramp up output at the three mines in view of the improving global metal prices in the aftermath of the world economic crisis.

Crook said the mines, with current output of 4,000 tonnes per month of manganese was expecting to increase this to 5,000 after acquiring new machinery.

He said the companies were investing in new equipment such as crusher, washing plant and a new screener.

“Last year, we didn’t export anything because it was not cost effective, the price of manganese went so low that I couldn’t even deliver it to Dar es Salaam as the cost of transportation was US $140 a tonne when they were offering me US $125 a tonne,” said Crook in an interview after a delegation from Zambia Development Agency visited one of its mining sites, Kansambo, on the outskirts of Mansa.

“The world market is changing and we are changing the machinery…we are going for the small stuff which will make us do well above 5,000 tonnes per month of small material…and all these investments are close to U$ 3 million and it is increasing all the time.”

The firms run three mines at Kansambo, Kabulu and Kabasa and the manganese from Luapula, which is largely exported to China, is believed to be one of the best grades in the world and is a key input in steel manufacturing.

And Luapula Base Metals Limited Kennedy Sakeni said the mining firms were establishing a fund to ensure that some of the benefits from mining remain in communities where they operated.
Sakeni said the money from the pool was intended to be used to develop social amenities such as schools and hospitals.

“What we are opposed to is to give kickbacks to individuals. We want the benefits to trickle down to the people and we are opening a bank account this year as you know 2008/09 was very bad for the mining industry,” said Sakeni. “We have already contributed to repairing some of the community roads but I don’t go out publicly to say we are doing that but we have tried our level best to share the little that we get with the local people.”