Maravi

Kavindele seeks US $350m compensation from NFC Africa

Kavindele seeks US $350m compensation from NFC Africa
By Chiwoyu Sinyangwe
Sun 26 June 2011, 17:40 CAT

ENOCH Kavindele is seeking US $350 million as compensation from NFC Africa Mining for the impending displacement from his Mukulumpe Estates on the Copperbelt. Initially, NFC Africa Mining had agreed to compensate Mukulumpe Estates US $2.5 million, a figure rejected by both Kavindele and Zambia Revenue Authority (ZRA).
ZRA had proposed a US $10 million fee settlement to reflect an “economic” transaction.

NFC Africa Mining, a subsidiary company of China Non-ferrous Metal Industry’s Foreign Engineering and Construction was currently developing Chambishi South East ore body on the 2,000 hectares Mukulumpe Estates wholly-owned by Kavindele.

Under Mines and Minerals Development Act of 2008, mining rights take supremacy over surface rights but the regulation protects land owners who should be compensated “fairly and justly” based on full demonstrable economic value of the land.

At Mukulumpe Estates, Kavindele owns surface rights while NFC Africa Mining return mining rights.

Kavindele said, according to the mining explorations done by the defunct ZCCM, Mukulumpe Estates had mineralisation worth about US $35 billion at current international metal prices.

Kavindele said according to studies by ZCCM which were done when exploration equipment was relatively inferio, Mukulumpe Farms had over 100 million tonnes of grade 2.21 per cent copper and 0.115 per cent cobalt of which at that percentage which with total output of 2,250,000 tonnes of copper cathodes.

“We know the Chinese recently held a party at the farm to celebrate the discovery of more resource, but all we are asking for is one per cent of the known resource, not their new discovery they were celebrating about” Kavindele said.

He said attempts by Mukulumpe to obtain mining rights as early as 2007 had repeatedly not been replied to.

“In transactions of this nature, people normally ask for 20 per cent but we are only asking for one per cent,” said Kavindele. “Our figures may seem astronomical in relation to the poverty our people live in but this is the nature of mining, these are not very high figures.

Lumwana two years ago built for just under US $1 billion is today fetching US $7.5 billion, what about First Quantum acquisition of Kiwara project for US $250 million.”

President Rupiah Banda and other top officials from NFC Africa Mining were next month expected to lay foundation stone for construction of the mine at Mukulumpe.

“There is, however, a dispute over ownership as of now, title deeds and surface rights are held by Mukulumpe Estates Limited,” said Kavindele.

“Our demands are also a litmus paper for the government’s commitment to citizens empowerment programme because we are Zambians and of course, 40 per cent of the transaction of the proceeds would go directly to ZRA in form of corporate and property transfer tax.”

Labels: COPPER, CORRUPTION, ENOCH KAVINDELE

posted by MrK @ 4:06 AM