New Albidon Mine owners pledge to resume full scale operations
Written by Henry Chibulu in Mazabuka
Thursday, August 27, 2009 3:59:01 AM
THE Chinese investor taking over operations of the closed Albidon Nickel Mine in Mazabuka has pledged to resume full scale operations following the successful completion of negotiations with the Zambian government.
Jinchuan Group, Asia's largest nickel producer, has indicated that it was in a hurry to resume operations at Munali.
General manager Xin Xining told Mazabuka district commissioner Tyson Hamaamba when he paid a courtesy on him that full scale operations would resume once a work plan submitted to the mine’s board of directors had been approved.
He said under the plan, management sought to bring in modern equipment, Chinese technical staff, more funding for re-investment to the mine and recruitment of local people through job opportunities.
Xin said all expatriate technical staff would go back to China after local people had been trained on how to operate and maintain the modern mine equipment.
He said the mine management would also continue with the resettlement programme of people who were displaced as a result of the opening of Munali Nickel Mine.
Xin further said Jinxhaun would build a school, clinic and help the community in boosting agriculture activities as earlier agreed with the previous management of Albidon.
And Hamaamba said the people of Mazabuka were happy with the government for working hard to find an investor to run the closed mine.
Hamaamba said the reopening of the mine would create job opportunities and add value to the economic status of the district.
He said the people were particularly impressed with President Rupiah Banda for wooing Chinese investors to take over the running of the mine.
Hamaamba however, advised the mine management to always keep his office informed on any developments, whether good or bad.
Albidon mine recently failed to secure financing for operations at Munali Nickel Mine at a time when nickel prices on the international market hit a record low last year. This forced the mine, which has since been taken over by Jinchuan which was at the time a shareholder, to be placed under care and maintenance.
Labels: ALBIDON NICKLE MINE, CHINESE, TYSON HAMAAMBA
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Mazabuka mayor asks govt to find viable replacement for Albidon
Written by George Zulu in Mazabuka
Saturday, July 04, 2009 2:58:14 PM
MAZABUKA district mayor Shadreck Mwiinga has said the pulling out and subsequent closure of the Albidon Nickel Mine in the district should be a lesson enough to government as they continue searching for an appropriate and viable investor.
In an interview on Tuesday, Mwiinga said the government should seriously consider
finding a viable and sustainable investor, who would not pull out for any reason, to take up the operations of the mine. He said the current scenario in the nation where investors were pulling out at will was a source of concern.
"Government should look for an investor who is not going to fold the operations of the mine at will. We need an investor who would appreciate investing and operating in the country in terms of sustainability. We want to see profits not one who reaps and go out...No! We have learnt the hard way as Zambians on who should come to Zambia as an investor. And it shows that we need a strong investor who will stand the economic variances than to allow briefcase investors. And I hope that the government has studied the Chinese investor they want to bring and take over the nickel mine," he said.
Mwiinga said the government should learn the difficulties the investors who closed and pulled out had.
He said even leaving the country's economy into foreign hands would be suicidal to the nation and the people of Zambia.
Mwiinga said it was not only the issue of Albidon but also the situation on the Copperbelt was a source of concern.
He said Zambia needed investors who would sustain the aspirations of the people and the Zambian mining industry.
"Investors have helped Zambians to become poor and live in abject poverty because of lack of government's commitment. Look at people in Mazabuka ... were displaced to allow the setting up of the mine but the mine has failed to inspire the people economically and socially. So what we are saying is that we should not only look at the mining sector to be the only economic spine of the country. We should also promote other sectors such as agriculture, tourism and construction," said Mwiinga.
Labels: ALBIDON NICKLE MINE, MAZABUKA DISTRICT
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Govt calls for a halt to comments over the closure of Albidon Nickel mine
Saturday, May 2, 2009, 12:23
Government has cautioned politicians to desist from issuing negative statements about the closure of Albidon Munali Nickel mine in Mazabuka.
Youth, Sport and Development minister Kenneth Chipungu said in Mazabuka today that government is concerned with the negative reports about the mine, particularly from some opposition parties.
He said it does not make sense for the opposition to criticise government over the closure of the mine when negotiations between government and the new investor over the taking over of operations have reached an advanced stage.
Mr. Chipungu said the negative reports if left unchecked could scare away investors who have shown interest to take over operations at the only Nickel mine in the country.
He said there is need for the opposition to support government efforts meant to find a reliable investor who will revive operations and ensure people who lost jobs are re-employed.
Mr Chipungu said a Chinese investor whom he did not name has shown interest to take over the running of the mine.
All the staff at the mine have since been retrenched and paid their terminal benefits.
The mine has since been put under care and maintenance.
Meanwhile, Mr. Chipungu has expressed disappointment with the negative response by youths in seeking to access funds under the Citizen Economic Empowerment Commission (CEEC).
Mr Chipungu said in Mazabuka yesterday when he addressed youths at Mazabuka BOMA that government might consider withdrawing the money and channel the funds to other sectors of economy if Zambians are not interested in applying for the funds.
He was shocked to learn that many youths in Mazabuka had not applied for the funds when government had relaxed conditions on how to access the funds.
Mr Chipungu said in order for the youths and other people to access the funds, government has scrapped the application of fee of K 50,000.
He said this meant that people accessing CEEC application forms would not be required to pay for the forms..
Mr Chipungu also charged that it was regrettable to note that the K 10 Billion CEEC fund was still lying idle in the bank because people are not interested in applying for the funds.
And Speaking at the same function, Mazabuka District Commissioner, Tyson Hamaamba told the meeting that 23 applications have been approved for field appraisal by the CEEC while 31 have had their applications rejected for failing to meet the set conditions.
Mr. Hamaamba however said the rejected applicants had been given a second chance to perfect their business plans and correct other issues of raised by the appraisal team.
ENDS/HC/AM/ZANIS
Labels: ALBIDON, ALBIDON NICKLE MINE
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Compel Albidon Nickel Mine to compensate settlers- HH
Wednesday, April 1, 2009, 14:26
The UPND says government should compel Albidon Nickel Mine in Mazabuka to compensate people who were displaced from their areas by mine.
UPND president, Hakainde Hichilema, says the mine which has now suspended operations has failed to fulfil its contractual obligations to the community.
Mr. Hichilema says Albidon Mine has not fully implemented several community projects including building new houses for the local people after demolishing their old ones.
He was speaking in Mazabuka when he visited communities in Magoto area who were relocated from their settlement by Albidon Nickel Mine.
And Mazabuka Member of Parliament, Garry Nkombo, said the mine has abandoned the community, a situation which he described as unfortunate.
Albidon Nickel mine in Mazabuka has suspended operations indefinitely citing various difficulties.
/ZNBC/NEWS
Labels: ALBIDON NICKLE MINE, HAKAINDE HICHILEMA, LAND RIGHTS, SQUATTERS
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Uncertainity surrounds Munali Nickel mine’s future
Written by Chiwoyu Sinyangwe and Nchima Nchito Jr
Saturday, February 28, 2009 9:22:37 AM
THE future of Munali Nickel mine in Mazabuka is uncertain after a planned US $26 million (about K 145 billion) funding injection from a United States (US) private investment fund failed to come through.
Munali Nickel mine is the country's inaugural and sole nickel mine which is operated by Perth based Albidon Mines Limited that was hoping to secure financing from private investment fund.
Shares in the company had been placed in a trading halt while the board works to cradle an alternative fundraising proposal, which the company said was at an advanced stage of negotiation.
And according to the statement by Albidon to the Australian Securities Exchange, the funding was necessary for the company to continue operating.
“The company announced last month that US private investment fund Pacific Road Resources Funds would kick in US $26 million via convertible notes for working capital and to help the company ramp up to full production at its Munali nickel project in Zambia,” the statement read in part.
Albidon has been a victim of the tumbling nickel prices, commissioning delays at the mine and a tighter investment market in the resources industry.
In December, the company was forced to axe more than 40 per cent of its workforce and close its Cape Town exploration office.
Its share price has taken a massive dive having traded above US $5 less than a year ago to its current level of 7.2 cents.
And Albidon Limited has revealed that production at its Munali Nickel project for the December 2008 quarter was below forecast when it mined around 85,562 tonnes of nickel. It projected a production of around 115,000 tonnes for the period under review.
In a Business update, the company stated that it was looking at measures to ensure profitability.
“The company is pursuing a number of corporate options to strengthen its balance sheet and provide working capital. These negotiations are at an advanced stage but the outcome is not yet certain,” Albidon stated.
The company further stated that it was in discussions with Jinchuan - a Chinese company that purchases the nickel produced from the Munali project - and other stakeholders over the performance of the mine.
“Ongoing discussions with key stakeholders including contractors, suppliers, lenders, Jinchuan, the Zambian government, local community and major shareholders are being held,” it stated.
Albidon added that Jinchuan had been advised of the reduced nickel off-take, particularly in 2009, and the need to waive certain minimum delivery obligations by the company.
“Senior and subordinated lenders have been briefed. The result of the revised mine plans is that the company will be in breach of its loan covenants and therefore waivers and concessions have been requested. Our lenders are in the process of assessing the impact of the revised mine plan and while expressing willingness to work with the company, they are reserving their right,” it stated.
Albidon also revealed that meetings had been held with the Zambian government aimed at providing assistance to the Munali project.
And Albidon stated that further restructuring of the Munali nickel project operations targeting significant cost reductions would be undertaken in order to render the project a viable concern at current nickel prices.
“This includes assessing the option to cease stopping operations during 2009 and to only mine and process development ore on a campaign basis. This allows development to be accelerated while allowing the company the ability to substantially reduce its mining, processing and site overheads,” stated Albidon.
Labels: ALBIDON NICKLE MINE, JINCHUAN, MUNALI NICKEL MINE, NICKEL
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Floods should not be politicised, says Levy
By Brighton Phiri in Mazabuka and Monze
Friday January 18, 2008 [03:00]
PRESIDENT Levy Mwanawasa yesterday advised people not to politicise the floods being experienced in the country. And President Mwanawasa blasted the media for allegedly failing to initiate their own coverage of the situation in the country. Meanwhile, some MMD cadres attempted to harass Mazabuka Central UPND member of parliament Gary Nkombo at Mbiya Basic School where President Mwanawasa landed on his visit to some flood sites.
Addressing people at the school grounds, President Mwanawasa said his visit was not a happy one. He said the floods were not supposed to be politicised or treated on a partisan basis.
“This is not a happy visit but I intend to acquaint myself and government of the problem the floods have caused in Southern Province,” President Mwanawasa said.
He said it was wrong for any politician to go round cheating people that his government was not concerned with the flood victims because it had done what it could to assist them.
“I am not the only one in government. And Southern Province is not the only area that I run and floods are not the only challenge Zambia is facing. I have to deal with all the problems faced by the country. So don’t listen to politicians who say that ‘President Mwanawasa does not care, so do not vote for MMD’. These problems should not be politicised,” President Mwanawasa said.
He wondered why some politicians were cheating people when the government had sent food, clothes, medicine and tents and had allocated money to Southern Province to mitigate the effects of the floods. He disclosed that each of the three constituencies in Mazabuka had been given K20 million to mitigate the effects of the floods.
“We have provided blankets and food and even other well wishers have donated food which we delivered to you. We have provided tents to the people that have been displaced in all the camps in Mazabuka,” President Mwanawasa said. “Some schools have been turned into temporary homes for the flood victims and all this we are doing is due to our concern for our people.”
President Mwanawasa described the situation as a national disaster which required concerted efforts.
“Let us for the time being take off our partisan hats and attend to this national disaster,” President Mwanawasa said.
He challenged journalists not only to demand freedom of the press but reminded them of their duty to inform the world about the flood situation in the country.
“Apart from our own ZNBC and Muvi TV, I have been watching other television stations like Al Jazeera, CNN and BBC, I haven’t heard about the local flood situation but all I have heard about are the floods in Mozambique,” President Mwanawasa said. “I don’t know why you are conservative with your airtime. You want us to bring news on your table. When I talked about the need for humanitarian aid in Zambia, it is headline today in the Times of Zambia and Daily Mail. What is wrong with you? You can’t initiate on your own to film what is happening for the world to see until the President cries for help; you can’t initiate your own coverage of such a national disaster.”
Earlier, some MMD cadres attempted to attack Gary Nkombo accusing him of insulting President Mwanawasa and contributing to the low turnout of people to welcome him. This was at the time President Mwanawasa was having a private briefing with members of parliament in Mazabuka, the three ministers he is traveling with, finance minister Ng’andu Magande, works and supply minister Kapembwa Simbao and community development minister Catherine Namugala and the provincial, government and MMD leadership.
When the police were alerted, they warned the MMD cadres against any acts of violence but the cadres vowed to sort out Nkombo after his meeting with President Mwanawasa.
And Albidon Mine has donated some foodstuffs to the flood victims. What was donated included 250 bags of mealie meal, 500 litres of cooking oil, 250x5 kilogrammes salt, 450 x 2 kilogrammes of sugar and 150 blankets.
And addressing the people later at Harry Mwaanga Nkumbula stadium in Monze, President Mwanawasa said it was not his intention to address public rallies on his fact-finding mission on floods.
He said what the country was experiencing in terms of floods was due to climate change because the world had become hotter contributing to heavy rains in some parts and drought in other areas.
“We seriously need to step up our efforts because we shall all drown,” President Mwanawasa said.
He said food security was being affected because the climate was either too hot or there was too much rain that destroyed crops. He said climate change was caused by man through emission of poisonous gases in the air.
He said African states were not guilty of emitting dangerous gas in the air but that the industrialised countries were guilty of such acts.
“Unfortunately, we are the recipients of the bad things in the industrialised north. In Zambia, we are not doing much to mitigate the effects of climate change or global warming,” said President Mwanawasa.
He appealed the Tourism, Environment and Natural Resources minister to step up efforts in sensitisation on climate change.
Labels: ALBIDON NICKLE MINE, CADRES, FLOODS, MWANAWASA
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Albidon confirms uranium mineralisation at Njame
By Kabanda Chulu
Monday January 14, 2008 [03:00]
ALBIDON Mining Zambia has confirmed the presence of uranium mineralisation at its Njame East uranium project near Chirundu. And AIM Resources managing director, Marc Flory, has said the company would commence drilling operations on its Mumbwa copper and gold project. In a statement to shareholders, Albidon stated that results were said to include the highest grade drill intersections recorded at the project to date.
”The additional drilling will also take place at Njame East to define the extent of potentially economic mineralisation and this drilling will start as soon as access conditions permit, once seasonal rains have ceased.
This discovery of mineralisation proves the potential for further mineralisation in areas proximal to the existing inferred resources at Njame North and further drilling to test these proximal areas is being planned," stated the company.
The Njame project forms part of the Chirundu joint-venture (JV) project with African Energy Resources. A prefeasibility study on the Njame and Gwabe uranium deposits was due for completion in the first quarter of 2008.
Albidon was also involved in nickel projects in Zambia’s Mazabuka district, Botswana and Tanzania, as well as a platinum Joint Venture in Tanzania, and a zinc exploration project in Tunisia.
And Flory stated that AIM Resources has engaged three drilling rigs to complete 13 cored holes for a total of about 9,100 metres at its copper and gold projects in Mumbwa district.
He explained that from the proposed 13 drill holes, the average hole depth would be 700 metres and samples would be routinely collected and analysed for copper, gold, uranium and a range of 14 other elements including cobalt, arsenic and silver.
"Based on previous results achieved in the last programme, we are looking forward to further advancing this exciting project and presenting these results as they become available," stated Flory.
Labels: ALBIDON, ALBIDON NICKLE MINE, URANIUM
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Albidon discovers 1,500 tonnes of nickel at Munali
By Chiwoyu Sinyangwe
Thursday December 20, 2007 [03:00]
Albidon Limited has announced that the Munali Nickel project contains about 1,500 tonnes of nickel and 43,800 ounces of platinum. According to the statement obtained in Lusaka, the estimations follow the results for initial resource of its voyager deposits for its Munali project.
The statement further read that the total indicated and inferred resource for the Munali project has now been increased to over 10.3 metric tonnes of ore.
The company also stated that a scoping study for the Voyager resource would begin early in 2008 and that Voyager would add to either the current mine life of Munali or the production rate per annum.
Munali is one of the biggest new nickel sulphide mining projects currently under way and now looks as if it could be in production well ahead of schedule, although there are still some potential constraints on achieving the targeted start-up date.
According to Albidon Limited's own review of progress published recently, the project is now significantly advanced and is progressing ahead of the previously advised schedule.
A new revised schedule has been prepared following a review of the critical path items and progress to date on construction of the concentrator.
The updated schedule indicates that first ore into the concentrator is expected in the middle of the second quarter of 2008, several months in advance of the previous plan.
The project area comprises the enterprise deposit and a number of other nickel prospects in the Munali intrusion, the most advanced of which is the Voyager prospect.
A positive bankable feasibility study was completed in July 2006 and site works began in September, following government approvals.
A capital raising was completed in October to provide US $35 million of equity finance for the project. An off-take agreement was recently signed with the Jinchuan Group and final documentation on a funding package of US $20 million in subordinated debt and a US $5 million equity investment by Jinchuan was "well advanced", Albidon said.
The US $60 million financing was subject to completion of due diligence and detailed documentation, which Albidon expected to finalise before the middle of the year.
Labels: ALBIDON NICKLE MINE, NICKEL
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