Sata invites Chinese to explore investment opportunities
By Staff Reporters
Thu 15 Mar. 2012, 12:59 CAT
President Michael Sata has invited Chinese investors to explore various areas of investment in the country. This was during a closed-door meeting at State House yesterday, when he met a 14- member delegation from Beijing led by Luo Tao, the General Manager of China Non-ferrous Metal Mining Company (CNMC) group.
During the meeting, Luo assured President Sata who was flanked by Republican Vice-President Dr Guy Scott, that CNMC was confident of its investment in Zambia because President Sata commands a strong and ambitious team. He said CNMC plans to accelerate its investment in Zambia.
"The US$400 million Mulyashi mining project in Luanshya will commence production by the end of this month. And our next project is the US$800 million South East Ore body at Chambishi mines. This is the plan of our projects in the near future," Luo said.
Luo described President Sata as a kind man who is focused on job creation and economic development of the country.
"Employment and economic development of Zambia is also a responsibility of Chinese investors here. I promise that we will adhere to Zambian laws and do what we are required to do," he said.
In response, President Sata recognised the important role Chinese investment was playing in the country.
"The investment has benefitted both Zambia and China. Therefore, every expansion in investment should be for the mutual benefit of the two countries and its people," the President said.
"I would encourage you to bring more Chinese investors to invest in various areas of investment in the country especially mineral exploration. We would also like you to get involved in agriculture, textile and many other sectors."
Labels: CNMC, GUY SCOTT, MICHAEL SATA, NON-FERROUS METAL CORPORATION AFRICA
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Baluba Copper Mine starts blasting
By Business Reporter
Baluba Copper Mine has started blasting for copper and other underground activities ahead of planned resumption of production in December. This comes after the mine’s completion of most of the rehabilitation works and replacement of obsolete machinery by the new owners, the Non-Ferrous Corporation (NFC) Africa.
Baluba Mine is a unit of Luanshya Copper Mine (LCM), in which China Non-Ferrous Corporation (CNMC) recently bought
85 per cent shareholding from
Enya Holdings, which withdrew and placed the mines under care and maintenance.
The balance of the stake in Baluba is held by the Government through the ZCCM Investment Holdings (ZCCM-IH).
CNMC took over the operations of the Baluba and Mulyashi copper project, which was due to start producing 60,000 tonnes of copper in 2010, and said it would spend US$400 million to develop Mulyashi and start operations at Baluba.
NFC Africa chief executive officer, Luo Xingeng said in a statement released in Lusaka yesterday that the company had undertaken the major rehabilitation works involving replacement of equipment.
Mr Luo said the replacement of obsolete and outdated equipment was almost over, and the company conducted the first blasting last Sunday morning.
“The previous investor had exhausted all the developed reserves and the development being embarked on is both primary and secondary,” he said.
The Government had initially said production at Baluba would start in May this year when the takeover was completed, but the new owners undertook a thorough study on the assets and operational requirements.
Mr Luo said the study had revealed that the cost of rehabilitating and replacing equipment at Baluba had risen.
He said NFC Africa would give priority to the development of the Baluba underground mine, the 11.4kilometre cable that conveys copper ore from the mine to the processing plant, and the upgrading of the copper processing plant.
“Initially, $60 million was earmarked for the rehabilitation and replacement of equipment but the figure has gone up to $74 million after more malfunctioning equipment was discovered,” he said.
Previously, underground development at Baluba mine was carried out by a contractor but CNMC had decided that they should carry out the development on their own.
Mr Luo said NFC Africa has since employed 200 former workers at Prosec Amco, the previous contactor, as part of the underground development team.
Enya Holdings, which is a joint venture of the Bein Stein Resources Group (BSRG) and the International Minerals Resources (IRM), previously owned LCM but they placed the mine under care and maintenance in December before CNMC purchased it for US$50 million.
Labels: BALUBA MINE, CNMC, COPPER, ENYA HOLDINGS, LCM
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Chinese group to take over Munali Nickel mine
Written by Chiwoyu Sinyangwe
Tuesday, June 16, 2009 7:35:46 AM
CHINESE influence in the country’s mining sector is steadily increasingly with China’s giant metal producer, Jinchuan Group set to take over operations of Munali Nickel mine from Australian-based Africa-focused exploration and development company, Albidon.
Just last week, the government announced that China Nonferrous Mining Corporations (CNMC) was to take over 80 per cent of the stake in Luanshya Copper Mines (LCM) which was placed on care and maintenance last January by its previous owners, Enya Holdings, citing low copper prices at the time.
According to mines minister, Maxwell Mwale, the country’s inaugural and sole nickel mine was expected to re-open next month after operations were suspended in January owing to low nickel prices.
Mwale said Jinchuan Group, the off-take partners for Albidon Zambia, was considering increasing its stake in the mine to about 80 per cent from the current 20 per cent.
“Within the next one month they should be on course...as I was leaving (Zambia) they had already agreed on the scheme of arrangements,” Mwale told Reuters in an interview on the sidelines of the World Economic Forum for Africa in Cape Town.
Prior to the shutdown of the mine, Jinchuan had a life-of-mine off-take agreement with Albidon.
At full capacity, the mine, which came on stream in May 2008, was expected to produce about 10,500 tonnes of nickel annually.
By the time the mine was suspended, nickel prices on the London Metal Exchange had plummeted by about more than 80 per cent.
Labels: CHINESE, CNMC, ENYA HOLDINGS, FDI, LCM, MAXWELL MWALE, MUNALI NICKEL MINE
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$28m to power Chambishi
By CHARLES MUSONDA
ZESCO Limited and China Non-Ferrous Metal Mining Group Corporation Limited (CNMC) have signed an agreement for the supply of power to the proposed Chambishi Multi Facility Economic Zone (MFEZ). Zesco Limited managing director, Rhodnie Sisala, said at the signing ceremony in Lusaka yesterday that US$27.8 million would be invested in construction of the power supply infrastructure.
Mr Sisala said the US$800 million Chinese investment in the MFEZ would require 110 mega watts of power from Zesco’s 330 kV system.
“It is planned that construction of the power supply infrastructure will be completed in the next 12 months to enable the multi facility economic zone to start operating by August next year,” Mr Sisala said.
And CNMC vice chairperson, Zou Xia, said his company first invested in Zambia in 1998 when it established the Non-Ferrous China Africa Mine in Chambishi.
‘’To expand our cooperation scale, our company signed another letter of intent with the Ministry of Commerce in January 2006 after the Beijing-Africa summit, and the two governments agreed to build a Chinese economic and trade zone.
“This decision encouraged more Chinese enterprises to invest or expand their investment in Zambia.
This will create more job opportunities for local residents and strengthen our friendship,” Mr Zou said.
He said construction of the MFEZ would facilitate development of many industries like mechanic, foodstuffs, electrical instruments and textiles.
Earlier, Chinese Ambassador to Zambia, Li Qiangmin, said in recent years, economic and trade cooperation between China and Zambia had continued to expand and deepen.
“Chinese enterprises are making a robust investment in Zambia.
The investment climate here is getting better and better.
The Chinese Government encourages and supports well-established Chinese businesses to invest and operate in the economic cooperation zone to contribute to economic development and social progress in Zambia,” Mr Li said.
He described the Zesco-CNMC agreement as a realisation of the agreement between Presidents Mwanawasa and Hu Jintao for the MFEZ.
Labels: CNMC, DAILY MAIL, MFEZ, ZESCO
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