Govt, Maamba Collieries new owners work to liquidate debt
By Namatama Mundia
Sat 30 Jan. 2010, 04:00 CAT
GOVERNMENT is currently holding negotiations with Nava Bharat, the new owners of Maamba Collieries, aimed at liquidating the debt owed to the mine employees. Responding to parliamentary committee on government assurances chairperson Roan member of parliament Chishimba Kambwili who wanted to know if Nava Bharat of Singapore (NBS) Private Limited were ready to pay the employees, mines ministry permanent secretary Dr Godwin Beene said his ministry was negotiating with the Singaporean company on the debt.
“I am informed that there are negotiations going on the matter. I am told that it will be taken care of,” he said.
Dr Beene said Nava Bharat was well aware of the status of Maamba Collieries.
He said the issue of employees’ indebtedness could be regressive if not well handled.
And Dr Beene submitted that the creditors of Maamba Collieries Limited (MCL) agreed to a 75 per cent discount on all the debt that MCL owed them.
“The scheme of arrangement to write off 75 per cent of debt owed was sanctioned by the High Court on 27 December 2007,” he said. “ZCCM-IH funded the scheme of arrangement and the same was implemented in January 2008.”
Dr Beene added that the sale and purchase agreement for the sale of 65 per cent shares of MCL to NBS was signed by the government, ZCCM-IH and NBS on December 18, 2009.
He said the new owners of MCL were expected to recapitalise the coal mine and develop a new Thermal Power Plant and both projects were to be financed by debt equity.
Dr Beene also said the government was pressing Konkola Copper Mines (KCM) to consider opening the Nkana smelter.
“Government has engaged KCM management to look at this issue from a national level to re-open the smelter. This will require massive capital injection to modernise the smelter and make the operations cost effective,” he said.
Dr Beene said there was great urgency to bring back to operation the shut down Nkana smelter in order to ensure that all concentrates produced in the country were smelted and refined within the country.
Dr Beene disclosed that KCM was looking at the option of partnering with other investors to recapitalise the smelter.
“Government will ensure that the negotiation with KCM management result into re-opening of the smelter before 2011,” he said.
Dr Beene attributed the slow pace of geological mapping of the country to the shortage of geologists at the Geologists Survey Department.
Labels: GODFREY BEENE, MAAMBA COLLIERY, NAVA BHARAT VENTURES
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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
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Lafarge Cement follows developments at Maamba Collieries
Written by Kabanda Chulu
Wednesday, July 29, 2009 3:09:58 PM
LAFARGE Cement Zambia chairman Muna Hantuba has said the company is following with interest the developments at Maamba Collieries so that its full production can result in availability of local materials for cement production.
Last week, mines minister Maxwell Mwale, without being specific, announced that the Zambia Development Agency (ZDA) was currently negotiating with a preferred strategic equity partner, Nava Bharat Ventures of Singapore, for Maamba Coal mines and a thermal power plant.
When asked why the company prefers to buy materials from outside the country, Hantuba said there must be consistency in the supply of raw materials to avoid shortages that could affect plant machinery. He said the company was looking forward to work with Maamba Collieries Limited once it attained full production.
“If Maamba comes on stream it will avail us the opportunity to purchase local raw materials. In fact we will prefer to source materials locally in order to cut down on costs of transportation,” Hantuba said.
“But we do not want to disrupt running contracts with foreign suppliers especially that now the plant is huge and it is consuming large quantities of materials and we do not want to experience problems in case there is a shortage of materials.”
Due to the inadequacy and inconsistency in supplies from Maamba Collieries Limited and other smaller Zambian coal mines, Lafarge Cement Zambia has entered into long-term contracts with Hwange Coal Mines of Zimbabwe to ensure continued supplies of raw materials.
The Zambian government wholly owns Maamba Collieries Limited through its subsidiary company, ZCCM Investment Holdings (ZCCM-IH) and negotiations have been ongoing with a preferred bidder, Nava Bharat, which is likely to get some undisclosed percentage of shares and consequently invest in the country’s largest coal mines.
Labels: CEMENT, ENERGY, LAFARGE, MAAMBA COLLIERY, MAXWELL MWALE, MUNA HANTUMBA, NAVA BHARAT VENTURES, ZCCM-IH
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