British firm takes over Munali Nickel Mine
Published On May 22, 2014 » 2202 Views» By Moses Kabaila Jr: Online Editor » Business, Stories
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YalumaBy JAMES KUNDA-
BRITISH owned conglomerate, Consolidated Nickel Mining and Investments Limited is next month expected to start operations at the defunct Munali Nickel Mine in Mazabuka as the major shareholder.
Mines, Energy and Water Development Minister Christopher Yaluma said that the firm entered into an agreement with former owners Jinchuan Group of China, to take over the mine which was previously run by Albidon Limited of Australia.
“The agreement between the two companies was sealed last week and the new investor has pledged to revive operations next month with the aim of fulfilling its ability to operate at full capacity,” he said.
Mr Yaluma said the Government would monitor operations at the mine to ensure that the new shareholders are working to achieve the set targets.
Operations at Munali which is Zambia’s sole nickel mine were paralysed in 2011 due to the plummeting base metal prices on the global market.
The reduction in profits forced the mine into a financial turmoil that resulted in closure.
Meanwhile, Mr Yaluma says Government is still awaiting the final declaration of assets for Nkandabwe coal mine in Sinazongwe before engaging another investor to operate the facility.
Mr Yaluma said Government engaged an independent evaluator to assess the value of assets when the mine was repossessed from its Chinese owners in 2013.
“We first need to understand the worth of assets to resolve the stand-off with the former Chinese owners after their licence was revoked in 2013.
“Several investors have already expressed interest to operate the mine but it cannot be sold until outstanding issues are resolved,” Mr Yaluma said.
Nkandabwe mine or Collum Coal Mine was repossessed by Government due to poor management and safety standards.

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