Earthstone Acquires Zambia Manganese Concessions

Manganese Exploration To Begin In Luapula Province

Dubai-based Earthstone Metals Group, has acquired exclusive irrevocable mining rights for three manganese concessions in Zambia’s Luapula province.

Although South Africa is well-known for its manganese export, Earthstone feels that Zambia still has untapped opportunity in development of the mineral.

The new concessions are located within 60 km radius from Mansa Town, capital of Luapula province. Total combined area of the project exceeds 140,000 Hectares.

The grade of the ore is high (48 to 54% Mn) and the bulk of the ore consists of predominantly Psilomelane (MnO2) with occasional residual crystals of Hausmannite (Mn3O4) and Manganite (Mn2O3H2O). Earthstone has chalked out ambitious exploration program for conducting Geophysical Survey followed by shallow diamond drilling. Based upon the available exploration data, the company will commence semi-mechanized mining operation by April 2010 with a production target of 10,000 Tons/month that will be enhanced to 30,000 tons a month after 5-6 months. With further acquisitions of Manganese Ore concessions and the completion of detailed exploration work, production will ramp up to 1,000,000 tons a year within three years.

Commenting on the development, Raju Lalchandani, Managing Director, Earthstone Resources (Zambia) Ltd. said: "We find Zambia as an exceptionally investor-friendly country. Dollarisation of economy is a very intelligent scheme that is being promoted by the Government - and this is radically changing investor climate."

China Non-Ferrous To Develop Zambia Copper Mine

Muliashi Copper Mine To Produce In 2012

China Nonferrous Metals Corporation (CNMC) will begin developing the Muliashi copper mine in Zambia this year, after approving a feasibility study, the company said on Wednesday.

The company estimates Muliashi’s ore reserves estimated to last between 15 to 25 years.

The mine, which was forecast to start operating in 2010 before its previous owners suspended the project, will start production in 2012, with output expected to be around 60,000 tonnes of copper per year.

Production Resumes At Zambian Nickel Mine

Zambia's only nickel mine, the Munali Nickel Mine, re-opened on Friday following an opening ceremony by Zambian President Rupiah Banda.

The mine was bought by China's Jinchuan Corporation last June after its previous owner, Albidon Ltd of Australia, halted operations following a fall in prices. The mine resumed operations on Friday and is expected to reach an output of 750,000 tons nickel ore in 2010.

President Banda attended a ceremony to mark the resumption at the mine, about 85 kilometers south from the Zambian capital city Lusaka and praised efforts made by Jinchuan, the largest nickel producer in Asia, in taking over the mine, which had led to unemployment for over 1,000 miners.

"I am pleased to know that the mine planned to increase the number of employees once the mine boosted its output," the president said.

The mine is planning to upgrade the mine from the current 750, 000 tons per annum of ore to 1.2 million tons of ore by 2011.

Ore production at Munali in the first two months of 2009 was 74,000 tons, below the forecast 87,000 tons, mainly due to a lack of equipment

Yang Zhiqiang, president of Jinchuan Corporation, said that Jinchuan will experience a prosperous development in Africa via combination of advanced technology from the Chinese side with the rich resources of the Zambian mine, which has proven reserves of 100,000 tons of nickel metal.

ENRC In $300 Million Zambian Takeover

Kazakh miner ENRC has paid $300 million to buy Dutch company Enya Holdings. Enya has a 9-% stake in the Chambishi copper and cobalt processing plant in Zambia. ENRC said in a statement on Thursday it hoped to cut costs by using the Chambishi plant in Zambia to process copper and cobalt produced in the Democratic Republic of Congo from a mine which the company bought last year.

The deal is being financed entirely from the company’s own cash resources.

"The acquisition of Chambishi accelerates the group's expansion in copper and cobalt and at a lower cost than would be required for new investment," said Mehmet Dalman, independent non-executive director. "The integrated copper and cobalt mining and smelting businesses of Chambishi and those in the DRC, when combined, should have an improved cost position over time."

ENRC plans to invest $80 million in Chambishi by 2011 to upgrade its facilities, which will boost annual capacity to 55,000 tonnes of copper cathode, more than twice its current level of 25,000 tonnes. The combined operation is expected to produce 130,000 tonnes of copper cathode a year and 12,000 tonnes of cobalt-contained metal salts and concentrates by 2012. The company said that building Chambishi’s facilities from scratch would take at least three years and would have cost more than it is paying for Enya.

Enya also owns 100% of Comit Resources FZE, a Dubai-based marketing and sales company that handles Chambishi's copper and cobalt sales.

Last September, ENRC bought Central African Mining and Exploration in a $955 million cash deal which diversified the firm into metals such as copper and into high-risk areas of Africa.

Trafigura Aiming To Buy A Quarter Of Zambia's Copper This Year

Dutch commodities trader Trafigura Beheer BV has announced plans to buy 25 percent of the copper produced in Zambia this year according to Pierre Lorinet, a director of Trafigura Beheer, speaking to reporters in Lusaka today.

Zambia expects to produce at least 700,000 metric tons of copper this year.

Zambia Copper Output To Hit Record Level In 2010

STANDARD Chartered Bank says Zambia’s copper output this year is set to exceed the peak of 720,000 tonnes recorded in the 1960s when the country was the fourth largest world copper producer.

The production estimate is against 644,000 metric tonnes projected for last year.

Speaking during an economic forum in Lusaka, Standard Chartered Bank Africa regional head of research Razia Khan said Zambia has continued to register good growth in the last couple of years with mining in 2009 accounting for 21.4 percent, construction 15.5 percent and agriculture 7.1 percent of Gross Domestic Product.

Ms Khan said the commodity price boom on the international market has led to greater investment in Zambia’s mines.

She said the metal recovery on the international market will help generate wealth and create confidence.

“The price of copper is being supported by the Chinese economy and their demand for copper in auto production, property market, power equipment products and home appliances output,” she said.

Ms Khan said there are concerns about copper inventory levels in China and whether the price of copper would finish at around US$ 7,500 per tonne in 2010.

She said although Zambia is headed for a boom in the mining sector, there are structural bottlenecks that could affect growth, citing poor infrastructure like roads, railway and availability of power.

She said it is important to know whether the state of roads and railway system will sustain growth in copper.

“The price of copper is being supported by the Chinese economy and their demand for copper in auto production, property market, power equipment products and home appliances output,” she said.
“2010 outlook is good and mining sector need to think long term. There is need to take into account the fluctuation, productivity and look at contribution of mines into a more holistic manner,” she said.

Ms Khan said there is a strong view from the civil society to ensure that there is some payback from the mines.

“Zambia’s biggest problem is the large informal sector. There is need to widen the tax reform,” she said.

She noted that if Zambia could grow its economy at 6.3 percent during the global crisis period, there is potential for double digit growth, which needs holistic contribution from all sectors.

“Its not just what is happening to copper that matters but what is happening to the exchange rates which have an impact on trade. Zambia has had trade surplus since June and our analysis is that trade balancing will remain in surplus,” she said.

Ms Khan said the Bank of Zambia now has a healthy reserve position and its activity in the market will help in smoothing Kwacha volatility.

She also noted that maintaining single digit inflation would require hard work on the part of Government.

“If the labour unions continue to demand double digit figures, a wage growth of 20 percent will have inflationary pressure,” she said.

Source: Lusaka Times/Zambia Daily Mail

China Rescues Zambia Copper Mines

China’s intervention has rescued several Zambian copper mines out of bankruptcy and helped create some 2,000 jobs, most of which were lost when copper prices slid over the biting effects of the global financial crisis, visiting Chinese Commerce Minister Chen Deming said.

The Chinese Minister said most of the copper mines operated by private entities in Zambia collapsed in the face of the global financial crisis, which ignited an economic recession across the globe, leading most of the private copper mines in Zambia to shut down.

Several Zambia copper-producing firms were forced to retrench more than 5,000 workers after the price of the commodity fell to historically lower levels.

The price of copper dropped to a 22-year low at the London Metal Exchange in 2009, forcing most firms in Zambia to curb production levels.

‘Zambia’s privately-run copper mines have closed down due to the economic crisis, only the one operated by China is still operating,’ Minister Chen told a news conference in Addis Ababa, Monday.

Zambian Mines Minister Maxwell Mwale announced late in 2009, the country had embarked on the process of selling several copper mines to enable some of the ones which could resume production to do so.

Chinese officials said the Zambian President Rupiah Banda also formally asked China to facilitate its companies to take stakes in the bankrupt copper mines in the face of the global financial crisis.

The Chinese Minister, who addressed journalists on the positive role that China’s investment in Africa’s mineral-rich countries had achieved, also dismissed suggestions that China was a neo-colonialist.

The Minister is visiting Africa and Middle East.

In his five-nation tour, covering Ethiopia, Mozambique, Tanzania, Turkey and Saudi Arabia, the Chinese official is expected to explore more constructive ways in which China can engage with the developing countries in implementing China’s development agenda.

Source: Lusaka Times

Zambia Copper Plans To Re-List

ZAMBIA Copper Investments (ZCI) has announced that it will seek shareholder approval for the share deal involving African Copper next Monday, paving the way for the re-listing of the group in the middle of this month.

Unveiling its results for the six months to September, chairman Tom Kamwendo on Thursday described the financial performance as a “reflection of the challenges that faced the company on entering an extremely important phase in its history”.

The company recorded a 54000 profit for the six months to September. “This is a direct consequence of the finance income earned being offset by normal operating expenses and the expenses incurred in preparing the circular to shareholders and the other ancillary professional reports,” he said.

On the share deal, Kamwendo said ZCI had subscribed for 676- million shares of African Copper, which holds exclusive rights for the exploration and development of ore-rich copper deposits in Botswana.

ZCI’s share has been suspended on the JSE since last January, while it searched for new investments. It was required by JSE rules to acquire operating assets or have its listing suspended.

Kamwendo said the company would seek shareholder approval for this transaction next Monday. Once obtained, the company’s classification as a cash shell would effectively cease, entitling it to be re-listed on the JSE’s basic resources sector with a new copper mining asset.

Source: Business Day

Nava Bharat Signs Zambia Coal Deal

Shares in Nava Bharat Ventures surged on the BSE this morning, after the company's overseas unit Nava Bharat Singapore signed a pact with The Republic of Zambia for acquiring 65% stake in Maamba Collieries for a consideration of $26 million.

The company announced acquisition before trading hours today, 21 December 2009.

Meanwhile, the BSE Sensex was down 68.43 points, or 0.41%, to 16,651.40.

On BSE, 11,228 shares were traded in the counter as against an average daily volume of 18,365 shares in the past one quarter.

The stock hit a high of Rs 392.70 and a low of Rs 383.15 so far during the day. The stock had hit a 52-week high of Rs 442.90 on 25 August 2009 and a 52-week low of Rs 98.20 on 29 January 2009.

The mid-cap stock had underperformed the market over the past one month till 18 December 2009, falling 3.1% as compared to the Sensex's 1.64% fall. It had outperformed the market in the past one quarter, rising 3.85% as compared to the Sensex's decline of 0.13%.

The company's equity capital is Rs 15.19 crore. Face value per share is Rs 2.

The current price of Rs 392.30 discounts the company's Q2 September 2009 annualized EPS of Rs 63.22, by a PE multiple of 6.21.

The acquisition was made pursuant to the selection of Nava Bharat against a global tender issued for inducting a private majority partner.

Nava Bharat Ventures' net profit rose 1.2% to Rs 120.03 crore on 39.5% fall in net sales to Rs 240.94 crore in Q2 September 2009 over Q2 September 2008.

Nava Bharat Ventures manufactures ferro alloys which are utilized by the steel industry. The company also generates & distributes power and manufactures sugar

Source: India Info-online

Chambishi Delays Cobalt Production

Zambia's largest cobalt producer, Chambishi Metals will delay its ramp-up to full output until cobalt prices rise to $22 per pound from the current $18 per pound, the firm said on Wednesday.

Chambishi, which is owned by Enya Holdings of the United Kingdom, had forecast output at 3,400 tonnes of cobalt in 2009 from 2,500 tonnes in 2008 before it suspended operations, which were restarted this month.

Chief Executive Officer, Derek Webbstock said although suppliers in the Democratic Republic of Congo (DRC) had delivered cobalt concentrates, the processing plant would restrict operations to the leaching unit until prices ticked up.

"We will only restart the furnace where we can produce ferro-alloys from slag once the prices reach the previous levels of $22 per pound," Webbstock told Reuters.

"If I can get material of a higher grade then I can restart the furnace because the output depends on the quality of the material. We are presently not getting any raw materials for the furnace from the DRC," Webbstock said.

Operations at Chambishi were suspended last December and placed on care and maintenance due to losses the company suffered after metal prices fell and costs rose owing to the global economic slowdown.

Webbstock could not state the current output, saying he needed to reconcile the figures in the first week of December.

Webbstock said Chambishi would not use the local raw materials from the Nkana slag dump, 359 km north-west of Lusaka at the current price because the slag was of low grade.

"We are producing the current cobalt from the leaching circuit. It is cheaper for us because we are not using electricity. The furnace remains an opportunity for the future," Webbstock said.

Chambishi would start processing copper concentrates after China Nonferrous Metals Mining Corporation (CNMC) unit, Luanshya Copper Mines (LCM) restarted output, Webbstock said.

Chambishi had forecast B-grade copper output of 20,000 tonnes in 2009.

Chambishi was previously owned by LCM, a joint venture of Bein Stein Group Resources (BSGR) and International Mineral Resources (IMR).

Source: Reuters

Zambia Copper Production Rises Says Central Bank

Zambia's copper production for the nine months to September 2009 increased to 514,320 tonnes compared with 429,792 tonnes in the same period last year, the central bank said on Tuesday.
The central bank said copper exports in the period under review rose to 496,111 tonnes from 411,533 tonnes in 2008.

Cobalt output dropped to 2,816 tonnes from 3,526 tonnes in the corresponding period last year and exports fell to 3,225 tonnes from 3,488 tonnes, the Bank of Zambia (BoZ) said.

Source: Reuters

Chambishi Metals Resumes Operations

Zambia's largest cobalt smelter, Chambishi Metals PLC, has started to receive concentrate supplies from Congo's Katanga province, allowing it to resume operations after nearly 12 months of inactivity, an official with Zambia Consolidated Copper Mines Investments Holdings told Dow Jones Newswires Monday.

"The smelter resumed operations on Friday and they have already started producing cobalt," the ZCCM-IH official said by telephone from Lusaka, the Zambian capital. Chambishi Metals is operated by U.K.-based Enya Holdings, while ZCCM-IH holds a minority stake in the smelter.

The plant, which was closed in December last year due to plunging global metals prices, had initially been expected to resume output in May, but delayed supplies of concentrates hampered the start-up.

In addition from getting supplies from Congo, Chambishi also expected to process copper concentrates from Baluba Copper Mines, now owned by NFCA Mining, a unit of China Nonferrous Metal Mining Group Co. (8306.HK). Chambishi Metals has the capacity to produce 4,000 tons of cobalt and 40,000 tons of copper a year.

Baluba is expected to start supplying the plant early next year. However, management of the plant has rejected supplies from other Zambian mines, saying they would be expensive to process because of their low grades.

Analysts say the delayed resumption of output has led to a global cobalt shortage, aiding cobalt prices on the international market.

According to Sikufela Mundia, the president of Zambia's National Union of Miners and Allied Workers Union, management has also started recruiting workers but is yet to sign a recognition deal with the unions.

Chambsihi laid off around 700 workers when it closed in December, while in total some 10,000 Zambian miners were laid off after global copper prices slumped last year. Around 2,000 miners have since been rehired as a result of a resurgent market.

Zambia is Africa's largest copper producer and the second-leading cobalt producer after Congo

Source: Trading Markets/Dow Jones

Chambishi To Delay Cobalt Production

Zambia's largest cobalt producer Chambishi Metals Plc will delay restarting production until September after suppliers in the Democratic Republic of Congo (DRC) failed to deliver cobalt concentrates, it said on Sunday.

Operations at Chambishi were suspended in December and were due to restart in August, but Chief Executive Officer Derek Webbstock said it would have to wait until mines in the DRC begin to deliver raw materials.

"We are still waiting for the cobalt concentrates. The suppliers we agreed with are having problems and we haven't had any deliveries yet," Webbstock told Reuters in a telephone interview.

Webbstock said Chambishi, which had forecast output of 3,400 tonnes of cobalt in 2009 from 2,500 before it suspended operations last December, would first have to stockpile the cobalt concentrates before starting operations.

The resumption of output had already been pushed back to August from July while Chambishi waited for supplies from the DRC.

"If the suppliers get their problems sorted out quickly we can resume production in two weeks time but it may take longer because we need to stockpile the concentrates first," Webbstock said.

Chambishi, which was previously owned by Luanshya Copper Mines (LCM), a joint venture of Bein Stein Group Resources (BSGR) and International Mineral Resources (IMR), is now owned by Enya Holdings of the United Kingdom.

Source: Reuters

Konkola Contracts Copper Mining To Brazilian Firm

Zambia's Konkola Copper Mines (KCM) has contracted Brazil's U & M Mining to help it mine for copper in Zambia as it seeks to raise output to 500,000 tonnes by 2011, the company said on Friday.

KCM, Zambia's largest copper producer, also reiterated its plans to push cobalt output to 5,000 tonnes after starting operations at its 300,000 tonnes per year Nchanga copper smelter. It gave no figures for current cobalt production.

"Under the contract, U & M (Mining) will mine two areas...of the vast Chingola open pit over a period of three years," KCM acting manager for open pits, Obino Kalela said in a statement.

Kalela said U & M Mining would mine the two areas for both waste and copper ore while Konkola would now concentrate on the Nchanga open pit mine, which produces copper and is the company's main source of cobalt.

KCM, which also operates the Nchanga open pit, Konkola copper mine and the satellite Fitwaola mine, is a unit of London-listed Vedanta Resources Plc (VED.L), which is developing the Konkola Deep Copper Project (KMDP), touted as Africa's deepest copper mine.

KCM says about $500 million will be spent on developing the KDMP.

Konkola is implementing several projects, which it says will raise its output to 500,000 tonnes -- or half of Zambia's total planned production -- by 2011 from the current 200,000 tonnes per year.

Zambia is Africa's largest copper producer, with copper mining being the nation's economic mainstay. The mines are a major employer in this southern African country of 12 million people.

SourcE: Reuters

Siginficant Increase In Zambia Copper Cathode Production

Cathode copper output in Zambia, Africa's largest producer, rose to 349,333 tonnes for the six months to June this year compared to 288,057 tonnes in the same period last year, the central bank said on Saturday.

The data released by the central bank also showed that cobalt production declined to 1,690 tonnes in the first six months of the year from 2,230 tonnes.

Bank of Zambia (BoZ) governor Caleb Fundanga said copper exports in the first half of the year rose to 336,705 tonnes compared to 284,250 tonnes in the same period last year.

Cobalt exports were 1,793 tonnes compared to 2.253 tonnes last year.

"I believe that it is possible to achieve the target for 600,000 tonnes of copper by the end of the year," Fundanga told reporters.

"Even if the exports of cobalt declined, the increase in the price of cobalt compensated for that."

Zambia earns 63 percent of its total foreign exchange from copper exports and the mines are also a major employer in this southern African country of 12 million people.

The government forecasts that copper production will rise to over 600,000 tonnes this year from 569,000 tonnes the previous year.

London-listed Vedanta Resources Plc, Canada's First Quantum Minerals, Equinox Minerals Ltd and Glencore International AG are some of the foreign mining firms operating in Zambia.

SourcE: Reuters

Zimbabwe's Hwange Colliery Clinches Zambia Export Deal

Zimbabwe's Hwange Colliery Company has clinched deals worth US$5 million to export coal products to Zambian companies.

The deals were struck at the recent 45th edition of Zambia International Trade Fair held in the country’s second largest city, Ndola.

According to the company’s marketing manager Mr Charles Zhou, the mining giant will be supplying at least 1 000 tonnes per month of coke breeze to a copper smelting company, Eastern Union, for the next five years. Mr Zhou said the Colliery will also make monthly supplies of 500,000 tonnes of foundry coke to Ndola Foundries.

"Our challenge is now to ensure we produce enough so that we will be able to meet the demand," said Mr Zhou.

He said the Zambia trade fair has enhanced HCCL’s visibility as most companies were buying coal from middlemen.

"Although we had created a solid foundation, the middlemen had found space between us and the customers.

"Most coal customers were buying from middle men but this trade fair has given us an opportunity to directly engage our customers. It is very encouraging," he said.

Zambia and the DRC are the key export market for HCCL.

Hwange normally supplies an average of 10 000 tonnes of various coal products to Zambia.

But because of subdued copper prices, the company is supplying not more than 5 000 tonnes.

HCCL and Zeco Holdings were the only Zimbabwean companies that participated at Zambia International Trade Fair.

Source: The Herald, Zimbabwe

UK Firm To Operate Mothballed Zambia Copper Smelter

Enya Holdings BV will operate Zambia's largest cobalt producer Chambishi Metals Plc which was shutdown in December last year, mines minister Maxwell Mwale said on Monday.

Chambishi Metals Plc was part of the Luanshya Copper Mines (LCM), which also operated the Baluba copper mine.

Before shutting down, Chambishi had planned to spend $354 million to develop the Mulyashi copper project, forecast to produce 60,000 tonnes of copper cathode by 2010.

Chambishi had planned to raise cobalt output to 5,000 tonnes in 2008 from around 3,000 tonnes in 2007 before halting operations due to the fallout of the global economic crisis.

"It is the Enya Holdings Group that will operate Chambishi Metals. They will be importing the raw materials (copper concentrate) from the Democratic Republic of Congo (DRC) to produce cobalt," Mwale told Reuters in response to a question about which investor would be handed Chambishi Metals Plc.

Chambishi Metals was processing cobalt from raw materials at its Nkana Slag damps and raw materials from Baluba mine.

Enya Holdings, had interests in both the Bein Stein Group Resources (BSRG) and International Minerals Resources (IRM), the joint owners of LCM before it stopped production.

Mwale said the government and Enya Holdings would conclude a deal for operating Chambishi Metals soon.

China's Nonferrous Metals Corporation was a fortnight ago awarded the right to run the Luanshya copper mines and pledged to invest $400 million to revamp its operations.

Source: Reuters

Zambia Sees 'Glimmer Of Hope' As Copper Prices Improve

Zambia’s Finance Minister Situmbeko Musokotwane said he sees a “glimmer of hope” for Africa’s largest copper producer as prices for the metal improve, prompting companies to reopen mining.

The resumption of production at Luanshya Copper Mines and continued output at Mopani Copper Mines Plc was a “positive indicator,” Musokotwane said yesterday in an interview in Dakar, Senegal, where he is attending the African Development Bank’s annual meeting.

Copper has gained 42 percent in London this year, after plunging 64 percent in the second half of 2008. Copper makes up two-thirds of exports in Zambia and the slump in prices slashed fiscal revenue and forced the government to seek more than $200 million in emergency loans from the International Monetary Fund to boost foreign currency reserves.

“There are glimmers of hope,” Musokotwane said. “With these mines resuming production, we can maintain production. Yes, growth won’t be as high as last year, but we are not talking about stagnation.” The government may not meet a 5 percent economic growth target for the year, he added.

China Non-Ferrous Metals Mining Africa Corp. agreed this month to invest $400 million in Luanshya to restart and expand operations, the minister said. Mopani Copper Mines, which is majority-owned by Glencore International AG, said on April 29 it was dropping plans to halt output at its Nkana and Mufulira operations.

Copper traded as high as $4,465 a metric ton in London today.

Zambia will probably earn only half of the $140 million in mining taxes it estimated last year it would receive, Musokotwane said. That will push the fiscal deficit to 1.8 percent of gross domestic product, compared with 1.2 percent in 2008, he added.

The IMF on May 1 agreed to loan Zambia an extra $256.4 million over the next three years to boost foreign exchange reserves, with $160.1 million to be disbursed immediately.

“It was front-loaded,” Musokotwane said. “That will help to calm the financial markets. It is going to help improve the reserve position of the central bank, but it also gives them room to borrow more from the domestic market.”

Zambia will also seek funds from the World Bank, the African Development Bank, commercial lenders and private companies to help pay for the construction of roads, power networks and water facilities in agricultural areas, Musokotwane said.

“We see this crisis as an opportunity to deal with the issue of diversifying our economy,” the minister said. “We want to focus a lot on infrastructure. We need access roads, we need to take power there, to develop water resources so that these natural resources can be harnessed.”

Musokotwane, 52, was appointed finance minister on Nov. 14 after working for more than a year as a presidential economic adviser.

Source: Bloomberg

Zambia Copper Output Up 17 Per Cent

Zambia's copper cathode production rose 17 percent to 167,185 tonnes during the first quarter of 2009 compared with the same period last year, the central bank said on Tuesday.

Central bank deputy governor Denny Kalyalya also said the southern African country was on course to achieve the 600,000 tonnes of copper projected for this year because the industry was starting to show signs of recovery from the global economic downturn.

Data from the Bank of Zambia (BoZ) showed cobalt production slumped by over half to 600 tonnes in the first quarter of this year compared with 1,244 tonnes in the same period in 2008.

"This output (Q1) is a very encouraging development considering what has happened since the second half of last year when the mining industry suffered a severe strain due to reduced prices of copper on the world market," Kalyalya told Reuters.

Source: Reuters

African Copper Deal Nearing Completion

Mining investment company Zambia Copper Investments Ltd said on Tuesday its $22.5 million financing package for exploration company African Copper Plc was closer to completion after it agreed not to seek repayment of an outstanding debt at least until the financing was complete.

Along with the financial package deal of May 11, the companies also entered into a binding debt assignment agreement with African Copper's mining contractor Moolman Mining Botswana (Pty) Ltd under which Moolman assigned its $8 million outstanding debt to Zambia Copper at a price equal to 50 percent of the face value of the debt.

Moolman will not be taking up its portion of the package to large trade creditors and also has terminated all agreements with African Copper, Zambia Copper said.

Zambia Copper had proposed on Monday that African Copper's large trade creditors -- the mining contractor and the engineering, procurement, contracting and management contractors -- would be paid in cash 40 percent of monies owed and issued about 48 million shares in full and final settlement of debts due from African Copper.

Source: Reuters