Monday, March 9, 2009

Zambia Claims Investor Interest In Ailing Copper Mines

Zambia's Minister of Mines and Minerals Development, Maxwell Mwale, has told the country's ZNBC TV that a number of investors have expressed an interest in taking over the Luanshya Copper Mines and Mopani Copper Mines. Mwale said that the problems faced by the mines can be solved by capital investment and many investors have already expressed an interest. However, he didn't name any specific investors.

Luanshya closed operations in December, and MCM, Zambia's second leading copper and cobalt producer, said last week it intends to close its Nkana and Mufulira mines. Both cited low metals prices. MCM is a joint venture between Swiss commodity trader Glencore International AG and Toronto-listed First Quantum Minerals Ltd.

The government has asked MCM to surrender the two mines to the state. Its assets are protected against nationalization by the development agreement, and it intends to continue running Mufulira Copper Smelter.

Last week Mwale said the government was in talks with Chinese-owned Jinchuan Group for the takeover of Munali Nickel Mine after the Australia-based Albidon Ltd halted operations there.

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