Zambia Cons Copper - Statement re Chambishi Mine

RNS No 9163u
ZAMBIA CONSOLIDATED COPPER MINES LIMITED
4th March 1998


                ZAMBIA CONSOLIDATED COPPER MINES LIMITED
 
LUSAKA - 4 March 1998 - The chairman of Zambia Consolidated Copper Mines
Limited (ZCCM),  Mr Luke J Mwananshiku, and the chairman of the Government
Privatisation Negotiating  Team, Mr Francis H Kaunda, announced today that
Chambishi Mine (the 'D' package) has  been awarded to China Non-Ferrous Metal
Industry's Foreign Engineering and Construction  Corporation (NFC) of China.  
Initially, Chambishi Mine was awarded to Ivanhoe Capital  Corporation which
withdrew its bid just before the signing of the sale transaction  agreements,
citing low copper prices and the financial crisis in the Asian countries as
the reasons for its withdrawal.
 
The Chambishi Mine, which is currently on care and maintenance, has:
proven reserves of 33.5 million tonnes at 2.55% copper to the 900 metre level;
an existing production shaft to 900 metre level; and
additional resources estimated to exceed 100 million tonnes.
 
NFC is a large state-run enterprise in China and is one of China's
metallurgical and  construction industries producing a wide range of non
ferrous minerals, base metals and  processed products.  Currently, NFC is
engaged in local and foreign trade, industry  development, real estate
exploitation and design among other activities.   NFC has  submitted a
business plan in which the Corporation is committed to the development of
the Chambishi Mine over a period of five years from close.   The Corporation
plans to  re-establish the mine with a planned production capacity of 3,000
tonnes of ore per day,  within the first 18 months from close, rising to 6,000
tonnes after 30 months. 

Thereafter, it envisages to attain a production capacity of 9,000 tonnes per
day,  depending on the outcome of the exploration work on the Chambishi West
and South East  orebodies.
 
Commenting on the offer of the Chambishi Mine to NFC, Mr Kaunda stated that
the  withdrawal of Ivanhoe's bid in January this year was not a set back in
the privatisation  process because there were many other bidders interested in
Chambishi Mine.   Mr Kaunda  added "I am pleased that the offer by NFC has
proved to be significantly better than  that of Ivanhoe".   On his part, Mr
Mwananshiku stated that the sale of Chambishi is a  reaffirmation of the
Government's policy of diversification of ownership in the  privatisation of
ZCCM.
 
The necessary transaction agreements will be concluded during the course of
March 1998.
 
Contact:  Keith Irons, Bankside Consultants       0171 220 7477
 

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