Zambia Cons Copper - Re Chambishi Mine

RNS No 9058k
ZAMBIA CONSOLIDATED COPPER MINES LIMITED
4th March 1998


Lusaka, Zambia, 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 ore bodies.

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 setback 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.

Enquiries::

Mr Francis H Kaunda, Chairman - Government Negotiating Team
Mr Luke J Mwananshiku, Chairman - ZCCM
Mr Valentine Chitalu, Chief Executive - Zambia Privatisation Agency


END


MSCZZFFBVXKEBKK

Zccm Investments (LSE:ZCC)
過去株価チャート
から 6 2024 まで 7 2024