Message Mar 20 Sep 2011 16:18

Albidon shareholders reject figures

Albidon shareholders reject figures

By SHAMAOMA MUSONDA

MINORITY shareholders of Albidon Limited have demanded a fresh and independent audit of the output of Munali Nickel Mine in Mazabuka after management revised lower the mine's nickel production figures for the past four quarters.

The minority shareholders told the Dow Jones newswire that the investigation and subsequent revision of production figures downwards by the Australia-based miner on Zambia's nickel mine were laced with anomalies. Albidon Limited revised downwards the production figures after an independent report by Riverstone Advisory indicated that earlier figures were incorrect.

In a statement, the shareholders' pressure group - Albidon Action - said it had invited Ernst & Young to carry out a fresh audit and assess the on-going operational review. "It seems clear that the independent review is a total sham. There are no independent controls in place to oversee sales of ore...despite such controls being advised by experts," the statement said.

A company spokesperson defended the on-going review and dismissed the shareholders' concerns. "The company rejects the allegations that the review is a sham. The challenges facing the company are complex and it is important that the recommended solutions effectively address those challenges and that they get it right," the spokesperson said.

According to a revised report, Munali Nickel Mine produced 2,883 tonnes of nickel in the four quarters under review as opposed to 3,304 initially reported by the company. Company Secretary Noel McAuliffe said the discrepancies were discovered during the on-going review. Munali has been dogged by a spate of work stoppages since May this year. In June operations in Mazabuka were suspended after a fault in the ventilation system caused by a manhole discovered underground.

The mine halted operations in 2008 at the height of the global economic turmoil but restarted output last year after China's state-owned Jinchuan Group International Resources acquired a 51 per cent stake in Albidon.