Administrateur du site
Messages: 4391
Inscription: Jeu 30 Juil 2009 16:48
Localisation: la seyne sur mer
Maamba Collieries to invest part of USD 600 million equity S
Saturday, 27 Mar 2010
EmailButton
Pdf_button
Nava Bharat Limited, equity partner in Zambia’s leading coal producer Maamba Collieries seeks to invest part of more than USD 600 million equity into a new coal handling and washing plant.
Mr Maxwell Mwale mine minister of Zambia said of the total investment, Nava Bharat plans to plough USD 108 million into the new handling and washing plant while a further USD 500 million would be invested in the coal-fired power plant to sustain the mines when it resumes operations this year.
He told lawmakers in Lusaka on March 25th 2010 that the Singapore based diversified miner would invest USD 108 million in the new process while the rest would help enable the company set up more than 270 MW of power plant and create about 150 jobs.
Mr Mwale said that it is envisaged that the project will create about 150 additional jobs. He added that currently, MCL has 608 employees.
He said that ZCCM Investment Holdings concluded negotiations with Nava Bharat Limited on December 18th 2009, when the 2 parties signed a share sale and purchase agreement, which will see the new investor, acquire 65% equity in MCL. He said that following the signing of the agreement, a completion committee was appointed to finalize all the conditions precedent to the execution of the agreement.
Mr Mwale said that “These conditions include Ministry of Finance and National Planning, being majority shareholder in ZCCM-IH, formally consents to the sale of shares; ZCCM-IH, Nava Bharat, Zambia Development Agency, Government and MCL execute the investment promotion and protection agreement. Maamba Collieries Limited obtains all water rights and permits as necessary for the company’s business and that Nava Bharat produces an action plan to procure debt finance for MCL and thermal power project.”
He said that the conditions are expected to be finalized and enable the transaction to be executed by April 1, 2010. In the meantime, ZCCM-IH and Nava Bharat are expediting commencement of operations, particularly with respect to mining.
Mr Mwale said that the task of the senior management will be to undertake a skills audit of the existing labour force and come up with an appropriate structure in respect of the technology to be adopted for mining operations. This is an indication that the change of management control will not result in arbitrary redundancies. The company has no intention of laying off workers, but rather increase productivity by putting in place an efficient structure. He said that Nava Bharat has also begun to engage mining equipment suppliers to ensure the commencement of operations as soon as possible.
According to official data, Maamba mine has 80 million tonnes of coal deposits and with production of 8,000 tonnes per month, the mine has a lifespan of more than 50 years.