Message Dim 4 Oct 2009 12:43

State to find ZCCM IH equity partner soon

State to find ZCCM IH equity partner soon

By YANDE KAPEYA

GOVERNMENT says it has reached an advanced stage in selecting a strategic equity partner for ZCCM-IH for the development of Maamba Coal Mine.

Minister of Mines and Minerals Development, Maxwell Mwale, said the Zambia Development Agency is currently carrying out negotiations with the preferred bidders to partner with ZCCM-IH in the development of the mine and a thermal power plant.

Mr Mwale said this in Parliament yesterday when he made a ministerial statement on the status of Maamba Coal Mine operations.

Mr Mwale was instructed to address the House on the status of the mine following a point of order raised by Sinazongwe MP Raphael Muyunda on Tuesday this week over the withdrawal of labour at the mine.

He said the negotiations have reached an advanced stage and once concluded a report will be submitted to a committee of ministers prior to presentation to Cabinet for approval.

Mr Mwale said the mine is currently experiencing difficulties in marketing the coal it produces, leading to management’s failure to meet staff salaries and payment to the contract miner.

He noted that the mine has lost its traditional local market due to its unreliable coal production, which led to its customers sourcing coal from external producers.

Mr Mwale, however, said the mine has stepped up efforts to market its coal to raise revenue.

He said management has signed coal sales contracts with Lafarge for 18,000 metric tonnes worth K10 billion and Zambezi Portland cement for 4,000 metric tonnes per month worth K1.2 billion every month.

The mine has also clinched an order from the Democratic Republic of Congo (DRC) of 4,000 metric tonnes worth K1.2 billion and Malawi for 3,000 metric tonnes worth K900 million.

And Mr Mwale said the US$5.3 million that was provided by ZCCM-IH to Mamba Mine management to facilitate the resumption of operations at the mine was used for the intended purpose.

He said this is contrary to allegations by Mr Muyunda that the funds disappeared.