UPDATE: Zambia ZDA, Bhati In Advanced Maamba Takeover Talks
In a ministerial statement seen by Dow Jones Newswires, Maxwell Mwale said Nava Bharat Ventures will partner state mining investment company Zambia Consolidate Copper Mines Investments Holdings, or ZCCM-IH (ZCCM.ZM), to develop the mine and a 350 megawatt thermal power plant.
Nava Bharat couldn't comment immediately.
"Once negotiations are concluded, a report will be submitted to a committee of ministers prior to presentation to cabinet for approval," he said.
According to reports, Nava Bharat Ventures will take a 65% stake in the mine. The company is expected to invest up to $550 million to revive coal mining operations and develop a thermal power plant at the mine, in order to ease power shortages in the country.
According to Mwale, Maamba is experiencing problems with marketing its coal, which has made it impossible for management to pay workers, leading to industrial unrest at the mine. Maamba Coal Miners went on strike last week demanding payment of salary arrears of up to four months. The mine has also failed to pay the mining contractor for the past four months.
Mwale said Maamba has lost its traditional local market following a spate of production disruptions since last year, forcing coal users to source coal from foreign producers. Until last year, Maamba was the leading coal supplier to Zambia’s copper and cobalt mines.
Zambia is Africa's largest copper producer.