Zambia Maamba Collieries Suspends Ops As Contractor Pulls Ou
Zambia's largest coal producer Maamba Collieries Ltd. has suspended operations after its contractor Oriental Quarries pulled out of the company citing non payment of contractual fees, officials said Monday.
Oriental Quarries Managing Director Amard Saadi said the company is now in the process of removing equipment from the site, and at least 200 workers have been sent on leave until further notice.
The company was contracted earlier this year to revive operations at the mine after months of disruptions.
Zambia's Minister of Mines and Minerals Development Maxwell Mwale said Maamba isn't able to pay the contractor because of lost sales due to the disruptions, adding operations could stabilize because the mine had started securing buyers once more.
A workers' strike has entered a second week, bringing operations to a standstill.
Efforts to get an investment partner to revive operations at the mine are underway, with talks between the Zambia Development Agency and India-based Nava Bharat Ventures Ltd. (513023.BY) in advanced stages, according to Mwale.