Minister gives mine ultimatum to resume ops
Mines Minister Wilbur Simuusa who toured the troubled mine last week, said the Government was seriously considering alternative options to rescue the mine which has since been placed under care and maintenance.
The minister directed Zambia Consolidated Copper Mines-Investment Holdings (ZCCM-IH) to work out new options of reviving the mine if management failed to adhere to the ultimatum in the next two weeks.
Mr Simuusa said the Government was not totally convinced that the Munali Nickel Mine management would find a workable solution soon and hence the directives to ZCCM-IH to start working out an alternative plan.
Last year, operations at Zambia’s only Nickel mine were suspended indefinitely after it experienced two large sinkholes which affected progress on the project.
The minister directed mine management to open up the data room and avail all information to ZCCM-IH to help it come up with a proper rescue plan .
Mr Simuusa, who led a delegation comprising Mines Deputy Minister Richard Musukwa, Permanent Secretary Dr Victor Mutambo, acting director of mines at the ministry Billy Chewe, mines safety director Mooya Lumamba and ZCCM-IH chief executive officer Mukela Muyunda, said the Government was not impressed with the lack of seriousness from Munali Nickel management which has lamentably failed to recapitalise the mine.
"I am not convinced that this management will find a workable solution in the next two weeks and therefore, I direct ZCCM-IH to start shopping for an alternative plan. As Government we are not getting enough and I can therefore, officially announce that ZCCM-IH will seriously look at other options," he said.
The move will determine whether the Government would completely take over operations of the mine or find an equity investor.
"Government is not convinced with what is on the ground and this is not giving us any inspiration that we are going to see a workable solution coming out of Albidon in its current state. All the deadlines which were given to Government by Albidon management have not been met," he said.
Information being released by the board is scanty and there was no guarantee that management which lacks seriousness will make any difference now, especially that senior management staff were not present during the minister’s tour.
The minister also observed that the mining method being used under the current mining plan was wrong that was why it resulted in the two sinkholes.
"Going by your mining plan, the bankable feasibility study is wrong because their is no way you can be making losses all the time. Figures you have been giving us from the time you started show that you have never achieved anything and you are always below target," Mr Simuusa said.
Mr Simuusa directed the mine management to avail him with details of the consultant who designed the mining plan adding that the Government had lost a lot of revenue as a result of his incompetence.
The minister suggested that the consultant who designed the mining plan for Albidon be brought to book and face the law.
Albidon Zambia general manager Matthew Banda said it was difficult for him to say that the mining plan was wrong but said it was actually an Australian company which designed the plan at time when a bankable feasibility study was being conducted.