Message Dim 2 Oct 2011 18:29

Albidon Minerals to decide the future of Zambian unit

Albidon Minerals to decide the future of Zambian unit

Albidon Minerals to decide the future of Zambian unit
Saturday 01 Oct, 2011

It is reported that Albidon Minerals Limited may probably decide the future the unit in the Southern African nation soon after evaluators complete the assessments on the causes of the tremors that affected operations since June 2011.

Munali nickel mine, has since June 18th 2011 experienced various tremors at its Mazabuka operations, lying more than 60 kilometres from the capital, Lusaka, with one major one that caused a sink hole that ultimately affected ventilation at the underground operations.

The developments at the sole nickel producer has raised eyebrows among shareholders with the minority stake owners seeking a review of the operations while management was forced to reduce production targets by 21% from the projected 56,000 tonnes of concentrates.

Additionally, the miner suspended trading of stocks on its Australian bourse, until further notice to maintain value of the company under the matter was thoroughly investigated and causes of the tremors ascertained. The suspension of trading of stocks was up until September 12th 2011.

According to management, the Australian based miner will likely decide the future the mining operations in Zambia before mid October this year week after concluding investigations of the sinkholes that caused a fault in the ventilation process.

In a statement, company acting secretary Mr Noel McAuliffe stated that investigations were underway and that shares trading which were halted would remain in effect until the announcement is made. He did not elaborate further.

He added that "The company anticipates the voluntary suspension will remain in place until an announcement is made in respect of the suspension. Albidon expects to be in a position to make this announcement on or before the commencement of trading on September 12th 2011."

According to data, Munali Nickel Mine suspended operation on June 18th 2011 after a fault was discovered in the ventilation system underground. Albidon consequently suspended trading of shares in Australia. The mine has a production target of 900,000 tonnes in 2011 which was to rise to 1.2 million tonnes by 2012.

(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)