State sells 65 per cent Maamba Collieries shares By Times R
Posté: Sam 19 Déc 2009 10:00
State sells 65 per cent Maamba Collieries shares
By Times Reporter
THE Government has sold 65 per cent shares in Maamba Collieries Limited to Nava Bharat Singapore Private Limited at a cost of US$26 million.
The Government, through Zambia Consolidated Copper Mine Investment Holdings (ZCCM-IH), would retain 35 per cent shares and a golden share in the privatised Maamba Collieries in order to ensure continued development of the mine.
Finance and National Planning Minister Situmbeko Musokotwane said Nava Bharat Singapore Private Limited will further develop a new 300 megawatts thermal power plant at Maamba Colliers estimated to cost more than US$ 420 million.
Nava Bharat Singapore Private Limited is a company incorporated in Singapore with mining and power production operations in India and Indonesia.
Dr Musokotwane said this in Lusaka yesterday after signing a Sale and Purchase Agreement between the Zambian Government and Nava Bharat Singapore for the sale of 65 per cent Government shares in Maamba Collieries.
He said the mine would be redeveloped at an estimated cost of $93 million.
Dr Musokotwane said both Nava Bharat and ZCCM-IH had committed to US$ 6 million per annum when Maamba Collieries attained the targeted capacity production of two million of washed coal per annum.
“This transaction is in line with Government’s commitment to ensure that the private sector is at the centrestage of economic activities in Zambia,” he said.
Dr Musokotwane noted the liabilities of Maamba Collieries had been increasing and the actual cash consideration payable to Government through ZCCM-IH would be determined by the outcome of the audit to be finalised by mid January next year.
He said Maamba was now insolvent, owing huge sums of money to various creditors estimated to be more than $50 million.
“Government will no longer be directly responsible for this liability as the Maamba itself under Nava Bharat management and part of ownership with ZCCM-IH will work towards liquidating indebtedness once the company’s cash flows become healthy,” he said.
Dr Musokotwane observed that over the years, attempts to privatise Maamba Collieries could not materialise due to various factors, including lack of committed investors.
Speaking at the same function, Nava Bharat Singapore chairperson Ashok Devineni said the task to revitalising Maamba Collieries posed challenges at the site and in the geographical region for which Nava Bharat was geared up.
Mr Devineni said the company would ensure that Maamba Collieries adopted and took in the industry the best practices to facilitate sustainable mining operations while emphasising on efficient environmental management at Maamba.
ZCCM-IH chairperson Alfred Lungu said the transaction arrangements provide within the next three years for the development of a thermal plant with a capacity of up to 300 megawatts.
Mr Lungu said given the current nation deficit of electrical power which resulted in load shedding, the investment in the thermal power plant was not only timely but also promoting job creation and enhance various developmental activities in Maamba.
Mines and Mineral Development Minister Maxwell Mwale said the sale of Maamba would significantly contribute to economic development and investor confidence.
By Times Reporter
THE Government has sold 65 per cent shares in Maamba Collieries Limited to Nava Bharat Singapore Private Limited at a cost of US$26 million.
The Government, through Zambia Consolidated Copper Mine Investment Holdings (ZCCM-IH), would retain 35 per cent shares and a golden share in the privatised Maamba Collieries in order to ensure continued development of the mine.
Finance and National Planning Minister Situmbeko Musokotwane said Nava Bharat Singapore Private Limited will further develop a new 300 megawatts thermal power plant at Maamba Colliers estimated to cost more than US$ 420 million.
Nava Bharat Singapore Private Limited is a company incorporated in Singapore with mining and power production operations in India and Indonesia.
Dr Musokotwane said this in Lusaka yesterday after signing a Sale and Purchase Agreement between the Zambian Government and Nava Bharat Singapore for the sale of 65 per cent Government shares in Maamba Collieries.
He said the mine would be redeveloped at an estimated cost of $93 million.
Dr Musokotwane said both Nava Bharat and ZCCM-IH had committed to US$ 6 million per annum when Maamba Collieries attained the targeted capacity production of two million of washed coal per annum.
“This transaction is in line with Government’s commitment to ensure that the private sector is at the centrestage of economic activities in Zambia,” he said.
Dr Musokotwane noted the liabilities of Maamba Collieries had been increasing and the actual cash consideration payable to Government through ZCCM-IH would be determined by the outcome of the audit to be finalised by mid January next year.
He said Maamba was now insolvent, owing huge sums of money to various creditors estimated to be more than $50 million.
“Government will no longer be directly responsible for this liability as the Maamba itself under Nava Bharat management and part of ownership with ZCCM-IH will work towards liquidating indebtedness once the company’s cash flows become healthy,” he said.
Dr Musokotwane observed that over the years, attempts to privatise Maamba Collieries could not materialise due to various factors, including lack of committed investors.
Speaking at the same function, Nava Bharat Singapore chairperson Ashok Devineni said the task to revitalising Maamba Collieries posed challenges at the site and in the geographical region for which Nava Bharat was geared up.
Mr Devineni said the company would ensure that Maamba Collieries adopted and took in the industry the best practices to facilitate sustainable mining operations while emphasising on efficient environmental management at Maamba.
ZCCM-IH chairperson Alfred Lungu said the transaction arrangements provide within the next three years for the development of a thermal plant with a capacity of up to 300 megawatts.
Mr Lungu said given the current nation deficit of electrical power which resulted in load shedding, the investment in the thermal power plant was not only timely but also promoting job creation and enhance various developmental activities in Maamba.
Mines and Mineral Development Minister Maxwell Mwale said the sale of Maamba would significantly contribute to economic development and investor confidence.