Maravi

SA firm to re-open Kabwe mine

SA firm to re-open Kabwe mine
By Fridah Zinyama
Thursday January 10, 2008 [03:00]

ZCCM Investment Holdings (ZCCM-IH) executive director Joseph Chikolwa has said South Africa's Alberg Mining and Exploration is to re-open Kabwe zinc and lead mine. Chikolwa said unlisted Alberg Mining and Exploration would have the task of re-starting Kabwe zinc and lead mine, one of the oldest mines in Zambia, which was abruptly shut in 1994 due to poor management and a lack of capital.

"We have written to Alberg advising them of the offer to re-open Kabwe mine and we are waiting for their response, which should include the timing for negotiations," Chikolwa said.

He however said the financial details of the deal had not yet been finalised.
"Alberg Mining was chosen ahead of Congo Border Resources, Ilifa Commodities Ltd, Leopard Exploration & Mining and Pochy Mining Ltd," Chikolwa said.

Alberg Mining had expressed interest in 2007, to re-open the three shafts to mine lead and zinc in Kabwe.

Chikolwa said the value of the mine and its assets would be subject to negotiations.

"Of course it will have to take into account the value of assets to be sold and provision for environmental liabilities in case of default," Chikolwa said.

He said ZCCM-IH would retain a minimum stake of 20 per cent in the mine once Alberg Mining resumed lead and zinc production.

Chikolwa said the ZCCM-IH would ensure Alberg Mining followed its guidelines on mining lead and zinc, after global environmental campaigners Blacksmith Institute listed Kabwe as one of the world's 10 most polluted towns, blaming the local mine named after the town.

Lead poisoning has left thousands of people in Kabwe, especially children, with high lead content in their blood.

Chikolwa said the ZCCM-IH had developed guidelines for environmental rehabilitation for the new developer as a precaution to avoid future lead contamination.

"We will diligently follow up their actions through monitoring on the ground and our presence or representation at board of director level. We also expect the developer to prepare an environmental management plan to deal with future environmental issues that will be acceptable to us," Chikolwa said.

Alberg Mining said last year that it also planned to produce 12,000 tonnes of blister copper per year after constructing a processing plant at Kabwe through its Zambian subsidiary, Silver Lining Ventures Ltd.

Labels: KABWE, LEAD, MINING, ZCCM-IH, ZINC

posted by MrK @ 3:52 PM