Chambishi Copper Mine Privatisation (NFCA CNMC) - Zambian Copperbelt (sitios de interés)

 

Deposits claimed by Collier in 1903 

Roan Selection Trust (RST) 1931-1969

Roan Copper Mines (RCM) 1969-1982

Zambia Consolidated Copper Mines (ZCCM) 1982-1998

 

15% ZCCM Investment Holding Limited (ZCCM-IH) June 29, 1998

 

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BIDS RECEIVED:
At bid closing, 28 February 1997, bids for Chambishi Mine were received from the following bidders:

- AUR Resources Inc, a company incorporated in Canada.

- Farrell Associates Group, composed of LMX Resources Limited, GMD Resources Corporation and Farrell Financial Limited, all Canadian incorporated companies.

- First Quantum Minerals Limited, a company incorporated in Canada.

- Sterlite Industries Limited, a company incorporated in India.

After consideration, the GRZ/ZCCM Privatisation Negotiating Team decided to reject all the bids that were submitted for the purchase of Chambishi Mine.
A Restricted Tender was then called and all the companies that had pre-qualified for the purchase of this package were invited to participate. Bids were finally received from the following bidders:

- China National Non Ferrous Metal Industry Corporation (CNNC), a company incorporated in the Peoples Republic of China.
- Farrell Associates Group who decided to re-bid through GMD Resources Corporation.
- Ivanhoe Capital PTE Limited, a Canadian registered financial development group with headquarters in Singapore
- Jet Cheer Development (Z) Limited, a company incorporated in Zambia.
- Sterlite Industries Limited, a company incorporated in India.

i) China National Non Ferrous Metal Industry Corporation (CNNC)
Descriptions Offer
Shareholding requested 85%
ZCCM retained interest (10% free, 5% repayable) 15%
Cash at close US$6 m
Deferred/conditional cash (@ 12% NPV) US$7.4 m
Feasibility commitment US$10 m

ii) GMD Resources Corporation
Descriptions Offer
Shareholding requested 60%
ZCCM retained interest (0% free, 40% repayable) 40%
Cash at close US$1.5 m
Deferred/conditional cash (@ 12% NPV) Nil
Feasibility commitment Not stated

iii) Ivanhoe Capital PTE Limited
Descriptions Offer
Shareholding requested 85%
ZCCM retained interest (0% free, 15% repayable) 15%*
Cash at close US$4 m
Deferred/conditional cash (@ 12% NPV) US$10.56 m
Feasibility commitment US$10 m
* Free carried for 4 years up to US$80 million capital investment.

iv) Jet Cheer Development (Z) Limited
Descriptions Offer
Shareholding requested 80%
ZCCM retained interest (20% free, 0% repayable) 20%
Cash at close US$8.5 m
Deferred/conditional cash (@ 12% NPV) US$4.92 m
Feasibility commitment US$10.4 m*
* Excluding US$2.6 m claimed to have been spent

v) Sterlite Industries (India) Limited
Descriptions Offer
Shareholding requested 80%
ZCCM retained interest (20% free, 0% repayable) 20%*
Cash at close US$7.5 m
Deferred/conditional cash (@ 12% NPV) US$11.61 m
Feasibility commitment US$10 m
* Free carried interest is only up to the first rights issue and thereafter no carry

SUCCESSFUL BIDDER:
China Non Ferrous Metals Industries Corporation (CNNC)

COMMERCIAL TERMS:
a) ZCCM retained interest (10% free, 5% repayable) 15%
b) Cash at close US$ 20 m
c) Deferred/conditional cash @ 12% NPV0 US$ 7.4 m
d) Feasibility commitment (over 3 year) US $ 10 m
e) conditional Investment commitment (over 5 years) US4110M

MAJOR PROVISIONS OF THE SALE AND PURCHASE AGREEMENT AND THE DEVELOPMENT AGREEMENT
- A commitment to invest a total of US$ 110 million in the development of Chambishi Mine during the first five years from close.
- a programme to re-establish Chambishi Mine in three (3) phases:
- Phase 1 Restore operations and achieve a production capacity of 3,000 tonnes of ore per day with the first 18 months from close;
- Phase 2 Increase production capacity to 6,000 tonnes of ore per day, after 30 months;
- Phase 3 Thereafter, endeavour to achieve a production capacity of 9,000 tonnes of ore per day, depending on the outcome of further exploration work on Chambishi West and South East ore bodies.
- A commitment to support local business development;
- A Human Resources development programme;
- Recognition of the Mineworkers' Union of Zambia.

THE PURCHASER:
China Non-Ferrous Metals Corporation of the Peoples' Republic of China

 

http://www.zpa.org.zm/trsum.pdf  (page 46)

 

 

 

 

CNMC boasts the most overseas nonferrous metal resources in China. At present, the projects both under development and operation include: Chambishi Copper Mine of Zambia, Tumurttin-Ovoo Zinc Mine of Mongolia, Tagaung Taung Nickel project of Myanmar, Thai-China lead-Antimony Alloy Plant, Mongolia Oyu Tolgoi Copper-Gold Project and so on... Chinese Investment Zone in Zambia centering around Chambishi copper mine is now being established.