Chambishi Metals Privatisation - Zambian Copperbelt (sitios de interés)

90% Anglovaal Mining Ltd (Avmin)

10% ZCCM-Investment Holdings Plc (ZCCM)

 

90% ENYA Holdings BV (subsidiary of J&W Holdings AG - IMR)

 

 

 

SUCCESSFUL BIDDER:
Avmin Limited of South Africa. The transaction was completed in September 1998.

 

COMMERCIAL TERMS:
a) ZCCM Retained interest 10% (5% free and 5% repayable from dividends)
b) Cash at close US$ 50 m
c) Future cash payment US$ 45 m (Cobalt Price Participation)
d) New Equity Investment US$ 2 m
e) Investment Commitment US$ 70 m
f) Contingent Investment US$ 50 m

 

MAJOR PROVISIONS OF THE SALE AND PURCHASE AGREEMENT AND THE DEVELOPMENT AGREEMENT
a) Investment Plan:
- Immediate investment, upon completion, of US$ 2 million in the new company as a subordinated shareholder loan, and
- A capital investment commitment of up to US$ 70 million to be expended on modernisation and expansion of the plants within the first five (5) years.
b) Production and Technical Plan:
- Avmin's Business Plan was centred around turning the Nkana Slag Dumps to account by:
i) Investing in state-of-the art smelting technology to produce acid leachable matte, and
ii) Processing the matte through an adapted and expanded Chambishi Cobalt and Acid Plant.
- Production capacity to be increased from 2,5000 to 4,2000 tonnes of cobalt per annum and up to 20,000 tonnes of copper per annum, while leaving that for acid at 60,000 tonnes per annum. Approximately 20,000 tonnes of acid per annum will be consumed internally while the balance will be sold out;
- Apart from treating materials from the slag dumps, the plant would, and is, available to treat cobalt concentrates from Nkana, Nchanga, Luanshya and other operations, including the Konkola North, once it comes on stream;
- The new company would employ 500 people and committed itself to providing suitable training and development programmes to its employees;
- The company was also committed to supporting local businesses and encouraging/facilitating the developments of downstream and allied industries in order to allow for our sourcing of certain functions;
- Commitment to local business development and human resources development programmes;
- recognition of the Mineworkers' Union of Zambia and commitment to provide social services of an acceptable standard;

Avmin Limited of South Africa

 

 

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50% Barry Steinmetz Group Resources Ltd  (BSGR)

50% International Mineral Resources  (IMR)

part of Kazahk Eurasian National Resources Corp (ENRC.L)