Chibuluma Privatisation (Metorex) - Zambian Copperbelt (sitios de interés)

Chibuluma Mine

 

85% Metorex Ltd

 

 

 

BIDS RECEIVED :
Chibuluma Mine was initially advertised for sale as part of Package "A" comprising Nkana and Nchanga Divisions. However, bidders were allowed to bid for either part or whole of each package.

At bid closing, 28 February 1997, two bids were received for Chibuluma Mine from the following bidding groups:

 

- The Kafue Consortium comprising:

Avmin Limited, Noranda, Phelps Dodge and Commonwealth Development Corporation. The Consortium wanted Chibuluma Mine to remain as part of Package "A" which they had bid for.

 

- The Metorex Consortium comprising: Crew Development Corporation, a Canadian Development Company; Genbel Limited (formerly Randex Limited), a mining finance company; and Metorex (Pty) Limited and Maranda Mines Limited, South African junior mining companies.

The Kafue Consortium did not make a separate offer for Chibuluma but wanted it retained within Package "A".

 

The offer accepted by the GRZ/ZCCM Privatisation Negotiating Team for Chibuluma, following the negotiations with the Metorex Consortium, was as follows:
Description Revised offer
25 July 1997
Cash at Close US$17.5 m
Copper price participation (NPV) US$1.2 m
Cobalt price participation (NPV) US$6.4 m
Committed capital expenditure US$34 m
ZCCM retained interest (all free carried) 15%

 

SUCCESSFUL BIDDER:
Metorex Consortium, comprising Metorex (Pty) Limited and Maranda Mines Limited, both South African junior mining companies; Crew Development Corporation, a Canadian development company; and Genbel Limited (formerly Randex Limited), a mining finance company of Australia. The transaction was completed in October 1997.

 

COMMERCIAL TERMS:
a) ZCCM retained interest (all free carried) 15%
b) Cash consideration at Close US$17.5 m
c) Copper price participation (NPV) US$ 1.2 m
d) Cobalt price participation (NPV) US$ 6.4 m
e) committed capital expenditure US$ 34.0 m

 

- The business plan, which formed part of the sale transaction through the Development Agreement, included the following aspects:
- Efficient utilisation of mineral resources through the development of Chibuluma South;
- A minimum investment commitment of US $34 million for the first three (3) years:
- Commitment to immediately start developing the Chibuluma South Mine to phase in with the closure of Chibuluma West Mine, anticipated in 3 to 4 years time.
- The Consortium's plan to immediately and unconditionally develop the Chibuluma South deposit was considered important as it would avert a major retrenchment of Chibuluma west employees when the operations of this mine were to close in three to four years time;
- A commitment to support local business development;
- New company to list on the Lusaka Stock Exchange in 2 years time;
- A commitment to provide Zambian professionals with employment, training and development opportunities;
- Recognition of the union and a commitment to provide social services at a standard not worse than that at the time of take over.

 

http://www.zpa.org.zm/trsum.pdf  (page 49)

 

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