HomeBase MetalsNew owners to settle Luanshya's debts

New owners to settle Luanshya’s debts

Maxwell Mwale,
Zambian Mines
Lusaka, Zambia — MININGREVIEW.COM — 07 August 2009 – Enya Holdings BV “’ which shut down one of its Zambian units, Luanshya Copper Mines, last year “’ will settle all liabilities owed to the company’s creditors, said mines minister Maxwell Mwale.

Enya had paid back part of the US$50 million (R400 million) owed by settling 48% of the claims of 38 of its 45 creditors by the end of July, Mwale told Parliament in the Zambian capital. The remaining seven creditors are demanding that they be paid more than 48% of their debt, he added.

Production at Luanshya was halted in December after copper prices had plunged and ownership of the company was subsequently transferred to the government. Enya is jointly controlled by Beny Steinmetz Group Resources and International Mineral Resources BV, both of the Netherlands. The government sold 85% of LCM to China Non-Ferrous Metals Mining Corp. in May for a sum of US$450 million R3.6 billion.

“The government will not settle any liabilities which accrued during the time when LCM was operated by Enya BV,” Mwale said.

Enya CEO Derek Webbstock said in response to a call by Bloomberg News that the company would be issuing a statement on the matter.