HomeCentral AfricaWide interest in Zambian coal project

Wide interest in Zambian coal project

At work at ZCCM’s
Maamba coal mine
in Zambia
Lusaka, Zambia — MININGREVIEW.COM — 26 March, 2008 – There has been widespread interest in Zambia’s major supplier of coal to the country’s copper mines, with no fewer than 30 foreign and local companies having tendered for shares in the company so far.
Reporting from here, Reuters quotes Joseph Chikolwa, chief executive officer of ZCCM Investments Holdings – which wholly owns the Maamba Collieries Ltd mine – as saying that tenders would close at the end of this week on March 28.

“We do not have a fixed percentage to give to the successful bidder, but we have decided to leave it open for negotiation in terms of the value they are going to add to Maamba Collieries,” he told the news agency.

“In terms of the response,” he added, “we have had over 30 interested parties expressing interest to submit proposals, so we can say the response has been very good.”

He declined to name the companies.

ZCCM plans to inject US$12 million (close to R100 million) into the operations of Maamba Collieries Ltd. as it seeks permanent equity partners.

Maamba produced about 600 000 tpa of coal in the 1980s, but years of under-capitalisation have led to a fall in production. It has known coal reserves of 78 Mt which are expected to last for more than 70 years, while the mine has the capacity to produce up to 1 Mtpa of coal.

The company also hopes to invest in a 300-350 megawatt station to power its facilities,” Chikolwa concluded.