Zambia Consolidated Copper mines (ZCCM) has floated a proposal to international buyers for the sale of majority shares in the conglomerate's Nkhana Division. Henry Kapata report on who is interested and why.
If Zambia is to produce world class copper, at world class prices; if the country is to truly benefit from its greatest mineral asset, things will have to change at ZCCM.
That they are beginning to change is beyond doubt: President Chiluba recently announced that the long awaited agreement with Anglo American Corporation for a huge injection of money into the Konkola mining project is going ahead, but will it go far enough to resuscitate Zambia's ailing mines?
Many argue it can only address the problems at Konkola, with the rest of ZCCM's operations left unattended. Yet the sale of Nkana, and the development of its huge Mindolo shaft, could be the next step in the salvation of Zambian copper.
CDC Country Representative Mr David Johns, recently said that the Corporation is interested in the ZCCM proposal, but would only participate if another mining company joined with ZCCM to undertake the technical aspects of the project.
CDC is only a finance house, he said. "We are ready to put up the money but we can only do so if a mining house with a lot of interest and with a stake in ZCCM is found."
Mr Johns indicated that the Government delay in establishing exactly when and how it would sell ZCCM had been a major factor in the company's failure to attract investors in the past. Privatisation of ZCCM is cardinal if the project is to succeed.
"We are still awaiting Government's decision on whether it would privatise and how it would do it. If the answers to these questions are given, things would certainly start moving." he said.
The proposals are to increase the depth of the Mindolo Shaft, which has large amounts of copper ore, inaccessible without mining far deeper underground.
A deeper shaft would be able to produce about 30,000 tonnes of copper every month, increasing the country's copper output, which has been declining for some time.
The project, master minded by ZCCM's Technical Director Mr John Patterson, was conceived several years ago, but work had to be stopped due to a lack of funds.
Prominent Lusaka business consultant, Mr Theo Bull, said CDC's interest was a veiled offer to buy Nkana Division, and that the Government will have to make up its mind sooner rather than later.
He believes the Government should not sell all its...