Zambia's Munali Nickel Mine is expected to resume output in
November following the signing of a refinancing deal with Barclays
PLC (BCS) last week, a company official told Dow Jones Newswires
Monday.
Speaking by telephone from Lusaka, the Zambian capital, an
official with state-owned Zambia Consolidated Copper Mines
Investments Holdings, which holds a minority stake in the mine,
said output would start in November after the arrival of machinery
ordered from China.
“The board of [majority shareholder] Jinchuan Group has already
cleared the Munali Mine takeover,” the official said, adding a
redevelopment plan has been approved and will be implemented after
a formal takeover, which is expected in mid-October.
Jinchuan couldn't comment immediately.
The mine was put under care and maintenance in March by operator
Albidon Ltd. (ALB.AU), due to low global metal prices. Since the
start of the year, global nickel prices have been recovering,
driven by investment demand and increased Chinese imports.
According to Barclays Bank Zambia. the $12.6 million refinancing
package will enable Jinchuan to procure underground mining
equipment to allow the resumption of mining activities.
Until its closure Munali was Zambia's sole nickel producer; the
mine has the capacity to produce 10,000 metric tons of nickel in
concentrate. Zambia is trying to diversify its copper-reliant
mining sector by venturing into mining of other minerals like
nickel, lead, zinc and uranium.
-By Nicholas Bariyo, contributing to Dow Jones Newswires; +256
75 262 4615; bariyonic@yahoo.co.uk
