/ 15 December 1999

Anglo signs Zamiba mines contract

MANOAH ESIPISU, Lusaka | day 11.00m.

MINING giant Anglo American on Wednesday signed a deal to acquire several big copper mines in Zambia in a pact crucial for the country’s mine privatisation programme.

“Our signing shows that Anglo is committed to the completion of this deal. We intend to keep to the January 31 deadline,” Jack Holmes, chairman of Anglo subsidiary Zambia Copper Investments, told reporters after the signing ceremony.

ZCI will through a new company, Konkola Copper Mines, take an 80% interest in the Konkola, Nchanga and Nampundwe mines owned by Zambia Consolidated Copper Mines.

The three operations account for 70% of Zambia’s total copper production. The deal is expected to close on January 31, 2000.

ZCCM will receive a 5% free and 15% repayable delayed participation in Konkola Copper, as well as a cash consideration of $30-million.

ZCCM will also receive a deferred consideration of $60-million and the benefits of copper and cobalt participation schemes with a cap of $125-million over the life of the company.

“We’ve demonstrated the government’s resolve and commitment to thrash out all outstanding issues. We’ve reached a point where there is a sense of optimism if we close by January 31,” said Zambian Finance Minister Katele Kalumba.

“This is the time to help Zambia get out of the doldrums. Our commitment to privatise the mines is real,” he added.