Zambian newspapers reported on Friday that President Levy Mwanawasa said Zambia has found money to run the country’s troubled Konkola Copper Mines (KCM) until May 2003 when a new investor would take over the troubled mines.
The Times of Zambia and Zambia Daily Mail, both state-owned newspapers, quoted Mwanawasa as saying enough financial resources had been pooled and a strategic partner would take over KCM by May 2003 after Anglo American Plc pulled out from the troubled mines.
”Government has mobilised sufficient resources to keep Konkola Copper Mines running until May next year following the pull-out of Anglo American Corporation,” the Zambia Daily Mail reported.
No further details were given on how much funding was raised or how it was acquired.
Mwanawasa said negotiations with a new investor had reached an advanced stage, but he declined to give further details.
KCM has revised its 2002 copper output forecast down to 220 000 tons from 240 000 tons, citing problems arising from Anglo’s withdrawal.
Anglo and the Zambian government are working out the details of the London-listed company’s exit.
Mwanawasa told Reuters in South Africa last week Anglo had offered to pay $30-million to offset it pullout from the troubled mining venture.
Zambia had asked for $200-million in compensation, but Mwanawasa said the initial agreement with Anglo in 2000 did not include exit payments.
Anglo has said details of the agreement would be released only after all parties had signed the agreement.
Anglo said in January it was pulling out of KCM, majority owned by its subsidiary Zambia Copper Investments, citing low global metal prices.
Konkola accounts for some 67% of Zambia’s total copper production. Its pullout from Zambia, in addition to food shortages, have cast a shadow on the southern African country’s economy.
KCM operates the Konkola and Nchanga copper mines and Nampundwe pyrite mine, which employ almost 11 000 people. – Reuters