Zambia Hands Defunct Mine to China Investor

BEIJING, June 26 -- Zambia on Wednesday handed Luanshya Copper Mine (LCM), which stopped operations early this year due to falling copper prices, to China Non-Ferrous Metal Mining Company (CNMC), ending speculations about the future of the mine, the Zambia Daily Mail reported on Thursday.

    The mine has been under care and maintenance in the last six months and the new investor has re-affirmed its investment of US$400 million over the next four years, according to Daily Mail.

    Minister of Mines and Minerals Development Maxwell Mwale said at the official handover in Zambia's Luanshya District on the Copperbelt province that the coming of a new investor was an indication that the government was committed to bring development to the district because the closure of mine was turned into a political platform.

    He said Zambian President Rupiah Banda worked hard to ensure that a new investor was found to take over the operation of the mine because the district depended on mining as its main economic activity and urged local businesses in the district to take advantage of the re-opening of the mine.

    Speaking earlier, CNMC Chairman Tao Xinghu said his company was eager to play a role in the development of Zambia's mining industry despite the global recession.

    He said the company would create jobs for the workers who lost their jobs when the mine ceased operations, adding that the investment was a testimony of the cordial relations between Zambia and China.

    The new investor was expected to continue with the same production capacity left by the former investor and it will in the next two weeks commission the Chambishi Copper Smelter with a total investment of over US$350 million, Daily Mail said.

    Chinese Ambassador to Zambia Li Qiangmin said at the same occasion that his country was happy with the flow of foreign direct investment from China into Zambia.

    (Source: chinamining.org)