Negotiations between the state, an unnamed new investor, and the previous owners of Chambishi Metals Plc are nearly completed, according to the government, and will result in the asset becoming operational, more than two years after it was placed on care and maintenance due to a lack of feed for production.
Another mining asset that the government is working to reopen is Luanshya’s shaft 28, which is now in talks with a potential investor for prospective operationalization, despite the fact that the talks are still in the early stages.
Mines Minister Paul Kabuswe has disclosed that the transaction on Chambishi Metals will soon conclude to reopen the mine, re-admit the mine’s former employees and utilize the recently signed mining and resource sharing agreement with the Democratic Republic of Congo to access the much needed copper concentrates feed that led to the mine shutting down in 2020.
Mr. Kabuswe says government wants to work with investors that can be trusted and are ready to stand by the Zambian people through good and bad times to achieve job creation and increased productivity in the mining sector.
And Commerce And Trade Minister Chipoka Mulenga whose Ministry supervises the Zambia Development Agency-ZDA- which deals with the sale of mining assets however, expressed ignorance over the impending sale of the mine but was quick to mention that his ministry will look into the transaction should it receive any formal communication.
The ERG group, owners of Chambishi Metals Plc applied to place the mine on care and maintenance in January 2020 after an alleged failure to secure feedstock to sustain operations which has left the asset non-operational since with over 500 workers declared redundant.