Zambia Consolidated Copper Mines Investment Holdings (ZCCM IH) seeks an equity partner to revive operations of the defunct Mukandabwe coal mine Limited, lying 420 kilometres South of Zambia to meet demand for the heating product, the company said.
Mkandabwe coalmine is located in mid Zambezi valley lying approximately 17 0 10’ South and 270 21’ east and at attitude of 700 metres above sea level and lies in Sinazongwe district approximately 320 kilometres from the Zambian capital, Lusaka and about 35 kilometres north-east of another coal miner, Maamba Collieries Limited site.
The mine provides the possibility for a coal dispatch railway gateway to the rest of the country and the Southern African Development Community (SADC) region.
In an expression of interest sought and advertised in the Zambian Press, ZCCM IH says the strategic partner sought needs to possess an in-depth understanding of coal mining in Africa, have sufficient financial ability, solid technical and support service skills and experience exhibited in a coal mine.
The equity partner should have understanding of an underground coal mine surveying and planning, exploration for and geological modelling and coal seams; all matters relating production, mining engineering, metallurgical grading and processes, electrical;, civil and civil engineering and price modelling.
Should have ability to raise capital using a range of financing options for a Greenfield and Brownfield projects; marketing of coal on both the local and international market, cost containment, control efficiency, underground coal mining safety, health and environmental management.
Other requirements for the strategic partner should include heavy duty mining and processing equipment management; ability to understand and comply with the mines and minerals regulations of the country, environmental protection act and other laws of Zambia.
There should also be a clear demonstration of commitment to corporate social investment, responsibility, able to develop strategies to support local content and value addition initiatives and also should provide information to demonstrate that they would be partner possesses requisite capabilities as demanded partner with ZCCM IH, the company added.
ZCCM IH was granted small scale mining licenses (18733-HQ-SML, 18734-hq-sml and 18735-HQ-SML) FOR Mkandabwe mine following the revocation of a mining licence for formerly Chinese-owned and run-Collum coal mine on 22 February 2013 by the Government.
ZCCM IH has plans to resume operations at the said mine at the soonest possible time. “Need has arisen to engage a strategic partner to work with to create maximum possible value from this asset and contribute to the uplifting of the of the local economy”
ZCCM IH is an investment holding company listed on the Lusaka stock market and the Euronext bourse and has the majority of its investments held in copper mining sector in Zambia.
The company’s shareholders include the Zambian Government with a stake of 87.6 percent shareholding and private equity holders with 12.4 percent. Minority shareholders are spread throughout the world in various locations.