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Mazabuka Nickel Mine To Re-open
Plinian Capital, founded by former Lonmin Plc Chief Executive Officer Brad Mills, plans to raise $40 million from private equity funds to restart a Zambian nickel mine where operations ceased in 2012.
The company is in talks with investors, Anton Mauve, a
partner at London-based Plinian, said in reply to e-mailed questions on Wednesday. He declined to name them.
Plinian is hoping to re-open the Munali nickel mine, about 60 kilometers (37 miles) south of Lusaka, the capital. Previous owners have halted operations twice since it opened in 2008 as they struggled with its geology and falling nickel prices. Work was most recently suspended in 2012.
“Munali nickel mine is a good example of the kind of
distressed asset that we invest in,” Mauve said. “We have a clear understanding of why the operations failed previously,” and studies have identified potential significant operational improvements, he said.
Nickel for delivery in three months has fallen by 33
percent in the past year to $13,115 a metric ton on Wednesday in London.
Plinian owns 20 percent of Consolidated Nickel Mines, which has agreed to rent Munali from Jinchuan Group Co. Jinchuan acquired Munali through the 2013 purchase of Albidon Ltd.
Plinian has the right to increase its stake in Consolidated Nickel to 70 percent, said Mauve. Plinian has formed a partnership with CE Mining, a unit of London-based Generation Asset Management, to raise the $40 million needed to restart operations at Munali.
Tax Threat
Under the plans, Munali will produce 4,750 tons of nickel in concentrate yearly and this may increase to about 8,000 tons,
said Mauve. Plinian intends to complete the funding by the end
of September and to open the mine by the end of the year, he
said.
“Through regional aggregation we could double or quadruple
this over a five- to 10-year period,” he said.
This objective may be imperiled by a change to Zambia’s
mining tax system, under which royalties increased to 8 percent for underground operations and 20 percent for open-pit ones since the start of the year. The government plans to change this to a uniform 9 percent royalty in combination with a 30 percent profit tax starting July 1 after mining companies said the system would lead to 18,000 job losses this year and the closing of some operations.
“The proposed taxation policy would be unfavorable for the restart of Munali,” Mauve said of the planned changes the government will present to parliament for approval in June.
Mills, 60, in 2009 founded Plinian, which has $570 million under management, a year after quitting his job as CEO of Lonmin amid a hostile takeover attempt by Xstrata Plc that it subsequently abandoned. Mills ran Lonmin from 2004 until September 2008, when he left the company by mutual consent.
(Bloomberg)
Posted by Kunda
on May 22, 2015. Filed under BUSINESS, LATEST NEWS.
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mj banda
May 22, 2015 at 9:27 am
That’s good news for mines to reopen and give these tongas some job to do and not ukachema all the time. Nez should stop being kachema cos animals can feed on their own.
joojo
May 22, 2015 at 11:46 am
Mj Banda you are an idiot. Cattle need kachemas. They are not like monkeys that bembas eat which look after themselves. Maybe you are so dull to know that Botswana’s economy is strong because of bakachema.
Hello Haters
May 22, 2015 at 12:01 pm
Komupandulwida kabotu kabotu.
joojo
May 22, 2015 at 1:56 pm
Kupandulwida cintu ciyanga chilashupa mukwesu. Inga lyaile kubbila zuba.
Red Umbrella
May 23, 2015 at 9:23 am
The trend of primitive Zambian men stripping women naked in public is not right and it should be stopped!!
Mobs of classless stinking men surround a beautiful woman and rip away her clothes until she is naked.
Primitive Zambian man be civilized its none of their business what someone is wearing.
Shame on these lowlifes, when did anyone’s dressing became another person’s business?
These savages are potential rapists who should rot in jail
The last time i checked God created us naked and in African culture women wore bark-skin “G-String” and nothing on top… Chitenge’S AND SALAULA WERE BROUGHT BY MUZUNGU’S
Shame on you Zambian idiots!!
MCCM
May 22, 2015 at 7:45 pm
My views
If there will for instance be 1,500,000 new NRC holders,probably only 600,000 will vote.Out of this 600,000 about 495,000 will go to PF and 103,000 to upnd 2,000 the rest
Hello Haters
May 23, 2015 at 8:07 am
You useful idioft, that fallacious, stupid bloody kwindi.
New Educated Zambia©
May 23, 2015 at 10:03 am
Foolish baseless assumption. Uletontokanya at times
Judge Joe Bidden
May 22, 2015 at 12:02 pm
Now waya sana, what has Bembas to do with it?
Hello Haters
May 22, 2015 at 12:12 pm
Sorry buddy, vuto ni mbuya wako, mj banda akunga kamba paba tonga from morning to choooo! Bantu bangakalipe palasiti , Weo joojo, banda niwa ba kwindi.
Judge Joe Bidden
May 22, 2015 at 12:30 pm
Manje Joojo eve saona ati mbuya BANDA ni wa mbeba steleki? Nowadays even monkeys have run away deeper into the forests we rarely catch them that doesnt make us worse than Tongas who drink from cow’s teats or kwindi eaters!
use less tonga
May 22, 2015 at 4:22 pm
joojo ur idiot bcoz mr banda never mentioned a tribe nd is not bemba bt jst bcoz ifisushi fya ngombe hve destroyed yo brains u tend to be tribal kachema
Hello Haters
May 22, 2015 at 5:28 pm
Kikikiki alya fire, he wants joojo to use less tonga, why?
jabi
May 23, 2015 at 10:11 am
Mmmmm his right just appreciate mutusheko bukachema!
mj banda
May 23, 2015 at 12:18 pm
@joojo, Botswana is rich cos of diamonds and not UKachema. re search before you post. By the way Botswana isn’t that rich, they are just trying.
coblent
May 22, 2015 at 1:45 pm
The deal was arranged by His Excellency Hakainde Hichilema.
Judge Joe Bidden
May 22, 2015 at 10:13 am
Unless I am mistaken the title says Mazabuka Nickel Mine, the story totally talks Munali (near Lusaka) Nickel Mine, which one is being reopened?
kakolwe
May 22, 2015 at 10:51 am
@JJB, uletandalilako abena hakainde, Munali hills are just outside Mazabuka & so is the mine. But ili ilyashi lya tax must be sorted out once & for all. The problem is aba ama foreigners balatucita squeeze amaballs then later baya mukuyumfwa (Prov. 20:14). We need to act very very wisely. Otherwise tukashalafye nefilindi pa last.
Hello Haters
May 22, 2015 at 10:58 am
Chikamba iwe kanshi walyenda. You know Zambian geography.
Judge Joe Bidden
May 22, 2015 at 11:33 am
Sancho tatafyala, I rarely go kuli bena HH I just pass going to Bots. But ililyashi lya tax if we are not careful will make Zambia un-mineable! Someone needs to sit down and re-think or at least come up with a better decision or else … kaya
Hello Haters
May 22, 2015 at 10:56 am
It’s Munali nickel mine in mazabuka, it’s actually near munali Hills has you entering mazabuka after the turn park turn off in kafue, Only problem its middle name is OPERATIONS HALTED, hope the new owners have made a thorough study to maintain operations. Hope for once the story is true.
Judge Joe Bidden
May 22, 2015 at 11:45 am
One of the reasons was that of “geology” of the area, how did they start mining without really understanding the lithology of the area? That beats me, because you bring the equipment and base your modus operandi on the geological knowledge of the area or site. I still feel it will be closed for 3rd time.
bakolwe
May 22, 2015 at 11:22 am
why cant the govt invest in Ni mine which is more profitable than copper. you wait until someone in england borrows money to revamp operations and complain later when they reap off the frofits.
New Educated Zambia©
May 22, 2015 at 11:48 am
the pf government has an addiction to anything borrowed.
Judge Joe Bidden
May 22, 2015 at 11:53 am
But how big are the Nickel reserves compared to copper? Are they good enough to sustain Zambia’s GDP for next 50 years if we had to swap investments? A country can have diamond reserves even if they seek higher market value they might only sustain a country for 15 years and go dry!
poly
May 22, 2015 at 12:14 pm
The rate at which Mazabuka Nickel Mine has been changing ownership calls for a Tribunal to probe the same.
pillar
May 23, 2015 at 7:40 am
good morning guys,long time am back now.comments reserved
Hello Haters
May 23, 2015 at 8:04 am
Kikikiki mumbwe iwe welcome,@ comments reserved ulishilu fwisafye ifili kumutima tumfweko,am sure after such a long retreat you have changed your position politically.
Judge Joe Bidden
May 23, 2015 at 8:07 am
Morning @Pillar but they released you early!
Hello Haters
May 23, 2015 at 8:34 am
Kikikiki maybe niba escapee from our prestigious University of Chainama. Let him explain.
Judge Joe Bidden
May 23, 2015 at 8:50 am
Kikiki teti wishibe that’s why Iam surprised
New Educated Zambia©
May 23, 2015 at 9:51 am
Pillar we in the upnd welcome you. We know the importance of different views here and welcome opposite views. That is the joy of democracy so please tell pf to stop stifling our freedom via POA
bbusu
May 23, 2015 at 4:31 pm
lets go my man the more they talk the more we improve.EDGAR CHAGWA LUNGU GOD be with u and guide u amen.
mj banda
May 23, 2015 at 9:31 pm
I now know why hello haters and NEZ support HH, it’s cos they are all tongas. Read those comments against me in tonga and not English cos the expression wasn’t going to be satisfactory to them. I can foresee a funeral come 2016.