The Association of Mine Suppliers and Contractors President Augustine Mubanga has called on government to issue a one-month ultimatum to the Eurasia Resources Group – ERG to re-open Chambishi Metals or declare them as a hostile investor who just wants to ruin the asset.
Mubanga told the Zambian Business Times – ZBT that the association is concerned with the continued placement of the Mine assets under care and maintenance, as more value is being lost. He told ZBT that Chambishi metals initially indicated that it would go under care and maintenance for only three (3) months, but has been under the same condition for over a year now.
He said the association strongly feels all the conditions are currently at their best for the mine to re-open and operate profitably, adding that the investor is not just interested in re-opening the operations.
He has urged government to act quickly and stop nursing fake investors. Mubanga further stated that the investors should freely hand over the mine license and assets to government [ZCCM-IH] at a zero cost if they have failed.
The re-opening of Chambishi Metals remains unclear despite the upsurge in international copper prices. The Mine owners ERG are reported to be facing challenges in raising finances needed. But concerns for the economy of Chambishi and Kalulushi towns are negatively affected with employment levels reduced due to the jobs that were cut.
Chambishi Metals, which is 90% owned by Eurasia Resources Group – ERG and 10% by ZCCM-IH is involved in the mining, refining and tolling of cobalt and copper. The Mine is failing to re-open after it has been put under care and maintenance for over a year now.
And Ministry of Mines Permanent Secretary – PS Barnaby Mulenga told ZBT that government has engaged Chambishi metals in order to come up with a solution for the mine to re-open, confirming that the company indeed needs recaptalisation.
He said government is having talks with the company and should be able to make progress on the matter, without giving away much details on the stage and direction of the discussions held so far. The mines PS added that the public will be made aware of the way forward once the process of discussion is concluded.
