Zhonghui Mining to produce 3 million tonnes of ore in

Zhonghui Mining to produce 3 million tonnes of ore in first stage Saturday, 21 May, 2011 Zhonghui Mining Group Limited, the Chinese diversified miner forecasts to produce 3 million tonnes of ore on the first stage and increase the production capacity to five million tonnes upon completion of the Phase 11 of its Ichimpe unit in Zambia commissioned at USD 690 million. Mr Yaohui Wang board chairperson of Zhonghui Mining said that the mine was determined to achieve the forecast annual capacity of copper production, given full support from the Chinese and Zambian governments. The miner which plans to set up a copper and cobalt producing unit in Kalulushi, the host to South Africa's Metorex Mining Limited's Chibuluma mine was confident that with its professional management, the company would finish construction of Ichimpe mine with high quality and efficiency and start production soon. Mr Yaohui said that Zhonghui has received concerns and support from Chinese Embassy in Zambia and China Exim Bank. China Exim Bank as the policy bank of China and financing channel for Chinese overseas enterprises had built good cooperation relationship with Zhonghui since 2008. Zhonghui Mining Group and Exim Bank of China also signed the Financing Agreement for Ichimpe’s Copper Cobalt mine. During the occasion, Mr Jun Gong GM of Exim Bank said that the bank would provide USD 76 million financing to Ichimpe Mine in the first stage and that it has supported a number of investments of Chinese enterprises in Zambia in the past. Mr Rupiah Banda president of Zambia said the government was happy that foreign investors had confidence in the Zambian economy as evidenced from such investment in mining and other sectors. The USD 690 million Ichimpe Mine in Kalulushi is expected to create more than 3,000 jobs when completed, prompting Banda to urge mine owners to operate within the Zambian labor laws to foster industrial harmony. Mr Banda said that the mine would create 1,700 jobs at construction level and more than 2,000once operational by 2014. The mine will be the second in Kalulushi and that it would create business opportunities for suppliers of goods and services in Zambia. Meanwhile Mr Banda expressed concern with the failure by some investors to comply with labour laws in the country and that many of these concerns had to do with employees’ welfare. He reminded Zhonghui and all other investors to operate within the Zambian laws and regulations and do the best to ensure workers were happy as they are key to improved production. He was happy that the mine was expected to produce 35,000 tonnes of copper and 2,000 tonnes of cobalt per annum. The Zambian government had created an environment that had attracted Foreign Direct Investment for the development of the country and that the opening of the mine attested to his Government’s commitment. He said that Ichimpe mine was being developed after many years of exploration by Zhonghui which has its presence in North Western Province where they were undertaking large scale exploration for minerals. The frequent development of new technologies in various sectors around the world, Zambia needed to update technological competencies. It was the responsibility of each investor to facilitate meaningful skills and technology transfers to Zambia to align with technologies in the investor’s country of origin. Mr Banda said that in this way, we will not use the excuse of denying Zambians employment for lack of skills. He directed mining companies to work with training institutions in Zambia and where necessary in their countries of origin, to train Zambians and equip them with the requisite skills. He noted that the development of Ichimpe mine should be efficient and environment friendly and although mining was an extractive industry it was cardinal that mine sector investors gave substantial consideration towards sustaining the environment through various environmental care projects. Ichimpe Copper and Cobalt Mine is expected to produce 35,000 tonnes of copper and 2,000 tonnes of cobalt per year. (Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)

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