Zambian govt to recover ZMK 5 million from Collum Mine

Mr Christopher Yaluma, Zambian mines minister said that Government will recover the ZMK 5 million from Collum Coal Mining Industries Limited before selling the mine to another investor.

The Government took over the Collum Mine in Sinazongwe District from the Chinese Company after persistent labour disputes with employees as and failure to comply with safety, health and environmental requirements.

Collum Coal Mining Industries Limited owes the Government more than ZMK 5 million in unpaid statutory obligations including mineral loyalty while failing to declare mineral production.

It sad that the Chinese firm and the Zambian Government have not agreed on the value of the assets at the mine thereby, prolonging the process of identifying the new investor.

Mr Yaluma in an interview during the week said that the Government would recover the money after the process of evaluating the assets before selling the mine to new investors.

He said that “These figures will be recovered from the assets. We have been discussing and the ZCCM-IH which is running the mine has been trying to get independent valuators to determine the value of the assets at the mine.”

Mr Yaluma dispelled speculations that the Government had failed to find a new investor for the mine saying there were many people that had expressed interest to operate the mine.

He said that the new investor could only be asked to take over the mine after the valuation of the assets.

ZCCM-IH has, meanwhile said the process of identifying a suitable strategic partner to operate the mine would be concluded in the next few weeks.

Mr Mabvuto Chipata CFO of ZCCH-IH said that the mine was viable and the institution planned to identify a company with necessary experience to work with ZCCM-IH in running the mine.

The mine employs around 660 employees and all of them have been retained on full monthly wages despite the mine being on care and maintenance.

Nr Chipata said that “It is the intention of ZCCM-IH to ensure that jobs are preserved by ensuring that a suitable partner is engaged so as to provide appropriate technical and financial investment for the mine.”