The government of Zambia said on Friday that it had agreed to a basic framework for the exit of Anglo American (AAUK-Q) from its troubled Zambian mining business, reports Reuters.
President Levy Mwanawasa said Finance Minister Emmanuel Kasonde would outline the agreement’s details next week. Mwanawasa added that the deal provides for the continued operation of the Konkola Copper Mines, which comprises the Konkola and Nchanga copper mines and Nampundwe pyrite mine.
KCM accounts for about 67% of Zambia’s metals output. Anglo bought the bulk of Zambia’s struggling mines in March 2000 and vowed to turn them around. The plan failed in the face of a sharp decline in global copper prices. The mining behemoth announced in January that it want to get rid of the assets.
Anne Dunn, spokeswoman for Anglo American in Johannesburg, would only confirm that, “talks are continuing and there has been no final decision.”
Kasonde said in a prepared statement that the Consultative Group of Zambia’s foreign lenders would convene during July 8-10, suggesting a final agreement is in the offing. The meeting is seen as an important step as it would allow a forum in which foreign investors could pledge money for the mines after Anglo’s withdrawal.
Kasonde met foreign donor lenders on Thursday and told them that he would seek $300 million for Zambia’s three-year transitional development plan, up to $170 million to fight AIDS, and a provision to support the mines at the CG meeting.
The mines are one of Zambia’s main sources of income. Anglo’s exit could leave thousands without work.
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