Consortium fails in bid to purchase ZCCM

Privatization of the giant Zambia Consolidated Copper Mines (ZCCM) hit a snag when the negotiating team rejected the purchase offer from the Kafue Consortium for the Nkana and Nchanga divisions.

The Kafue Consortium is headed up by Noranda (NOR-T), Phelps Dodge (PD-N), South Africa’s Avmin and Great Britain’s Commonwealth Development.

Noranda spokesman Dale Coffin says the consortium’s bid amounted to US$700 million. He notes that extensive due diligence, a downturn in the copper market and several unresolved issues “significantly reduced the commercial valuation of the assets” in the eyes of the consortium.

The Nkana and Nchanga divisions, which comprise six mines, a smelter, several refineries and two concentrators, represent the largest of the privatizations involving the state-owned mining company.

Several attempts were made to resolve the impasse, but no satisfactory agreement could be worked out. ZCCM has since begun negotiations with other bidders.