After months of turbulences at its operations in Southern Zambia, sole nickel miner in the Southern African nation, Albidon Limited is geared to overcome the impoundments and continue with its operations and foster the company’s growth prospects.
Albidon Zambia Limited the Australian based operator of Munali Nickel Mine feels that despite the shortcomings that have hit the nickel plant since June this year leading to suspending of trading of stocks on its Toronto bourse recently, it is optimistic of overcoming all hurdles and steer the company to higher heights as envisaged in its development plans.
According to a statement by the company, Albidon Zambia Limited will soon decide the future of its Mazabuka based unit lying 60 kilometres south of Lusaka after concluding investigations of the sinkholes that caused a fault in the ventilation process.
Mr Noel McAuliffe acting secretary said that the suspension of trading of shares on the Australian Stock would remain in force until after the announcement expected to be made on September 12. Investigations were underway and that shares trading which were halted would remain in effect until the announcement is made. Albidon had projected to produce 56,000 tonnes of nickel concentrates this year but decided to scale down by 21 percent of the overall production schedule after turbulences hit the mine since June 18th 2011.
Mr McAuliffe said that the company anticipates the voluntary suspension will remain in place until an announcement is made in respect of the suspension. Albidon expects to be in a position to make this announcement on or before the commencement of trading on Monday, 12 September 2011.
According to data, Munali Nickel Mine decided to suspend operation on June 18 after a fault was discovered in the ventilation system underground. Albidon consequently suspended trading of shares in Australia. The mine has a production target of 900,000 tonnes this year which was to rise to 1.2 million tonnes by next year. Albidon Mine is 51.3% owned by China's Jinchuan Group Minerals Limited and whose shares on the ASX trade at AUD 0.08 each.
Recently Mr Mooya Lumamba director of Mines and Minerals Development stated that underground operations would remain suspended until the mining firm complied with the mine safety standards. After the discovery of the first sink hole, the Government ordered the suspension of operations at the mine but another hole was discovered a month later. The company is currently undertaking limited blasting in the areas not affected by the sinkholes.
To resolve the problem, Mining Plus, a company which originally designed the mine, had been asked to review the mining methods and find a way forward. In its recent report, Albidon stated that it had significant efforts in improving the net profits for the company and that the Zambian operations were one of the reliable production units in the world among all its operations. It added that relentless efforts would be made to ensure that the shareholders recapitalized the mine and ensure its sustainability.
(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)
