It is reported that China's Jinchuan Group Limited will take a stake of about 51% in Zambia's sole nickel mine Munali which had halted production since this Mar forced by the declining price of nickel ore.

Maxwell Mwale said that China's largest nickel producer would restart operations of Munali by next month once legal issues are sorted out. At present, Jinchuan officials are in Zambia to inspect the mine.

Earlier Jinchuan Group expressed that it would launch negotiations aiming at purchasing the nickel in Munali. Jinchuan Group will probably become the largest shareholder with over 71% shares of the nickel mine.

Mwale said that "The other shareholder's holding has been diluted. Jinchuan provided loans to Albidon and that has been converted into equity."

Nickel prices on the London Metal Exchange had fallen more than 80% to below USD 10,000 per tonne by the time the mine suspended operations from a record high of USD 51,800 in May 2007 as demand from stainless steel producers slumped due to the global downturn. Prices have since ticked up.

(Sourced from MySteel.net)
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