China’s Jinchuan Acquires Majority Stake in Zambia Nickel Mine

5 August 2009 (Last Updated August 5th, 2009 18:30)

China's largest nickel producer Jinchuan Group is to acquire a majority stake in Zambia's Munali nickel mine, which is due to restart production after being shutdown because of low prices, Reuters reports. The mine was owned by Albidon when it was shut down in March as nickel p

China's largest nickel producer Jinchuan Group is to acquire a majority stake in Zambia's Munali nickel mine, which is due to restart production after being shutdown because of low prices, Reuters reports.

The mine was owned by Albidon when it was shut down in March as nickel prices plummeted.

Zambia's mines minister Maxwell Mwale told Reuters that the equity stake awarded to Jinchuan has been converted from loans previously given to Africa-miner Albidon.

The remaining equity is shared by companies from Australia, Europe, US and South Africa, the minister said.

The Munali project has capacity to produce 10,000t of nickel a year and is expected to restart after legal issues are resolved, Reuters said.