China's Jinchuan Group to purchase 51% shares of Munali Nickel in Zambia

August 7 MetalBiz--According to Reuters news on August 5, MaxwellMwale, the mister of Zambia's mines, said China's Jinchuan Group will buy 51% of shares of Munali in Zambia and the latter plans to recover the foreign trade exports business that had to suspend due to the falling nickel price. At present, the relative principals of Jinchuan Group have reached Zambia to carry out a field study on mining resources.

Previously, Mwale said, Jinchuan will restart Munal Nickel in August, and will have more than 70% shares of the latter's. Once Jinshan completed the relevant legal procedure, it could restart production immediately next month.

Munali belonged to AlbidonZambiaLtd, subsidiary of AlbidonLtd, an Australian nickel miner. 
 
Mwale said: "At present, the other shareholders' shares have been diluted in this company. Jinchuan Group provides loans for Albidon Company, which has been converted to its corresponding capital. In addition, Europe, Australia, the United States and South Africa also hold the shares of the mine."

Munali is located in the south of its capital Lusaka, with the goal of 10,000 ton of annual nickel production.

Since Munali suspended its operation, the drop of nickel price in London Metal Exchange accumulatively reached 80% to less than U.S.$10,000 per ton. The nickel price once set a record high of U.S.$51,800 per ton in May of 2007.