Wednesday, February 8, 2012

AFRICA: ZAMBIA: Maamba Collieries to realise $23m from coal sales



MAAMBA Collieries Limited (MCL) has projected to sell 360,000 tonnes of high grade coal worth US$23 million this year, head of corporate affairs Jonadhan Lavu has said.

In an interview in Lusaka at the weekend, Mr Lavu said the firm had started the sales of high grade coal with 30,000 tonnes destined for the local market and 10,000 tonnes for the export market.

Mr Lavu said the company would be producing coal according to the demand saying 2,000 tonnes was recently supplied to Lafarge Cement.

"Maamba Collieries has plans to satisfy the Zambian coal appetite and has been receiving enquiries from numerous waiting customers on when it would start catering to their coal needs. The company has commenced movement of coal on executed orders. In the last few weeks MCL has executed orders with companies such as Lafarge," he said.

Mr Lavu said Zambezi Portland Cement had been given an enquiry order of 6,000 tonnes of coal a month.

The firm has also supplied 4,000 tonnes of coal to the Democratic Republic of Congo (DRC).

"We are exporting coal to DRC, Malawi and Namibia. MCL is also finalising enquiries received from various consumers such as Universial Mining Company, Zambezi Portland Cement, GECA Mines, Match Corporation and Dangote Cement among others amounting to approximately 70,000 tonnes per month," he said.

The company plans to achieve a monthly coal sales of 40,000 tonnes of high grade coal to the domestic and export market.The current coal market size locally is about 30,000 tonnes a month and 10,000 tonnes for the regional markets.

The firm has projected to market and sell 70,000 tonnes of high grade coal per month in 2013 and 120,000 tonnes in 2014.The plant has the capacity to produce 120,000 tonnes per month of washed coal.

Mr Lavu said Dangote Cement plans to procure both low and high grade coal for their thermal power plant.He said the company was concluding a deal with the Rail Systems of Zambia (RSZ) to transport coal from Batoka terminal to Lusaka and Ndola.

The 10,000 tonnes of coal would be stock-piled in Ndola.

Meanwhile, Universal Mining and Chemicals Industries Limited director corporate affairs Bright Chunga said the company had in principle agreed to procure about 20,000 to 30,000 tonnes if high grade coal from Maamba Collieries on a monthly basis.

Dr Chunga said in order to cater for the on-going expansion works at the Kafue Steel plant, the company had successful discussion with Maamba for the supply of high grade coal for the steel plant.

"We look forward to a very strong and mutually beneficial relationship with MCL for the many years to come as we grow on our capacities to build Kafue Steel plant into a dominant steel player in the southern African region," Dr Chunga said.

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