Press Release

Issued by

Zambia Consolidated Copper Mines

Public Relations Department

SALE OF LUANSHYA MINE TO BINANI GROUP

The Chairman of Zambia Consolidated Copper Mines Limited (ZCCM), Mr Luke J Mwananshiku, on behalf of the Board of Directors of the Company, is pleased to announce that following the recent international tender for the sale of ZCCM assets, Binani Group has been selected as the winning bidder for ZCCM's Luanshya/Baluba mining and metallurgical complex [the "BCo" Package] excluding the Precious Metals Plant.

The Luanshya and Baluba mines produced 48 345 tonnes of copper in concentrate and 1 216 tonnes of cobalt in concentrate during the financial year ended 31 March 1997.

Binani is an international diversified group of companies engaged in mining, metal trading and manufacturing. It has been actively involved in Zambia since 1955 in the marketing of Zambian metals.

In March 1996, Binani acquired the Inshimbi Copper rod making plant which has since been expanded to a capacity of 18 000 tonnes of rod production per annum In 1996, the Binani Group also acquired the Kawambwa Tea Estate.

Commenting on the winning bidder, Mr Francis H Kaunda, Chairman of the ZCCM Privatisation Negotiating Team said that the sale of Package "BCo" marks a milestone in the privatisation of the existing operational assets of ZCCM. He added that the Binani Group has given an undertaking that there would be no redundancies as a result of privatisation Luanshya.

After Kansanshi Mine, Luanshya is the second package in the privatisation of ZCCM added Mr Kaunda.

In concluding, Mr. L J Mwananshiku said that he expects to make announcements of further awards within the next few weeks. The award of :BCo" is subject to contract but he expects the documentation to be completed during the third quarter of 1997.

Enquiries:

ZCCM Public Relations Department: Telephone: 260-1-220572

Postal Address:
5309 Dedan Kimathi Road,
P.O Box 30048,
LUSAKA,
ZAMBIA.

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