Mining MoU sealed
Friday, 11 March 2011 15:16
Korean Resources Corporation (Kores), a South Korean parastatal company and a Zambian firm, SD Mining, have signed a Memorandum of Understanding (MoU) for the Asian firm to undertake mineral exploration for gold and other minerals in Kabwe, Central Zambia.
Mines and Mineral Development minister Maxwell Mwale reaffirmed Government’s commitment to protect Korean investment in the country, adding that Zambia was one of the best investment destinations of mining in the world.
Under the MoU, Kores would fund the exploration costs of the area between Kabwe and Kapumbu (Old Mkushi). Should the area be found viable for mining, Kores would partner with SD Mining to mine the area. This is a Greenfield area, totally unexploited.
SD Mining has a prospecting licence and has undertaken initial works but did not have the financial resources to wrap the exploration despite initial indicators being highly promising, director Emmanuel Mulenga has revealed.
Kores would carry out an exploration programme for copper, manganese and gold over a one-year period.
Zambia was undergoing an exciting period in its mining history, evidence by the world’s two largest mining entities either exploring or just started mining in the country, Mr Mwale enthused.
Australian firm BHP Biliton is exploring gold and other minerals in North Western Province while Vale Mineral Resources of Brazil has just commenced operations at Konnoco mine on the Copperbelt.
“This is an important day as it opens Zambia to one more powerful Asian country that has the financial muscle and technology to help boost our mining,” Mr Mwale elaborated.
And Korean Deputy Minister for Trade and Energy Resources, Park Young-Jim disclosed that his country was excited to sign the MoU, pledging more Korean investment into Zambia in future.
And another MoU has been signed between another Korean parastatal - the Korean Institute of Geoscience and Minerals Resources (KIGAM) and the Geological Survey department of Zambia.
This MoU will facilitate the exchange of technical training and education on geology and mining in addition to developing future mining projects.
By Nawa Mutumweno