Copper deal

In a pivotal deal for Zambia's ailing copper industry, a subsidiary of the South African mining giant Anglo American this week said it had signed an agreement to purchase Zambia's most productive copper mines. Through a new company called Konkola Copper Mines Plc, Zambia Copper Investments will take an 80 percent interest in the Zambia Consolidated Copper Mines assets of Konkola, Nchanga and Nampundwe mines. ZCCM will receive 5 percent free and 15 percent repayable delayed participation in Konkola Copper Mines Plc, as well as a cash consideration of US $30 million payable by 31 January 2,000. It will also take a deferred consideration of US $60 million and the benefits of copper and cobalt participation schemes with a cap of US $125 million over the life of the company. "Our signing shows that Anglo is committed to the completion of this deal. We intend to keep to the January 31 deadline," Jack Holmes, chairman of Anglo subsidiary, Zambia Copper Investments, told a news conference after a signing ceremony on Wednesday.