No bail-out yet for threatened mine

The World Bank has not yet settled on a means of supporting Zambia's ailing, but crucial, Konkola Copper Mines (KCM), a senior Bank official told IRIN. World Bank Representative in Zambia, Laurence Clarke said: "We have not made a clear decision yet on funding or support (for) keeping the mine open." Various scenarios, including the sale of assets and outright closure of the mines, are to be weighed. Should KCM close it would be a significant setback for the Zambian economy. The mines are a large foreign currency earner and employ more than 11,000 people. The World Bank will only decide a course of action once a technical study on the mines is complete. This could take up to four weeks, during which time the Zambian government has to keep the mines operating and commercially viable. "It's early days yet," Clarke said. "We cannot be clear on what the funding requirements are until the technical study is done, then we'll have a better sense of whether the Bank will need to support the government in any additional form. We cannot say whether we can draw exclusively on existing resources or (will need to draw on) additional resources (to rescue the mine)." The World Bank has offered assistance to the Zambian government following the announcement last month by the London listed mining giant Anglo-American that it would not proceed with further investments in KCM. The decision was announced by Zambia Copper Investments (ZCI), an Anglo-American-owned company which has a 65 percent stake in KCM. ZCI said it was considering several options including the sale, transfer of assets, or closure of KCM over the next 12 months. Development agencies have expressed concern over the impact of Anglo's decision on the already economically depressed Zambian copperbelt region. More details at www.irinnews.org/report.asp?ReportID=20206&SelectRegion=Southern_Africa&SelectCountry=ZAMBIA