http://www.bloomberg.com/apps/news?pid=20601081&sid=a17jzecpVeVQ

Jinchuan Mining to Take Over Zambian Nickel Mine, Minister Says

By Geoffrey Kapembwa

Aug. 5 (Bloomberg) -- Jinchuan Mining Plc of China plans to secure 50 percent equity in Albidon Ltd.’s nickel mine in Mazabuka in southern Zambia and resume operations next month, Mines Minister Maxwell Mwale said.

Jinchuan, China’s largest producer of nickel, copper, platinum and other metals, is holding talks with the Zambian government about the terms of the planned acquisition of the mine, which is currently under care and maintenance, Mwale said today by phone from the capital, Lusaka.

“The company has indicated its desire to raise equity in the mine to 50.3 percent by converting its debt into shares,” Mwale said without giving details.

Australian nickel miner, Albidon, asked Jinchuan to help develop the $65 million Munali nickel project, it said in statement posted to its Web site two years ago.

To contact the reporter on this story: Geoffrey Kapembwa in Lusaka via the Johannesburg bureau at +27- abolleurs@bloomberg.net.

Last Updated: August 5, 2009 09:17 EDT