Main image: Zambian mine/mining border
The Zambian Minister of Mines and Mineral Development has rejected an appeal by Australian-listed Argonaut Resources against the granting of a new permit for the Lumwana West area, in Zambia’s northwestern province.
Minister Paul Kabuswe was ordered by the Zambian Supreme Court in February to rule on an appeal by Argonaut subsidiary Mwombezhi Resources against the revocation of the Lumwana West licence.
In addition, he was instructed to investigate the licensing of a newly registered company.
The order came two months after the Supreme Court suspended both the revocation of the license and the granting of the new license for the mining area.
On Wednesday, Argonaut told shareholders that the company is now considering Kabuswe’s denial of the appeal, noting that the appeal was just the first of three forms of assistance available to the company under the Zambian Mining Act.
Mining Weekly reports that the second trial is an appeal against the minister’s decision to the Mining Tribunal.
Argonaut hopes that the Lumwana West exploration will return to the company’s hands.
The company has been drilling the Nuyngu copper/cobalt deposit in Lumwana West since 2011.
In a related piece, BusinessTech Africa reported that Zambian copper mining giant Konkola Copper Mines Plc had announced it would cease operations in Nchanga.
Konkola currently operates a smelter in Nchanga and said it will close the operation for 45 days between July and August to upgrade infrastructure.
In a media statement, KCM is expected to spend $27.63 million on the process, which includes an upgrade of the control system for the 311,000-tpa capacity smelter, the company said.
