Metal Ore Markets In Zambia Booming

(PRLEAP.COM) Copper has long been Zambia’s backbone and the shortages that prevailed earlier this year have led to a countrywide search for malachite and deposits.

Chris Swart of www.jcswart.com said today that small scale miners had stepped up to the plate and were now being rewarded for their efforts. "There is little doubt that this sector is becoming more wordly and wiser. Kasempa based small scale miners are aware of daily LME prices and fluctuations and it is no longer the case that a person arrives with a briefcase of cash and buys ore at a third of the market price"

"Malachite reserves in this area have tested at 30% and areas like Mukinge have decent deposits with the only headaches being logistics out of the remote areas. The rainy season is one of the problems with transporters. The roads are dirt and heavy laden trucks are often stuck for days in the mud."

"The infrastructure needs attention and miners would do well to use the council facilities with some of the earnings and grade the roads to their respective mines. Unfortunately this is not the case and it is a catch - 22 situation. The council is underfinanced and thus will not come to them."

At present Swart is involved in several metal projects including high grade copper ore,zinc ore, lead ore and manganese.

"My position is to find solid buyers for these mines. The problem here is continuity. Most mines have large reserves but local buyers prefer the spot option as opposed to long term contracts. The presence of the larger metal brokers is encouraging though’

"The only drawback with the larger metal brokers is that they tend to try and run matters by remote control. It has led to failure. Traditional miners sell to the highest bidders and market prices offered by the cash Chinese buyers are in most instances as much as 15% higher. It makes little sense in applying first world business practice to third world markets."

" I am encouraged though with the interest shown by LD Commodities in the informal mining sector. They have expessed major willingness to get involved in the zinc and lead ore mining offtake as well as malachite."

"My clients have secured a major find of high grade copper ore in the Northern region and tests on samples have revealed grades of 62% copper. They have moved an excavator onto the site and subsequent tests there have revealed copper percentages around 80. This is phenomenal and can be attributed to volcanic activity in the area. The mountain is a virtual mountain of high grade ore"

"They expect to produce 1500mt between now and mid January and 3000mt thereafter from an estimated reserve of 100,000mt."

"I have clients in the rual areas that were looking for zinc and come across lead ore that is around the 90% mark. Again, buyers will not have to transport much waste to the smelters and the economics of it make sense."

"There are vast reserves of manganese, zinc and lead with the small scale mines looking for joint ventures rather than selling to cash buyers. I would willingly like to help them get off the ground with such ventures and see true development with the capital brought in"

"The copper offer is at contract stage but is still open to buyers. We have received a formal offer of 70% of LME for the high grades and look to close matters shortly"

Should you be looking for high grade ores, Chris Swart is the most highly regarded metal broker in Zambia.

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