Announcement of Zambian Project to Increase World Cobalt Production on December 5, 1979

International Finance Co,pdration • 1818 H Street. N.W. Washington, D.C. 20433, US.A. 202-4 77-1234 IFC Press Release No. 80/11 Wednesday, December 5, 19 79 Zambian Project to Increase World Cobalt ProducUon Nchanga Consolidated Copper Mines Ltd. (NCCM) of Zambia, one of the world's largest copper producers, is undertaking a major expansion of its cobalt pro- duction. Financing fot the project, with an estimated $155 million construction cost, is being provided by Zambian and foreign investo!s and the International Finance Corporation (IFC), an affiliate of the World Bank. The major component of the project will be the installation of a new roast- leach-electrowin plant designed to more than triple the Company's current 1,200 metric tons per year cobalt production. When completed in early 1982, the pro- ject will raise NCCM' s share of world cobalt production, excluding the Centrally • Planned Economies, to about 10 percent. '!he plant is to be located at Rokana, about 180 miles north of Lusaka, in the center of Zambia's northern copperbelt region. Of the total financial package, $37.5 million equivalent is being provided by a Zambian consortium led by Standard Bank Zambia Limited; $28 million by IFC, with an $8 million participation by the Chase Manhattan Bank, N.A.; $13.6 million by United Kingdom banks and export credits; and $12.5 million by the Commonwealth Development Corpt>ration. NCCM generated funds make up the balance. The Zambian consortium, in addition to the Standard Bank Zambia Limited, includes Barclays Bank of Zambia Limited, Zambia National Commercial Bank Limited, Grindlays Bank International (Zambia) Limited, Zambia State Insurance Corporation Limited, Workmen's Compensation Fund Control Board, and the Zambia National Provident Fund Board. The U.K. group includes Standard Chartered Merchant Bank Limited and Standard Chartered Bank Lfmited, in conjunction with the Export Credits Guarantee Depart- ment of the United Kingdom. The financial agreements were signed on December 4th. During the ceremony, • Mr. F. H. Kaunda, Managing Director of NCCM stated that the cobalt project was of  - 2 - crucial importance to the zJmbian economy as it will be a major contributor to· the country's foreign exchange earnings and will consolidate Zambia's position • as a major cobalt producer. "The world.market for cobalt is expected to show healthy growth in the next decade and Zambia wishes to play her role in meeting the ever increasing demand for this strategic metal", Mr. Kaunda said. Much of the design and engineering of the projects is being done by Zambia Engineering Services Limited (ZES), Ashford, Kent, United Kingdom, a wholly-owned subsidiary of NCCM. The largest demand for cobalt is in the making of high temperature alloys and other metal strengthening uses~ It is also extensively used in the manufacture of permanent magnets and pigment salts and driers. Super-alloys used in jet engine construction alone accounts for an estimated one-fourth of the market • • [Any inquiries strictly relating to IFC' s participatic\n in this project should be directed to the IFC Information Office., 1818 H Str~~:~t:1 ~.W., Washington, D.C. 20433, Telephone (202) 676-0394.] •