Chambishi Metals remains positive in light of set-back

15 May 2001

Chambishi Metals, Anglovaal Mining’s (Avmin) Zambian-based cobalt Production from the toll and copper producer, recently commenced commissioning of its new refining facility has not US$100 million slag processing facility. Avmin’s Senior VP Cobalt been affected, which is and Copper, Gerry Robbertze said, “on 5 February 2001 the plant operating at capacity. poured its first alloy from the new furnace, which was handed over by the contractors in January 2001 and, with the usual commissioning snags, the leach plant had received its first alloy by late April 2001.” The leach plant is the final section of the new plant from where material is then passed into Chambishi Metals’ existing, but now expanded, cobalt refinery.

“However”, continued Robbertze, “a water pipe leak in the furnace area was discovered on Saturday, 5 May 2001 and hydration on some of the refractory bricks led to a furnace shut-down for inspection. The assessment is that no structural damage exists, but a partial re-lining of the furnace refractories will be required. The team at the plant is in the process of implementing this plan of action.”

The effect is that Chambishi Metals’ cobalt metal from slag is now expected during the third quarter of 2001, while ramp-up to full production will be achieved by December this year.

Production from the toll refining facility has not been affected, which is operating at capacity.

Chambishi Metals and its agents are in discussions with customers.

Julian Gwillim
General Manager, Investor Relations