Features

How mines started going down

AT THE time the completion of the 51 percent takeover of the Roan Selection Trust and Anglo American Corporation was being finalised, it was announced the nation’s share of the profits of the mining companies was K87 for every K100 profit. PICTURE: STEVE & JILL MOOREY

KELVIN KACHINGWE, Lusaka
THE negotiations for the takeover of 51 percent shares by the Zambian government in the two mining giants, Roan Selection Trust (RST) and Anglo American Corporation (AAC), were completed on October 18, 1969 and they came into effect on January 1, 1970.
In a press release following the ratification of the agreements by Cabinet, it was disclosed that the combined book value of the mining assets of RST and Anglo American Corporation would be calculated as at December 31, 1969 and was expected to be approximately K410 million (unrebased).
The government’s share of 51 percent was therefore approximately K209 million, representing K84 million for RST and K125 million for AAC. The shares were to be held through the Industrial Development Corporation (INDECO).
INDECO was to issue bonds guaranteed by the government and bearing interest at six percent. These were to be repaid in semi-annual installments over eight years in the case of RST and 12 years in the case of AAC…http://epaper.daily-mail.co.zm/




Facebook Feed

Ad1