about the break out to new hights, page-2

elections over eqn full speed ahead Zambian copper mining companies are relieved that the presidential and parliamentary elections are over and expect to press ahead with ambitious expansion projects, officials told Tuesday.

Last week's vote saw President Levy Mwanawasa voted to a second five-year term.

Canada-based Equinox Minerals Ltd. said the recent share price decline to C$1.27 from C$1.76 was largely due to uncertainty over the outcome of the election but that shares are now set to rebound.

Kevin J Van Niekerk, vice president in charge of corporate communications, said investments in Zambia are expected to be strengthened further by good ties with the government.

Equinox's shares had also suffered after Michael Sata, the main opposition leader, said he would restrict foreign mining company's to only 51% ownership in Zambia's copper mines and introduce stringent reforms, including raising taxes for mining companies.

Equinox is currently digging a mine that is poised to be the largest in Africa, with output expected to start in the first quarter of 2008.

An official at the Ministry of Mines and Minerals Development said work is also expected to resume on the copper smelter of the Chinese-owned Chambishi Mine, with projected output of 150,000 metric tons a year, now the elections are over.

Sata had caused a diplomatic stir with the Chinese embassy after he threatened to chase away Chinese investors over their alleged poor treatment of workers. "The Chinese were particularly uneasy during the election period, but we expect more investments in the sector now that elections are over", the official told.

Spurred by improved global copper prices, heavy investments are being made in Zambia's copper mining sector.

Konkola Copper Mines, the country's leading copper producer, is currently undertaking a $400 million deep mine project aimed at tripling the company's copper ore output by 2009.

Mopani Copper Mines, the second leading producer in Zambia, is carrying out a $290 million smelter expansion at its Mufulira smelter.

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