ALB albion resources limited

trouble at munali

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    Article From Metals Place. Not sure how significant? Perhaps explains some recent sp weakness vs peers?
    EL


    Local authorities in Zambia's Mazabuka district in Central Province are seeking to halt the expansion of the Munali nickel mine to stop it from encroaching on the lands of local people.

    An official with the Ministry of Mines and Minerals Development said that the central government has already contacted local authorities to find ways of mitigating the stand off to allow the investor continue with the expansion.

    Australia-based Albidon Ltd. (ALB.AU), 100% owners of Munali, said the mine is on course to commence output in the first half of 2008. The mine will have the capacity to produce up to 8,500 tons of nickel a year in its 10-year life span.

    Mazabuka is a strong hold of Zambia's second leading opposition party, the United Party for National Development, which resolved to withdraw the offer of 2,100 hectares it had earlier approved for the expansion of the project and give only 1,600 hectares.

    Mining has dominated last year's general election campaign and the opposition candidates threatened to expel Chinese investors because of the poor working conditions at their mines.

 
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