Weatherly sells Kombat

THE future of Kombat might soon be bright again after a South African firm, Cubenco 192, received an option to buy the copper mine from Weatherly Mining Namibia for US$3 million – nearly N$24 million at yesterday’s official exchange rate.

Holding company Weatherly International splashed details of the prospective deal in its 2009 annual report released on Monday, adding that ‘Kombat does not form part of Weatherly’s future development plans’.Cubenco, a South African close corporation, preferred to keep their plans under wraps when contacted by The Namibian yesterday, only confirming that they are currently on site doing due diligence.For this, they forked out a non-refundable US$160 000, about N$1,2 million, according to the Weatherly report. ‘Phone me in six weeks about our plans,’ Cubenco’s Cas van der Berg told the paper.Cubenco has 42 days to satisfy themselves with all aspects of their prospective investment. If they are happy, they will pay Weatherly US$600 000 more. This will give Cubenco provisional early access rights to Kombat.By next March, provided Weatherly’s shareholders and the Namibian Government have approved the deal, Cubenco will put down a final amount of US$2,24 million.Industry sources believe Cubenco will initially concentrate on the Tsumeb tailings dam, which contains considerable quantities of copper, lead and zinc. Income generated through this could then be channelled towards the Kombat mine, which was flooded in 2005.After buying Kombat from Ongopolo, Weatherly embarked on a dewatering campaign in 2006. However, power problems forced the company to close the mine late in 2007, and about 230 workers had to be accommodated elsewhere.News of the Kombat deal sent the London-listed Weatherly International’s shares surging by 5,8 per cent, Reuters reported yesterday.The news agency quoted the broking firm Ambrian as saying: ‘Weatherly remains a healthy going concern. In the longer term, the company has contracts until 2014, which should be renewed beyond that’.Weatherly said it will use the proceeds from the Kombat deal to help settle debts of about US$12 million, as well as to finance mining projects in Namibia and Burkina Faso.’After a difficult year I am excited about the opportunities that the company now has and am looking forward to re-establishing the company and delivering our original strategy,’ Weatherly International CEO Rod Webster said in the annual report.In September, Weatherly embarked on a N$190 million deal to sell 50,1 per cent of its shares to East China Mineral Exploration and Development Bureau (ECE). The transaction, which is expected to be completed by next January, will allow Weatherly to reopen the Otjihase and Matchless mines.Weatherly Mining Namibia Managing Director Hans Nolte told The Namibian yesterday that the target date for this is the third quarter of next year.This could mean jobs for up to 600 people, Group Financial Director Kevin Ellis said in an interview with the paper in September.The ECE capital injection will also enable Weatherly to fast-track the development of the Tschudi open pit copper project and to underpin the current expansion of Namibia Customs Smelters’ operation at Tsumeb.jo-mare@namibian.com.na