Kalumba said a January 31, 2000 deadline for the conclusion of the deal to crown the country's ambitious privatisation process was unchanged, but the signing of the contract earlier than anticipated would end anxiety and uncertainty.

The government announced last month that a subsidiary of Anglo American would buy an 80 per cent stake in the Zambia Consolidated Copper Mines assets of Nchanga, Nampundwe and Konkola Deep Mining Project through a company to be set up by January 31, 2000 for a consideration of about $215 million. "Anglo American have reconfirmed their commitment to this deal," Kalumba told reporters in the Zambian capital Lusaka. "The contract will be signed by December 31, 1999, well ahead of the January 31, 2000 date set for conclusion of the deal. "This process ismoving in the direction we have desired and it will breath fresh air in our economy," Kalumba added.

Ahead of agreement between the government and Anglo American said ZCCM would receive $30 million payable by end-January and a 5 per cent free and 15 per cent repayable carried interest in the new company. A contract would confirm these details. Copper mining contributes less than 20 per cent of Zambia's gross domestic product but is the major export, key employer and accounts for a huge chunk of the country's hard currency earnings. Citibank Zambia said in a note to investors this week that given the complexity of the deal and the non-binding nature of the heads of agreement, the market had not reacted with the enthusiasm expected.

The government is also examining three serious bids, including one from Canada's First Quantum, for the purchase of Nkana mines, which could effectively conclude the mines privatisation project.

The government has virtually agreed to sell Mufulira mines to Poland's KGHM PolskaMiedz SA and negotiators from both sides are working on the finer details of a contract before it is made public.

Zambia loses $6 million monthly in running the mines, and the delayed privatisation has weighed down the economy, with real gross domestic product growth at negative 1.97 per cent last year and only a marginal improvement expected in 1999.