CNFC starts construction of the Greenfield Mulyashi open cas
Thursday, 22 Jul 2010China’s non ferrous metals Corporation has started construction of the Greenfield Mulyashi open cast mine in Luanshya in Zambia with a forecast production of 4.5 million tonnes of copper ore per annum.
CNFC, owners of Luanshya mine, plans to extend the copper production at the Zambian unit through the open pit mine with a planned investment of USD 300 million in the new venture expected to be completed by 2011.
Mr Sydney Chileya public relations Officer said that construction of the open pit mine has started following approval of designs by the parent company in China recently at which when commissioned will employ about 1,000 people. He said that the miner has invested USD 35 million presently of the projected investment to ensure the project takes off ahead of the planned completion by December 2011.
He said that we are projecting to start operations after completing the project by December 2011 and we shall produce about 4.5 million tonnes of copper ore per annum.
The company has engaged 230 people during the initial phase and the number is expected to increase later ahead of the beginning of production. Recently it was reported that CNFC planned to invest an estimated US$270 million in the open pit by mid this year with a forecast production of 40,000 tones of copper cathodes.
Mr Luo Tao president of CNFC said that the company was currently studying how to process copper to be mined at Muliashi open pit. According to him, CNMC will this year invest USD 40 million to modernize plant machinery at Luanshya Copper Mines in order to bring back the mines to full capacity. Copper deposits at Muliashi contain oxide, which should either be treated through heap leaching or agitation methods.
Mr Luo said that after careful studies the company agreed to go ahead with the Muliashi project and said it was waiting approval on the method to be used in treating the copper at this project since it has a higher content of oxide which is normally treated through heap leaching or agitation methods.
He added that full production was proving difficult to be attained at LCM since the previous owners did not invest in modern equipment the company took over operations in June. Though operations have started, the pressure is huge for the company to increase production since previous owners never invested in equipment but it was looking forward to attaining full production through modernizing the plant machinery and after investments, the company was expected to have a complete picture at Luanshya mine following acquisition of equipment.
The new project has ‘A’ grade copper oxide and has a lifespan of 15 years. Baluba mine, an adjacent unit also owned by China Non Mining Corporation Luanshya Mine which has been the mainstay of Luanshya mine since 1934, has grade ‘B’ copper.
According to official statistics, Mulyashi open cast mine has 800,000 tones of contained copper. It was planned to produce 50,000 tonnes of copper a year under the previous owners, Enya Holdings and its lifespan was estimated at 12 years to 15 years from inception.
Mr Derek Webbstock former CEO of Enya BV Holdings said earlier that the company had spent USD 71 million on developing Mulyashi mine since it decided to develop it in 2008. It planned to start copper production of 50,000 per annum by the end of 2008 but was hampered by the global financial crisis that affected international copper prices leading the closure of the mine.
Mr Webbstock stated that although Enya BV made about USD 50 million profits when the price of copper was at its peak, all the profits were reinvested in the project. Enya BV further spent USD 150 million on upgrading the Baluba mine, USD 30 million was part of the money that was invested in the mine in September last 2008 with USD 80 million provided by shareholders.
CNMC took over Luanshya Mine at a cost of USD 50 million in June 2009 with a pledge to invest more than USD 500 million to develop the Luanshya mine which begun copper production in 1934, making it one of the oldest mines in the Southern African country.
(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)
http://www.steelguru.com/metals_news/CN ... 56303.html
( Pierre Mac Orlan )