Message Lun 4 Avr 2011 19:53

Zambia Mulyanshi Copper Project Costs Hit $370 Million

First Published Monday, 4 April 2011 09:01 am - © 2011 Dow Jones

DOW JONES NEWSWIRES

The costs of developing Zambia's Mulyanshi Copper project have increased to at least $370 million from the earlier $350 million, but project development remains on course and is expected to commence output in the next 8-9 months, a company executive told Dow Jones Newswires Monday.

Currency fluctuations, as well as rising prices of imported materials, are the main reasons for the increased costs, according to Sydney Chisela, the Luanshya Copper Mines spokesman. Launshya is owned by Chinese-owned NFCA Mining, a unit of China Nonferrous Metals Co. (8306.HK).

"Copper output at Mulyanshi is expected to start around December or January next year," he said by telephone from Luanshya on the Copperbelt province.

According to Chisela, Luanshya also continues to ramp up output at its Baluba Copper mine, which has just been rehabilitated.

Once fully operational, Mulyanshi is expected to incorporate a refinery, a heap leach and a tank leach, and will produce 60,000 metric tons a year of London Metal Exchange Grade A cathode copper over its 15-year lifespan. The mine's reserves are estimated at 35 million tons grading 1.6% copper.

NCFA acquired both projects in 2009 at $53 million and has since invested around $70 million in Baluba. Last year, the company completed rehabilitating the underground hoisting system which is expected to boost daily copper ore output to 5,000 tons from the current 3,500 by the end of the year, Chisela added.

NFCA also operates Chambishi Copper Mines and the 150,000 tons-a-year Chambishi Smelter on the Copperbelt province.

Zambia is Africa's largest copper producer.