Message Ven 24 Juin 2011 09:55

MCM receives converter to assist the miner reduce emissions

Mopani Copper Mines receives converter to assist the miner reduce sulphur emissions
Friday, 24 Jun 2011

Glencore AG International, a Swiss based global leading commodity trader secured USD 26 million for installation of its first convertor to offset the emission of sculpture dioxide fumes into the atmosphere at one of its operations in Zambia.

The convertor shell equipment which has arrived in Zambia and procured by Glencore AG from Richards Bay in South Africa is destined for Mufulira mine in northern Zambia’s copperbelt region, a unit of Mopani Copper Mine and is expected to take 25 days to arrive.

In a statement by company spokesperson, transportation of the 132 tonne converter will take approximately 25 days at a cost of around USD 3m and will take about six months to install and the miner expects it to be fully commissioned by December 2011.

Other accessories include a Water Cooled Hood and an Off Gas System to facilitate the capture of dust free gas. This process will be assisted subsequently by a second new dedicated gas cooling, cleaning and acid plant which will be operational by April 2015.

The USD 26 million converters was manufactured by Mukand Limited of Thane, Maharashtra state, India while the Water Cooled Hood and Off Gas System have been designed, and are being supplied, by the Swedish firm Outotec. Additional engineering work has been carried out by Worley Parsons.

Before Mopani was privatized in 2000, no sulphur was captured. Sulphur capture now stands at about 50% and Mopani’s emissions reduction program will be completed by 2015 when 97% of all sulphur will be captured.

Earlier Mr Emmanuel Mutati CEO of Mopani Copper Mine said that more than USD 290 million was expected to be invested in the emission-capturing program and make the company environmentally compliant. In reference to the recent action by one of its key lenders, European Investment Fund over failure on tax compliance the action to withhold funding to Mopani Copper Mines in Zambia will not affect its operations.

While the lender had every right to withhold funding on unverified reports of under valuing tax remittance to Zambia Revenue Authority and poor records of copper receipts, the company would still operate normally while allowing the banker to carry out its own investigations into the matter, described as flawed and incorrect. We will not be affected at all, our operations will remain normal despite that action.

According to data, despite the action by EIB, Mopani, through its parent company plans to invest an initial USD 250 million in mitigating atmospheric pollution with sulphur dioxide and general environmental cleanliness with an additional USD 60 million expected to be ploughed in to the project later.

An additional investment earmarked for the mine is a new shaft complex at a cost in excess of US$300 million securing the long term future of the operations, this at a time when the private investors are yet to draw a cent of dividends. Recently the EIB slapped a blanket ban on funding of all projects to Mopani copper mine through its parent company Glencore AG for alleged tax evasion and under declaration of copper production in Zambia.

The EIhad provided Mopani with USD 50 million loan in 2005 to help fund renovation of the Mufulira copper smelter. The loan is due to be fully repaid by the end of 2016. The USD 50 million loan is the only one given to a Glencore entity and was used to partially fund the first phase of the renovation and modernization of the copper smelter at Mufulira mine in northern Zambia to reduce the emissions of sulphur dioxide.

According to the EIB, total project costs were USD 130 million with the remaining USD 80 million financed from Glencore's own funds. In 2005, the European Investment Bank signed a finance contract with Mopani Copper Mines, a subsidiary of Glencore, for the amount of USD 50 million to partially fund the first phase of the renovation and modernization of the Mufulira copper smelter, with the aim of reducing the emissions of sulphur dioxide.

A further and final reduction of SO2 and dust emissions was planned for latest 2015, when Mopani Copper Mines would have completed the construction of the second acid plant without co-financing by the lender with a view that the efforts would render the smelter compliant with local and World Bank emission regulations.

The Mufulira smelter was first built in 1937. Prior to privatization in 2000, 100 percent of all SO2 went into the atmosphere. So far the situation has improved since, including notably through the investment financed by EIB's loan to Mopani copper mine for modernization of the copper smelter.

The lender said that the project has successfully established the capacity to eliminate 250,000 tonnes of SO2 a year, materially contributing to the protection of the environment.

(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)
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