Message Mer 14 Déc 2011 08:53

Mopani Copper completes shaft project to boost production

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Mopani Copper completes shaft project to boost production
Wednesday 14 Dec, 2011Mopani Copper Mine, a unit of Swiss based Glencore AG International completed the construction of a shaft collar as part of the USD 320 million synclinorium shaft project in Zambia to increase copper production.

Mr Danny Callow CEO of Mopani Copper said that a shaft collar protects the entrance to a mine and allows excavation of the shaft to begin. The synclinorium shaft project would extend the life of Mopani’s Nkana operations by 25 years, well beyond the expected depletion dates of the existing reserves at Mindola North, South Ore Body and Central Shafts of 2015, 2017 and 2018 respectively The Synclinorium shaft project is one of the largest and deepest mining construction projects underway in Zambia, which started in September 2011.

He said that the construction of the new shaft would not only extend the mine’s lifespan, but secure about 3,000 jobs and the project is expected to create 500 jobs during the construction and commissioning phases. The synclinorium shaft project involves construction of 7 meter diameter main shaft and 6 meter diameter ventilation shaft to a depth of 1,277 meters. It would ultimately provide Mopani with access to about 115 million tonnes of ore at a grade of 1.9% copper and 0.09% cobalt.

Mr Callow said that the project would increase ore production at Nkana Mine Site from 3.4 million tonnes per annum to around 5.1 million tonnes per annum by 2018. Hoisting of ore may begin as early as 2015. Mopani Copper Mines has16, 640 workers including those from contracting firms.

Mopani Copper Mine, Zambia’s third largest copper and cobalt producer had in 2010 spent more than $15 million on health, education, infrastructure development, sanitation, sports and recreation and numerous donations to organizations and vulnerable groups as part of its social responsibility.

Recently Mopani Copani mine through its parent company, Glencore was embroiled in allegations of under declaration of its copper mining receipts and production of the metal which raise eyebrows among various interest groups and prompted for an audit.

The company was accused of dodging taxes to the Zambian government prompting authorities to seek clarification from the mine. The allegations also forced the European Investment Bank to suspending funding to the company until the matter was resolved.

However, the miner contended that with or without support from EIB the company was determined to undertake various developmental projects at its Mufulira and Nkana units. The company’s efforts included reducing of emission of sulphur dioxide to the atmosphere by 98% which it converted into sulphuric acid for copper processing.

According to charities who claimed to have analyzed a leaked review of its accounts, Glencore was alleged to have helped one of its African mining operations avoid paying tens of millions of pounds in tax. Although the findings of a draft report into internal controls at the Mopani Copper Mines plc had been categorically rejected by its owner, Glencore, the giant fuel, metals and cereals trader based in the Swiss tax haven of Zug disputed the claims.

The report was initially said to have been carried out in 2009 by a Norwegian subsidiary of Grant Thornton, one of the world's largest accountancy companies, at the request of the previous Zambian government.

Authors of the report alleged that the mine's owners resisted the pilot audit at every stage. Glencore, owns 73% stake in Mopani through a company based in the British Virgin Islands. The audit suggested that Mopani sold copper at artificially low prices to Glencore in Switzerland under a deal struck with the firm's UK subsidiary in 2000. The metal was then sold on allowing Glencore to take advantage of Switzerland's ultra low tax regime.

(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)