Brazilian firm pumps $90m into Konkola

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Brazilian firm pumps $90m into Konkola
By DARLINGTON MWENDABAI

VALE Mining, a Brazil-based company seeks to invest over US$90 million in its Konkola North Copper Mine (KONNOCO) project this year.

KONNOCO, a joint venture between Vale and African Rainbow Minerals, is expected to start copper production in 2013 and would be operating at full capacity by 2015. The mine is expected to employ about 1,500 people.

This is according to a statement posted on the Zambia Development Agency (ZDA) website.

The statement says Vale mining seeks to plough US$93 million in Zambia’s Konkola Greenfield mine in Chililabombwe this year in addition to the more than US$ 400 million investments earmarked in the Greenfield mine.

It says the funds will be put in the development of the mine on the Copperbelt Province to ensure the projected production of copper from the mine in the next two years is achieved.

KONNOCO is expected to produce 45,000 tonnes of copper concentrate annually, which would rise to 100,000 tonnes per year by 2015.

The statement says the company has already pumped US$ 400 million in the mine, adding that it is concerned about coming up with environmentally- friendly mining activities.

Of the total investment, the company intends to set aside about US$70 million for social and environmental investments.

During the commissioning of work at the new site, the mine pledged to invest over US$1 billion into the project by 2015.

Zambia anticipates increased copper output to over 700,000 tonnes per annum spurred by massive investment and demand for the commodity from the international market.

Vale Mining says it also plans to invest in nickel mining after completing the copper project.

Meanwhile, CYNTHIA MWALE reports that Equinox Minerals Limited has successfully finalised the Citadel Resource Group Limited takeover offer and has acquired over 98 percent stake.

The firm says it has obtained interest of 98.8 percent in Citadel at the time of the offer which closed on January 17, 2011.

This is contained in a statement issued to the Zambia Daily Mail in Lusaka on January 19.

Equinox president and chief executive officer Craig Williams said: “I would like to thank the Citadel board and management team for all their support received during the execution phase of this transaction.”

“We congratulate Inés Scotland and her team on progressing Jabal Sayid through to the construction phase and the development of a broader exploration tenement package in Saudi Arabia, which Equinox will continue to aggressively pursue.”

Mr Williams said Equinox welcomed Citadel shareholders on to the register as Equinox enters the next phase of its growth strategy both in Zambia and Saudi Arabia.

Last year, Equinox initiated compulsory acquisition procedures under the Australian Corporations Act and announced that it will be acquiring all remaining shares in Citadel.

Equinox Minerals Limited is an international mining company dual-listed on the Canadian and Australian stock exchanges.

The company is currently focused on operating its 100 percent owned large-scale Lumwana Copper Mine in Zambia, one of the largest new copper mines to be developed globally over the last few years.