Vale to invest $145m in Konkola North project By Nchima Nchi

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Vale to invest $145m in Konkola North project
By Nchima Nchito Jr
Thu 29 Oct. 2009, 04:00 CAT [62 Reads, 0 Comment(s)]


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VALE, Brazil’s major mining group, is set to invest a total of US $145 million in the Konkola North project.

Konkola North is believed to be the second largest resource on the Copperbelt, and will be developed as an open pit mine with a nominal production capacity of 44,000 tonne per year of copper in concentrates.

According to mining weekly, the investment by Vale would bring the total investment into Konkola North to US $290 million.

Subject to the approval of its board, Vale will invest US $50-million in the Konkola North copper project in Zambia, which is scheduled to start next year.
Konkola North is part of Vale’s 50-50 joint venture with South Africa’s African Rainbow Minerals.

In all, Vale will invest $12,9 billion worldwide next year, which represents a 29.3 per cent increase in capital expenditure over the US $10 billion invested in the 12 months ending June 30, 2009.

Of this figure, US $8.165 billion will be invested in Brazil, US $1.153 billion in Canada and the rest allocated to Argentina, Australia, Chile, China, Indonesia, Malaysia, Mozambique, Oman, Peru and Zambia.

The group will invest US $829 million in environmental protection and conservation and US $170 million in social projects.

Vale SA, formerly Companhia Vale do Rio Doce (CVRD), is a diversified mining multinational corporation and one of the largest logistics operators in Brazil.
In addition to being the second largest mining company in the world, Vale is also the largest producer of iron ore, pellets and second largest of nickel.
Vale also produces manganese, ferroalloys, copper, bauxite, potash, kaolin, alumina and aluminum.

In the electric energy sector, the company participates in consortia and currently operates nine hydroelectric plants.