Metorex says copper output up 13 pct in July-Sept

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Metorex says copper output up 13 pct in July-Sept
Fri Oct 1, 2010 1:28pm GMT

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JOHANNESBURG (Reuters) - South African miner Metorex's copper production rose 13 percent to 13,959 tonnes for the three months to September from the previous quarter, the company said, signalling an improvement in its operations.

Demand for copper, used extensively in construction and wiring, contracted during the global economic crisis but has since rebounded and pushed prices up, enabling producers to increase production levels.

"Operational improvements and project development continue to make good progress at Metorex," Chief Executive Terence Goodlace said in a statement on Friday.

"Were it not for Democratic Republic of the Congo (DRC) power interruptions at the end of the quarter, the results would have improved even further," he added.

Production at its Ruashi copper mine in DRC was 8,581 tonnes for the three months, up from 7,280 tonnes the previous quarter, the company said. It did not give details on how the figure might have been affected by power cuts.

The diversified mining company earlier this month forecast higher global prices and demand for copper, mainly from China and India, after it posted a rise in full-year profit.

Metorex said its cobalt production rose by 36 percent to 1,074 tonnes.

As for other projects in DRC, the company said it had completed an infill drilling programme at the mothballed Kinsenda Mine as part of a bankable feasibility study to be completed in the first-quarter of 2011.

It also said the depth extension had been confirmed at its Musonoi project in the DRC.

Metorex also has a copper operation in Zambia, Africa's top producer of the metal.

Metorex shares were up 2.47 percent to 4.15 rand at 1244 GMT, compared with a 0.6 percent fall in the JSE's All Share Index..