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IDC to invest in Chibuluma South

MessagePosté: Dim 16 Déc 2012 21:12
de humpv
IDC to invest in Chibuluma South

Added by wentworth on 2012-12-13

Mid-tier mining firm Metorex has found an equity partner, the
Industrial Development Corporation (IDC) which will invest
$10-million for the development of Chibuluma South mine in Zambia.
The equity partner’s contribution of the funds is a major
step towards the re-opening of the mine, which was closed four
months after it was commissioned in May 2001. “The opening of
Chibuluma South Mine is imminent. We have obtained equity
partners,” confirms Chibuluma Mine GM Gavin Hepburn. The
reopening of the mine for underground mining follows the imminent
closure of 7 Shaft, the lifespan of which is now coming to an end.
Chibuluma South mine was placed under care-and-maintenance in
September 2001 because of poor copper prices, with an assurance
that it would be rstone gold mine for sale georgiaeactivated once the prices picked up. Though
there has been no significant improvement in the copper prices,
there is now a need to bring the mine back to life to confirm the
company’s resolve to continue with its business ventures in
the country. Hepburn explained that his company opted to find a
partner, rather than get a loan, to avoid the high interest rates.
IDC has so far gone through the Chibuluma South project, Chibuluma
mine’s credentials and the a r ligne de production de b toncompany’s achievements and
it was happy with the mining company. He said that, with the help
of the equity partner, Chibuluma Mine was now set to develop the
mine into an underground one. The partnership with the IDC will
only last up to when the project succeeds and the shares will then
be sold back to the other two shareholders, Metorex and Zambia
Consolidated Copper Mines. The development of the mine would be
conducted in two phases, with the first gold mine equipment supplier in dubaiphase expected to last for
a year. Though he did not give a specific time when the development
is expected to start, he was optimistic it would begin within the
first half of this year. “My team is keen to get into the
project, as this is the only new project going on the
Copperbelt,” he observes. Hepburn adds that the mining firm
will remain in Zambia because it has invested heavily, though it
has not been given any concessions by government. “Our future
lies in Chibuluma South. There is need to get to Chibuluma South
and get full concessions from government to kick-start operations
as the mine has 10-million tons of copper ore”, he confirmed.
Chibuluma South is expected to produce about 1 000 t/m of finished
copper. The underground ore reserves have 7,5 mt of sulphide with
3,6% copper, making it a haven of good world-class copper.
Chibuluma South has a life of 18 years. A concentrator is already
in place at the site. Metorex group director: operations Keith
Spencer, on his recent visit to Zambia, assured that plans to
resume operations at the mine were already advanced. He adds that
his company has been talking to financiers to raise the necessary
funding for the reopening of the mine. Metorex has been talking to
the Zambian government about raising the necessary funding and
Spencer was confident about beginning underground mining at
Chibuluma South. A study was conducted at the mine on the sinking
of a shaft at the company’s first underground mine in Zambia.
Spencer was confident of the company’s success because it
managed to turn 7 shaft from loss to profit maker. Though copper
production from Chibuluma has been good, there was more hope for
better yields this year. The company has been agitating for a
reduction of mineral tax from 2,5% to 0,6% and lower electricity
tariffs, which companies like Mopane Copper Mines and Konkola
Copper Mines enjoy. Metorex took over operations of the 7 shaft
mine at vesting in 1997 and the mine is expected to wind up by
2004. The reopening of Chibuluma South mine will forestall job
losses and prevent the small mining town of Kalulushi from turning
into a ghost town. About 600 jobs are expected to be absorbed by
Chibuluma South.