Message Mer 9 Nov 2011 15:41

Kansanshi Copper Mine Expansion Project Underway -First Quan

Industrials - INDUSTRIES
Kansanshi Copper Mine Expansion Project Underway -First Quantum

By Andrea Hotter

Published November 09, 2011

| Dow Jones Newswires

LONDON -(Dow Jones)- A project to expand the Kansanshi copper mine in Zambia by 60% in the next three years has begun, First Quantum Minerals Ltd. (FM.T) said Wednesday.

Annual copper production capacity will reach 400,000 metric tons from 250,000 tons currently by the end of 2014.

Kansanshi is the world's eighth largest copper mine and 80% owned by Kansanshi Mining PLC, a First Quantum subsidiary. The remaining 20% is owned by a subsidiary of ZCCM Investment Holdings PLC (ZCCM.ZM).

The first phase of this increase relates to the expansion of the oxide/leach facilities, which will be undertaken in two stages.

Stage one is expected to increase annual production capacity to approximately 285,000 tons and is focused on expanding the annual treatment capacity of the oxide circuit to around 7.2 million ton a year by the first quarter of 2012. Stage two is planned to increase the oxide throughput further to 12 million tons by the end of 2012.

Construction of an additional acid plant at Kansanshi, to treat the high acid-consuming oxide ores at the mine, was initiated with completion of the 1,000 tons-a-day plant due at the end of the second quarter of next year, First Quantum said. The additional acid capacity is expected to cut the mine's reliance on inconsistent acid supplies from local smelters and increase the amount of oxide ore that can be treated ahead of the expected construction of a smelter at Kansanshi in 2014.

The second phase of the increase is a proposed expansion of the sulfide treatment facilities with a new section of plant capable of treating 16 million tons a year of sulfide ore, the mining company said.

"Subject to the completion of the resource drilling program, construction of this new plant will start in 2012 and continue until 2014, with all elements of the expansions to 400,000 tons a year of copper expected to be complete by the end of 2014," First Quantum added.

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