Chibuluma mine to invest K14bn in explorations



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Inscription: Jeu 14 Mai 2009 16:23

Message Mer 14 Nov 2012 13:33

Chibuluma mine to invest K14bn in explorations

Chibuluma mine to invest K14bn in explorations
November 14, 2012 - By NCHIMUNYA MUGANYA -

CHIBULUMA Mines Plc a subsidiary of Metorex group of companies is to invest at least K14 billion (about US$28 million) in its exploration projects aimed at increasing the company’s copper reserves.

Chibuluma mine environmental and metallurgical manager Jackson Sikamo said the money would be invested in four exploration projects the company would undertake.

He said about US$9 million had already been spent on other exploration works which commenced in 2010.

Mr Sikamo said that the US$28 would be for exploration works starting next year to years beyond and that drilling would commence by the end of this month.

He said that over the last years, the firm had extensively drilled thus increasing its copper reserves which currently stood at 4.6 million tonnes for the period running from 2012 to 2017 consequently resulting in the extension of the mine’s lifespan.

Speaking in Lusaka during a stakeholders meeting, Mr Sikamo said that the mine had indentified several new potential mining targets within its mining licensed area.

He said given the high potential of existence of copper within the four sites, the initial goal was to increase the reserve and extend the mine’s lifespan from 2017 to beyond.

Mr Sikamo added that the south mine had about 3.4 million tonnes copper reserves with Chifupu having 1.2 million tonnes.

“The lifespan for the mine has been extended from 2017 to 2021 following the increase in copper deposits and newly identified sites for mining, we will start the exploration work on four sites within the mine,” he said.

He named the projects as Chifupu, Chibuluma south mine and Chibuluma.

The company has also applied for additional areas west and north of the mine.

Mr Sikamo said the company has so far invested over US$170 million in its operations and that this is expected to increase through exploration programmes.

And speaking at the same function, mines minister Yamfwa Mukanga said the Government had created an enabling environment for both international and local investors to undertake mineral exploration and develop new mines.

Mr Mukanga said mining firms should use mineral exploration methods that would help obtain positive results, furthermore contribute to sustainable economic development of the local area and Zambia at large.

“As Government we will ensure that we support the growth of sector and for that, we will continue creating favourable investment policies that will attract more investments in the country,’ he said.
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Inscription: Jeu 30 Juil 2009 19:54

Message Mer 14 Nov 2012 17:59

Re: Chibuluma mine to invest K14bn in explorations

CHIBULUMA Mines plc says it plans to spend about US$ 28 million from next year to 2015 on mining explorations that will result in the mine expanding its lifespan.
Chibuluma Mines plc metallurgical and environment manager Jackson Sikamo says the mine has identified several potential targets within the existing mining licence areas and is expected to commence drilling to expand the mine’s lifespan to 2021 from 2017.

Mr Sikamo said at a stakeholders meeting in Lusaka on Monday that the mine, which has spent about US$9.5 million from 2010 to date in mining explorations aimed at expanding its reserves, is committed to increase the mine’s lifespan.
“We request assistance from Government to provide additional prospecting licences so that we can even develop further. We are serious investors and will not walk away and we are eager to grow Zambia,” he said.
He, however, bemoaned the high cost of copper mining saying Zambia continues to be a high production cost destination.
On average, the mine spends US$7,150 on copper production per tonne compared to the copper price of about US$7,700 per tonne. The costs include operational, capital expenditure, corporate tax and actual copper production.
“Even when the copper price is in excess of US$8,000 per tonne it is important that everyone fully understands that the full cost of copper is already high and escalating year on year…someone somewhere was advocating for the reintroduction of windfall tax, this will be disastrous for the industry and Zambia,” he said.
Mr Sikamo also cited high electricity tariffs (which are however the lowest in the region at just below 40 cents per kilowatt per hour (KWH) compared to other countries such as Namibia which charge up to US$7.83 for the same amount of power), freight costs and excessive union demands as challenges the mine faces.
He urged Government to ensure that copper production remains competitive if the sector is to be sustained.
On the mine’s contribution to Government’s revenue, Mr Sikamo said a total of K880 billion has been paid to Government this year.
At the same occasion Minister of Mines, Energy and Water Development Yamfwa Mukanga said Government is committed to dialogue with mining companies for the development of the mining sector and country.
Mr Mukanga said Government will support mining projects that are aimed at developing the country.
“A country can be endowed with mineral resource but if the mineral resource remains underground, it remains valueless hence the need for dialogue with investors on how copper can be mined cost-effectively,” he said.

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