Mopani spend more to extend lifespan of Nkana open pit

[LesCrozes]

Mopani Copper spend more to extend lifespan of Nkana open pit
Friday, 19 Aug 2011

Glencore AG International, the Swizz based miner, has continued to invest in Africa’s Zambia the continent’s leading copper producer with an additional USD 2 million to sustain its operations at its Nkana open pit.

Mr Emmanuel Mutati CEO for Mopani Copper Mines said that there are further plans to inject additional USD 2 million to extend the life of the Nkana Open pit mine in Kitwe, lying more than 400 kilometers north of the capital, Lusaka by two years till 2017. The planned investment will result in the company extending the operations at the shaft’s copper production of about 30,000 tonnes per annum and create 120 jobs for locals.

He said that the work on the site involves relocating a railway line and road which should allow the pit depth to increase to 125 meters and the width extending to 310 meters and the length expanding at 520 meters to increase more copper output at one of the country’s oldest open pits.

Mr Emmauel Mutati said that “We are pleased to confirm that the area, J Open pit mine at Nkana will continue producing ore for a further 2 years following our additional USD 2 million investment increasing the life of mine to 2017. We are committed to delivering value to Zambia from its copper resources and this investment will maximize that value as well as providing continued employment.”

Recently Mopani copper mine, Zambia’s second largest mine by output indicated plans to invest USD 80 million to complete the sulphur dioxide emissions at Mufulira mine unit in Zambia Mopani and constructing a sulphuric acid plant. Earlier Mopani Copper Mines under the auspices of Glencore, earlier stated plans to invest about USD 320 million in extending the lifespan of the Nkana mine by more than 20 years and increase copper output.

The company’s board recently approved the recapitalization of the Nkana mine project in Kitwe, lying more than 400 kilometers from the Zambian capital, Lusaka, to facilitate the Synclinorium project, a new shaft with associated infrastructure that will extend the life of the Nkana mines by 25 years.

A 7 meters diameter main shaft and 6 meters diameter ventilation shaft will be sunk to a depth of 1,277 meters, providing Mopani with access to some 115 million tonnes of ore at a grade of 1.9% copper and 0.09% of cobalt. The new shaft will increase ore production at Nkana from 3.4 million tonnes per annum at Nkana today to around 5.1 million tonnes per annum by 2018. Limited hoisting of ore may begin as early as 2015.

It is envisioned that with the USD 320 million investment in the project, the Nkana operations will continue beyond the current expected depletion dates of the existing reserves at Mindola North, South Ore Body and Central shafts of 2015, 2017 and 2018 respectively, securing some 3,000 jobs. The project is also expected to create approximately 500 construction jobs during the construction and commissioning phases of the project.

Mr Mutati said that said that the company was happy because the new investment would create more wealth for the company. The Synclinorium project is a major investment in the long-term future of Mopani and will help ensure that we maximize the value of Zambia's natural resources for decades to come. This will mean more revenue for the country and for our shareholders and more jobs for the local community.

According to data, Mopani Copper Mines plc is a Zambian registered company owned by Carlisa Investments Corporation a joint venture company comprising Glencore International AG and First Quantum Minerals Limited and ZCCM-IH. The Zambian government retains a significant minority interest in Mopani through its subsidiary body, Zambia Consolidated Copper Mine Investment Holdings with minority shareholders spread throughout the world in various locations.

Mopani produces and sells copper and cobalt to the international market. The Company operates mines in the towns of Kitwe and Mufulira which are located on the Zambian Copperbelt. Mopani spent over USD 15 million on ongoing community projects in 2010. It currently operates two hospitals, seven health clinics, 5 first aid centers and public health departments near its Nkana and Mufulira sites.

On the sulphur emission capture, Mopani plans to increase intake to 97% capturing compared to no sulphur dioxide capture at all for decades before privatization. The world class environmental performance will have been achieved in line with the program agreed with the Government at privatization. The work is due to be completed by 2015.

Mr Mutati said that Sulphur capture equipment is being installed as part of a general modernization of the smelting complex. This redevelopment is being conducted in a planned and logical manner with new emissions capture equipment installed as each phase of the plant renewal is completed. This approach has enabled operations to continue avoiding a shutdown and resultant loss of employment which was a key requirement of the Government.

According to the company, sulphur capture equipment installed to date currently captures about 50% of all sulphur dioxide emissions from the smelting complex. This equipment, the first at Mopani since the facility was first constructed in the 1930s was installed together with the new ISA smelter and matte settling furnace.

Mr Mutati said that “The re development of Mopani has been one of the toughest engineering challenges ever tackled in Zambia but we have made great progress towards our goal of creating a world class operation. We have increased production, secured employment, and significantly reduced sulphur dioxide emissions that had been ongoing for decades before privatization.”

He said that we are now moving into the last phase of this work, meeting the commitments agreed with the Government to create an asset that will deliver value to Zambia for decades ahead, and one that achieves world-class environmental performance by 2015.

(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)