Lubambe
Project progress at Lubambe Copper Mine (previously Konkola North Project) is well advanced with most of the
major milestones having been met. Total project completion was determined as 90% at the end of December 2012.
In September 2012 the mine achieved one million fatality free shifts with well-established safety systems in place.
The 27-month construction plan for the concentrator plant was completed in 25 months and thus started two months
earlier than the base line plan. The plant started treating ore from the underground operations in October 2012 and
3 214 tonnes of copper in concentrate were produced by the end of December 2012. The first concentrate has been
toll smelted in terms of the off-take agreements and the first revenue from the sale of concentrate has been received
by the mine.
Mechanised development is progressing very well with ore drive development being ahead of schedule. Longitudinal
Room and Pillar (LRP) Stoping commenced in August 2012 and by the end of December 2012 four stopes had been
established. A lot of valuable practical experience regarding the mining of the ore body has been gained during a
very short period. Poor ground conditions are being experienced in places resulting in higher costs and lower advance
rates due to additional support requirements. Refurbishing of the No. 2 Vertical shaft is still scheduled for completion
by April 2013. All other outstanding project capital regarding outstanding underground and surface infrastructure are
on schedule for completion by the end of F2013. Project close out is to be finalised before the end of June 2013.
Production ramp-up to full production of 45 000 tonnes of contained copper is still expected to be reached by the end
of F2015.
Project expenditure is forecasted in nominal terms to be US$454 million (US$410 million in July 2010 terms) and in ZAR
terms is below budget due to the weaker exchange rate, as a large proportion of the capital equipment is purchased
in South Africa. All these costs will be capitalised and includes the cost of relocating about 205 informal settlement
houses built on potential mining subsidence areas as defined by Zambian Mining Legislation. Commencement of the
relocation infrastructure and house construction commenced in October 2012.
The mine’s throughput design from both the South and East Limb ore bodies remains at 2.5 mtpa of ore at an average
mill head grade of 2.3% copper, resulting in the production of 45 000 tonnes of contained copper in concentrate per
annum for 28 years. All copper concentrate produced will be toll smelted and refined in Zambia.
AMEC E & C Services Inc (AMEC) signed an initial Mineral Resources Statement for Lubambe Copper Mine Extension
Area. The effective date being 14 February 2013 for a total ore resource of 105 million tonnes at 3.66% total copper
grade in-situ. This is comprised of 73 million tonnes at total copper grade in-situ of 3.60% in indicated category and
32 million tonnes at 3.79% total copper grade in-situ as inferred. ARM is busy with a feasibility study of this area and
expect completion by March 2014. Additional surface drilling is continuing in the Lubambe Extension Area and during
the first six months of the F2013 year six exploration drill rigs were deployed and a total of 10 535 metres were drilled
to enhance the confidence levels and provide the required study information regarding the resource. Further to the
drilling programme the analysis of the Aero Magnetic and Aero Electric surveys were done across the whole Mining
Lease area with the intention to identify further exploration target areas
Lubambe Copper is expected to produce copper below the median world production cost by 2015.