Zambia Mopani Copper Mine To Invest $295M In New Shaft

Apr 27, 2011 (Dow Jones Commodities News via Comtex) -- Zambia's second largest copper and cobalt mining company, Mopani Copper Mines, is planning to invest at least $295 million in a new mine shaft at its Nkana division which will extend the lifespan of the mine by 25 years, officials said Wednesday.

Mopani is planning to start sinking the Syclinorium shaft at its Nkana mine on the Copperbelt to a depth of at least 1,200 meters next year to allow it access rich ore bodies, the company said in a report submitted to the ministry of mines and minerals development.

The new shaft is expected to be commissioned in the first quarter of 2015. Mopani is a joint venture between Swiss commodity trader, Glencore International AG and Toronto-listed First Quantum Minerals Ltd. (FQVLF).

According to Maxwell Mwale, Zambia's minister of energy and minerals development, the new shaft's copper reserves are estimated at 80 million metric tons, grading at 1.85% copper and 0.08% cobalt.

The new shaft will replace the existing mining operations at Nkana which are expected to be decommissioned in 2015.

Mopani also operates the Mufulira Copper Smelter and the Nkana Concentrator.

Mopani almost closed operations in December 2008 after global copper prices fell to a four-year low of less than $3,000 a ton, but as prices have recovered it has been reviving operations and is on course to meet its annual copper production target of 200,000 tons by 2012-13, according to company officials.