Zambia Mopani Copper Mines Starts Construction Work At $320M Shaft

Dec 07, 2011 (Dow Jones) --Zambia's third largest copper and cobalt producer, Mopani Copper Mines, has started construction work at the $320 million Synclinorium shaft, which is expected to extend the lifespan of its Nkana Copper Mine by at least 25 years, the company said Wednesday.

The company is expected to hire at least 500 workers during the construction phase and the project will come on stream by 2015, a company spokeswoman told Dow Jones Newswires by telephone from Zambia's Copperbelt province.

The project was approved in August by Mopani's board of directors and the company has since been seeking final approvals from Zambian authorities to launch the mine project. Mopani is majority-owned by Swiss commodity trader, Glencore International AG (GLEN.LN). Toronto-listed First Quantum Minerals Ltd. (FM.T) holds a minority stake in the company.

Mopani Copper Mines Chief Executive Danny Callow said separately the company has since completed the shaft collar, paving the way for the commencement of the development of the main shaft.

"This project secures the future of mining at Nkana for a further 25 years, allowing us to continue providing employment and other economic contributions far into the future. I look forward to further good progress in construction," he said in an emailed statement.

The Synclinorium shaft will involve the construction of 7 meter diameter main shaft and a 6 meter diameter ventilation shaft, which will be sunk to a depth of 1,277 meters to enable Mopani access around 115-million metric tons of copper ores.

At full production, the shaft will enable Mopani increase annual copper ore output to 5.1 million tons from the current 3.4 million.

The new project will replace the current mining operations which were slated to end in 2017. At least 3,000 mine jobs will be created when the project comes on stream, the company said.

MCM almost closed operations in December 2008 after global copper prices fell to a four-year low of less than $3,000 a metric 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.

Zambia, Africa's largest copper miner by output continues to attract investments in its mining sector, as companies seek rich-unexploited ore bodies.