Mopani Copper Mines of Zambia may invest about USD 320 million in extending the lifespan of Nkana mine by more than 20 years and increase copper output.
The company’s board 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.
According to Mopani Copper Mine spokesperson, 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 spokeswoman said that the new shaft will increase ore production at Nkana from 3.4 million tonnes per annum at Nkana 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, SOB 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 Emmanuel Mutati outgoing CEO for Mopani Copper Mines, pending assumption of his role as board chairperson added that the company was happy because the new investment would create more wealth for the company.
Mr Mutati said that “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 JV 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, five first aid centers and public health departments near its Nkana and Mufulira sites.
The Company also runs four schools for 2,100 pupils, oversees HIV and malaria prevention and control programs and supports local orphanages, charities and sports clubs. Retired miners have also been provided with opportunities for post-retirement employment at a Mopani-supported farm near Mufulira.
In 2011 Mopani expects to spend substantially more on community projects than in 2010 as, recently announced, road and sanitation projects boost spending.
(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)
