HomeBase MetalsAnvil will maintain production despite problems

Anvil will maintain production despite problems

Anvil’s Dikulushi
processing plant in
the Democratic Republic
of Congo
Montreal, Canada — MININGREVIEW.COM — 13 August 2008 – Anvil Mining Limited – the leading copper producer in the Democratic Republic of Congo (DRC) – will achieve its forecast 2008 output of 47 000 tonnes of copper and 950 000 oz of silver, despite production problems at its three operations in the country.

Releasing its second quarter results here, the company said individual mine site production numbers would be 11,000 tonnes of copper and 950 000 oz of silver for Dikulushi; 9 000 tonnes of copper at Mutoshi; and 27 000 tonnes of copper for Kinsevere.

Anvil president and CEO Bill Turner revealed that during the second quarter of 2008, the company had determined that the extraction of ore and rate of underground development at the Dikulushi Mine had not proceeded as well as initially expected. He added, however, that development work would continue for the remainder of 2008 with full-scale underground mining expected to commence in January 2009.

“Owing to the progressively lower metallurgical recovery further downstream, we decided this month to suspend mining operations at our Mutoshi project, pending the outcome of an investigation of alternative mining methods and an ongoing study of the establishment of an SXEW facility. Both of these are expected to be completed by the end of 2008,” he said. “The processing plant will continue to operate with sufficient existing, stockpiled ore to achieve forecast 2008 production,” Turner continued, “but suspension of mining operations is expected  to result in a reduction in operating costs of US$3 million (R22.5 million) over the second half of the year.”

Turning to the Kinsevere operation, he said commencement of commissioning had been delayed to the first week of August 2008, due to a combination of design, logistical, and technical factors.

“Construction and development of the Kinsevere Stage Two 60 000 tpa SX-EW plant is progressing well and should be in position to deliver the first copper cathodes towards the end of 2009,” Turner continued. “An aggressive drilling programme is also underway, targeting the sulphide resource down to a depth of 250m in the first instance.”

Anvil’s second quarter results showed a net income of US$8.5 million (R63.75 million), which was down 76% on the second quarter of 2007. Revenues from copper-silver and copper concentrate sales showed a 9% decrease to US $59.8 million (R448.5 million), and operating profit of US$16 million (R120 million).