Johannesburg, South Africa — MININGREVIEW.COM — 30 August 2010 – Leading South African diversified mining company African Rainbow Minerals (ARM) says that construction of a new copper mine in Zambia which it is developing with Brazilian mining giant Vale started earlier this month.
In a statement issued here ARM revealed that commissioning of the concentrator plant was scheduled for November 2012, and the mine was planned to reach full production in 2015.
Total capital expenditure for the project was estimated at US$380 million (R2.8 billion), which was down from a previous forecast of US$400 million (R3 billion).
Known as the Konkola North mine, the new operation is owned by the Konnoco Zambia joint venture, split 50-50 between ARM and Vale. Its life of mine is estimated at 28 years, and it is expected to yield 45 000 tonnes of copper concentrate per year.
“The new copper mine is significant because it adds an exciting new commodity to our diverse commodity portfolio, and is also our first investment in Africa,” said ARM executive chairman Patrice Motsepe.
The investment expands the ARM portfolio, which includes platinum, ferrous metals such as iron ore, chrome and manganese, and coal. The newly developed mine will be housed in a new division to be called ARM Copper.
ARM has revealed that the company is conducting exploration to see if it can double output to 100 000 tonnes of copper concentrate per year.