Vancouver, Canada — 12 March 2012 – Kansanshi copper mine “’ one of the world’s single biggest producers of the metal “’ recorded a gross profit increase of almost 20% in 2011 over the previous year, due mainly to the high copper prices that occurred throughout the year, but offset partially by an increase in operating costs.
Revealing this here in its 2011 financial and production report, Canadian-based First Quantum Minerals (FQM) “’ which owns 80% of Kansanshi through its subsidiary Kansanshi Mining plc “’ told MININGREVIEW.COM that it had made US$1.19 billion profit, compared to US$ 998.4 million in 2010.
“Despite the strong growth recorded in 2011, the year-to-year results for the fourth quarter recorded a huge slump of up to 74%,” said FQM President Clive Newall. “The fourth quarter of 2011 saw production go 11% lower than the previous year as a result of lower ore grades processed,” Newall said. “It dropped from 66,6232t in 2010 to 59,163t last year.
But despite the notable increase in income last year and the drop in production levels in the closing quarter of 2011, there was only a marginal drop in the all-year copper production, which fell 0.4%. Year-end copper production for 2011 was 230,295t from the 231,124t in 2010.
Turning to the operational outlook for 2012, Kansanshi said it expected production for this year to be approximately 270,000 to 290,000t of copper, 36,000 to 40,000t of contained nickel and 170,000 to 190,000oz of gold.
“An ongoing programme of grade control drilling is expected to enhance the mine planning performance this year,” the report added. “This, combined with the additional mining fleet, is expected to improve the flexibility of the mine to deliver the optimal mix of ore-types to the plant.”
Source: First Quantum Minerals. For further details click here.