Lusaka, Zambia — 25 June 2012 – Zambian copper belt copper and cobalt producer Mopani Copper Mines “’ which is majority- owned by Glencore International plc “’ is wrapping up a feasibility study which could see it sink US$1.5 billion into another copper project in Zambia.
Chief executive Danny Callow told Reuters that should the feasibility study prove viable, the investment would be in two new ultra deep shafts and modern copper processing plants, which would enable the company to produce copper at a lower cost.
“It will involve about US$1.5 billion in additional investment. Technically we have completed the feasibility study and right now we just are looking at the financial implications,” Callow said.
“The investment, in addition to US$2 billion already invested to upgrade operations, would double Mopani’s underground production of copper to 150,000tpa, he added.
“A detailed feasibility study on the projects will be presented to Mopani’s board of directors for approval by August,” Callow continued. “Preliminary indications from the feasibility study showed that mine life at both its Nkana and Mufulira operations would be extended beyond 30 years with this new investment,” he said.
“Clearly this goes back to having a stable fiscal regime so that we can pay back the loans. As long as we can have a very stable environment I think we will be here for a long time,” he concluded.
Source: Reuters Africa. For more information, click here.