Lusaka, Zambia — MININGREVIEW.COM — 29 July 2008 – Teal Exploration and Mining Incorporated – a Toronto and JSE-listed mineral development and exploration company building a solid track record in southern and central Africa – has formally agreed a forward deal for processing copper concentrate with a Chinese-owned copper smelter currently under construction in Zambia.
Reporting from here, Reuters quotes Teal vice president for investor relations and corporate development Julian Gwillim as saying that the company – which plans to produce 25 000 tonnes copper metal per year at its Zambia unit – has also concluded a letter of commitment for power supply. The power distributor to all Zambian mines – the Copperbelt Energy Company (CEC) – will supply Teal’s mine.
Gwillim went on to say that the Environmental Council of Zambia (ECZ) had approved Teal’s final environmental impact assessment study for the Konkola North Copper project, where the company is due to start producing copper by 2009.
Teal said in a separate statement that it had reached an agreement with Chambishi Copper Smelter, where the Chinese government is spending US$250 million (R2 billion) to construct one of Zambia’s largest smelters.
The company added that it was also discussing with Zambia authorities the newly introduced mining taxes – which include a 25 % profit windfall tax and 15% variable profit tax – introduced in April, but it gave no further details on the negotiations.
Teal said it had done extensive metallurgical tests under a feasibility study which included construction of a metallurgical plant to produce 25 000 tonnes copper metal per year. The company’s latest data showed that copper resources on the south limb of the mine totalled 51 million tonnes at a grade of 2.35% copper.
South-African-based Teal has copper, cobalt and gold interests in Zambia, Namibia and the Democratic Republic of Congo (DRC). It wholly owns the Konkola North Copper project, with Zambia’s state-run ZCCM-IH holding an option to purchase 20% of the project.