Kansanshi posts 42 p.c. Copper Production Growth

MOPANI Copper Mines has embarked on upgrading the Mufulira Smelter to enhance efficiency and reduce sulphur dioxide emissions by 97 per cent. The K2.2 trillion project was initially supposed to be completed in 2015 but MCM pushed the deadline forward by 18 months to December next year. Above contractors busy with the installation of a second converter under the final phase of the project.

By James Muyanwa -

KANSANSHI Mining in Solwezi has posted a quarterly record-high copper production of 71,484 tonnes of for the third quarter ended September 2012.

The 42-per cent rise from last year’s production of 50,179 tonnes for the same quarter has raised the total production for First Quantum Minerals (FQM), the owner of Kansanshi, to 43 per cent.

This is according to FQM Reports on Operational and Financial Results for the three and nine months periods ended September 30, 2012.

The high copper production at Kansanshi has been attributed to higher ore grades during the period under review and other changes in the production process.

“Copper production increased by 42 per cent from Q3 2011, to a quarterly record, due to higher ore grades, throughput and recoveries in Q3 2012. Ore grades benefited from improved access to mining areas and an increase in availability of sulphuric acid in the period, which allowed for the treatment of some high grade, high acid-consuming ore,” partly reads the summary by FQM president Clive Newall.

Similarly, gold production at Africa’s largest copper mine rose up due to various improvement in the production process.

“Gold production was 32 per cent higher than Q3 2011 due to higher overall throughput and improved recovery. The continued gold circuit enhancements and improvements have resulted in a higher proportion of gold recovered in dore, which is not subject to the smelter deductions applied to gold recovered from concentrate.”

The company, however, states that gross profit for the quarter was lower than what obtained in 2011 due primarily to poorer realised copper prices and higher royalty rates.

The Zambian mineral royalty rate was increased from three to six per cent effective April 2012, resulting in an increase of $15.5 million in the royalty expense in third quarter of 2012.

“Cost of sales increased in Q3 2012 due to the sale of higher-cost inventory which was produced in the prior period.”

In terms of the outlook, the company’s main areas of focus continue to be on sulphuric acid supply and increasing the flexibility of ore sources for the three circuits.

Available mining areas continue to increase as planned with several new areas in the main and north-west pits now providing ore.

Further, improvements are anticipated with additional plant operational efficiency and flexibility afforded by multiple concurrent mining areas.

The benefit of the 7.2-million tonnes per annum oxide circuit upgrade is expected to be realized in fourth quarter of this year, coinciding with the commissioning of the fifth acid plant.

[Times]

Posted by Admin on November 6, 2012. Filed under BUSINESS. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.