4 July 2012

Zambia: Mopani Wraps Up $1.5 Billion Feasibility Study

MOPANI Copper Mines Plc is wrapping up a feasibility study which could see it sink US$1.5 billion into another copper project.

Mopani chief executive officer Danny Callow said 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.

According to a statement on the mine website, the project would involve about US$1.5 billion in additional investment.

"Technically we have completed the feasibility study and right now we are just looking at the financial implications," Mr Callow said.

He said the investment, in addition to US$2 billion already invested to upgrade operations, would double Mopani's underground production of copper to 150,000 tonnes per year.

"A detailed feasibility study on the projects will be presented to Mopani's board of directors for approval by August this year," he said.

He said 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.

"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 said.

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