(ANS) First Quantum Presence Vital for Future Copper Production
2004-03-09 18:24 (New York)
Mar 09, 2004 (The Times of Zambia/All Africa Global Media via COMTEX) -- THE
INVESTMENT of First Quantum Minerals Limited (FQM) in the low cost copper
deposits at Kansanshi Copper Mine would play an important role in the future of
Zambia's copper industry, FQM's chief executive, Philip Pascall, has said.
In a letter to FQM's shareholders in its latest annual report, Mr Pascall says
FQM is uniquely positioned to participate in an environment of higher copper
prices upon renewed growth in the economy.
"We also believe that worldwide mine production over the next several years will
help us keep up with global demand growth for copper. This could result in
higher copper prices than we see today," Mr Pascall said.
FQM, who acquired 80 per cent interest in Kansanshi Mine, located near Solwezi,
on August 15, 2001, says the mine would be a low cost open pit producer with a
capital cost of approximately US$120 million.
"The mine is being designed for initial production of about 75,000 metric tonnes
of copper per year beginning in 2004," says Mr Pascall.
He says the Kansanshi deposit was one of the premier undeveloped copper deposits
in the world.
"Kansanshi hosts an open pit mineral resource of 267 million tonnes of grading
1.28 per cent copper and 0.16 gramme per tonne gold containing 3.4 million
tonnes, or 7.5 billion pounds of copper and 1.4 million ounces of gold," he
said.
And Mr Pascall says FQM was prompted to reduce its investment interest portfolio
in Mopani Copper Mines (MCM) in 2002 because of the knock on economic down-turn
on the global market.
"This led to major weaknesses within the manufacturing sector of the world
economies and severely reduced demand for industrial metals including copper and
cobalt.
In fact, during 2001 nearly 600,000 tonnes of copper reached terminal warehouses
as the world's economies contracted," he said.
Mr Pascall said MCM did not achieve its aggressive production forecasts despite
high copper and cobalt production levels compared to previous years and was
therefore, prompted to reduce its interests in the mine from 44 per cent to 16.9
per cent.
"Our reduced interest at Mopani will allow us to focus our resources on the
development of our entire project portfolio in Zambia, while leaving us with the
flexibility to consider new opportunities that may become available in the near
future," Mr Pascall said.
by Business Reporter
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