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Gold/Mining/Energy : first quantum minerals FM on TSE -- Ignore unavailable to you. Want to Upgrade?

To: Stephen O who wrote (352)	3/10/2004 12:43:41 PM
From: Stephen O	Read Replies (1) \| Respond to of 385

(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 Copyright The Times of Zambia. Distributed by All Africa Global Media(AllAfrica.com)