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Mopani Copper: John Chadwick reports on the tremendous mining potential of Nkana and Mufulira''s metallurgical gems.

Article Excerpt
Mopani Copper Mines is a joint venture between Glencore International (46%) and First Quantum (44%), with Zambia Consolidated Copper Mines (ZCCM) holding the remaining 10%. In April 2000, Mopani acquired ZCCM's Mufulira (underground mine, concentrator, smelter and copper refinery) and Nkana (mining complex, concentrator and cobalt plant) Divisions. The purchase price was $43 million, with a commitment to spend $159 million on upgrading and developing these operations ($84 million on Mufulira and $75 million on Nkana). Mopani regards Nkana as the operation with the greatest mining potential, while Mufulira's real long-term value is in its metallurgical facilities.

Since Nkana as a Division of ZCCM was an integrated mining, processing, smelting and refining complex, it is important to note that Konkola Copper Mines (KCM) has a five-year option to buy the Nkana smelter and refinery in Kitwe. These assets currently remain the property of ZCCM, but Anglo American has a contract to manage them, which it has subcontracted to KCM, through Smelterco. The smelter and refinery are benefiting from an $80 million loan from the UK Government to ZCCM (via the Zambian Government) to rehabilitate the smelter. Should KCM exercise its option to acquire the smelter and refinery for an exercise price of $7 million, it would also assume this debt. Mopani currently has a contract with KCM to supply 115,000 t/y of concentrate for treatment by Smelterco. KCM has a contract to supply a similar amount for treatment at Mopani's Mufulira smelter.

The Nkana mining operations around the Copperbelt hub of Kitwe have huge resources with a potential remaining life of some 50 years. At the time of the purchase, mine production at Nkana was 2.7 Mt/y of ore at a headgrade of about 1.5% Cu. Mopani aims to raise production to 5.5 Mt and improve the headgrade to 2% Cu, by reducing dilution through the introduction of more efficient mining methods. Nkana is currently producing around 50,000 t/y of copper and 1,800 t of cobalt.

The Nkana mining complex lies along the northeast limb of the Nkana syndlinorium in the southern part of the eastern limb of the Chambishi/Nkana Basin. The complex comprises the Nkana mine, serviced by Central and South Orebody (SOB) Shafts, and the Mindola mine, Mindola and Mindola North Shafts, to the north of Kitwe. The Kitwe Barren Gap, stretching for about 1,400 m, lies between the Nkana and Mindola mines. With this exception, there are 14 km of mineralisation along strike between SOB and Mindola North shafts. There are also moderate resources of near-surface oxide ores, grading about 3% Cu, but most of this resource is compromised by surface infrastructure and there are no plans to mine this at pressent.

The reserves contained in the current mining area amount to about 75 Mt, with a further 111 Mt of inferred resources to the north of Mindola North where the synclinorium is open ended and plunges at about 20[degrees] to the northwest from a current depth of about 1,600 m. Some 50 Mt of this resource...

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