Saturday, August 15, 2009

Konkola Contracts Copper Mining To Brazilian Firm

Zambia's Konkola Copper Mines (KCM) has contracted Brazil's U & M Mining to help it mine for copper in Zambia as it seeks to raise output to 500,000 tonnes by 2011, the company said on Friday.

KCM, Zambia's largest copper producer, also reiterated its plans to push cobalt output to 5,000 tonnes after starting operations at its 300,000 tonnes per year Nchanga copper smelter. It gave no figures for current cobalt production.

"Under the contract, U & M (Mining) will mine two areas...of the vast Chingola open pit over a period of three years," KCM acting manager for open pits, Obino Kalela said in a statement.

Kalela said U & M Mining would mine the two areas for both waste and copper ore while Konkola would now concentrate on the Nchanga open pit mine, which produces copper and is the company's main source of cobalt.

KCM, which also operates the Nchanga open pit, Konkola copper mine and the satellite Fitwaola mine, is a unit of London-listed Vedanta Resources Plc (VED.L), which is developing the Konkola Deep Copper Project (KMDP), touted as Africa's deepest copper mine.

KCM says about $500 million will be spent on developing the KDMP.

Konkola is implementing several projects, which it says will raise its output to 500,000 tonnes -- or half of Zambia's total planned production -- by 2011 from the current 200,000 tonnes per year.

Zambia is Africa's largest copper producer, with copper mining being the nation's economic mainstay. The mines are a major employer in this southern African country of 12 million people.

SourcE: Reuters

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