Zambia's Mopani Copper Mines, majority owned by Glencore International Plc, is wrapping up a feasibility study which could see it sink $1.5 billion into another copper project, its chief executive said on Friday.
Danny Callow told Reuters 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.
“It will involve about $1.5 billion in additional investment. Technically we have completed the feasibility study and right now we just are looking at the financial implications,” Callow said.
The investment, in addition to $2 billion already invested to upgrade operations, would double Mopani's underground production of copper to 150,000 tonnes per annum, he said.
“A detailed feasibility study on the projects will be presented to Mopani's board of directors for approval by August,” Callow told Reuters on the sidelines of a mining and energy conference.
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, Callow said.
“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. - Reuters