business report article

I came across this interesting article while doing a bit of trawling.

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Zambia says the future for copper output looks bright
January 10, 2006

By Shapi Shacinda

Lusaka - Zambia expected finished copper output to rise to 600 000 tons in 2006 and climb to 750 000 tons in 2007 on new investments and expansion of existing mines, Kalombo Mwansa, the mining minister, said yesterday.

Mwansa said 2005 copper output would likely amount to 500 000 tons, compared with a target of 550 000, which analysts said had been undermined by strikes, accidents and fuel shortages.

"This year we hope to produce 600 000 tons and then production will be lifted to 750 000 tons in 2007. The future is very bright and we are headed back to the 750 000 tons production levels of the 1970s," Mwansa said.

Copper is Zambia's economic lifeblood and its mines are a major employer. Mwansa said Konkola Copper Mines and Mopani Copper Mines, the country's two biggest mines, had invested millions of dollars in upgrades to infrastructure during 2005 to raise output. In 2004, Zambia produced 394 000 tons of finished copper.

Last week a Konkola official said that the company's Nkana smelter was being upgraded to produce 300 000 tons of finished copper a year, from 219 000 tons at present. No completion date for that project was given.

Mwansa said higher global copper prices, rising demand for copper from China and improved efficiencies due to new mining technology also helped to push Zambia's copper output up.

The Lumwana copper and gold mine, owned by Australia's Equinox Minerals, would help boost output once the mine, which aims to produce 150 000 tons of copper in 2007, comes on stream.

"We have huge copper deposits almost everywhere and currently geological mapping shows there is copper in Petauke [east of Zambia], in Chienge in the north and in Chongwe [central Zambia]," Mwansa said.

Industry analysts say liberalisation of the copper mining industry in Zambia has spurred renewed interest in mining.

- Reuters

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Cheers ... WJ