VENTURES AFRICA – Zambia’s leading copper mining company, Mopani Copper Mines, is concluding feasibility studies on another copper mining project which, according to the company’s chief executive Danny Callow, would cost the company $1.5 billion.
In an interview with Reuters at a mining and energy conference, Callow said the feasibility study is at the concluding phase. Technically, he said, the company is through with the feasibility study but is presently assessing the financial implications.
The $1.5 billion will be an additional investment to the $2 billion which the company has already invested in upgrading its operations to increase production of copper by 100 per cent from 75,000 to 150,000 tonnes per annum.
The feasibility study’s detailed report will be presented to the company’s board of directors for approval in August. But the executive director hinted that indications from the study suggest that with the new $1.5 billion investment, the company’s mine operations at Mufulira and Nkana will be extended beyond 30 years.
However, he reiterated the need for the company to have a stable fiscal regime “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.