Zambia launches new projects to raise copper output

Zambia's chief copper producer Konkola will use $400 million from parent Vedanta Resources to expand its smelter and improve underground operations to increase production, the company said.
Konkola Copper Mines Plc's Nkana smelter, Zambia's largest, will be expanded and upgrades will be done at other Konkola facilities, Konkola corporate affairs head Augustine Seyuba told Reuters in a written response to questions.
Seyuba said the bulk of the Vedanta cash would be used to develop the Konkola Deep Mining Project, which is touted to become Zambia's largest mine when it comes on stream in 2008.
In April, Konkola said it expected the Deep project to produce 6 million tonnes of ore per year, which is about 200,000 tonnes of finished copper per year starting in 2008.
Seyuba said Konkola would also refurbish existing concentrator facilities at Konkola mine.
In May, Konkola said it aimed to produce 250,000 tonnes of copper this year.
"(Konkola) management is continuously trying to ramp up production by focusing on improving recoveries and mining high grade material as well as reducing the cost of production besides investing substantially in new plant and equipment," Seyuba said.
"Underground ore production at Konkola will be expanded from its historical level of approximately two million tonnes per annum to six million tonnes per annum," Seyuba said.
Konkola comprises the Konkola, Nchanga (open pit), Nampundwe pyrite mine, the Nkana smelter and the new Fitwaola copper mines. The group alone accounts for more than half of Zambia's total copper production.
Seyuba said Konkola was also examining other projects to make it a globally competitive copper producer.
"Currently under active consideration are plans to expand smelter activities at our Nkana operations. This will also enable Konkola to process concentrates from other mining houses in Zambia," Seyuba said.
Seyuba said Konkola had been weighed down by strikes and shortages of fuel in the last few months which the firm said impacted negatively on production.