ICS Copper Systems suspends exploration

COMMENT - Gee, I wonder which part of the 'private sector' will step in and fix this particular 'market failure'. The mining companies have had a free ride under the disguise of 'free markets', 'deregulation' and especially, 'privatisation', which has seen the mining industry and the profits they have made over the past decade, disappear from government ownership. I would estimate that the country has lost over $10 billion in profits because of this policy, pushed by the IMF and World Bank, and adopted by their intellectual collaborators in the MMD.

ICS Copper Systems suspends exploration
Written by Chiwoyu Sinyangwe
Friday, November 07, 2008 4:43:40 PM

ICS Copper Systems Limited has suspended exploration activities and the completion of Mokambo copper/cobalt mine, citing continued declining copper prices on the international market.

The company also stated that due to the reduction in copper prices over the last few months and current market conditions, it has decided to suspend it’s exploration activities and completion of it’s EMEW plant as it undertook a strategic review of operations.

The EMEW plant was nearing completion with electrometals staff onsite overseeing the final installation. The plant was expected to produce approximately 500 tonnes per annum of finished copper and approximately 100 tonnes per annum of cobalt by processing third party ore.

Commenting on the development, ICS president Graham Chisholm said the company would assess other potential acquisition opportunities of advanced stage projects in Zambia and the Democratic Republic of Congo (DRC) while adopting a prudent approach in conserving cash.

“While the Company waits on prices and market conditions to improve, management will take the time to review the exploration results from the Mokambo property to determine future programmes including potential joint venture candidates that have approached the company,” stated Chisholm who is the chief executive officer for ICS.

Recent results defined by Coffey Mining, an independent Qualified Person, indicate that ICS has to date completed a first phase drilling programme on the Mokambo sulphide ore body.

Mokambo copper/cobalt mine is a joint venture mine between ICS Copper Systems Limited and North Western Plant Hire Limited. It is situated about 16 kilometres north of Mufulira town on the Copperbelt Province.

North Western Plant Hire Limited is a Zambian firm holding a 30 per cent interest, but Chisholm said the company had the option to increase its stake to 80 per cent. Mokambo was expected to start plant construction by May 2008, with first production anticipated by the end of next year (2009).

Recently, two of the country’s upcoming mining companies, First Quantum Minerals and Albidon Zambia also suspended some of the mining projects citing the poor metal prices triggered by the current global economic crisis.