Maravi

Slump in copper prices worries Lumwana Mining

Slump in copper prices worries Lumwana Mining
Written by Mwala Kalaluka in Kasempa
Saturday, November 22, 2008 11:52:55 PM

LUMWANA Mining Company (LMC) managing director Harry Michael
has expressed serious concern over the slump in copper prices on the global market slightly a week before the mine kicks off production.

Michael told United Nations Development Programme (UNDP) country representative, Macleod Nyirongo, who toured the mine on Monday that everybody in the country’s mining sector was worried with the down turn in copper prices.

“Nobody should think that some countries are immune from the world financial crisis. It is going to require, by any government or any business, a cool head to navigate around this unfortunate situation. It is going to be difficult times going ahead for the mining industry,” he said.

Michael explained that whilst the prices of copper were going down, the operation costs were on the high side.

Asked to explain if the slump in copper prices will have a bearing on the number of people they would employ when the mine starts production, Michael said that was a difficult question to answer.

“We are a business. We have a debt which we have to repay…that has to be the first priority, that is servicing our debt,” he said. Michael said the mine was remaining with only about nine years for them to repay the US $690 million debt acquired from 14 lending institutions to inject into the mining investment.

“This is a 37-year mine, we do not want to do things for the short-term. A lot of planning has gone in place,” said Michael.

Labels: COPPER, LUMWANA MINING COMPANY, MACLEOD NYIRONGO, RECESSION, UNDP

posted by MrK @ 11:52 PM