(TIMES) No turning back for Lumwana
No turning back for LumwanaBy Times Reporter
LUMWANA Mining Company says there is no turning back on its ongoing multi-million dollar copper project in Solwezi despite declining copper prices.
And Luanshya Copper Mine (LCM) will in January next year resume development works at the US$354 million worth Muliashi Mine project, which was temporarily suspended.
Lumwana managing director, Harry Michael said in an interview in Solwezi yesterday the mine would soldier on, saying the global cost pressures meant that they would now look at the project cautiously.
Mr Michael was happy that Zambia had a Government with a history of prudent economic management and looked forward to working with the administration of President Rupiah Banda.
“Prudent economic management is even more important than has been. We have to work closely with the Government and it’s time like this you need prudent leadership,” Mr Michael said.
He said his company would be announcing production of its first concentrates before the end of the month, and was focusing on repaying its massive debt to financial institutions.
Mr Michael, whose company started operations in Zambia in 1996, said it would take about nine years to repay about $664 million owed to some 14 international financial institutions.
Thanking the Government for its support, he said as long as there were no changes in electricity tariffs, fuel pricing and wage demands, operations would continue normally.
“We are not turning back, we’ve got work to do,” Mr Michael, who is vice-president operations and chief operating officer at Equinox Minerals, developers of Lumwana project, said.
Despite the delay in production commencement due to a fire that caused damage to the 20MVA transformer and adjacent 11kv substation at the project in July, additional funding provided by the mine’s banking syndicate allowed Equinox to meet its construction commitments and on-going working capital requirements.
Last month, Equinox accepted from its EPC contractor handover of the primary crushing and conveying circuit and successfully commissioned and put into production its first large scale Hitachi EX5500-6 electric shovel.
Crushing operations commenced with the company’s operations team and crushed material being stockpiled in preparation for commissioning of the remainder of the Lumwana project process plant.
And LCM chief executive officer, Derek Webstock said development works at the $354 million worth Muliashi Mine project, which were temporarily suspended will resume next year.
Meanwhile, the mine has resolved to implement other alternative options before considering laying off some miners due to the adverse effects of the drastic fall in the copper prices on the world market.
Mr Webstock said in an interview yesterday that the fall in the prices of copper on the world market had delayed the resumption of the development works of Muliash.
The process of opening the Muliashi underground mine started early this year but was halted in September.
Labels: LUMWANA MINING COMPANY, MINING
posted by MrK @ 10:54 PM
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