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Mopani refuses to refine copper concentrates from Lumwana

Mopani refuses to refine copper concentrates from Lumwana
Written by Chiwoyu Sinyangwe
Thursday, March 05, 2009 9:57:39 PM

MOPANI Copper Mines (MCM) has refused to refine copper concentrates from Lumwana Copper Mines on account of aluminum contamination, according to Equinox Minerals Limited, Lumwana's holding company.

Chief executive officer Craig Williams stated that the move was despite MCM having agreed in 2007 to refine about 80,000 metric tonnes of concentrate annually from Lumwana Copper Mine project.

Williams stated that the Glencore International AG operated mine had committed to buy an additional 40,000 tonnes of concentrate as part of the five-year agreement.

He described as invalid the reason given by MCM to reject the copper concentrates from Lumwana Copper mines.

“They have said they won't accept concentrate with any measure of uranium, but virtually all concentrates all over the world have measurable amounts of uranium, so that's not a valid argument,” Williams stated.

Glencore International AG is a Switzerland-based mining company with about 73 per cent in MCM while First Quantum Minerals (FQM) Limited holds about 17 per cent and ZCCM Investments Holding (ZCCM-IH) owns 10 per cent.

Last January, Equinox Minerals Limited announced that MCM and Glencore hadn't accepted its copper because the concentrate didn't meet “contract specifications”.

Williams stated that Equinox had found buyers for the material on a short-term basis and was in talks with other Zambian parties for a longer-term agreement.

Market analysts say Lumwana Copper Mines, which was expected to start full-time large-scale mining next month, was likely to start supplying some concentrates to the Konkola Copper Mines (KCM).

KCM recently commissioned its Nchanga copper smelter with an annual capacity of 300,000 tonnes, and is believed to be “too big” for the mines concentrates alone.

Equinox sells about 55 per cent of its copper concentrate to the Chinese owned Chambishi Copper Smelter and cobalt smelter in Zambia, which hasn't refused any deliveries.

Labels: GLENCORE INTERNATIONAL AG, LUMWANA MINING COMPANY, MCM, MOPANI

posted by MrK @ 9:58 PM