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(TIMES) Baluba Copper Mine starts blasting

Baluba Copper Mine starts blasting
By Business Reporter

Baluba Copper Mine has started blasting for copper and other underground activities ahead of planned resumption of production in December. This comes after the mine’s completion of most of the rehabilitation works and replacement of obsolete machinery by the new owners, the Non-Ferrous Corporation (NFC) Africa.

Baluba Mine is a unit of Luanshya Copper Mine (LCM), in which China Non-Ferrous Corporation (CNMC) recently bought 85 per cent shareholding from Enya Holdings, which withdrew and placed the mines under care and maintenance.

The balance of the stake in Baluba is held by the Government through the ZCCM Investment Holdings (ZCCM-IH).

CNMC took over the operations of the Baluba and Mulyashi copper project, which was due to start producing 60,000 tonnes of copper in 2010, and said it would spend US$400 million to develop Mulyashi and start operations at Baluba.

NFC Africa chief executive officer, Luo Xingeng said in a statement released in Lusaka yesterday that the company had undertaken the major rehabilitation works involving replacement of equipment.

Mr Luo said the replacement of obsolete and outdated equipment was almost over, and the company conducted the first blasting last Sunday morning.

“The previous investor had exhausted all the developed reserves and the development being embarked on is both primary and secondary,” he said.

The Government had initially said production at Baluba would start in May this year when the takeover was completed, but the new owners undertook a thorough study on the assets and operational requirements.

Mr Luo said the study had revealed that the cost of rehabilitating and replacing equipment at Baluba had risen.

He said NFC Africa would give priority to the development of the Baluba underground mine, the 11.4kilometre cable that conveys copper ore from the mine to the processing plant, and the upgrading of the copper processing plant.

“Initially, $60 million was earmarked for the rehabilitation and replacement of equipment but the figure has gone up to $74 million after more malfunctioning equipment was discovered,” he said.

Previously, underground development at Baluba mine was carried out by a contractor but CNMC had decided that they should carry out the development on their own.

Mr Luo said NFC Africa has since employed 200 former workers at Prosec Amco, the previous contactor, as part of the underground development team.

Enya Holdings, which is a joint venture of the Bein Stein Resources Group (BSRG) and the International Minerals Resources (IRM), previously owned LCM but they placed the mine under care and maintenance in December before CNMC purchased it for US$50 million.

Labels: BALUBA MINE, CNMC, COPPER, ENYA HOLDINGS, LCM

posted by MrK @ 5:32 PM