World Report

First Quantum’s new mine at Kansanshi is on course to come on line early in 2005

earing completion in the northwest of the country is a major project situated outside the traditional Copperbelt. The new copper mine being built by the Canadian company First Quantum Minerals in Kansanshi, near Solwezi in Zambia's North Western Province, is on course to start operations early next year.

Construction of Phase 1 of the two-phase £100 million project began in September 2003. The opening of the mine is expected to give a significant boost to the economy. Over a period of 16 years, it is expected to produce 1.6 million tons of copper with an annual output at peak production of 130,000 tons of copper and 35,000 ounces of gold.
Philip Pascall, First Quantum’s Chairman and Chief Executive Officer, pays tribute to the backing the project received. “The support of the government – particularly the President – was essential. They wanted to make it happen. It justifies their claim that privatisation would bring investment and create new mines.

“The fact that it opens up another area – other than the Copperbelt – was very influential and is a very important aspect of the development. They like to talk about the New Copperbelt here and that this is the new development that will take over from the Copperbelt,” says Mr Pascall.

Philip Pascall
Chairman and CEO of First Quantum

‘The development that wil take over from the Copperbelt’

Jim Gorman
General Manager of Kansanshi Mining

‘Future expansions may be brought forward to increase output sooner’

First Quantum have an 80 percent stake in the project, which is progressing so well that consideration is being given to bringing forward scheduled future expansions with the aim of increasing copper output sooner.
“Studies are under way to consider bringing forward expansions scheduled in years three and five, with the aim of increasing copper output sooner,” says Jim Gorman, General Manager of Kansanshi Mining.

This is turning out to be a highly successful year for First Quantum. For the first six months of 2004, revenues more than doubled to £29 million from £12.8 million in 2003. The increase is directly attributable to the rise in copper production at the company’s wholly-owned Bwana Mkubwa mine in the Copperbelt and the higher copper prices. Gross profit was £15 millio from £3.3 million.

Based on copper production of 19,274 tons for the first six months of 2004, the Bwana Mkubwa SX/EW processing facility is expected to exceed its annual forecast production of 35,000 tons of copper cathode.
First Quantum has a 17 percent stake in Mopani Copper Mines, which has mining and smelting operations in Zambia. It also has two copper mines at Lonshi and Lufua in the neighbouring Democratic Republic of Congo (DRC). Last year the treatment plant at Bwana Mkubwa was upgraded so that it could receive additional ore from the DRC.
“This is a company that is built around very strong engineering skills and excellent exploratory and geological skills,” says Mr Pascall. “This enables us to have organic growth, and so far we have been successful.”