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Mining & Natural Resources
Mutanga is comprised of a prospecting licence (PL
LS 237) encompassing 946.3 square kilometres,
which is held by OmegaCorp Minerals Limited, a
wholly owned subsidiary of Denison Mines. The li-
cence authorises the company to carry out prospect-
ing activities for industrial metals, base metals, pre-
cious metals, fuel metals and uranium. The license
was initially granted to Okurusu Florspar (Pty) Lim-
ited on October 21, 2004 and formally transferred to
OmegaCorp on December 20, 2005.
Work commenced on the Mutanga project late in
2007, and the project was the focus of a major de-
velopment drilling effort until mid-2008 when the rigs
were turned to exploration.
Following the completion of the development work,
the drills concentrated on testing areas discovered
as a result of an airborne radiometric survey over the
prospective parts of the project not covered by previ-
ous surveys. This work was successful in discover-
ing three new areas of mineralization of moderate
to strong mineralization that will each require major
infill and development drill programs.
The combination of a diversified production asset
base with excellent exploration and development po-
tential has uniquely positioned Denison for growth in
the future. A total of $8.8 million will be spent in 2010
of which $6.5 million will be incurred to advance the
Zambian and Mongolian projects and to develop a
longer-term strategy for these assets and their de-
velopments.
FIRST QUANTUM MINERALS LTD
Gen. G. K. Chinkuli
Country Manager
Stand 30/1494 at the Corner of Makishi and Mwalule Rds
PO Box 32565 Lusaka
Tel: +260-211-225006
Fax: +260-211-224383
kingsley.chinkuli@fqml.com
www.first-quantum.com
First Quantum Minerals Ltd. is a growing mining and
metals company engaged in mineral exploration,
development and mining. The Company’s objective
is to become a globally diversified mining company.
First Quantum currently produces LME grade “A”
copper cathode, copper in concentrate, gold and
sulphuric acid and expects to become a significant
nickel producer by 2012. The Company’s opera-
tions, located in Zambia, the Democratic Republic
of Congo and Mauritania, produced 373,900 tons
of copper and 193,300 ounces of gold in 2009 and
generated US$1.9 billion of revenues in 2009. First
Quantum has projects in Finland, Australia, Zambia
and the Democratic Republic of Congo.
The Company’s operations in Zambia include the
100% owned Bwana Mkubwa SX/EW facility and
sulphuric acid plants and the 80% owned Kansanshi
open pit copper-gold deposit. They also hold strate-
gic investments in Mopani Copper Mines (16.9%),
operator of the Nkana underground copper mine and
cobalt refinery and the Mufulira underground copper
mine, smelter and copper refinery in Zambia, and in
Equinox Minerals Ltd. (16.32%), a publicly-traded
company that operates the Lumwana copper mine.
The Bwana Mkubwa SX/EW facility is located near
Ndola. Built in 1998 at a cost of $30 million and ex-
panded in 2002 for an additional $25 million, Bwana
Mkubwa is a proven low cost copper producer and a
showcase operation for First Quantum in Zambia. It
produced approximately 800 tones of copper cath-
ode per month in 2010. In the Democratic Republic
of Congo, First Quantum operates the 100% owned
Lonshi open pit copper mine, which provides oxide
copper ore for processing at the Bwana Mkubwa SX/
EW facility, which is 100% solely owned and located
in the newly discovered Frontier copper-cobalt de-
posit. They also possess 11,000 sq/km of explora-
tion rights.
The Kansanshi mine, the world’s 8th largest cop-
per mine, is 80% owned by Kansanshi Mining PLC,
a First Quantum subsidiary. The remaining 20% is
owned by a subsidiary of ZCCM. The mine is lo-
cated approximately 10 kilometres north of the town
of Solwezi and 180 kilometres northwest of the Cop-
perbelt town of Chingola. Kansanshi employs 3,500
people and in 2009 had a total copper production of
approximately 245,000 tones.
Total copper production at the Kansanshi mine has
increased radically over the past few years. Much
of this improvement was due to the addition of the
mixed ore circuit, the sulphide circuit expansion and
better smelter availability. The plant now has the
capacity to process 12 million tons of sulphide ore,
4 million tonnes of mixed ores and 4 million tonnes
of oxide ore.
In 2009, Kansanshi completed the addition of gravity
concentrators and upgrades to the gold plant. These
enhancements, combined with higher throughputs,
enabled Kansanshi to achieve gold production of al-
most 100,000 ounces. Kansanshi’s average cash cost
of production was very competitive at $0.99 per pound