TIM HENDERSON CEO of Mopani Copper Mines Plc “Our ambition is to harvest the highs and ride the lows”

MAJOR investment has transformed the operations of Mopani Copper Mines Plc (MCM), and the ongoing introduction of world-class technology is set to boost the output of Zambia’s second-biggest copper producer to new levels.

The fortunes of MCM, which owns the Nkana and Mufulira copper and cobalt mines, have been turned around since Glencore International of Switzerland became the company’s leading shareholder and started to pour millions of dollars into upgrading production.

Full mechanisation has been introduced, big new bodies of ore have been opened up, the workforce has expanded by 50 percent and production has more than doubled from 80,000 tons of copper per year to around 190,000 tons.

Glencore owns 73.1 per cent of MCM; the other shareholders are First Quantum with 16.9 percent and ZCCM-IH with 10 percent.

Tim Henderson, MCM’s Chief Executive Officer, says the Swiss company has shown real commitment. “Glencore is definitely the largest investor here, and for the most part it is using its own money. Last year, they put in $135 million (£75 million), this year it will be around $190 million (£105 million) – so we are talking big numbers to keep this as a viable operation for many years to come.”

The next major project is to rebuild and modernise the Mufulira smelter, a project that has the backing of the European Investment Bank (EIB).

Over the next two years MCM aims to increase copper production by another 40,000 to 50,000 tons. “Our objective by the end of 2007 is to be up to around 240,000 to 270,000 tons of copper,” says Mr Henderson. “That would definitely put us close to being the top producer.”

He says that Mopani is leading the field in terms of technology. The company recently introduced ‘in-situ’ leach methods, where copper is extracted from the mine by pumping an acidic liquid called raffinate into the ground.

“It’s a very cheap method of mining. This year we’re going to produce about 20,000 tons of this type of copper and by the end of next year we think it will be about 60,000 tons. That is almost one-third of the copper we produce at the moment, which will bring operating costs down.”

Mr Henderson identifies the need to cut high costs as essential to the long-term sustainability of the Zambian mining industry.

EMMANUEL B. MUTATI Chief Services Officer of Mopani Copper Mines Plc “We care about the environment”	MICHAEL A. MCMANUS Chief Mining Officer of Mopani Copper Mines Plc “Both sides have high expectations”

“The Chilean, Australian, and even the North American operations have large, open pits that produce copper at roughly half the costs of most Zambian copper mines,” he observes.

“The problem with Zambian mining is that it’s hard-rock, deep and underground. So costs are always going to be high. Plus, there is the factor that you are in a landlocked situation so you always have to transport the goods in and products out.

“Our objective is to produce enough copper at the right price so we can harvest the highs and ride the lows. That’s why we have put in a lot of investment, not only to expand, but also to bring our operating or fixed cost down.”

Chief Services Officer Emmanuel B. Mutati stresses that MCM is fulfilling its commitments under development agreements with the government. “For instance, we committed to the environment by addressing the issues of sulphur dioxide. We are putting in a sulphuric acid plant in Mufulira and will soon be installing another one at the cobalt plant here in Kitwe.”

Michael A. McManus, Chief Mining Officer, says one of the advantages of the relationship with Glencore is the lack of red tape. “There is a lot of dialogue and high expectations on both sides. We know Glencore will give us their full support. If we say we are going to do something, they will expect us to deliver. It is a very good company to work for.”