By Nicholas Bariyo
Special to DOW JONES NEWSWIRES
KAMPALA Uganda--London-listed Glencore International's (GLEN.LN)
$323 million deep mine copper project in Zambia is on course for
completion early next year, officials said on Thursday, as the
miner steps up its drive for expansion in Zambia.
The project, known as the Synclinorium Shaft Project, which is
expected to extend the life of Glencore's Nkana Mine in Zambia by a
further 30 years has less than 10 meters before reaching its final
depth, a spokesman for Glencore's unit in the country, Mopani
Copper Mines said in a statement Thursday.
Unlike disruptions at mines operated by Vedanta Resources PLC
(VED.LN) across the Copperbelt, following days of a bitter standoff
with power supplier Copperbelt Energy Corp. (CEC.ZM ) over power
tariffs, Glencore's expansions remain on course as Zambia seeks to
regain its position as the continent's top copper miner.
The new shaft will enable Glencore to access around 115 million
metric tons of copper ores.
"In terms of shaft sinking we...will start equipping the shaft
from bottom-up before the end of 2014," Mopani Copper Mines Chief
Executive Danny Callow said. "The Synclinorium Shaft brings hope to
thousands of workers whose jobs will be secured as a result of this
project."
In addition to the Synclinorium Shaft, Glencore is upgrading its
cobalt plant in Zambia which will enable it to more than double its
current production capacity to 7,000 tons from 2,800 tons by
2015.
Glencore has invested more than $2 billion in its Zambian
projects over the past decade and employs around 20,000 miners, the
company said.
Fears of an economic slowdown in China, the world's largest
copper consumer have weighed down on the global copper prices for
much of the year, reaching a three month low of $6,707.25 a ton
earlier this week. But Citi Bank said on Thursday that copper
prices are likely to rebound and average around $7,050 a ton, aided
by tight availability and recovering Chinese demand.
Write to Nicholas Bariyo at nicholas.bariyo@wsj.com
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