First Quantum expands Bwana Mkubwa (September 26, 2002)

First Quantum Minerals (FM-T) has completed a threefold expansion at its Bwana Mkubwa solvent extraction-electrowinning copper plant in central Zambia.

Commissioning of the new leach, filtration, solvent extraction-electrowinning facilities, plus the build-up of in-circuity inventory, will take the remainder of the year. Production thereafter should average 30,000 tonnes Grade A cathode per year.

Cash costs are projected at US30 per lb. copper, net of sulphuric acid credits.

Earlier this year, First Quantum added new crushing, milling and pre-leach filtration facilities to the plant to handle higher-grading oxides from the Lonshi deposit in the Democratic Republic of Congo, about 35 km to the east. Until then, feed came from tailings left over from the old Bwana Mkubwa open-pit mine.

The recent phase began after Standard Bank of London agreed to fund the US$18-million price tag. The loan is repayable in 36 monthly instalments, starting in 2003.

At last report, the Lonshi deposit hosted 5.1 million tonnes grading 5.75% copper. The remaining tailings at Bwana Mkubwa rang in at 2.1 million tonnes grading 0.77% copper.

First Quantum also holds just under 17% of the Nkana and Mufulira mining and milling copper-cobalt complexes, also in central Zambia. The company had owned 44%, and the reduction erased US$22 million in unpaid debt to partner Glencore International.

First Quantum also is advancing the 80%-owned Kansanshi deposit, which lies northwest of the mines, near the Congo border. A feasibility study is scheduled for completion shortly.

The study envisages a two-stage operation, with the first lasting 11 years and costing US$155 million to develop. Mining would focus on shallow copper oxides and mixed ores.

Annual production is pegged at 94,286 tonnes copper and 41,800 oz. gold.

Cash costs should ring in at US35 per lb. copper, net of gold credits.

Phase-one reserves stand at 73 million tonnes grading 1.74% copper and 0.27 gram gold per tonne.

The second phase, starting in the twelfth year of production, would focus on primary mineralization and last 15 years. On average, 120,000 tonnes copper and 40,000 oz. gold would be produced each year, at a cash cost of US54 per lb. copper, net of gold credits.

Primary resources are pegged at 197 million tonnes grading 1.16% copper and 0.12 gram gold. That estimate is based on a pre-feasibility study completed by Phelps Dodge (PD-N) several years back.

GRD Minproc of Australia is managing the feasibility study.