First Quantum expands Bwana Mkubwa (October 07, 2002)

Vancouver-based First Quantum Minerals (FM-T) has expanded its Bwana Mkubwa solvent extraction-electrowinning (SX-EW) copper plant in central Zambia.

Commissioning of the additional leach, filtration and SX-EW facilities will take the remainder of the year. Thereafter, production should average 30,000 tonnes Grade A cathode per year, or 20,000 tonnes more than before.

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, the plant was fed solely with 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% of the operations, and the reduction erased nearly US$22 million in unpaid debt.

Meanwhile, First Quantum is advancing its 80%-owned Kansanshi surface deposit, which lies northwest of the mines, near the Congo border.

An ongoing feasibility study envisages a 2-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 be 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.

Resources for the second phase are pegged at 197 million tonnes grading 1.16% copper and 0.12 gram gold. That estimate is based on a prefeasibility study by Phelps Dodge (PD-N), completed several years ago.

GRD Minproc of Australia is managing the ongoing study.