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African Copper Resumes Concentrate Shipments

Fri. October 16, 2009; Posted: 08:39 PM
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Oct 16, 2009 (Mmegi/The Reporter/All Africa Global Media via COMTEX) -- AFNCF | Quote | Chart | News | PowerRating -- African Copper has announced that it has recommenced the shipment of saleable concentrate from its Mowana Mine near Dukwi following the restart of operations there in late August.

The company said in a statement on Wednesday that copper concentrate deliveries had commenced and that the first shipment left by road on October 5.

Since recommencing operations, a total of 1,353 tonnes of concentrate have been produced at an average grade of 25 percent copper.

"This is a further major milestone achieved by our operational team at Mowana," says the company's Chief Executive, Chris Fredericks, in the statement. "We remain committed to meeting production objectives and to continue to deliver on expectations."

The statement adds that plant optimisation continues to improve on circuit performance after handling well production from a current discharge stockpile of around 800 tonnes with an average grade of 24.8 percent.

The circuit and concentrate specification is expected to be further optimised over the coming weeks.

"We are delighted with the results achieved over this short period which continue to show a positive trend on previous commissioning performance and move the company a step closer towards realising nameplate production," Fredericks says.

The company says off-take logistics resumed with MRI Trading AG under the existing 5-year off-take agreement while the re-establishment of supply lines and on-site stores have been improving progressively over the past month and now support the consumable and stand-by spares requirements needed for steady state running conditions.

African Copper put the mine on care and maintenance in January pending completion of financing talks with Zambia Copper Investments (ZCI). Last month, the company said it had received an extension to the repayment date for a $7-million secured bridging loan facility from ZCI.

The extension will allow ZCI to obtain shareholder approval for a proposed four-year secured part convertible credit facility of $31 million, the copper miner said in a statement on Wednesday.

African Copper also secured a $25,4-million second bridging loan facility from ZCI for the period between September 30 and November 30.

The two bridging loan facilities will be re-financed by African Copper out of the proceeds of the convertible loan facility and the ZCI $9,9 million share subscription that was completed in May.

In May, Bermuda-registered ZCI, increased its stake in the copper-miner to 82 percent after finalising the share subscription.

The investment company also announced a $25,4-million finance package to assist African Copper to get back into production last May.

For full details for AFNCF click here.

    


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