Copper mines in mineral-rich Zambia appear to have recovered from a slump two years ago and are expected to reach record levels of about 400 000 tonnes this year, the Central Bank governor said on Tuesday.
Briefing media in the capital, Caleb Fundanga said production figures for the first nine months of 2004 have surpassed those for the same period in 2003.
He said production improved because of better prices for copper on the international market.
”Copper prices averaged $1,19 per pound during the quarter under review, compared to $0,77 per pound in the third quarter of 2003. High prices enabled mining companies to undertake investments and refurbishment of plant and equipment. This [helped] to improve efficiency and productivity,” Fundanga said.
Zambia produced about 349 000 tonnes of copper in 2003, and the forecast for this year is at 400 000 tonnes, he said.
In August 2002, London-based Anglo American announced it was pulling out of Zambia’s copper mines, saying low copper prices rendered them unprofitable.
Since then, Indian mining giant Vedanta Resources plc has entered into an agreement with the government to revitalise the mines.
Fundanga said this is a possible reason why production has increased. The agreement allows for the provision of technical expertise and management experience, and provides funding support and financial stability for local mines.
Fundanga said projected copper export earnings of $256,9-million in the third quarter of 2004 were slightly lower than the $260,7-million in the second quarter of this year because of a 1,3% fall in sales volume. — Sapa-AP