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Phelps, Tenke may upgrade DRC venture
David McKay
Posted: Sat, 11 Feb 2006
[miningmx.com] -- PHELPS Dodge, the world’s largest listed copper producer, and its joint venture partner, Tenke Mining Corp,. could produce more than it planned in the first phase of Tenke Fungurume, a copper/cobalt venture in the south of the Democratic Republic of Congo (DRC).
“It’s possible the project could start significantly higher,” said Paul Conibear, president of Tenke Mining. First phase production of copper cathode is currently planned at 50,000 tons/year.
Tenke Fungurume has been described as one of the largest copper ventures in the world. According to statistics provided by Tenke Mining at the Emerging Mining Congress in Zambia, the resource consists of 547 million tons of ore grading at 0,27% copper.
It their plans materialise, the joint venture partners hope to complete a feasibility study in March and give the mine the green light in June. First
production would be in 2008, Conibear said.
Another option would be to ramp-up up production immediately, said Conibear. “That is not unexpected,” he said.
In addition to copper, the partners also hope to produce an estimated 4,000 tons/year of cobalt in the startup phase.
Tenke Mining Corp owns a 24.75% of the Tenke Fungurume deposit, a copper-cobalt resource Conibear hailed as “the largest and highest grade project in the world”. “It just dwarfs any project that I know today,” said Conibear.
At full tilt, Phelps Dodge and Tenke Mining will produce 400,000 tons/year of copper from the mine, scheduled for 2016. “The rate of expansion will naturally be subject to condition such as the establishment of proven and probable reserves to support such expansions, receptive metals markets, political factors and infrastructure,” Tenke Mining said.
In total, the deposit contains about 10.4 billion pounds of copper, and 800 million pounds of
cobalt.
Funding of the $350m project would be arranged by Phelps Dodge. “They [Phelps Dodge] are aiming for 50% debt. Tenke would have to complete equity financing “at some point in time,” said Conibear.
Tenke Mining’s share price has increased 180% in the last year amid vaulting copper and cobalt prices. Phelps Dodge’s share price had gained 52% over the same period.
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