[miningmx.com] –DIVERSIFIED mining group Metorex has reported a 32.13% increase in its December quarter production from its Ruashi Mining operations in Zambia.
The company said the quarterly production profile continued its positive trend, with
quarterly copper production increasing to 7 518 tonnes and cobalt by 21.92% to 812 tonnes in the quarter to end December 2009.
“The Ruashi mine produced 2 515 tonnes of copper and 280 tonnes of cobalt for the month of December 2009 despite seasonal heavy rainfalls,” said Metorex chief executive officer Terence Goodlace.
Metorex, which experienced a challenging 2009, said in December that it was entering the last phase of its rebirth.
Speaking at the company’s annual general meeting last month, Metorex chair Rob Still said the company had started 2009 “fighting for its very survival”.
“With substantial group debt and the Ruashi project finance in default, the important Ruashi project far from completed and commissioning and production ramp up at an early stage and amidst a sharp worldwide recession affecting commodity prices across group operations, immediate and definitive corrective action was required. This action was taken,” said Still.
The company’s strategy has since been sharply repositioned and refocused while the balance sheet had been improved primarily via asset sales in excess of R900m.
This process includes the sale of Vergenoeg Mining Company, which was approved by shareholders in December.
The transaction, which sees Metorex’s 55% stake being sold to Minerales y Productos Derivados SA (Minersa) for $60m, was an integral part of the company’s strategy to restore its balance sheet.
Another objective is the sale or closure by no later than February 2010, of Consolidated Murchison, which operation is non-core to the refocused group strategy.
“We are now entering the last phase of the rebirth of Metorex and are doing so off the solid foundations of a competent and determined executive team, group operations increasingly performing to specification and improving commodity prices,” said Still.
Metorex has a new project pipeline including Kinsenda, Musonoi and Lubembe –
all located near the Zambian border in the Katanga province of the Democratic Republic of the Congo (DRC).
Together with Chibuluma and Ruashi these will form the initial base for Metorex’s renewed value creation and enable Metorex to reach its immediate medium-term target of producing 120 000 tonnes of copper per annum.
At 10:52 shares in Metorex were trading 3 cents lower at R4.92 on the JSE.
