Crew builds new Zambian mine

Johannesburg-based Metorex has begun constructing Chibuluma South, a copper producer and Zambia’s first new mining development in 30 years.

Chibuluma South is 12 km from Chibuluma West, which has been in production for almost 40 years.

The new mine is scheduled to start up in summer 2001, with annual production projected at 18,000 tonnes. Reserves are pegged at 7.8 million tonnes grading 4.3% copper, which translates into a 16-year mine life.

The mine will be developed first by open-pit methods and later from underground. To accomodate this plan, a processing plant capable of processing 40,000 tonnes of ore per month will be built immediately, with shaft-sinking to follow. As a result, construction costs will be offset by cash flow in the early stage.

From both Chibuluma mines, Metorex expects to produce a total of 40,000 tonnes of copper annually.

Metorex, which is 41%-owned by Vancouver-based Crew Development (CRU-T), generated C$150 million in revenue in 1999. Besides copper, the mid-tier company’s holdings include cobalt, zinc, gold, antimony, fluorspar, manganese dioxide and coal.