Luanshya Mayor Nathan Chanda has expressed concern over delay in the reopening of Baluba and Shaft 28 mines by the China Non Ferrous Metal Company Luanshya Copper Mine (CLM).
Mr Chanda said now that the copper prices on the world market were slowly getting back to normal, the local authority was expecting LCM to start firing back to life after the positive trends the world copper mining industry was currently recording.
The Mayor was speaking during a Consultative Meeting on the Status of the Mines with Luanshya Copper Mine’s senior management officials led by the company’s First Deputy Chief Executive Officers Wang Jinjun on Monday.
Responding to the Mayor’s concern, the CLM management said they were not sitting idle but doing everything possible to see to it the mining sector positively contributes to improving the well being of Luanshya residents.
Mr Wang said LCM was determined to invest US $ 400 million in new Muliyashi Open Pit Mine investments and step up its operations as a substitute of Baluba Mine, which was still under Care and Maintenance.
The major copper mine in Luanshya said, they were not fully operation because of a combination of factors such as: The fluctuating copper prices on the world market, Power restrictions, the issue of production capacity and quality of the grade of copper being mined was also affecting the reopening of Luanshya’s Baluba Mine.
“Our current cost of production is about US$ 7,000 per tonne but the cost of copper on the world market is now about US$5, 800,” Mr Wang said.
Mr Wang, also said CLM had put plans to reopen Shaft 28 Underground mine on hold because the mine was heavily flooded of about 100,000,000m3 of water and reopening it would not be a profitable business venture for now. This was a after the Mayor wanted to find out how far the pumping out of underground water at 28shaft has reached.
On Buluba underground mine Mr Chanda wanted to find out why the mine was selling it’s long hole drilling equipments if indeed it was still committed to reopening of the mine.
Mr Wang said that, “yes the management was still committed to reopening of Baluba in the shortest possible time if things improve.
He said the machine that are on sell are old enough and it’s difficult for the mine to find parts.
The other reason been the mine’s annually target as it reduced from 1.5million tonnes to 1million.”
The LCM management officials said during the Consultative Meeting that the volume of the copper Luanshya Copper Mines was capable of producing also depended on the global market’s copper consumption patterns.