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CNMC Luanshya Copper Mines Plc 2017-06-29T11:30:11+00:00

CNMC acquired an 85% stake in Luanshya Copper Mines (“LCM”) in 2009 for US$ 50 million from Enya Holdings BV (“Enya”) following the suspension of operations at Baluba Centre Mine in the advent of the Global Financial Crisis. Immediately post-acquisition, CNMC changed the name of the mine to CNMC Luanshya Copper Mines (“CNMC-LCM”), and it initially held an 85% shareholding stake in CNMC-LCM, and later transferred a 5% stake to ZCCM-IH to achieve a 80% : 20% shareholding structure per the terms of the acquisition. Therefore, ZCCM-IH currently holds a 20% stake whilst CNMC holds an 80% stake.

Operations

CNMC-LCM operates the Baluba Centre Mine and Muliashi Project. The Baluba Centre Mine produces copper concentrate, whilst the Muliashi Project is an integrated mining and leaching project comprising the Muliashi North Mine and the Muliashi Leach Plant.

Development

Following the acquisition of Luanshya, CNMC upgraded the Baluba Centre Mine equipment which saw production resume in December 2009 following the shutdown in 2008. The construction of the Muliashi Project was initiated in 2010 with production commencing in 2012.

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Extract from 2016 annual report

CNMC Luanshya Copper Mines plc (CNMC) recorded a turnover of K1,867.7 million (US189.1 million) for the year ended 31 March 2016 (2015: K1, 741.1 million (US$267.7 million). The loss after tax was K1, 052.1 million (US$106.5 million) (2014:K72.2 million (US$11.1 million) proft).

CNMC planned to produce 46,000t of copper metal which included 16,000t copper in concentrate from Baluba Mine and 30,000t of copper cathode from Muliashi Mine. By the end of 31 December 2015, Baluba Mine and Muliashi Mine produced 11,371t and 33,101t of copper metal respectively. Thus in 2015 the total copper production was 44,472t, representing 96.68% of the annual plan. As noted, Muliashi Mine exceeded its annual production target for 2015 whilst Baluba Mine did not achieve its annual production target.

The failure by Baluba mine to meet its target is attributed to the difculty in mining the gently inclined thin ore body with its variable structure and the increasing reclaimed tonnage and decreasing geological grade and also the fact that the mine had been put on Care and Maintenance since September 2015 because of power shortages.

There were no dividends paid during the year ended 31 December 2015 (2014: nil).

Download 2016 Annual Report

Extract from 2015 annual report

CNMC Luanshya Copper Mines plc (CNMC) recorded a turnover of K1,838.8 million (US$282.7 million) for the year ended 31st December 2014 (2013: K1,485 million (US$268.1 million)). The profit after tax was US$5.5 million (2013: US$5.9 million).

CNMC planned to produce 43,600t of copper metal which included 15,600t copper in concentrate from Baluba Mine and 28,000t of copper cathode from Muliashi Mine. By the end of 31 December 2014, Baluba Mine and Muliashi Mine produced 15,312t and 29,482t of copper metal respectively. Thus in 2014 the total copper production was 44,795t, representing 102.74% of the annual plan. As noted, Muliashi Mine exceeded its annual production target for 2014 whilst Baluba Mine did not achieve its annual production target. The failure is attributed to the difficulty in mining the gently inclined thin ore body with its variable structure and the increasing reclaimed tonnage and decreasing geological grade.

There were no dividends declared during the year ended 31st December 2014 (2013: Nil).

Download 2015 Annual Report

Copper

Extracting value from tier one assets by improving efficiencies and operations.