Extract from 2014 annual report
CNMC Luanshya Copper Mines plc (CNMC) recorded a turnover of K1,695 million for the period to 31 March 2014 (2013: K1,093 million). The profit after tax was K6.4 million (2013: K7.9 loss).
CNMC planned to produce 43,000t of copper metal which included 19,000t copper in concentrate from Baluba Mine and 24,000t of copper cathode from Muliashi Mine. By the end of the shift on 31 December 2013, Baluba Mine and Muliashi Mine produced 16,484t and 24,114t of copper metal respectively. Thus in 2013 the total copper production was 40,298t, representing 93.72% of the annual plan. As noted, Muliashi Mine achieved its annual production target for 2013 whilst Baluba Mine did not achieve its annual production target. The failure is attributed to the breakdown of the long-hole drilling machine which resulted into heavy losses of ore reserves for mining. To keep the mine production continuous, the cut-off grade was reduced from 1% to 0.8%. Secondly, since the mining tonnage was not enough, a lot of low-grade ore was reclaimed from old stopes which made the head ore grade lower than the annual target. Other than the two reasons, high operating costs and the low ore grade also made Baluba Mine difficult to operate.
On 21 May 2013, the majority shareholder CNMC officially approved the Copper Slag Reclamation Project. On 28 December 2013, construction of the Copper Slag Reclamation Project was officially launched. The total investment for this project is expected to be US$20 million and, the project is expected to be put into trial production in 2014 with 200,000t copper slag and 1,200t copper metal in concentrate designed to be processed. Pressure on production at Baluba will then be reduced and will improve the cost structure and extend the life of Baluba. It will also ensure employment opportunities for the local people and eliminate the environmental risks for the slag storage on surface for a long time.
There were no dividends declared during the year (2013:Nil).