Business

‘Copper price will affect Kitumba mine project’

TRYNESS MBALE, Lusaka
THE development of the Kitumba project in Mumbwa is expected to be adversely affected by the current volatile copper prices on the international market and increased mineral royalties from six to nine percent, Intrepid Mine Limited chief executive Scott Lowe has said.
Mr Lowe, however, said the company will focus at identifying value enhancements to offset the challenges such as increased royalties and to better withstand commodity price volatility.
“The current copper price presents challenges for new projects and Kitumba is no exception. Unfortunately, recently reported changes to the Zambian fiscal regime, if confirmed will further impact the project economics.
In November, 2014, Intrepid Mine was granted a mining licence for Kitumba deposit.
“We plan to progress Kitumba towards final feasibility in a stage manner and are excited about testing a number of attractive exploration targets located nearby the Kitumba deposit including some on the same tenement,” he said.
Mr Lowe is, however, optimistic about the medium-term copper price outlook.
He said the company will remain committed to regular communication and partnering with Government, as it has been supportive of the Mumbwa project. Intrepid Mine has started the exploration drilling on the targets within the Mumbwa project for the 2015 season and the Ministry of Mines, Energy and Water Development has granted retention of tenure on both Nyoko and Kabwera licence.
The licence of Nyoko and Kabwera has been extended to January 1, 2017.

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