Business

Foreign firm to inject $71m in mining

NKOLE MULAMBIA, Kitwe
INTREPID Mines Limited, an Australian-based company is this year expected to inject over US$70 million in an underground copper mine at Kitumba in Mumbwa.
Company consultant Geoffrey Mulenga said following a merger with Blackthorn Resources last year, the firm brought to the table US$71 million which will be used for feasibility studies and further drilling around the mine resource.
Mr Mulenga, who is also Association of Zambian Exploration Companies president, said the mine’s lifespan which is expected at 11 years, anticipates to produce 58,000 metric tonnes of copper annually.
“Last year, the company was issued with a 25-year large scale mining licence… The mining development is going ahead with the project.
“It has already been decided that it will be an underground mine, without a shaft but it will be hauled by trucks on an incline,” Mr Mulenga told delegates at the just-ended Copperbelt Mining Trade Expo and Conference in Kitwe last week.
In August 2014, Blackthorn Resources and Intrepid Mines Limited announced their agreement to merge by way of scheme of arrangement.
Mr Mulenga said the merger puts the well-funded copper company in a strong position to realise the potential of the Kitumba Copper Project and add value to the broader Mumbwa Project licence areas in Zambia.
He said the scheme, which was subject to the approval of shareholders of both companies, was approved by the Federal Court of Australia on November 26, 2014 and implementation was effected on December 11, 2014.
Under the scheme, from December 11, 2014 Blackthorn Resources became a wholly-owned subsidiary of Intrepid Mines.


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