SWITZERLAND-BASED natural resources company Glencore Plc (LSE:GLEN) is set to invest USD 950 million in a three-year plan towards the year 2018 to improve assets and lower production costs at its Mopani Copper Mines in Zambia.
The company explained it will use the investment for site expansions, upgrades and refurbishment of assets to extend the life of mine.
According to the latest edition of ZambiaInvest.com newsletter, Mopani Copper Mines, where Glencore holds the largest participation with a 73.1percent stake, has been working at an average production cost over the USD 2.50 per pound, which is expected to be reduced to USD 1.70 per pound with the investment, below the current copper price of USD 2.37 per pound.
The investment will also allow the company to continue employing over 10,000 people at Mopani Copper Mines which is the most important in Zambia representing 26per cent of the country’s copper output and that helps to employ another 10,000 people from mining contractor operators according to Bloomberg.
Glencore currently operates three copper mines in Africa which in total produced 465,000 metric tonnes (MT) in 2014 up from 398,600 MT in 2013 with Mopani accounting for 23.62% in 2014 and 28.07percent in 2013.
Mopani represented the most important group of mines in financial terms among Glencore’s own production since their revenue totalled USD 3,954 million in 2014 up from USD 3,211 million in 2013, representing 35.2percent and 29.78percent of the revenues coming from Glencore’s 13 copper mines around the world.