Gecamines plans to produce 100,000t/y copper by 2015

Gecamines, the Congolese state-owned miner, said it plans to increase its copper production to 100,000t/y by 2015 via a more than US$630 million investment over the next five years.

Since producing a record 476,000t of copper in 1986, output declined to a low of 7,700t in 2004. The company expects to produce under 40,000t in 2012, according to a presentation.

The company does however have heavy debt of US$1.5 billion, although advisors have been hired to restructure a portion, with government also assuming a burden of approximately US$150 million.

In 2010, the company changed its status from a public enterprise to a commercial company, giving it the impetus to improve production and profits, while turning away from taking minority stakes in projects and developing its own assets.

"Gecamines will not share concessions anymore, we will own and exploit our own projects," said chairman, Albert Yuma on the sidelines of the Mining Indaba in Cape Town.

"Eventually we will turn to partners, but we will not be a minor player anymore," he added.

Mr Yuma estimates that the company owns 4Mt of copper reserves, and says the plan is to confirm them according to international standards.

As much as US$331 million will be spent to rehabilitate and modernise existing production units and an additional US$100 million on production support units, including lime and cement production. A mining development budget of US$141 million is also earmarked, while other funds will be spent on exploration.

In total the company has almost 30 joint ventures, including eight in the production phase with stakes ranging between 20-40%.

Management’s previously announced audit of these contracts is partly to investigate why there have been delays in bringing some of the assets into production.