Zambia Jan Copper Output Up 60% On Year

Zambia's January copper output increased by 60% on year as mines continue to ramp up production to profit from the favorable global copper prices, the Central Bank of Zambia said Wednesday.

The country's copper production increased to 92,958 metric tons in January up from 58,263 tons produced in the same month last year, data released by the Bank of Zambia indicates. Zambia is Africa's largest copper producer.

Copper exports in January increased 39% on year to 78,912 tons, the bank said. The export figures are lower than the amount of production due to stockpiling.

However, January cobalt output was 728 tons down from 800 tons in the same period last year, a drop trade officials attribute to unfavorable international cobalt market conditions.

The Bank of Zambia projects the country's 2011 copper output will be 900,000 tons from around 810,000 tons produced last year.

Zambia's copper production is poised to hit around 2 million tons in the next five years as companies step up investments at existing and new mines.

According to the Bank of Zambia, Toronto-listed Equinox Minerals Ltd.(EQN.T) continues to boost output at its Lumwana Copper Mines in the North Western province which come on stream in 2009.

The resumption of output at Luanshya Copper Mines which had closed in 2008 amid low global metal prices also continues to aid the county's copper production. The Zambian government sold Luanshya to Chinese-owned NFCA Mining in 2009 and the company has since invested heavily to resume production at the mine.

NFCA is a unit of China Nonferrous Metals Co. (8306.HK).

Since slumping to a four-year low of less than $3,000/ton in December 2008, global copper prices have since rallied, hitting a record $10,000/ton on Feb. 2 on the stregnth of global economic optimism.

Three-month copper on the London Metal Exchange closed Tuesday at $9,860/ton.

Other companies with expansion projects in Zambia include London-listed Vedanta Resources PLC (VED.LN), Toronto-listed First Quantum Minerals Ltd. (FM.T) and Swiss commodity trader, Glencore International AG.

(Source: http://www.foxbusiness.com/industries/2011/03/02/zambia-jan-copper-output-60-year-central-bank/)