Singapore 27/10/2015 - Chinalco Yunnan Copper Resources Ltd (CYCR) is aiming to commission a 10,000 tonnes per year SX-EW (solvent extraction-electrowinning) copper smelter in the Democratic Republic of Congo by end-2017, the Australia-listed subsidiary of Aluminium Corporation of China (Chinalco) said on Monday.
The commissioning time coincides with the time when most forecasters reckon a significant improvement in copper price will occur, said CYCR.
CYCR is now looking to complete a pre-feasibility study by end November 2015 and finalise a completed feasibility study by April 2016. And thereafter, design and construction phase of the project can be completed within 16 months which will lead to commissioning by end 2017, said CYCR.
The smelter will be located 25 kilometres east of Kolwesi, the capital city of Lualaba province, which is near to existing copper mining operations that will be able to provide copper ore feeds, the company said.
Initial study estimates indicate total capex for the new smelter at $61 million (after optimisation work). This comprises fixed asset costs of $36 million and working capital (during the development phase and into initial plant commissioning) of $25 million.
The smelter is expected to generate net profit of $9.05 million per annum based on copper price of $5,392 per tonne - the London Metal Exchange closing copper price on September 10, 2015 which is still well below the LME average of $6,500 over the past ten years, said CYRC.
The LME three-month copper price was last at $5,224 on Tuesday.
CYCR plans to export the final copper cathode product.
CYCR is also exploring and developing copper resources in the Mount Isa region in Australia’s north Queensland.