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Ongopolo copper mine seeks equity partner

Ongopolo copper mine seeks equity partner

WINDHOEK – Namibia’s Ongopolo Mining and Processing Ltd copper concern is seeking a strategic equity partner to help its growth strategy, the firm said on Friday.

“The process will take 12 months,” Ongopolo Managing Director Andre Neethling told Reuters but gave no details on whether a partner had been identified or if talks were under way. The strategic partner would have to initially inject N$100 million in Ongopolo, largely a refining business in the northern Namibian town of Tsumeb, 450 km from the capital Windhoek, Neethling said.Ongopolo produces between 900 tonnes and 1 500 tonnes of copper per month.It plans to expand that capacity to 2 000 tonnes within 12 months.”The smelter is running at full capacity and we are planning to more than double the smelter output in the next two years,” said Neethling.Ongopolo’s total copper output was posted at 30 000 tonnes in 2003/2004.Neethling said Ongopolo was under pressure to speed up the completion of several of its projects to ramp up production and hoped these would come on stream in 2006.Ongopolo’s Asis Far West shaft mine, where work started in mid-2002, is one of those behind schedule.It required high capital investment and high financial charges put a squeeze on Ongopolo in the aftermath of poor commodity prices between 2000 and 2004, Neethling said.Cash from a strategic partner was partly needed to rebuild the smelter furnace at Tsumeb.Ongopolo’s medium term returns looked promising and supported equity investment, Neethling said, adding that the current life of the mine indicates a N$1,4 billion net return over the next seven years.Ongopolo Mines and Processing Ltd is owned by a group of individual investors, government regulatory agencies, and labour unions.It was purchased from Tsumeb Corporation Limited (TCL) in 2000 when TCL was liquidated by parent Gold Fields Namibia.- Nampa-ReutersThe strategic partner would have to initially inject N$100 million in Ongopolo, largely a refining business in the northern Namibian town of Tsumeb, 450 km from the capital Windhoek, Neethling said.Ongopolo produces between 900 tonnes and 1 500 tonnes of copper per month.It plans to expand that capacity to 2 000 tonnes within 12 months.”The smelter is running at full capacity and we are planning to more than double the smelter output in the next two years,” said Neethling.Ongopolo’s total copper output was posted at 30 000 tonnes in 2003/2004.Neethling said Ongopolo was under pressure to speed up the completion of several of its projects to ramp up production and hoped these would come on stream in 2006.Ongopolo’s Asis Far West shaft mine, where work started in mid-2002, is one of those behind schedule.It required high capital investment and high financial charges put a squeeze on Ongopolo in the aftermath of poor commodity prices between 2000 and 2004, Neethling said.Cash from a strategic partner was partly needed to rebuild the smelter furnace at Tsumeb.Ongopolo’s medium term returns looked promising and supported equity investment, Neethling said, adding that the current life of the mine indicates a N$1,4 billion net return over the next seven years.Ongopolo Mines and Processing Ltd is owned by a group of individual investors, government regulatory agencies, and labour unions.It was purchased from Tsumeb Corporation Limited (TCL) in 2000 when TCL was liquidated by parent Gold Fields Namibia.- Nampa-Reuters

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