Congo Copper Production Down 8.2 pct in Q3 -Chamber of Mines
KINSHASA
Nov 14 Copper production in Democratic Republic of Congo, Africa's top producer, slumped 8.2 percent year on year in the third quarter due to power shortages and low metal prices, the chamber of mines said.
The mining sector accounts for about 20 percent of the central African nation's gross domestic product (GDP) but falling mineral prices have threatened tax revenue and economic growth. The government has pledged to promote agriculture and services.
In a report seen by Reuters on Saturday, the industry group said Congo produced 252,057 tonnes of copper in the third quarter, down about 22,500 tonnes from the same period last year.
The chamber says electricity deficits hurt production by forcing operators to rely on expensive imports from neighbouring Zambia, which has hit by its own power problems, or even costlier generators.
Congo surpassed 1 million tonnes of output in 2014 for the first time in its history last year but the chamber expects that figure to dip by five percent to about 980,000 tonnes this year.
Glencore's Katanga Mining unit suspended copper and cobalt production at one of its mines in September for 18 months, citing the low price of copper and a need to reduce operating costs.
The mine had accounted for 15 percent of Congo's copper output in 2014.
On Friday, benchmark copper on the London Metal Exchange hit a six-year low at $4,787.50 a tonne before rebounding to close at $4,825.
Meanwhile, gold production provided a bright spot, rising 27 percent in the third quarter compared to the same period in 2014. The chamber expects production to exceed 26 tonnes in 2015, a 33 percent increase over last year.
Large new mines opened by companies including Randgold Resources, AngloGold Ashanti and Banro Corporation in the last four years have boosted Congo's industrial gold output from nearly zero in 2011 to over 20 tonnes last year.
The chamber also said it expects annual production of diamonds and coltan to fall, though production of cobalt, used in rechargeable batteries, is expected to increase slightly. (Reporting By Aaron Ross; Editing by Makini Brice and Chizu Nomiyama)
Read more at Reutershttp://www.reuters.com/article/2015/11/14/congodemocratic-mining-idUSL8N1390T220151114#CvzBkyQJE4CGo1Jv.99
Nov 14 Copper production in Democratic Republic of Congo, Africa's top producer, slumped 8.2 percent year on year in the third quarter due to power shortages and low metal prices, the chamber of mines said.
The mining sector accounts for about 20 percent of the central African nation's gross domestic product (GDP) but falling mineral prices have threatened tax revenue and economic growth. The government has pledged to promote agriculture and services.
In a report seen by Reuters on Saturday, the industry group said Congo produced 252,057 tonnes of copper in the third quarter, down about 22,500 tonnes from the same period last year.
The chamber says electricity deficits hurt production by forcing operators to rely on expensive imports from neighbouring Zambia, which has hit by its own power problems, or even costlier generators.
Congo surpassed 1 million tonnes of output in 2014 for the first time in its history last year but the chamber expects that figure to dip by five percent to about 980,000 tonnes this year.
Glencore's Katanga Mining unit suspended copper and cobalt production at one of its mines in September for 18 months, citing the low price of copper and a need to reduce operating costs.
The mine had accounted for 15 percent of Congo's copper output in 2014.
On Friday, benchmark copper on the London Metal Exchange hit a six-year low at $4,787.50 a tonne before rebounding to close at $4,825.
Meanwhile, gold production provided a bright spot, rising 27 percent in the third quarter compared to the same period in 2014. The chamber expects production to exceed 26 tonnes in 2015, a 33 percent increase over last year.
Large new mines opened by companies including Randgold Resources, AngloGold Ashanti and Banro Corporation in the last four years have boosted Congo's industrial gold output from nearly zero in 2011 to over 20 tonnes last year.
The chamber also said it expects annual production of diamonds and coltan to fall, though production of cobalt, used in rechargeable batteries, is expected to increase slightly. (Reporting By Aaron Ross; Editing by Makini Brice and Chizu Nomiyama)
Read more at Reutershttp://www.reuters.com/article/2015/11/14/congodemocratic-mining-idUSL8N1390T220151114#CvzBkyQJE4CGo1Jv.99
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