Zambia's copper-smelters are planning extended shutdowns to squeeze output and chemical supply

Two?industry? sources said that two of Zambia's biggest copper smelters and sulphuric acids producers would?shut down for extended maintenance this year. This will further squeeze copper output and supply of the chemical needed to process copper and coal. Two industry sources said that the Iran war had disrupted the global supply of critical chemicals and acid, which are used to process copper and cobalt. This has led mines in the neighbouring Congo (the world's largest cobalt producer and second largest copper producer) to reduce usage or even consider reducing output.

The mines ministry says that Zambian copper smelters, Africa's second-largest producer of this metal, which is vital to clean energy technologies, produce about 2 million tons of sulphuric acids a year. This acid is mainly used as a waste byproduct by the local mines. Any excess, however, gets exported to the Democratic Republic of Congo.

Zambia's First Quantum Minerals' Zambian head told a separate audience that the sulphuric acids in southern Africa are depleted to such an extent that there is no longer any?capacity for export. Miners in the neighbouring Democratic Republic of Congo have also been struggling with a lack of chemical supplies.

The Mines Ministry did not respond immediately to comments.

MOPANI'S LATE MAINTENANCE Despite the fact that copper smelters are shut down annually for a routine maintenance period of 30 days, Mopani, and Chambishi (which is owned 85% by China Nonferrous Metal Mining Group), will be experiencing longer outages in this year. A chemicals trading source confirmed. A mining executive said that Mopani hasn't been maintained in a long time and will close for 3 days on June. This will be followed by a 40-45 day shutdown between August to mid-September.

Officials from Mopani and Chambishi did not respond when asked for comments.

They asked to remain anonymous because they weren't authorised to comment on the subject.

The chemicals trader, Chambishi, said that the company would be shutting down for two months, from August to September. He did not elaborate on the reasons behind the extended outage.

Zambia tightened export controls on sulphuric acids this month. Traders were required to obtain permits. The'move' was said to be aimed at protecting local industry.

Anthony Mukutuma is First Quantum's Zambian country director. He told us that the measures were fair but that exports would be unlikely in the short term.

GLOBAL COPER SUPPLY IS EXPECTED TO FALL This year, global copper supply is expected to tighten after years of low investment have constrained mine production growth. Zambia produced 890 346 tons of red metal in 2012, less than the 1 million ton target.

According to shipping data, Congo's copper exported fell in the first three months of this year.

The mining executive stated that Mopani is operating below its 225,000 metric-ton capacity of finished copper after years of underinvestment. According to the mining executive, UAE's International Resources Holding is simultaneously developing and mining, causing intermittent stoppages that further limit output. Reporting by Chris Mfula, Lusaka; Maxwell Akalaare Adombila, Dakar. Editing by Veronica Brown & Emelia Sithole Matarise.

(source: Reuters)