RDC 3 Months Goal Short 30to copper output 40 percent by 2009 Target 50 percent of cobalt

Author: tristass

3 months DRC cuts copper production 30to target of 40 percent, cobalt 2009 goal of 50 percent

Plunging metal prices base and lack of funding are the Democratic Republic of the Congo mining strike hard, with the majority of the province of Katanga metallurgical plant now closed.

Congo has been reduced copper production targets for the next three months by 30 to 40 percent and halved the projected 2009 production of cobalt due to factory closures and reduced demand, deputy minister of mines.

Plummeting prices have affected the Democratic Republic of the Congo on the tape of copper and cobalt hard as funding has dried, forcing companies to delay or suspend the operations of development in what had been one of the world's most promising new areas for exploration.

"Compared to what we expected, without the crisis, predicting a 30 to a maximum of 40 per cent drop in copper production for the next three months," Deputy Mines Minister Victor Kasongo told Reuters in an interview on Monday afternoon.

Following the 2006 polls meant to put an end to decades kleptocratic of dictatorship and armed conflict, investors boosted by high world market prices of the Congo flocked to major concessions and largely untapped.

However, 45 of 75 copper-processing plants have closed and cobalt in the Congo in the southern mining province of Katanga heart, which has been largely spared the violence continues in eastern Congo, despite the official end of a 1998-2003 war.

Output forecasts for 2009, which includes major projects to come online during the year, had to be revised.

Congo's mines ministry now expects to export 365,000 tonnes of copper, compared to a prediction prior to a collision of 410,000 tons, but from 2008 to the projected 289,169 tons, due to the expansions that have already come into operation.

"It's still a lot, but it could be worse," said Kasongo. "It's all in the small shops that have affiliates in Asia that are closing. These 30 operators still occurs should be able to export more, "he said.

Cobalt exports due to the fare even worse with the 2009 output forecast to less than half to 32,000 tonnes from a previous forecast of 65,000 tonnes and is projected from 2008 producing 42,449 tonnes.

"Cobalt is used mainly for electronics, electronics, and now a problem. We can not predict. It is now considerably. The major producers are at an impasse, "said Kasongo.

Rescue efforts

Criterion world copper prices on the Metal Exchange of London have fallen by around 65 percent since reaching a record high of almost $ 9000 per tonne in July. Three-month copper fell by 0.81 per cent to $ 3075 a tonne for 1118 GMT on Tuesday.

Cobalt cathode crashed to $ 12/lb last week of March to a maximum of $ 52.50 and closed at $ 16.50/lb Monday.

Companies such as Katanga Mining, Anvil Mining and the Central Africa Mining and Exploration Company have suspended some activities Congo as costs rise and prices fall.

In order to limit the damage caused by falling prices and slacking demand from Asian markets the Congo said last week that would reduce taxes on exports of minerals and royalties.

The measures, designed to encourage greater production of businesses are still operating, are renewable every three months.

Demand is expected to rebound, but finally the experts predict a long slowdown economic Asia, may well mean more closures.

"The demand recovers, but the question is when," Federation of Enterprises Congo's Vice-President Michel Losembe said.

"Businesses with cash and it will keep rising in the production of high levels. Those who not guarantee funding before the accident and can not move because they have nothing now that the export will go off, "said Losembe.

Kasongo said Katanga provincial government predictions of 300,000 job losses were exaggerated, but said workers would be affected.

"We did not have 300,000 employees in Katanga. But we have 45 of the 75 furnaces have been closed. Most of that goes out and not very well structured craft, "he said.

"A oven uses 80 to 100 people. But they rely on bulldozers bearing minerals to the furnaces. "

About Author:

href = "http://www.cnmining.org/news/?id=813"> http://www.cnmining.org/news/?id=813

Item Source: ArticlesBase.com – Title = "3 Months of the Democratic Republic of the Congo Copper Cuts Output Target 30to 40 percent of Target 2009 Cobalt 50 percent"> 3 Months DRC Cuts Meta 30to copper output 40 percent by 2009 Target 50 percent of cobalt

Buffalo Technology MiniStation Cobalt 640GB SuperSpeed USB 3.0 Portable Hard Drive with TurboPC HD-PE640U3/BK (Black) $139.99 640GB MINISTATION COBALT EXT PORTABLE USB 3.0 W/TURBO PC BLK...

Buffalo Technology MiniStation Cobalt 500GB SuperSpeed USB 3.0 Portable Hard Drive with TurboPC HD-PE500U3/BK (Black) $104.99 500GB MINISTATION COBALT EXT PORTABLE USB 3.0 W/TURBO PC BLK...

Buffalo Technology MiniStation Cobalt 640 GB USB 2.0 Portable Hard Drive with TurboPC HD-PET640U2/B (Black) $101.91 640GB MINISTATION COBALT EXT PORTABLE USB 2.0 BLUE ONYX...