LONDON (Alliance News) – Glencore PLC plans to spend over USD1.10 billion on sinking three new shafts using new technology at the Mopani copper mine in Zambia in an attempt to extend the life of the mine by more than 25 years, Reuters reported Wednesday.

Citing the local unit that owns and operates the mine, Mopani Copper Mines PLC, Reuters said the investment would be made between now and 2018, leading to the operation becoming world-class by 2023.

“We firmly believe that we shall be able to overcome the challenges that we face today as a company and become profitable and operationally-efficient,” Mopani Copper Mines said in a statement.

Glencore holds a 73.1% stake in Mopani Mines, and said it planned on cutting copper production last year by shutting the Mopani mine, alongside the Katanga mine in the Democratic Republic of Congo, with a view of reopening them in the future once prices improved.

That suggests Glencore is taking steps to invest now in the hope it can benefit in the future when copper prices improve. In 2015, own-sourced copper production was down 3% year-on-year because of the closure of Katanga and due to a curtailment of production at Mopani.

By Joshua Warner;; @JoshAlliance

Copyright 2016 Alliance News Limited. All Rights Reserved.

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