CAFCA dumps copper project
TINASHE MAKICHI
Cable manufacturer CAFCA has dumped its proposed plans to start re-processing of defunct copper mines dumps as the project is unviable, Business Times has established.
The company in 2019 announced its intention to convert the blister copper into anodes and then work with Rio Tinto to convert anodes into cathodes.
The idea was around starting re-processing of now-defunct copper mines dumps.
The company had also expressed intention to purchase scrap copper products to curb illegal exports of copper.
CAFCA chief executive Rob Webster told Business Times that the two companies have abandoned the project.
“We were moderately successful in producing anodes but unfortunately had to abandon the project last month because Rio Tinto wanted to increase their fee from US$960 a tonne to US$1 600 a tonne as they said it was not viable at US$960 — sadly at US$1600 per tonne the project was not viable for CAFCA,” Webster said.
The closure of Mhangura Copper Mine among other copper mines posed a challenge to copper product manufacturing companies who have since resorted to imports from Zambia.
Mhangura Mine closed about 20 years ago and CAFCA has been importing cathode from Zambia since then.
CAFCA currently uses between 100 and 180 tons of copper a month which is not enough to motivate the opening of a mine.
Studies done show that there is significant potential on the copper mines and Zimbabwe Mining Development Corporation (ZMDC) has been engaging different investors to participate either as a joint venture or take up equity in any or all the copper mines.
Mhangura mine was closed in 2000 due to the fall in copper prices and the revival of copper mines requires serious and holistic investors with a long-term position on investment.
In its financial results for the six months ended March 31, 2021, volumes were 1175 tonnes up 41% from the same period last year.
It said export volumes increased by more than half in the period under review from last year.
CAFCA said sales were buoyant in the mining, retail, construction, and industry sectors.
