Yamana sees falling costs

Chinese private investors together with Norddeutsche Affinerie AG (NA) intend to build a copper smelter with integrated power plant and a rod plant in Shandong Province. Towards the end of 2005, a letter of intent (LOI) was signed by representatives of Yanggu Hongxiang Investment, Shandong Fengxiang and NA. NA says “the project offers a good opportunity to enter the booming Chinese market.” The main aspects of the project will be clarified in further discussions this year. These include the funding, the smelter’s long-term supply of copper concentrates as well as the inclusion of the power plant in the copper project.

NA is well-known as a leader in copper production and processing. Capital expenditure for the construction of the smelter (including power plant) and the rod plant in Yanggu, Shandong Province, is estimated at some €330 million. The copper smelter is intended to have an output of 200,000 t/y of copper cathodes in its first phase. Total capacity will reach 400,000 t/y after the final expansion. The rod plant will produce 200,000 t of copper wire rod.