JOHANNESBURG (miningweekly.com) – Base-metals miner Anvil Mining has reported a net loss of $18,8-million for the quarter ended March 2009, compared with a net income of $21,6-million for the first quarter of last year, the company reported on Friday.

Anvil stated that the results were negatively affected by a number of factors, including significantly lower production and sales resulting from the Dikulushi mine, in the Democratic Republic of Congo (DRC), being placed on care-and-maintenance, as well as the cessation of the heavy media separation (HMS) processing at Mutoshi, also in the DRC.

The suspension of the HMS operation and openpit mining at the Kinsevere operation, also located in the DRC, during the fourth quarter of 2008, as well as the lower realised copper prices and a one-of charge of $7,1-million for the first quarter of 2009, had a negative impact on results.

“Although copper prices have shown some signs of improvement since the beginning of the year, the company continues to focus on cost minimsation and cash preservation, in accordance with the strategy put in place during the fourth quarter of 2008,” said Anvil Mining president and CEO Bill Turner.

“With the restart of the Kinsevere HMS plant in late March 2009, the company expects to be able to maintain a positive operating cash flow from the HMS operations for the remainder of 2009, and be better positioned to secure the funding required for completion of the Kinsevere Stage 2 SX-EW processing plant.”

Turner added that the Kinsevere HMS plant had performed well since its restart and was on target to produce 8 900 t of copper through to the third-quarter of 2009. As at April 30, 2009, it had produced 7 381 t of concentrate at an average grade of 27,4% copper for 2 022 t of copper metal.

The Kinsevere HMS plant was restarted in March last year, with feed to the plant sourced from the run-of-mine (ROM) stockpile comprising 259 000 t of ore grading 5,7% copper.

Anvil Minig reported that work is being carried out to investigate options available to extend operation of the Kinsevere HMS plant beyond the third quarter of 2009.

“Additional feed is potentially available from the Stage 2 stockpiled ore, which currently amounts to more than one-million tons at an average grade of 2,9% copper and there is potential to resume mining in the central pit where there are available ore faces and broken stocks with an inventory of about 780 000 t at an average grade of 6,6%,” the company said in a statement.

During the fourth quarter of 2008, Anvil Mining placed the remaining engineering design, fabrication, construction works and procurement for the Kinsevere Stage 2 SX-EW development on hold until adequate funding has been secured. As at May 14, about $190-million of the budgeted cost of $380-million had been invested.

The company was now in discussions with contractors regarding completion of the outstanding engineering design work relating mainly to electrical, piping and instrumentation, which is expected to take two to three months to complete.

“The company remains well positioned to readily recommence the Stage 2 development and is reviewing suitable arrangements under which works could be restarted as quickly as possible, should the company obtain the necessary funding,” Anvil Mining stated.

The timeframe for completion of construction, dry commissioning, and hydraulic testing for readiness to receive ore was about 12 months from award of contract.