TORONTO (miningweekly.com) – Toronto- and London-listed First Quantum Minerals expects to produce 385 000 t of copper and 240 000 oz of gold this year, compared with 373 940 to of copper and 193 288 gold ounces in 2009, the firm said on Tuesday.

First Quantum has mines in Zambia, the Democratic Republic of Congo and Mauritania, is developing a nickel/copper/platinum-group metals project in Finland and announced in December it would buy BHP Billiton's shuttered Ravensthorpe mine, in Australia.

The company earned $227,2-million in the fourth quarter of 2009, compared with a $491,6-million net loss a year earlier, when it recorded a large impairment charge on investments, as well as more than $200-million in negative provisional pricing adjustments.

Net sales for the quarter rose to $656,3-million, from $12,4-million a year earlier, thanks to higher copper and gold prices, as well as lower production costs.

The company also announced on Tuesday it will pay a final dividend of 51,2 Canadian cents a share for the financial year ended December 31, 2009.

PROJECTS

First Quantum said it has started early construction on both the new Kevitsa mine, in Finland, and the Ravensthorpe nickel laterite operation, in Australia.

Kevitsa, a greenfield project, is expected to achieve commercial production in mid-2012.

Ravensthorpe, on the other hand, was completed in 2007, but operations were suspended in January 2009, by owner BHP Billiton, after low nickel prices rendered the mine unprofitable.

First Quantum has started work on modifying the crushing, conveying, stockpile and reclaim areas, which will continue for the next 12 months or so, followed by around six months of commissioning and ramp-up, the company said.

It now expects the modifications to cost some $150-million, compared with an earlier estimate of $120-million.

The company expects Ravensthorpe's average production of nickel metal will be approximately 39 000 t/y for the first five years after operations restart and an average annual production of 28 000 t/y of nickel metal over the expected life of mine of 32 years.

First Quantum has also restarted its Bwana Mkubwa copper SX-EW plant, to process stockpiled ore from the depleted Lonshi openpit mine.

GradeA copper cathode production at an average rate of 800 t/m is expected to continue until the end of 2010, the firm said.

It is also evaluating the potential for an underground project at Lonshi, but has yet to make a development decision.

First Quantum has also completed two other acquisitions this year, after buying junior Kiwara, which has exploration prospects in Zambia, and acquiring the remaining 20% of its Guelb Moghrain copper/gold mine.

Earlier this year, the company and its partners on the Kolwezi project in the Democratic Republic of Congo (DRC), the International Finance Corporation and the Industrial Development Corporation of South Africa, launched international arbitration against the DRC government and its mining firm Gecamines, regarding the cancellation of the project.