 TORONTO (miningweekly.com) – Canada's FNX Mining expects to ship 891 00 t of ore next year from its Sudbury mines, an increase of 31% compared with 2009, the firm said on Wednesday.
Total production in 2010 is forecast at 48,1-million pounds of copper, 7,7-million pounds of nickel and 74 500 oz of combined platinum, palladium and gold.
FNX is mining copper- and precious-metal-rich ore its McCreedy West and Podolsky mines, after it halted nickel ore production last year in response to weak demand and prices for the metal.
In 2010, the company will continue to focus on these areas, and has not included any potential production from the primary nickel deposits in its forecasts.
However, FNX said it continues to consider the possibility of restarting nickel-ore mining, and will assess the issue on a quarterly basis going forward.
The firm reported that it has completed the last internal ramp development at the new Podolsky mine, which resulted in improved logistics and will allow a 13% increase in production, to 417 000 t of copper-precious metal rich ore in 2010.
Development of the high-grade Levack footwall deposit (LFD) is slightly ahead of schedule, and commercial production from the upper levels of the deposit is expected to start by mid-2010.
Next year, the is expected to produce around 200 000 t of ore, 146 000 t of which will be commercial ore from the former Rob's zone, at the top of the LFD, as well as initial commercial production below the Rob's zone, and the rest will be preproduction and development ore.
The 54 000 t of pre-production development ore will be shipped from the LFD in the first half of 2010 and is expected to contain payable metals totalling 5,3-million pounds of copper, 1,3-million pounds of nickel and 1 950 oz of precious metals.
COSTS, CAPEX
FNX said it expects mine-site cash operating costs to produce a pound of copper, net of by-product credits, will be $0,60/lb.
The company has also drawn up its capital expenditure budget for the year, and plans to spend C$75,2-million on operations, C$13,3-million on exploration at its existing mines and C$15,7-million for greenfield exploration.
Capital expenditures for operations include C$49,1-million for the LFD, to complete the initial development of the upper portion and to continue the ramp below the 4000 Level to allow access to the deposit at depth.
Processing of FNX's ore during 2009 was affected by interruptions at Vale Inco, its primary processor, first because of an extended maintenance shutdown and then a strike by unionised workers.
However, FNX was able to negotiate a once-off processing deal with the other big miner in the region, Xstrata Nickel, and has since resumed deliveries to Vale Inco, which is running its mill with nonstriking staff.
As a result, FNX expects to meet its 2009 production guidance, the company said on Wednesday.
The miner has also said that it is looking for growth opportunities, in Sudbury and elsewhere.
FNX shares rose 2% on Wednesday, to C$11,65 apiece by 12:24 in Toronto.
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