Zambia's Kansanshi copper mine cuts '09 H1 output

LUSAKA Aug 11 (Reuters) - Copper output at First Quantum Minerals' (FQM) (FM.TO) Kansanshi Mining Plc in Zambia fell to 45,073 tonnes in the six months to June 2009 from 52,952 tonnes in the same period last year, the company said on Tuesday.

FQM said in a statement seen by Reuters that mining operations were not able to access some oxide areas at Kansanshi until May this year and this resulted in reduced output.

"The processing of lower grade oxide ore, which led to lower copper cathode production, was due to excess groundwater during the rainy season," the statement said.

"With the effects of the rainy season and excess groundwater subsiding towards the end of the second quarter, access to the higher ore grades in the mine pit improved."

FQM plans to boost copper output at Kansanshi mine to 244,000 tonnes this year from 215,000 tonnes in 2008.

FQM also on Tuesday announced a drop in operating profit at Kansanshi due to lower copper prices.

Kansanshi made operating profit of about $127 million for the three months ending June 30, 2009, down from $244 million over the same period last year, while over the first six months of 2009, operating profit dropped to $181 million, from last year's $532 million, the statement said.

It said that the Bwana Mkubwa operation, which is under maintenance, may re-open if economically suitable feed could be arranged.

FQM said gold production had improved primarily due to the increase in copper in concentrate production, with the gravity recovery unit also contributing about 3,500 ounces of gold production. (Reporting by Michael Georgy; Editing by Keiron Henderson)