Palabora Mining looking into extending copper mine

PHALABORWA, South Africa, Nov 4 (Reuters) - Palabora Mining (PAMJ.J) is considering building another shaft to its underground copper mine to extend the lifetime of the operation, Managing Director Matt Gili said on Tuesday.

Palabora is 58-percent owned by global miner Rio Tinto (RIO.AX) (RIO.L) and 17-percent by Anglo American (AAL.L).

Gili said 2014 will be the last year of full-year production with current reserves seen running out completely by 2016.

"Copper is still where the money is. We could go deeper, but it depends on the copper price. We do expect to make a decision on that next year," he told journalists during a media visit to the mine.

Gili also said the company is also looking to grow its magnetite business, planning to raise annual production to 4 million tonnes in the next three years. For 2008, the company plans to ship 2 million tonnes.

(Reporting by Agnieszka Flak; editing by Elaine Hardcastle)