Rains cut copper output for Australia's Kagara

Mon Mar 10, 2008 10:50pm EDT
 
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SYDNEY, March 11 (Reuters) - Australia's Kagara Ltd (KZL.AX: Quote, Profile, Research, Stock Buzz) said on Tuesday it would lose about 3,000 tonnes of copper production after milling was suspended at its Thalanga concentrating plant due to heavy rains.

The road to the facility in the northeastern Australian state of Queensland was closed on March 3 because of flooding and may remain closed for the rest of the month, Kagara said.

As a result, projected copper production for the year would drop to 27,000 tonnes from 30,000 tonnes previously, it said.

Zinc and lead production has not been affected and is estimated to be between 5 and 10 percent above guidance of 40,000 tonnes and 10,000 tonnes, respectively, it said.

Korea Zinc Co Ltd (010130.KS: Quote, Profile, Research, Stock Buzz) buys all of Kagara's zinc. The copper goes to India's Sterlite Industries (India) Ltd (STRL.BO: Quote, Profile, Research, Stock Buzz). ($1=A$1.09) (Reporting by James Regan)

 

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