16 Feb 2016

The copper commodity price has been depressed for some time now leading to a struggle in all copper mining companies in the country as well as around the world.Minerals, energy and water resources minister, Mr Kitso Mokaila told Parliament on Monday that the world copper price is US$2.06 per pound as at December 2015 compared to last year which was US$2.50 US  per pound , a reduction of US$$0.44 per pound or 17 per cent.

Answering a parliamentary question, Mr Mokaila said the government attempted to save operation of copper companies by deferring royalty payments due in order to assist the company cash flows and job losses

The deferred royalties from copper mines amounted to US$14.2 million. US$7.7 million (P86.8million) and $6 521 932 (P71 748, 422) owed by Messina Copper and Tati Nickel Mining Company respectively as at December 2015, he said.
Minister Mokaila said, “very marginal mines can survive on this downturn as the level of prices continues to impact on the mining operations and it is very difficult to state when the assistance will be lifted.”

MP for Francistown East, Mr Buti Billy had asked the minister to state the amount government has lost in terms of royalties that copper companies were told to keep as a relief and when such assistance would be lifted. Ends