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Kagara to boost zinc and copper production

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By Dow Jones

MINING company Kagara has outlined plans to increase production of zinc and copper during the fiscal year ending June 30, 2011.

Zinc output will rise to 50,000 tonnes of metal in concentrate from 43,970 tonnes last fiscal year, while copper production will rise to 22,000 tonnes from 20,214 tonnes,, executive chairman Kim Robinson said.

“A concerted effort will be made to expand resources and reserves at each of our mines at Mungana, Mount Garnet, Balcooma and Thalanga (in Queensland) during the current financial year,” Mr Robinson said. “Exploration has also commenced along the 50km of prospective strike length for nickel sulphides in the Forrestania region.” In addition, the Lounge Lizard nickel project in Western Australia will produce 2000 tonnes of nickel as the mine expands production, he said.

The company reported a return to profitability last fiscal year, swinging to a net profit of $3.7 million from a loss of $94m previously, with Mr Robinson describing 2009-10 as a period of rebuilding.

The company’s revenue was $223.2m, up from $166.1m in the previous financial year.

Shares in Kagara closed down 1.5c, or 2.38 per cent, at 61.5c.