Congo copper production down 8.2 pct in Q3 -chamber of mines

KINSHASA, Nov 14 (Reuters) - Copper production in Democratic
Republic of Congo, Africa's top producer, slumped 8.2 percent
year on year in the third quarter due to power shortages and low
metal prices, the chamber of mines said.
The mining sector accounts for about 20 percent of the
central African nation's gross domestic product (GDP) but
falling mineral prices have threatened tax revenue and economic
growth. The government has pledged to promote agriculture and
services.
In a report seen by Reuters on Saturday, the industry group
said Congo produced 252,057 tonnes of copper in the third
quarter, down about 22,500 tonnes from the same period last
year.
The chamber says electricity deficits hurt production by
forcing operators to rely on expensive imports from neighbouring
Zambia, which has hit by its own power problems, or even
costlier generators.
Congo surpassed 1 million tonnes of output in 2014 for the
first time in its history last year but the chamber expects that
figure to dip by five percent to about 980,000 tonnes this year.
Glencore 's GLEN.L Katanga Mining unit suspended copper and
cobalt production at one of its mines in September for 18
months, citing the low price of copper and a need to reduce
operating costs.
The mine had accounted for 15 percent of Congo's copper
output in 2014.
On Friday, benchmark copper CMCU3 on the London Metal
Exchange hit a six-year low at $4,787.50 a tonne before
rebounding to close at $4,825.
Meanwhile, gold production provided a bright spot, rising 27
percent in the third quarter compared to the same period in
2014. The chamber expects production to exceed 26 tonnes in
2015, a 33 percent increase over last year.
Large new mines opened by companies including Randgold
Resources RRS.L , AngloGold Ashanti ANGJ.J and Banro
Corporation BAA.TO in the last four years have boosted Congo's
industrial gold output from nearly zero in 2011 to over 20
tonnes last year.
The chamber also said it expects annual production of
diamonds and coltan to fall, though production of cobalt, used
in rechargeable batteries, is expected to increase slightly.