February 1 (SeeNews) - The Bulgarian plant of Hamburg-based copper producer Aurubis expects its copper concentrate throughput to increase by 30% to 1.3 million tonnes in the fiscal year 2016/2017, the executive director of the company's Bulgarian unit said.
"Uncertainties in the overall economic development and on the markets relevant for Aurubis Bulgaria will continue to influence fiscal year 2016/17. Positive factors include the good ongoing supply of copper concentrates, as well as a relatively good level of treatment and refining charges," Tim Kurth told SeeNews in a recent interview.
The copper scrap market conditions have also improved, as the copper prices increased after the end of fiscal year 2015/16, Kurth noted, adding that business in this area is conducted with short timelines, and is therefore difficult to forecast.
The sub-markets for copper products are mixed, Kurth added. Aurubis has reduced the cathode premium for long-term contracts with European customers for 2017, taking into account the expected customer demand. The company expects satisfactory contracts in the negotiation season for copper products.
"Since Aurubis has a good raw material supply in 2017 as well, we assume that our cathode output in Pirdop will be high. In 2015/16, it was influenced by the shutdown and amounted to 214,000 t of copper cathodes. This figure was 232,000 t in fiscal year 2014/15," Kurth explained.
In April and May, Aurubis successfully completed a 44 million euro ($46.89 million) 54-day large-scale maintenance works at its site in Pirdop, 70 km east of Sofia.
Sulphuric acid output of the company will correspond to its concentrate throughput as sulphuric acid is a by-product from the smelter, Kurth added.
The company's investment programme for the fiscal year 2016/2017 ending September 30 amounts to 42 million euro with focus on renovation of technological equipment for further environmental protection and improvement of the manufacturing process in order to reach maximum capacity utilization.
Aurubis Bulgaria also plans to complete its investment in covered warehouse for imported raw materials at the Black Sea port of Burgas in the summer of 2017.
Aurubis Bulgaria imports 70% of its copper concentrate and exports 70% of its output, according to company data. Aurubis Bulgaria is the country's largest exporter. It employs more than 830 people.
In the fiscal year 2015/2016, Aurubis Bulgaria’s revenues decreased to 5.32 billion euro, down by 589 million euro in comparison to the previous fiscal year.
($=0.9343 euro)
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