Nov. 19 (Bloomberg) -- Central African Mining & Exploration Co., the company founded by former England cricketer Philippe Edmonds, halted cobalt and copper mining in the Democratic Republic of Congo after prices plummeted.

The move is a ``swift reaction to a sudden steep decline in cobalt demand from China, as well as a further decline in the copper price,'' the London-based company said today in a statement. Its shares fell to the lowest in five years.

Mining companies are cutting production and reviewing spending plans in sub-Saharan Africa after a slump in metal prices made some operations unprofitable. Cobalt, used in jet engines and batteries, declined 53 percent this year, according to data compiled by industry publication Metal Bulletin. Copper fell 58 percent since trading at a record in London in July.

``If your normal customers won't take it, you have to do something,'' Charles Cooper, an analyst at Evolution Securities Ltd. in London, said in a telephone interview. ``Camec are doing something pretty radical.''

Camec said it would monitor demand and the company anticipated restarting production in early 2009. Sales commitments would be met using stockpiles.

The company's operations are in Katanga province, which hasn't been affected by fighting over the past two months between government forces and General Laurent Nkunda's National Congress for the Defense of the People in North Kivu.

Shares Decline

Camec closed down 0.83 pence, or 23 percent, at 2.86 pence in London trading, the lowest since June 2003. The shares have declined 93 percent this year, valuing the company at 80 million pounds ($121 million).

Katanga Mining Ltd., the company restarting the largest underground copper mine in Congo, said last month it's reviewing capital expenditures. Forty-one companies processing minerals in Katanga province have stopped production because of falling prices, Deputy Mines Minister Victor Kasongo said last week.

Weatherly International Plc, a U.K. copper producer operating in Namibia, said today it will close two mines and cut 100 jobs.

Camec's Mukondo mine has been described by the company as the world's richest cobalt mine. Its Luita plant was designed to process 100,000 metric tons of copper and 12,000 tons of cobalt a year, according to the company's Web site. Camec had average monthly sales of 422 tons of cobalt and 667 tons of copper for the six months to Sept. 30.

Camec said in July it anticipated producing 30,000 tons of finished copper and, subject to demand, 8,000 tons of cobalt by March 2009.

Global cobalt supply was 53,755 tons last year, according to the Guildford, England-based Cobalt Development Institute.

To contact the reporters on this story: Franz Wild in Kinshasa via Johannesburg at pmrichardson@bloomberg.net; Thomas Biesheuvel in London tbiesheuvel@bloomberg.net

Last Updated: November 19, 2008 12:08 EST