VP hails Maamba Collieries for taking “huge corporate social responsibility

VICE-PRESIDENT M u t a l e N a l u m a n g o says contrary to certain perceptions, an investor is not any enemy of the people, arguing that there is need to tell the story that investors mean well. And Sinazongwe UPND member of parliament Gift Sialubalo has commended Maamba Collieries Limited (MLCs) for being “the most committed to corporate social responsibility firm in Zambia”. Speaking when she toured MLC, Monday Vice-President Nalumango described the firm’s CRS undertaking as huge. “The corporate social responsibility is huge here. I think every Zambian village or town is looking for a private investor to go to them if everybody behaves in the manner that like Maamba Collieries is behaving, it is huge. We care as government about the displacement because people come, they set up and after they have set up their company, the people are displaced, and they go right back probably in the worst situation like that house you showed me my sister. But look at what you have done, you have respected people in a better housing facility. Is that not what we are looking for to change the livelihoods of our people? And that starts with the housing, we commend,” she said “Colleagues, look at the roads, that is what we expect, and would anybody complain? Because I know our people, when they hear investor, [they think it] is an enemy of the people. But what we need is to tell this story that an investor is not an enemy of the people, an investor means well because what is happening here, and I am so happy because the MP is here, they are the ones who give us all sorts of sleepless nights about everything and everyone but the MP, member of parliament here honorable Sialubalo has confirmed that you have been working.” She said government was grateful that MLC was not just complying with the law but fulfilling people’s expectations. “Now that I am here, I am so grateful, you are truly working to comply with not just the law of our country but also expectations of our people. Like my colleagues that have already commended, and I would invite you to diversify into other areas,” Vice-President Nalumango said.

She encouraged the company to ensure environmental protection in its operations. “And another thing that I should talk about is smart mining that you are doing, being able to even fill up the holes that were left earlier and for that, I commend you. We encourage you to go on and care for your people like your own, you have only one earth on the issue of environmental sustainability. You only have one earth and Zambia sits on this earth so anything you do that makes us avoid climate change is important,” said VicePresident Nalumango.

And Sialubalo also commended MLCs’ commitment to CSR. “Madam, when I visit your office talking about Maamba Collieries, don’t term me praise singer of Maamba Collieries. Maamba Collieries has been a major partner in the development of Sinazongwe. Apart from what you have seen, they constructed a shelter at the same hospital where we are heading to [and] right now, what they are doing is they are patching up Batoka-Maamba road which is in a bad state. I just wrote a letter to them to say as we wait for government to come in, what can we do together [and] within a week, they were on site. They are doing a commendable job, there is no investor, Madam, that I have seen in Zambia who is more committed to CSR rather Maamba Collieries, they deserve our support as government,” said Sialubalo.

Meanwhile, MLC senior electrical engineer Robby Mwelwa said the firm injected over 250 megawatts into the national grid per day and contributed about K2 billion to the national treasury as
at September 30. “We inject 267.6 megawatts into the national grid, so we generate 300, the rest we use it for auxiliary consumption and what remains is what we inject in the national grid. So our
operations here, your honour, are actually in tandem, we collaborate with ZESCO our shut down, whatever we need to do, we are in contact with ZESCO and ZESCO will always advise on what we need to do. This is our thermal power plant performance your honour, as of 30th September 2022, we have been able to inject 9,663 megawatt hours into the national grid,” he said.

We have now been able to inject about K2.166 billion in the national treasury as of 30th September, we are working in tandem with the 8th National Development Plan, and we contribute 10% to the national installed capacity. So, as you can see your honour from the pie chart here, most of the power generated in Zambia is hydro sitting at 81% and for us Maamba we are able to contribute
10% using this coal which was regarded as waste.”

Mwelwa reaffirmed the company’s commitment to CSR. “You honour, here, our philosophy is that as the company grows, we need to grow the community where we are operating in. Our motto is
making a difference. As MCL, we believe in making a difference in our operational areas so for us to be able to achieve or deliver, we have areas which we consider. So for our CSR activities, they are centred on education, health and sports, environmental as well as infrastructure development,” said Mwelwa.

CEC bags 2022 ZEMA Green Award

CEC has scooped the 2022 Green Award, conferred by the Zambia Environmental Management Agency (ZEMA) at this year’s Environmental and Climate Change Awards ceremony held on Thursday, 29 September.

It’s the second time in six years that CEC has taken the nation’s overall recognition for sustainable business conduct judged through improved environmental management practices. The Company’s maiden ZEMA Green Award came in 2016.

ZEMA’s criteria to be considered for this award includes demonstrated application of effort sufficient to meet environmental standards by making use of clean technology, waste minimization, pollution prevention and recycling and ecosystem restoration.

Senior Manager HSES & Risk, Caroline Sinkamba, commented: “We rewrite our green history not just once, because sustainability is our life.”

In the last 10 years, CEC has taken various environmental stewardship awards, including the top Environmental Award for Overall Contribution to Sound Management Practices in Industry in 2021.

Konkola: Key to hitting 3 million tonnes copper target

The new dawn government of President Hakainde Hichilema has set its vision clearly when it comes to copper mining – it wants to ramp up production to three million tonnes per annum in the next decade.

With current production standing around 800,000 metric tonnes (mt) per annum, it is quite an ambitious plan – too ambitious, some in the industry have argued.
But there is good motivation for such efforts – an expected huge demand for copper driven by the nascent electric car industry, and the price for the red metal, which peaked above US$10,000 per tonne about two years ago.

Copper prices reached an all-time high of US$10,512 per metric tonne on May 9, 2021, but have receded to about US$8,000 in the recent past, which is still a good price for copper producing countries such as Zambia.

Some mining companies in the country are already responding accordingly to the prospect of high demand, making new investments to increase production. But one major player, Konkola Copper Mines (KCM), cannot rush to the table yet, held back by

 

Read more: http://www.daily-mail.co.zm/konkola-key-to-hitting-3-million-tonnes-copper-target/

KCM team wins national mine-rescue competition

Konkola Copper Mines Plc (KCM) mine rescue teams have emerged winners of the 2022 national mine rescue competition, a dress-rehearsal undertaken to ascertain the preparedness of underground mine rescue teams to manage major mine accidents in the mining sector.

The annual event, which was held for five days from July 25, 2022 at the Victoria Falls Hydro-Power Station in Livingstone, comprised nine underground mine rescue teams from KCM, Mopani Copper Mines (MCM), NFCA, CNMC Luanshya, Lubambe Copper Mines and Mabiza Resources Nickel Mine.

The participants are assessed on various critical requirements in mine rescue such as fitness, team-work, firefighting and life-saving techniques, as well as disaster management.

KCM’s Nchanga Team C emerged overall winners of the national final heat competition, which is organized by the Zambia Mines Rescue Association (ZMRA).

The KCM Nchanga Team C scored 179.4 points in the tightly contested final heat where another KCM team Konkola Team A came out second with 179.1 points. Last year’s winners Lubambe Copper Mine Team B were in third position with 177.3 points.

KCM Group Safety Manager Operations Felix Sikaonga said the performance of the KCM teams underlined the Company’s priority placing Safety ahead of production and also an indication that the safety teams had not dropped the bar despite being away from the competition for three years.

Mr Sikaonga said, “We last participated in the final heat competition in 2018 where Nchanga C won the competition. They have replicated that victory, which is proof of the Company’s robust safety standards. It reinforces our continuous focus on safety trainings and other internal measures intended to safeguard life and our assets.” “KCM will continue to play a part in ensuring safety is upheld in all out operations as we also keep exchanging global best practices with our peers in order to make Zambia mining and communities in and around mining areas safe havens,” he said.

The KCM team, which won the 2018 competition is scheduled to represent Zambia at the 2022 International Mine Rescue Competition (IMRC) in West Virginia, USA in September, after the resumption of the international competition derailed by the Covid-19 pandemic.

Nchanga C team, the winners of the year’s final will again represent the country with two other teams from Mopani and Lubambe who won in 2019, 2020 and 2021 respectively, in the international competitions which will be held in Colombia next year.

“These are exciting times in the sense that it is the first time that a KCM team will represent the country in an international mine rescue competition. We are confident of an award[1]winning performance from the KCM team,” he said.

This is contained in a statement issued by KCM General Manager Corporate Affairs Shapi Shachinda.

 

Source: https://tiozambia.com/kcm-team-wins-national-mine-rescue-competition/

CEC and Zesco sign billion dollar deal

Zesco has signed a 13-year Bulk Supply Agreement with the Copperbelt Energy Corporation (CEC) worth 1.9 billon US dollars.

Speaking at a press briefing, Zesco Managing Director Victor Mapani said the new Bulk Supply Agreement marks the replacement of the old agreement which expired on March 31, 2020.

Mr Mapani said the Bulk Supply Agreement allows the two parties to supply power to customers within the country across each other’s networks.

He also said the development will ensure the territorial exclusivity clauses that existed in the previous agreement are addressed.

 

Source: https://tiozambia.com/cec-and-zesco-sign-billion-dollar-deal/

Mopani Copper Mines launches website and social media platforms

Mopani Copper Mines PLC is thrilled to announce the launch of its website – https://mopani.com.zm/, and social media platforms on Facebook, LinkedIn, Google Business and Youtube.

The social media pages are available on the following links:

The website and social media accounts are aimed at providing the public with enhanced access to timely information about the Company’s operations, new developments and various ongoing corporate social responsibility programmes.

Launching the Company’s new digital media platforms, Mopani Copper Mines PLC Chief Executive Officer, Mr. Charles Sakanya says, “Mopani has been operating for 22 years without a presence on these digital platforms, and thus the launch of the new website and social media channels is long overdue in getting people to understand our Vision, Mission and Operating Philosophy, which will make it easier for them to fit into our new way of doing things as a Proudly Zambian Owned Mining Company”.

Mr. Sakanya further states, “Mopani believes that corporate communication is a strategic factor for the governance of our Company. And that is why we are moving towards a proactive stakeholder conscious governance model where communication is concerned to ensure corporate accountability and transparency”.

He has since invited all stakeholders to visit and explore the new website and follow the Company on its social media pages.

The website is designed to offer the ultimate user-friendly experience with easy navigation and functionality while allowing visitors to see the full portfolio of Mopani’s operations. Created with the user experience in mind, the website includes several features to help users to quickly and easily navigate the site and find the information or images that they need. These features include:

  • Operations: provides an up-to-date overview of all our Mining and Processing facilities as well as ongoing Expansion Projects as the future of the mine.
  • Services: provides essential information on our Medical, Education and World-class Laboratory facilities and services.
  • CSR: profiles our award-winning robust community investment programme across the eight (8) thematic areas of our focus.
  • Careers: details all available vacancies, procedures for submitting applications and the respective due dates.
  • Commercial: provides a one-stop-shop for our Supply Chain programme inter-linked to our Supplier Portal with a step-by-step guidance on the Vendor Registration and Categorisation Process.

 

Released by:
Public Relations Manager
Phone: 0212247889
E-mail: public.relations@mopani.com.zm

KCM, Zanaco to increase business partnership

Konkola Copper Mines (KCM) and ZANACO Bank have agreed to deepen their business partnership with possibilities of the bank increasing its short to medium term lending to the Company while KCM would explore ways of increasing its quantity in terms of business with the bank.

A delegation comprising six senior ZANACO officials led by Head Corporate and Investment Banking Andrew Muyaba met with Jason Kazilimani, the agent for the KCM Provisional Liquidator, Celine Nair to explore further business opportunities that would enable KCM to fund some growth projects intended to increase production in the short to medium term.

The Acting CEO of KCM Enock Mponda and four senior KCM officials also attended the discussions in Chingola.

The two parties agreed to sustain the current position of ZANACO as the biggest lender to KCM for letters of credit, which enable KCM to procure additional copper concentrates from local and foreign third parties for blending with KCM’s own copper concentrates in order to meet specifications for production of copper anodes at the Nchanga smelter.

The KCM officials told the bankers that the Company was strategically positioned to participate in the booming global industry of electric vehicles by enhancing copper and cobalt production, which are some of the metals used for wiring of electric vehicles and production of car batteries, respectively.

The Company seeks $17 million in financing to carry out an annual shutdown of the Nchanga smelter, which requires major upgrades to infrastructure in order to improve its efficiency, as well as other funds for the re-opened Chingola Open Pit (COP F&D), earmarked to commence ore production at the end of July. Other production areas at Konkola deep mine and Nchanga Open pits also need bridge financing to raise production.

“We need additional letters of credit for procurement of concentrates and we take note of the need for KCM to increase business transactions with ZANACO,” Mr Kazilimani said.

“We found ourselves as major lender to KCM and hope to grow our business portfolio with yourselves. We see this business relationship getting bigger and better, especially that we are now a one billion kwacha bank,” Mr Muyaba said in reference to ZANACO becoming the first bank to hit one billion kwacha in profit after tax in the 2021 financial year.

This is contained in a statement issued by Shapi Shachinda General Manager Corporate Affairs.

 

Source: https://tiozambia.com/kcm-zanaco-to-increase-business-partnership/

New Zambian regime: The key to FQM’s Kansanshi expansion

TSX-listed mining major First Quantum Minerals (FQM) is looking to invest substantially in the expansion of its Kansanshi copper and gold mine.

This demonstrates not only the ongoing interest in these two metals from global markets but also the company’s commitment to a country which has recently welcomed a new political regime of leaders who are looking to increase Zambia’s mining investment profile moving forward. Dr GODWIN BEENE, FQM government relations affairs specialist tells LAURA CORNISH.

Zambia’s mining tax regime, amended in 2019, has seen investment from the sector dwindle and total copper production output stagnate ever since. But the introduction of new president Hakainde Hichilema (appointed into office in September 2021) could change this as he has reopened the door to working with local mining companies to establish a more investment-friendly tax regime.

This could be one of the key deciding factors that will enable the FQM board to give the green light on a major expansion project at its Kansanshi operations.

“Regardless of the regular policy changes that have occurred in Zambia, FQM has built a solid operating base in the country, and we’ve continued to deliver significant volumes of copper from both Kansanshi and Sentinel – which together are responsible for producing more than half of Zambia’s total copper output. Kansanshi is also the largest gold producer in the country,” Beene starts.

In 2021 Kansanshi produced 202 000 t of copper and 128 000 oz of gold while Sentinel produced 233 000 t of copper (with a record last quarter contributing to this number).

Kansanshi

Situated in Solwezi in the north-western province of Zambia, Kansanshi has been producing copper and gold since 2005 and has undergone numerous expansions since then. It is FQM’s flagship operation, globally. “The mine however has reached a point where most of its high-grade resources have been depleted,” Beene notes.

In 2021 the mine’s copper production was 9% lower than the previous year, mainly due to lower grades in the mixed and oxide circuits, coupled with lower oxide recovery and 3% lower throughput, which was also the result of unplanned maintenance and processing of competent mixed ore.

2022 is expected to maintain similar volumes to those achieved in 2021 – of between 190 000 and 210 000 t of copper (and a consistent 120 000 – 130 000 oz of gold). “Grades however are further expected to decline over the course of the year from the levels seen in the fourth quarter of 2021,” Beene notes.

The key to Kansanshi’s future lies in the potential introduction of an expansion project – known as the S3 Expansion – which is awaiting board approval. As the Kansanshi pits expand, the volume of near-surface high-grade oxide ore continues to decrease, whilst the proportion of primary sulphide ores increases with depth.

The US$900 million S3 Expansion is expected to transition Kansanshi away from the current, more selective high-grade medium scale operation to a medium-grade, much larger scale mining operation.

A NI 43-101 technical report filed in September 2020 includes the plan for a 25 Mtpa expansion of the sulphide ore processing facility, increasing annual throughput to 53 Mtpa. The expansion would also involve a new larger mining fleet and combined with the new standalone 25 Mtpa processing plant, is expected to create efficiencies and economies of scale. Most of the capital spend on the S3 Expansion is proposed for 2023 – 2024 if the project can obtain board approval. “As you can see, a decision around this project is imminent,” Beene confirms.

In parallel with the expansion of the mine and processing facilities, FQM plans to increase throughput capacity of its Kansanshi smelter from 1.38 Mtpa to 1.65 Mtpa. The capacity increase would be achieved partly through enhancing copper concentrate grades by lowering the carbon and pyrite content of the Kansanshi and Sentinel concentrate feeds and debottlenecking the gas handling circuit, including incorporating a new acid plant. Concentrate processing capacity is expected to be further expanded through modifications to the existing high-pressure leach circuit.

This expansion is also subject to board approval, linked to the investment conditions in Zambia.

In addition to increased capacity, the smelter expansion is expected to create greater flexibility should smelter capacity constraints in the Zambian Copperbelt arise, as well as reduce downstream Scope 3 GHG emissions from the transport and refining of copper concentrate at third party smelters.

“Discussions with the Zambian government remain in play and together we hope to achieve suitable measures to support the S3 Expansion. In doing so, we hope to see more internationally aligned, stable and consistent policies as well. Fortunately, the new administration is very approachable,” Beene notes.

“The nature of the ore body has a declining grade profile and a declining production profile consequently. This expansion would effectively offset the lower grades and allow copper production to remain stable, well above 200 000 t throughout most of its mine life, estimated in 2044,” he adds.

Sentinel

Constructed over four years from 2012, Sentinel represents $2.1 billion of investment – Zambia’s largest infrastructure investment since the Kariba Dam was constructed in 1959. This operation is a steady performer and in fact delivered its best quarterly production of the 2021 year with 60 197 t of copper produced – 9% above the comparable quarter in 2020 – assisted by soft ore treatment and utilisation of secondary crushing.

While copper production for the year ended December 2021 decreased by 7% compared to the previous year, reflecting lower throughput, grade and recovery, production in 2022 is expected to be between 260 000 and 280 000 t.

Grade is also expected to improve from 2021 levels as higher-grade ore is exposed in both the Stage 1 and Stage 2 pits. The focus will be on developing the pits to maintain consistent ore feed as well as supporting the successful commissioning and ramp up of the fourth in-pit crusher, which is already underway after completion of construction in December 2021.

The fourth in-pit crusher is expected to enable the plant to increase throughput to 62 Mtpa in 2022. “The Sentinel mine will continue to operate for another 14 to 20 years as very little additional resource is available in the area,” Beene notes. 12 km from the Sentinel mine is the Enterprise nickel project, which if approved by the First Quantum board, has the potential to be the largest nickel mine in Africa. While Enterprise is still subject to approval, it is also being actively discussed with the government of Zambia.

Discussing FQM’s outlook to replace these ounces in the long-term, Beene again reflects on Zambia’s policy. “We need a conducive environment that also encourages new exploration efforts; for example, allowing companies to conduct their own airborne surveys in order to find new targets and create new data sets would be a positive step in the right direction.”

 

Source: https://www.miningreview.com/base-metals/new-zambian-regime-the-key-to-fqms-kansanshi-expansion/

ZCCM-IH hires Rothschild & Co for Mopani Copper Mines restructuring

Zambian mining investment firm ZCCM-IH has hired investment bank Rothschild & Co for a strategic review of Mopani Copper Mines “to ensure its sustainability and continued development”, the state-owned company said on Wednesday.

In April, ZCCM-IH said it was seeking a financial adviser to restructure Mopani and help find a new external investor for the mining complex, which Glencore had sold back to the state in January last year.

Copper production at the more than 90-year-old mine and smelter complex has fallen and it has been struggling to pay suppliers on time.

“ZCCM-IH is committed to see that MCM delivers to its optimal production levels in order to contribute to the national production target of 3 million metric tonnes of copper by 2030,” the state firm said in a statement.

Restructuring is expected to be completed in six months, it added, with the option of a six-month extension. Rothschild & Co’s involvement would not disrupt business operations at the mine, the state firm said.

ZCCM-IH said it chose Rothschild & Co after a competitive procurement process in which five other domestic and international companies participated.

 

Source: https://www.mining.com/web/zambias-zccm-ih-hires-rothschild-co-for-mopani-copper-mines-restructuring/

Why ZCCM-IH’s Courting of Copperbelt Energy Corporation Plc is Strategic

After leaving everyone in the dust at the recently ended mining Indaba in Cape town, Zambian mining players are shifting levers to ready for greater expansions and exploration investments. However to achieve that, power supply stability remains critical and this necessitated ZCCM-IH’s visit to power transmissions giant the Copperbelt Energy Corporation (CEC) Plc in the week.

The strategic nature of the visit is that it happened in the wake of a hat – trick of positives for Africa’s red metal producer namely record high base metal prices on the London Metal Exchange (LME), a newly signed Bulk Supply Agreement (BSA) after a 2 year bitter divorce between CEC and ZESCO Ltd and increased mining investment prospects to support the 3 million metric ton forecast for copper in the next 5-10 years time. Democratic Republic of Congos expansion prospects also pose a good fortunes for CEC as it supplies power to the Copperbelt of Africa. These factors further spell increased shareholders value for which ZCCM-IH is 24.1% in CEC Plc a company whose outlook is positive and whose shares are a must buy as energy demand is set to scale higher.

The decline in political risk post August has been a winner for the energy supplier following policy changes that supported a reversal in draconian statutory instrument 57 targeted at making the state utility a common carrier and this cost CEC massive impairments on its 2020 number. ZCCM – IH has a new board that have demonstrated strong business will to tap into Zambias mining boom with recently appointed board chair Dolika Banda leading the team on the mining road show as they court investee companies.

The mining investment vehicle has been strategic enough to create partnerships that will also ensure that financing is catered for to support smaller businesses such as SMEs that are tagged as downstream entities in the value addition chain in the faculty. ZCCM-IH inked a memorandum with Zambias largest bank Zanaco Plc to provide support to small to medium sized enterprises in their contribution to socio economic development.

Key areas of clarity that the mining fraternity will require is the recapitalization of Mopani copper mine with $300 million injection sought and a clearer path of the Konkola Copper Mine quagmire as these two areas continue to dampen investment posture. ZCCM-IH was spotted at Kagem mining where it holds 25% stake another lucrative investee company that is responsible for the worlds best emeralds.

Zambia will seek to drive strong economic recovery through mining which is currently bolstered by global decarbonization in the wake of the need to drive climate risk mitigation and adaptation stronger.

 

Source: https://thebusinesstelegraph.com/2022/06/04/why-zccm-ihs-courting-of-copperbelt-energy-corporation-plc-is-strategic/