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Chibuluma Mines Plc2018-06-05T11:48:02+00:00

Chibuluma Mine began production in 1955 as a self-contained unit producing copper concentrates, which were treated at the mine concentrator. However, the concentrator was closed in 1991. Chibuluma Coppers Mines Plc is currently owned 85% by Jinchuan Group Company Limited and 15% by ZCCM-Investments Holdings. After the privatization of ZCCM limited, Meterox Limited was the first foreign company to enter Zambia by acquiring Chibuluma South mine in October 1997. The Majority stake in Chibuluma passed to Jinchuan in 2011 after Jinchuan successfully acquired Meterox Limited.

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Vision & Mission

  • To be Zambia’s model mine; and
  • To grow wealth and production by leveraging our competencies

Metorex Group Vision

“To grow a sustainable African-focused base metal mining company that offers opportunity for the development of our employees and communities, delivering to shareholders’ expectations and contributing to the development of our world.”

Operations

Chibuluma is operated by Meterox Limited. The main asset being mined is the Chibuluma South Mine which is an underground mechanized mine. Previously operations were carried out at Chibuluma East and West Mines but these are now defunct following the depletion of the copper reserves. Chibuluma produces copper concentrate that is sold to local smelters.

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Development

Chibuluma South opencast mine and metallurgical plant, near Kitwe, in northern Zambia, were established at a cost of US$11.5 million by South African mid-tier mining company Metorex. The concentrator and tailings dam accounted for US$7.37 million of the total project cost, with the development of the open pit absorbing US$1.35 million.

The development of the underground phase required an estimated US$25-million, part of which came from the early-stage cashflow from the opencast operation.

Chibuluma has embarked on several exploration projects because of the relatively short mine life of the Chibuluma South Mine which is expected to deplete all its copper reserves by 2017.

View our current exploration projects

Corporate Social Responsibility

  • Chibuluma Mine Plc spent 1% of its total budget on community investment;
  • Community investment and the impact of investment on community;
  • Construction of classroom blocks at Mulemu Primary School and Kamuchanga Primary Schools;
  • Outcome: The number classrooms at Mulemu Secondary School increase gradually from 10 to 13 in 2014 at School. This resulted in upgrading of the school to both primary and secondary school, Grade 10 was introduced, the School accommodated Grade 1 -10 classes, and a Pre Grade class. The introduction of secondary improved access to secondary education by the most rural community members who could not afford boarding fees.

    The school pupil enrollment increased by 17%;

Full list of our CSR activities

Extract from 2017 annual report

Revenue for the financial year ended 31st December 2016 was K492.41 million (US$49.9 million) (unaudited)
(2015: K432.54 (US$66.5 million)). Net loss over the same period was K29.60 million (US$3.0 million) (2015: K127.49 million (US$19.6 million). Chibuluma Mines Plc’s (CMP) cash position increased to K16.83 million (US$1.64 million) as at 31st December 2016 (2015: K0.42 million (US$0.056 million).

Production continued to be negatively affected by the poor availability of mining production equipment due to frequent breakdowns of machines, a typical feature of an aged fleet, which coupled with depleting ore reserves resulted in reduced volumes and contributed to constrained cash flow at the company.

The Company has been making progress towards commissioning of the Chifupu Mine Project and was awaiting the installation of 220 Kw ventilation fans to service lower production mine levels.

The company continued implementation of various cost saving and cost containment initiatives to ensure it achieved its set Key Performance Indicators and advance from a loss to a profitable position.

Management was also focusing on identifying and progressing viable initiatives which would assist in extending the footprint of the Jinchuan/Metorex Group in Zambia beyond the current Life of Mine.

No dividends were paid for the financial year ended 31st December 2016 (2015: Nil).

Download 2017 Annual Report

Extract from 2016 annual report

Net revenue for the financial year ended 31 December 2015 was K656.9 million (US$66.5 million) (2014: K691.4 (US$106.3 million)). Net loss over the same period was K312.2 million (US$31.6 million) (2014: K144.4 million (US$22.2 million profit)). Chibuluma Mines Plc’s (CMP) cash position reduced to US$0.056 million as at 31 December 2014 (2014: US$8 million). The loss was mainly due to the low copper prices and an impairment loss of US$13.4 million on property, plant and equipment.

Production was negatively affected by the poor availability of mine equipment, which, coupled with low copper prices led to constrained cash flow at the company. Consequently, CMP embarked on cost saving measures and a survival plan with emphasis on reduced and targeted mining and processing activities at the mine.

As mine reserves get exhausted CMP has been exploring the Chifupu project for the last two years to extend the life of mine and have been actively exploring new mining activities. However, due to cash flow constraints, works on the Chifupu project have reduced and CMP is evaluating the option of starting production early at the Chifupu project to recover some of the investments incurred on the project.

No dividends were paid for the financial year ended 31 December 2015 (2014: US$10.8 million).

Download 2016 Annual Report

Copper

Extracting value from tier one assets by improving efficiencies and operations.