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Chibuluma Mines Plc 2017-06-28T12:11:33+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 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

Extract from 2015 annual report

Revenue for the financial year ended 31st December 2014 was K691.4 million (US$106.3 million) (2013: K731.1 million (US$132 million)). Net profit over the same period was K144.4 million (US$22.2 million) (2013: K99.7 million (US$18 million)). Chibuluma Mines Plc’s (CMP) cash position reduced to US$7 million as at 31st December 2014 (2013: US$20 million).

It is expected that CMP’s mining reserves will be exhausted by 2017. The company is thus focusing on exploration efforts on smaller types of ores deposits with potential quick turnaround. To extend the life of the mine CMP worked on the following exploration projects:

  1. Chifupu Copper Project
    The cumulative expenditure as at 31st December 2014 was US$7.6 million out of a total budget of US$24
    million. The project is in critical development stage. The first ore to the plant is expected to occur at end of March 2016.
  2. Chibuluma Central Tenement
    Seven drill targets with a total of 1 400 metres were generated from the geochemical anomalies. A total of 416.15 metres were drilled across two drill holes with no visible mineralisation as at year end.

CMP paid a total of US$10.8 million in dividends for the financial year ended 31st December 2014 (2013: US$2.6 million).

Download 2015 Annual Report

Copper

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