Loading...
Kansanshi Mining Plc 2018-06-05T10:29:56+00:00

Kansanshi Mine is probably one of the oldest mines in Africa, with direct copper smelting dating back to the 4th Century. It is the largest copper producer by output in Zambia and is 20% owned by ZCCM-IH, with the balance owned by First Quantum Minerals Limited.

Visit website

Key Milestones

  • Reached full commercial production in April 2005;
  • Granted award as “Largest Tax Payer” in Zambia by the Zambia Revenue Authority on 1 st April 2010, which was dubbed “Taxpayers’ Appreciation Day”;
  • Crowned “Employer of the Year” by the Zambia Federation of Employers in 2010, 2011, 2014 and 2015. This award was overall winner’s award across all sectors of the economy and among all participating corporate entities in Zambia; and
  • Commissioned copper smelter in 2014 and started producing copper anodes from the smelter in First Quarter of 2015.

Corporate Social Responsibility

In line with the First Quantum Minerals Group ethos of “enriching the environment and communities in which the group operates” and “maximising opportunities and benefits for communities around the mine and in the host country”, Kansanshi Mining Plc has a very impressive corporate social responsibility programme, through which it funds community projects in Education, Health, Social Welfare, Infrastructure Development, Water and Sanitation, Conservation Farming and Sport.

Kansanshi Mining Key Products

Copper cathode | Copper anode | Copper concentrate | Gold dore

Kansanshi Mining Contact Details

The mine is located on Old Congo Road, some 10 kilometres northward of Solwezi Town.

Phone: +260 212 658000
Fax: +260 212 658203
Visit website

Extract from 2017 annual report

Kansanshi Mining Plc (KMP) had sales revenue of K14.51 billion (US$1.47 billion) (2015: K9.69 billion (US$1.49
billion) for the financial year ended 31st December 2016. Although total copper production was up 20% at 272,843 tonnes (2015: 226,674 tonnes), realised prices were lower than the previous year resulting in a decline in revenue. Gold production was 9% higher at 148,220 ounces (2015: 136,257 ounces) due to higher concentrate production.

Over the next five to six years the Company plans on gradually shifting towards sulphide mining as oxide materials coming out of the mine are reducing. As a result there was need to double the Sulphide ore throughput to sustain current Copper Production levels. If the latter is not done the levels of production would gradually drop from 250,000 tonnes in 2017 to 245,000 tonnes in 2018, then to 240,000 tonnes in 2019, 202,000 in 2020, 174,000 in 2021 and would continue to decline to levels of 50% of current production post 2021.

In this connection, a US$1.5 billion investment in the Company has been envisaged to sustain the said production and significantly improve other facets of mine operations. Additional smelter capacity would in turn be required as the current Smelter capacity would not be able to cater for increased Sulphide concentrate production. High level electricity would have to be supplied to the mine so as to also capacitate the two Smelters. The Company already has grave concerns over the security of power supply from ZESCO. Since the reduction of power supply from 200 megawatts to 165 megawatts, parts of the business had to be shut down such as the High Pressure Leach system which was still not operating.

The profit for the year 2016 was K1, 248.3 million (US$126.5 million) (2015: loss of K9.11million (US$1.4 million) and had been added to the retained earnings to contribute towards raising the US$1.5 billion required for capital projects.

No dividends were paid during the year ended 31 December 2016 (2015: K52.04 million (US$ 8 million)..

Download 2017 Annual Report

Extract from 2016 annual report

Kansanshi Mining Plc (KMP) had sales revenue of K15,699 million (US$1,586.1 million) (2015: K10,204.4 million (US$1,568.7 million) for the financial year ended 31 March 2016. The net loss for the year was at K5,110.9 million (US$517.4 million) (2015: Profit of K4,169.6 million (US$792.7 million). Total copper production was down 14% at 226,674 tonnes (2015: 262,287 tonnes) due to lower oxide and sulphide throughput during the first half of the year.

KMP intentionally reduced throughput in order to match KMP’s acid consumption with the smelter’s ramp-up to commercial production, while gold production was 12% lower at 136,257 ounces (2014: 154,431 ounces) due to lower concentrate production and lower head grade. The lower sales volumes were offset by the introduction of the KMP smelter in 2015 that recorded revenue of US$403 million.

In 2015, KMP completed the copper smelter well ahead of schedule and commercial production was declared on 1 July 2015. KMP’s smelter processed 709,188 tonnes of concentrate in 2015 and produced a total of 150,292 tonnes of copper anode and 645,000 tonnes of sulphuric acid. The KMP smelter achieved an overall copper recovery of 98%.

Subsequent to year end, ZCCM-IH fled a Notice of Arbitration on 26th October 2016 in London (UK) against Kansanshi Holdings Limited and Kansanshi Mining PLC. Further, on 28th October 2016 ZCCM-IH commenced legal proceedings in Lusaka, Zambia, against First Quantum Limited, FQM Finance Limited, Philip K.R. Pascal, Arthur Mathias Pascal, Clive Newall, Martin R. Rowley and Kansanshi Mining PLC for various claims arising from transactions between Kansanshi Mining Plc and FQM Finance Limited.

Total dividends paid during the period under review amounted to K59.3 million (US$8 million) (2015: K113 million (US$18 million). The amount payable to ZCCM-IH was K11.9 million (US$1.6 million) (2015: K22.6 million (US$3.6 million).

Download 2016 Annual Report

Copper

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