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Konkola Copper Mines Plc 2017-02-28T06:49:35+00:00

KCM is Zambia’s largest integrated copper producer, with an entire production value chain comprising of open pit and underground mines, concentrators, a state-of-the-art smelter, a tailings leach plant and a refinery. It is the only mining company in the country that has operations in four locations, including Chingola, Chililabombwe, Nampundwe and Kitwe, playing a key role in the communities around these mining areas.

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Mining

KCM has open pit and underground mines at Nchanga and Konkola. The largest of the mine assets, Konkola, is the most northerly of the Copperbelt mines and is located 26 kilometres from Chingola. The mine has three operating shafts – Shaft No. 4, Shaft No. 3 and Shaft No. 1. Sinking of the No. 4 Shaft reached its desired depth of 1,500 metres in 2012. The mid-shaft loading was completed in April 2010 and bottom shaft loading was commissioned in 2012.

Nchanga assets comprise open pit and underground mining operations. KCM’s mining operations are heavily mechanized using surface drilling techniques, electric shovel loading and dump trucks.

KCM Contact Details

Konkola Copper Mines Plc
Private Bag KCM (C) 2000, Fern Avenue
Chingola, Zambia
Phone: +260 212 350604
Fax: +260 212 351225
www.kcm.co.zm
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Processing

The company has three concentrators, two at Nchanga and one at Konkola. The two Nchanga concentrators (East mill and West mill) were recently modernized. A new concentrator was commissioned at Konkola in 2008.

The Nchanga smelter was commissioned in 2008, incorporating technology from Outotec, Finland. The smelter processes ore from Konkola, Nchanga and other third party concentrates and it has a capacity of 311,000t pa. The smelter has met global benchmark environmental performance as it captures 99.6% of sulphur emissions. The main refinery at Nkana uses electrolysis to process copper anodes to LME A grade copper cathodes. It has been expanded to accommodate the increased anode production from the Nchanga smelter.

The Nchanga Tailings Leach Plant (TLP), one of the largest of its kind in the world, processes tailings from the Nchanga concentrators…

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Corporate Social Responsibility

The company operates two hospitals and eight satellite clinics. KCM also runs two schools with about 2,200 pupils. The company’s education interventions comprise providing scholarships for A-level graduates from its Konkola and Nchanga Trust Schools to study in mainly mining related fields at local and foreign universities.

KCM has one of the largest malaria roll-back programmes in Zambia. It has rolled-out several community health initiatives that include the distribution of 23,000 free eye glasses, providing artificial limbs and undertaking eye cataract operations. The company is also involved in the sponsorship of three football teams in the top Zambian soccer leagues.

KCM is committed to the development of the local communities through various income generating projects. The company has also contributed to various infrastructure development initiatives including the development of road infrastructure and construction of boreholes for local communities.

Extract from 2015 annual report

KCM reported a net loss of K1, 243.6 million (US$191.2 million) for the financial year ended 31st March 2015 (2014: K557.5 million loss (US$89.2 million loss)). Revenue reported for the year, was K7, 005.9 million (US$1,077.1 million), down by 15.0% (2014: K7,945.6 million (US$1,271.4 million)) due to a decline in sale of copper and copper related products. Copper sales declined by 15.9% and sale of precious metals in slimes declined by 33.9%.

Total finished copper production during the year was 168,923 Mt (2014: 177,018Mt). During the year under review, KCM faced operational and financial challenges including cash flow constraints that resulted in KCM purchasing third party concentrates in smaller quantities than what was sought. On 23rd February 2015, the Government amended the documentation requirements to VAT refunds on future exports and this should enable KCM to increase the purchase and treatment of third party concentrates which will lead to an increase in smelter utilization. Additionally, KCM is focusing on increasing production volumes and addressing productivity across all of its operations. To this effect, KCM has been implementing various interventions to improve the overall operating performance and drive higher equipment availability and utilisation.

Owing to the operational and financial challenges that KCM faced, K719 million (US$94.9 million) due to ZCCM-IH in the financial year 2014/2015 under the settlement agreement remained unpaid. The total amount has been fully impaired as at 31 March 2015. There were no dividends declared during the year under review (2014: Nil).

Extract from 2014 annual report

Konkola Copper Mines plc (KCM) reported a net loss of K557.5 million (US$89 million) for the financial year ended 31st March 2014 (2013: K34.1 million (US$6.3 million loss). Revenues during the year fell to K7,945.6 million (US$1,271.4 million) in the financial year under review from the K9,434.6 million (US$1,742.8 million reported as at 31st March 2013. Integrated copper production during the year was 177,018 Mt. (2013: 216,059Mt).

KCM’s medium to long term outlook remains dependent on the Konkola Deep Mining Project (KDMP). The objective of the project is to ensure continuity of mining at Konkola Mine, expand production from the current 2 million metric tonnes of ore per annum to final ramp up level of 6 million metric tonnes per annum and extend the life of the mine by up to 30 years. Finished copper production will be expected to increase from the current levels to approximately 210,000 tonnes per annum.

There were no dividends declared during the year (2013:K82.6 million).

Copper

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