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/

Mopani plans to resume cobalt production as prices rise

Zambia’s Mopani Copper Mines (MCM) plans to resume cobalt production that was halted more than a decade ago after international prices collapsed, an executive at state-owned ZCCM-IH said on Tuesday.

Accelerating sales of electric vehicles have fuelled a scramble for nickel, cobalt and lithium, propelling prices of the battery materials to multi-year highs.

Brian Musonda, chief investment officer at ZCCM-IH, Zambia’s mining investment arm, said the rising prices were a strong economic reason to restart cobalt processing.

“Going into next year, Mopani will start to process concentrates for cobalt and our plan is to produce something between 4,000 and 5,000 tonnes per year,” Musonda told Reuters.

Mopani would later ramp up production of cobalt, which the company historically mined as a by-product of copper, Musonda added.

“We have some material sitting on the surface. It was mined already as part of the copper ores but it could not be processed because the cobalt price was too low.”

Copper production in Zambia dropped to 800,696 tonnes last year from 837,996 tonnes the year before, data obtained from the nation’s statistics agency showed in March.

Cobalt production also dropped to 247 tonnes last year from 316 tonnes a year earlier, according to the Zambia Statistics Agency.

ZCCM-IH last year agreed to buy Glencore’s majority stake in Mopani Copper Mines in a $1.5 billion deal funded by debt and said it would seek a new investor.

The sale followed Glencore’s attempt to suspend operations at Mopani due to low copper prices and Covid-19 disruptions, prompting a government threat to revoke the company’s licences.

 

Source: https://www.mining.com/web/mopani-plans-to-resume-cobalt-production-as-prices-rise/

CEC 24th AGM – Transcript of Proceedings

Disclaimer:
The following transcript of proceedings of the 24th Annual General Meeting (AGM) held on 27 April 2022 is being delivered uncertified by Copperbelt Energy Corporation Plc (CEC).

The information in this transcript is for general information only. It should not be used as a substitute for specific and professional advice. Responsibility is disclaimed for any inaccuracies, errors or omissions. All expressions of opinion or advice are published on the basis that they are not to be regarded as expressing the official opinion of Copperbelt Energy Corporation Plc unless expressly stated. CEC accepts no responsibility for the accuracy of the opinions of information contained in this transcript.

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CEC 24th AGM – Transcript of the Auditor’s Presentation

Disclaimer:
The following transcript of proceedings of the 24th Annual General Meeting (AGM) held on 27 April 2022 is being delivered uncertified by Copperbelt Energy Corporation Plc (CEC).

The information in this transcript is for general information only. It should not be used as a substitute for specific and professional advice. Responsibility is disclaimed for any inaccuracies, errors or omissions. All expressions of opinion or advice are published on the basis that they are not to be regarded as expressing the official opinion of Copperbelt Energy Corporation Plc unless expressly stated. CEC accepts no responsibility for the accuracy of the opinions of information contained in this transcript.

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CEC 24th AGM – Transcript of Management Presentation on Operations and Finance

Disclaimer:
The following transcript of proceedings of the 24th Annual General Meeting (AGM) held on 27 April 2022 is being delivered uncertified by Copperbelt Energy Corporation Plc (CEC).

The information in this transcript is for general information only. It should not be used as a substitute for specific and professional advice. Responsibility is disclaimed for any inaccuracies, errors or omissions. All expressions of opinion or advice are published on the basis that they are not to be regarded as expressing the official opinion of Copperbelt Energy Corporation Plc unless expressly stated. CEC accepts no responsibility for the accuracy of the opinions of information contained in this transcript.

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