Kabundi Resources Limited Extract from 2020 Annual Report

Kabundi Resources Limited (KRL) appointed a Board and Project Manager to operationalise their manganese mining activity. Manganese mining commenced, and as at 31st December 2020 12,000 tonnes of manganese ore had been stockpiled. A 40 tonne per hour wash plant and 75 tonne per hour crusher were installed on site. The installation of office containers, construction of a community clinic, Project Affected Persons (PAP) houses and school blocks were completed. KRL reported total revenues for the financial year ended 31st December 2020 of ZMW 912 thousand and a loss after tax of ZMW958 thousand.  

There were no dividends declared during the year under review.  

Mopani To Resume Mining Operations As Soon As Government Approves Its Latest Proposal

By Michael Kaluba

Mopani copper mines plc has confirmed that it has submitted a proposal to government and would resume mining operations as soon as an agreement is reached.

Mopani copper mines public relations manager Nebert Mulenga who revealed this to phoenix news says the mining firm will issue a notice of its intention to place its mining operations on care and maintenance after 90 days.

He says

during the 90 day period, Mopani copper mines plc will continue to engage with the government on potential solutions to its current challenges.

This decision comes after the mine went against government’s directive not to place its Mufulira and Kitwe mines on care and maintenance which was followed by a 7-day ultimatum from the state couple with mine unions led protests in Kitwe.

We’re not trading Mopani with Chinese debt relief – Ng’andu

FINANCE Minister Dr Bwalya Ng’andu has refuted claims that government is considering giving away Mopani Copper Mines Plc in exchange for wiping out Chinese debt.

According to an article published in the Wall Street Journal (WSJ), Monday, the Zambian Government is considering handing over the Glencore-owned mining asset to China in exchange for debt relief.

“Officials in Zambia, for example, say Beijing is demanding collateral in exchange for debt deferral or forgiveness. Two senior Zambian officials on a government panel negotiating with China said they are considering giving the Chinese copper-mining assets including the country’s third-largest mine, Mopani, owned by Glencore Plc, a London-listed mining company, in exchange for debt relief,” read the article in part.

But speaking during a media briefing on the economy in Lusaka, Monday, Dr Ng’andu rubbished the claims, arguing that if the proposed transaction was in the pipeline, government would have no need to hide if the alleged asset handover would help Zambia out of debt.

“Let me start with the famous question of Mopani assets being swapped for debt. I was disrupted last (Sunday) night by a phone call from Washington, from the IMF, wanting to find out how true this is. My simple response was: ‘it is not true.’ Some people might want to refer to this as ‘fake news,’ but here is the situation: the team that has been negotiating or discussing the issues of debt with the Chinese is a very small team from the Ministry and we are all here, on this side. Nobody spoke to any of us on that issue. Secondly, in the discussions, we have not asked for such debt swap from the Chinese, neither have the Chinese asked us to do this. So, all I can say is it is not true, where it came from, I don’t know,” said Dr Ng’andu.

“Sometimes, I find that when journalists want to fabricate a story, they will refer to some sources who are never known, and in this case, they are supposed to be some senior government officials, who are involved with the negotiations who revealed this information, but I frankly don’t know who those officials are. And as far as I know, there is no basis in truth. I would know about it and here is the thing, if we were negotiating for this as a solution, why would we want to hide it? If we think it is a sensible thing to do, why would we want to keep it under wraps? And if we think that that’s a way of getting out of debt, we would be very happy to announce that we are doing it and to give a justification for it. But we are not doing it and that is the position as it stands right now.”

Glencore to report Zambia Copper mines pending agreement with government

Anglo American is facing a huge class lawsuit for its past corporate practices over lead poisoning in Zambia’s Kabwe town.

Johannesburg-based attorneys Mbuyisa Moleele and London-based human rights law firm Leigh Day are preparing the case and an application to certify a class action will be filed in the Johannesburg High Court.

This is seen as a necessary first step in a class action against Anglo-American.

Indian mining giant Vedanta Resources which the Zambian government does not want anymore, is also connected to Anglo Americans.

The case of lead contamination involving Anglo stems from health issues linked to Kabwe, which Leigh Day said in a statement was once the world’s largest lead mine and operated from around 1915 until its closure in 1994. The law firm said Anglo owned and operated the mine from 1925 to 1974.

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However, the diversified miner argues that the operation was nationalized and has been operated by the government for two decades.

Anglo American was one of the six companies involved in the R5bn silicosis class-action case in SA brought on behalf of former gold miners made ill by inhaling silica dust.

“The purpose of the action will be to secure compensation for victims of lead poisoning, including the cost of an effective medical monitoring system for blood lead levels among the community,” the two firms said in a statement on Friday.

They argue the mine was “owned and operated and/or managed” by Anglo American SA between 1925 and 1974 — the operation’s “most productive period”.

“It is alleged that from 1925 to 1974, Anglo American SA played a key role in the management of the medical, engineering and other technical services at the mine, and that it failed to take adequate steps to prevent lead poisoning of the local residents,” the lawyers said.

The mine was closed in 1994, after it was nationalised and taken from Anglo in 1974.

In its defence, Anglo said on Friday it was “one of a number of investors in the company that owned the Kabwe mine”.

“Anglo American was, however, at all times, far from being a majority owner. In the early 1970s, the company that owned the mine was nationalised by the government of Zambia and for more than 20 years thereafter the mine was operated by a state-owned body until its closure in 1994,” the London-based miner said.

“Since the nationalisation more than 40 years ago effectively placed these issues under the control of the Zambian government, we are not in a position to comment further about the matter, but we certainly don’t believe that Anglo American is in any way responsible for the current situation.”

The Human Rights Watch has published a report that puts Kabwe as the most toxic town, having disastrous effects on children’s health.

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CEC arbitration matter still ongoing despite end of BSA

CEC Plc has notified shareholders that the arbitration matter regarding outstanding amounts owed to ZESCO Limited is still ongoing despite the epilogue of the BSA on 31st March 2020, according to the latest SENS announcement from the company.

Shareholders are referred to the cautionary announcement, dated 27th September 2019, issued by the Board of Directors of Copperbelt Energy Corporation Plc (“CEC” or “the Company) informing the market that CEC was in receipt of a notice of intention to arbitrate from ZESCO Limited (“ZESCO”), pursuant to the Bulk Supply Agreement and Article 3 of the UNCITRAL Arbitration Rules 1976, resulting from ZESCO’s claim that CEC has failed to pay money due to them for electricity supplied under the BSA”, read a statement by Julia C Z Chaila, CEC’s Company Secretary, issued in Lusaka, Zambia on Thursday, 16th April 2020.

The debt in contention is related to amounts owed by Konkola Copper Mines (KCM) whom CEC had also taken legal action against in the past. “Copperbelt Energy Corporation, Zambia’s supplier of electricity to mining companies on the Copperbelt has dragged Konkola Copper Mines to court over a US$30 million debt it is owed based on an internal agreement”, read a report by the Post Newspaper published in 2014 and available on the ZCCM IH website. Fast forward to 2019, following Mines Minister Richard Musukwa’s statement to parliament which indicated that KCM faced high indebtedness and insolvency concerns, ZCCM Investment Holdings Plc asked the Lusaka High Court to grant them an order to appoint Milingo Lungu of Messrs Lungu Simwanza and Company as provisional liquidator of Konkola Copper Mines Plc.

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CEC further disclose in the SENS announcement that there was a further ground for disagreement. “ZESCO’s other cited ground is its disagreement with a statement in CEC’s 2018 annual report relating to the contingent liability arising from the 2014 Energy Regulation Board electricity tariff increase specific to the mining companies, which the mining customers have legally contested and were granted a Court injunction, pending determination of the matter by the High Court for Zambia”.

According to Edwin Goli Mulenga in his article published this website (An autopsy of the death of CEC-ZESCO BSA), On Wednesday 11th October 2017, the then Minister of Energy David Mabumba, announced policy measures that were being taken to migrate electricity tariffs to cost reflectivity for all customer categories. “Madam Speaker, in December 2016, negotiations were held between ZESCO, the Copperbelt Energy Corporation (CEC) and the mining houses in good faith on moving tariffs towards cost reflectivity and achieving closure on all outstanding billing issues by January, 2017”, read the speech by the Minister, available on the National Assembly website. “Madam Speaker, arising from the negotiations, the interim average mining tariff was determined at US$9.3/kWh effective January, 2017, pending the conclusion of the cost-of-service study”.

CANCEL ALL LETTERS-MUZ

The Mineworkers Union of Zambia -MUZ- has demanded that Mopani Copper Mines plc cancels all letters given to miners when they placed the mine on care and maintenance as the mine owners seek dialogue with government.

MUZ President Joseph Chewe has told ZNBC News in Kitwe that Glencore, the owners of Mopani Copper Mines have engaged President Edgar Lungu seeking dialogue in view of the happenings at the mine.

Mr. Chewe has also demanded that Mopani Copper Mines apologizes to all miners who received letters.

He said the petition sent to President Edgar Lungu by mine unions when they held a peaceful protest demanding the restoration of all workers or have Mopani Copper Mines license revoked has been received.

Mr. Chewe stated that from the dialogue, mine unions want all workers to get back to work and that Mopani Copper Mines be given strict conditions that will stop them from engaging in activities that put workers’ jobs at risk.

Government give Mopani Copper Mines a 7 days ultimatum before Revoking their Mining Licence

The government has given Mopani Copper Mines a Seven Day ultimatum to show cause why its large-scale mining licences for Mufulira and Kitwe must NOT be revoked.

This follows Mopani Copper Mines alleged breach of provisions of the Mines and Minerals Act and the Employment Code Act.

This is according to a letter to Mopani Copper Mines, Chief Executive Officer, Nathan Bullock from Mining Licensing Committee Secretary Micheal Chibonga and made available to ZNBC News.

Mr Chibonga said the committee is in receipt of investigations report by the Director of Mines which has established that the mines have proceeded to place the NKANA and Mufulira Mines on Care and Maintenance.

He said this is without giving sufficient notice as required by law and in total defiance of the directive against such action, and the employees have already been given letters.

Mr Chibonga says it has also been established that all critical contracts for mining services and suppliers have been terminated with immediate effect.

He said the Mining Licensing Committee intends to revoke the large-scale mining licences for Nkana and Mufulira mine in accordnace with the Mines and Minerals Development Act of 2015.

Mr Chibonga said the Mine also breached section 37 of the Mines and Minerals Development Act of 2015 by defying the directive by the Director of Mines to resume mining operations

LOCAL CONTRACTORS WIN BIG IN $1.7BN FQM BONANZA

SOLWEZI AND KALUMBILA, ZAMBIA – First Quantum Minerals spent US$1.7 billion within Zambia in the last year, latest figures from the company have revealed.
The mining giant’s Kansanshi Mining Plc subsidiary spent US$958,767,110 locally in 2019, while US$659,712,101 was spent by Kalumbila Minerals Ltd at Sentinel mine. This equates to 88% and 80% of the mines’ total spend respectively.
The company’s Roads Division alone spent $152,815,503 within Zambia – 72% of its total expenditure for the year. In partnership with local town councils, it has stabilised roads in Solwezi, Kalumbila and other districts that were previously in a deplorable condition and presented a danger to road users.
The Roads Division is responsible for the construction and continuous maintenance of the roads and infrastructure on all First Quantum Minerals operations in Zambia, as well as development of the roads infrastructure of the communities in which it operates.
FQM Country Manager General Kingsley Chinkuli said that because of the company’s intensive use of infrastructure, FQM has recognised the transport sector as an important component of the economy and a common tool used for development.
“The relationship between the quantity and quality of transport infrastructure and the level of economic development is apparent,” he noted.
He added that to promote transparency and accountability, FQM adheres to the procurement procedures and laws of Zambia and strives to procurement from Zambian registered business.
“It is entirely right and proper that mines are open to scrutiny and held accountable for their actions, and indeed First Quantum goes to great lengths to ensure it is transparent in its corporate operations and sustainability programmes,” said General Chinkuli.
Projects that the company’s Road Division in recent years include a 2,800m runway at Solwezi, another 2,800m runway at Kalumbila, the earthworks and internal roads for the Kansanshi copper smelter, and the earthworks and internal roads for the new Sentinel mine process plant. They also include a 32km access road to the newly developed Sentinel mine at Kalumbila, a 15km access road to the new copper smelter and various roads around Solwezi, including the main access road to Kansanshi Mine.

Kansanshi Donates 2838 books to solwezi council

Solwezi Municipal Council has received a donation of 2, 838 books from Kansanshi Mine Plc.

Speaking when he received the donation, Solwezi Mayor Nicholas Mukumbi said books still remain the most popular source of information and knowledge for academics

Mr Mukumbi said despite the advent of Information Communication Technologies (ICT), the books helps to improve the reading and writing skills of people.

He said the Council is in the process of establishing a Library at the Kimasala Community Centre and planned to set up one preferably at the Civic Centre and others in each ward in order to reduce on movement of people from distant places to access books.

The Mayor encouraged members of the community to read the books once the Library is opened.

He expressed gratitude to the mining company for the gesture indicating that it will go a long way in improving the literacy levels of many in the district.

And Kansanshi Mining Plc Education Advisor Onward Mandevu said that Solwezi district and Zambia at large cannot develop with low literacy levels hence the donation of the novels, early childhood and senior school textbooks will help develop a culture of reading within the district because people that read, keep learning.

Kimasala Ward Councilor Nephan Kamwandi thanked the Council for being equal to the task by implementing provisions of the Local Government Act No. 2 of 2019 and bringing education services closer to the people as this guarantees improved literacy levels in Solwezi district.

Mr Kamwandi said the community will be enlightened about the donation and the importance of reading because this is for their benefit.

This is according to a media statement made available to The Independent Observer by Solwezi Council Assistant Public Relations Manager Esther Chirwa

Maamba Collieries Intensifies COVID – 19 Safety Measures

Maamba Collieries Ltd (MCL), the largest thermal power producer in Zambia has scaled-up efforts to stop the spread of COVID-19, by implementing stringent preventive safety measures.

Maamba Collieries Manager Yotham Phiri said MCL is treating the global pandemic with utmost seriousness, and taking all measures to ensure the health and safety of its staff, while also sensitising the community.

“We are alive to the gravity of the situation and are taking every possible precaution to prevent the COVID-19 infecting our people. Measures we have implemented include daily fumigation of all MCL buildings, equipment and vehicles to minimise contamination, as well as stopping all visitors. Our safety team is working hard to ensure every entry point to the mine and all buildings have sanitising equipment for our staff to use.” He said

And HR and Administration Manager Bwali Ndau highlighted measures to minimise person-to-person contact and ensuring social distancing and personal hygiene have been put in place.

In a statement made available to the Zamvian Business Times – ZBT on April 7, 2020 MCL has advised all employees who had travelled abroad on vacation, not to return to Zambia or if they return, to adhere to strict health guidelines and has stopped non-essential travel within the country, until the situation returns to normal.

MCL interventions against COVID-19 have also extended to the sensitisation of the local community, special sessions for school children on hygiene, helping the community with materials to ensure hygiene, as well as donating a critical care ventilator for treatment of infected personnel.

Meanwhile, in support of the request of the Sinazongwe Council, MCL has donated the much-need materials for the COVID-19 Isolation Site – including N95 masks, disposable overalls, gumboots, gloves as well as hand-washing facilities and personal hygiene items including liquid hand wash soap, detergent and much-needed fuel for vehicles.

Maamba Collieries is a key player in Zambia’s energy sector feeding 300MW into the national grid. Since the start of COVID-19 pandemic, MCL has ensured it remains at the forefront in the fight against the deadly virus in the country, through a strong demonstration of commitment to stringent safet

Source: Zambian Busines Times