Lubambe mine has announced that the mining company is this year projected to increase production by over 60 percent.

Chief Executive Officer (CEO) Nick Bowen said in Lusaka yesterday Lubambe mine last year recorded a 22 percent increase in copper production.

He said this after a meeting with Republican President Edgar Lungu at State House in Lusaka, this morning.

It produced 22,000 tonnes of copper which is the biggest increase that has happened to the mine since it was opened.

Mr Bowen said this year the mine again is projected to produce 36,000 tonnes of copper increasing production by over 60 percent.

This will help the company achieve its design capacity of 45,000 tonnes by 2020.

On the new tax regime Mr Bowen said government is looking at earning enough from the mines and that what is important is stakeholder engagement, which is already happening.

He said the mine will continue operating and will not cut down on jobs.

” We have been working closely with the government. We understand their objective is to get more income for Zambians and the increase in production is going to deliver so much more in taxes. The more we produce the more taxes the government will earn,” Mr Bowen said.

The mine has over 1,250 employees and 1,250 contractors,” the great position we are in. We need more workers, not less” he said.

He, however, assured the Head of State that the mine will not reduce its workforce as the current one has managed to increase production for the firm.

Mr Bowen said the mine has discovered 200,000 million tonne new ore body with a seven (7) million tonnes of copper at eight (8) percent, which is a high-grade rate according to global standards.

He said the mine is now processing all the neccessary papers with government to start explorations and is expected to invest US$500 million in its operations from next year.

This will create more than 1,000 jobs at construction stage, which will take five (5) years and over 2,000 new jobs will be created when the mine becomes operational.

Source: Lusaka Times

SINCE the 2019 budget was announced and eventually passed, there has been very little good news coming out of mines.
In the 2019 budget, Government has introduced a 1.5 percentage point increase on all mineral royalty tax bands, and an additional two royalty bands of 8.5 and 10 percent when the copper price exceeds US$7,500 and US$9,000 per tonne respectively. Further, mineral royalties will cease to be deductible from corporate income tax.
The measures have seen mining companies hitting back saying they will shed off as many as 21,000 jobs and cut or withhold US$500 million in capital spending over the next three years.
That is significant.
Yet, against this gloomy picture, Lubambe Copper Mines (LCM) in Chililabombwe projects to increase its copper production by about 60 percent this year.
Company chief executive Nick Bowen says they produced 22,000 tonnes of copper last year but expect to increase this to 36,000 tonnes this year. EMR Capital, the current investors, bought the mine at a time when it was facing financial challenges. But now, stringent measures have been instituted to help sustain operations of the firm. Mr Bowen said the changes have not been easy to implement but management has made it a policy to incorporate the workforce in its strategic plans.
Certainly, Lubambe needs commendation. It shows that the company is not here for the short term but has rather aligned itself with the aspirations of the nation. This is unlike some mining companies that have only kept one foot in Zambia to just take advantage of the economic boom, yet are ready to flee when hard times hit or they have made enough money and start thinking the country’s environment no longer suits them.
This is unacceptable.
As a nation, we have not always universally agreed with all our policy positions. But if there is one area where there is near consensus, it is the one to do with the new mining legislation. The Zambian public is largely in agreement that we have not sufficiently benefited much from the mines, particularly during the period after privatisation. Yet, the mines are supposed to be the goose that lays the golden egg for the country.
The jury is that mining companies have not been paying their fair share of taxes despite the privileges and advantages they have secured.
There is an argument by some mining companies that Zambia is a very high cost producer of copper. But it is difficult to swallow this wholeheartedly. The suspicion is that some mining companies inflate their production costs in order to avoid paying taxes.
We know for instance the findings of ECON Poyry, a Norwegian consulting company and engineering group that was commissioned by the Zambia Revenue Authority (ZRA) in 2009 to do a pilot audit of the operational costs, revenues, transfer pricing, employee expenses and overheads of one mining company on the Copperbelt.
The investigating report concluded that the reported numbers from the company were in doubt. It was found that the company had not paid income tax for a good number of years but had only paid royalty fees. But the chairman of this company reported that they had paid millions of dollars to Government in taxes. Yet, those monies included pay as you earn (which is paid by employees), import duties, property rates paid to municipalities, vehicle registration fees, value added tax, licence fees and none which directly comes under the category of company tax. But the fact that they were reporting it as company tax could only mean that they were trying to hide the fact that they pay little or no income tax at all.
It is the reason why the Zambian public is frustrated with the mining companies. The feeling is that they try so much to hold us to ransom; rushing to cutting jobs every time new mining legislation is passed meant to get more from the mines.
Yes, as a country, we are open to foreign direct investment but we also need our investors to appreciate the unique challenges that we face.
From the time the new mining legislation was announced, Lubambe is the first mining company to provide a spark.

Source: Zambia Daily Mail

Lubambe Copper Mines has donated assorted food items to One Way Mission Children Home and Lusungu Children home as part of celebrating the New Year.

The donation worth K15,000 is part of the mines corporate social responsibility in Chililabombwe and Chingola respectively.

Lubambe Copper Mines acting General Manager Operations Venus Kasito said the policy is to plough back into the community.

Mr Kasitu said the mine has donated to the needy as a way of enhancing their lives and a way of supporting the children.

He said the lives of the children are important hence the need to help them in any way possible.

“The company wants to reach a production capacity of 220 tones by the 4th quarter of 2019 then the company will be able to boost up its corporate social responsibility,” he said.

Loveness Sakala Director at One Way Mission was grateful for this gesture in supporting the vulnerable children.

Ms Sakala said other stakeholders should emulate and do the same to give support and enhance the children’s lives and future.

Lusungu orphanage Director Caddie Ng’ambi said the act of love by the mining firm would go a long way.

Bishop Ng’ambi said the orphanage accommodates a number of children whose educational needs are taken care of by the orphanage

He expressed gratitude towards the gesture of an act of love by Lubambe mine to the children.

Source: The Independent Observer