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Kansanshi Mining Plc renews drill fleet

Amidst lacklustre global commodity prices Zambia’s largest copper mine, Kansanshi, has opted to renew its fleet of blast hole drill rigs with more efficient and reliable Sandvik D25KS and DP1500i drill rigs.

In the face of tough times in the Zambian copper mining industry, Rob McMaster, key account manager for First Quantum Minerals Sandvik Zambia says, mining contractor, First Quantum Mining & Operations (FQMO), have taken a progressive step to ensure improved efficiency and reliable production by renewing their DR500 fleet with Sandvik D25KS and DP1500i drills that are easier to maintain and operate on site.

He adds that Sandvik has entered into a buy-back agreement with FQMO to trade in the company’s 11 Sandvik DR500 series fleet that are used for blast hole and pre-split drilling in preference for the 9 new Sandvik D25KS rigs and 4 new Sandvik DP1500i rigs. The bundled deal makes the transaction more affordable and is in-line with FQMO’s overall objectives.

Efficient production

“We work closely with our customers to ensure operations are run optimally at all times. When circumstances change and a mine’s requirements are altered along with it, then we do our utmost to restructure equipment and fleets in such a way that the customer’s new needs are met. This is precisely what we have done at Kansanshi where we are proud to deliver a solution that is tailored to Kansanshi’s current and changing future requirements. The new Sandvik D25KS and DP1500i drill rigs are machines that will require less maintenance and specialised care than the predecessors.”

“They are also hardworking and well-suited to the current conditions in the mine, so are expected to deliver many years of reliable service with the highest levels of availability throughout as have the previously supplied D45KS, D25KS and DP1500i drills. FQMO has a fleet of 30 drills and the new Sandvik D25KS & DP1500i drills are required to assist with the high production requirements.

“They will be joining a number of other Sandvik D25KS drill rigs, as well as the larger Sandvik D45KS and Sandvik DP1500i top hammer drills. The standardisation will in many ways simplify maintenance, stock holdings of spares, rock tools and parts to make the operation easier to manage,” McMaster says.

FQMO’s manager optimisation drill & blast James Bravery was the direct link for the deal and through numerous discussions and negotiations we came to an agreed solution which is the result of this buy back agreement, McMaster says.

About the D25KS rig

Thanks to its compact size, proven design and durable power groups, the Sandvik D25KS blast hole drill is a very stable and highly manoeuvrable surface drill for surface mining and large-scale quarrying.

It’s a down-the-hole (DTH) hammer drill with a high pressure air compressor, air-line lubricator and fine feed control. It is commonly used in large mining operations globally with a choice of hole sizes from 127 mm to 172 mm (5” to 6 ¾”). It is also the drill of choice among many contractors due to its efficiency and extreme reliability on difficult grades.

One of the biggest selling points is its speed and fast set-up with effective pipe handling of 9.14m length pipes with pipe sizes in diameters ranging from 89 -140 mm. Pipe loading is controlled from the operator’s cab with the effective handling of drill pipe contributing to shorter cycle times and getting more holes drilled.

About the DP1500i rig

The Sandvik DP1500i is an intelligent, self-propelled, self-contained, crawler based surface drilling rig equipped with a cabin, movable boom and a rod changer. It is perfect for production drilling in large quarries or open pit mines and construction work sites. It is also well suited for wall control (pre-split drilling) and development works. The rig can be customised to meet special customer requirements.

Investing for the future

The Sandvik D25KS and DP1500i machines will be required to work up 5000 hours per year and in the well-maintained environment of Kansanshi the rigs will see service for many years. “This deal underscores our willingness to work with mines to ensure that they have appropriate equipment at all times that are able to deal with their changing requirements. While a number of underground mines in Zambia have shut down or gone into managed care the surface mines in the North West copper-belt are faring better. Moves such as the drill rig fleet renewal at Kansanshi to more efficient varieties are a positive step and an investment in the future of the mines,” McMaster concludes.

Source: MQWorld

Investee Company News

Power affects FQM copper production in Zambia

Insufficient power at First Quantum Minerals (FQM) mine in the North-Western Province of Zambia, a mineral-rich Southern African country has resulted in reduced copper production, according to sources Thursday.

Dependent upon diesel-driven power plants which supply almost 200MW of electricity to the FQM mining operation at Kalumbila, almost 120 kilometers west of Solwezi the provincial capital needs an extra 30 percent for it to operate at full capacity.

The mine needs to tap power from the national grid of the state-run Zambia Electricity Supply Corporation (ZESCO) after FQM built a 600 kilometer power line from Southern Province through Central Province of that country. It is not yet known when the public utility firm will connect the mine.

At the moment from the time operations at the mine started in September 2015 copper production has been pegged at 150,000 metric tons per year and this is expected to reach 300,000 mt/y as from 2017. Both plated copper and concentrates production is expected to increase further once electricity from the national grid is accessed.

Kalumbila mine as it is known took FQM five years to put together as part of its US$2.1 billion Sentinel investment to that country’s mining sector. The mining company has since installed high cost machinery using one of the most sophisticated technologies in the world for the extraction of low grade concentrates with a 0.5% copper content.

However Sentinel’s contribution to overall copper production in that mineral-rich rural province is quite significant. At 500,000 mt/y North-Western Province is currently the largest copper producer accounting for 70% of the 711,000 mt/y produced in the entire country. Zambia stands as the second largest copper producer in the world.

Source: Mining.com

Investee Company News

Power sales to DRC trigger CEC profit to over K270 million

COPPERBELT Energy Corporation (CEC) Plc has registered a profit of about 18 percent profit due to increased power sales to the Democratic Republic of Congo (DRC), earning over K270 million.

In its summary of unaudited results for six months ended June 30, 2016, the company has continued to influence the electricity market through its network on behalf of Zesco Limited on the Copperbelt, and to operate an interconnector with the DRC.

“The Zambian businesses on consolidated basis posted a profit of K275 million (US$25.9 million) compared to K225 million for the previous.
“Revenue at half year increased by 40 percent from K2.252 million to K3.776 million. This is mainly on account of increased power sales to the DRC mines. Net loss of K1.669 million compared to a net loss of K571 million the previous period,” the report reads.

The company attributes net loss mainly to an exchange loss of K1.140 million (US$107 million) arising from the devaluation of the naira on dollar borrowing and bad debt provision of K516 million (US$52 million).

On performance update, the report says the macroeconomic environment in Nigeria has continued to pose some challenges to the group’s operations as well as low commodity prices which had a negative impact on customers’ liquidity and ability to meet their financial obligations.
Other challenges relating to low commodity prices on the global market have led to some of the customers scaling back on their operations with the effect on the company’s power sales dropping by about 16 percent in Zambia.

The company expects higher demand to return mid to end of 2017 when most of the customers begin to draw power to implement their projects.
“Operationally on the Zambian end, the business continued to operate under the partial force majeure under the bulk supply agreement with our main power supplier and the respective power supply agreements with our mine customers.

“This entails that we can only access 70 percent of our power requirements from Zambian sources while the rest of our requirements have to be sourced outside of the country. It is expected that this regime will continue until year end,” it says.

Source: Daily Mail

Investee Company News

CEC posts 275 million in profits despite challenging business environment

The Copperbelt Energy Corporation has posted a profit of K275 million in the first six months of 2016, up from K225 million record for the previous period.

The increase in profits is mainly attributed to increased power sales to the DRC mines and increased sales at its telecoms unit.

Revenue at half year increased by 40% from K2.252 million to K3.776 million.

This is mainly on account of increased power sales to the DRC mines.

This is according to the company’s half year financial results released yesterday.

CEC however recorded a net loss of K1.669 million compared to a net loss of k571 million the previous period.

“Net loss is mainly attributed to an exchange loss of ZMW1.140 million arising from the devaluation of the Naira on USD borrowing and bad debt provision of K516 million,” it said.

In March 2016, the Company paid a total of K163 million in dividends.

“The macroeconomic environment in Nigeria continued to pose some challenges to the Group’s operations as well as low commodity prices which impact on our customers’ liquidity and ability to meet their financial obligations. The depreciating Naira resulted in increased foreign exchange risk, translating into a loss of K1.140 million,” it said.

“Operationally on the Zambian end, the business continued to operate under the partial force majeure under the Bulk Supply Agreement with our main power supplier and the respective Power Supply Agreements with our mine customers. This entails that we can only access 70% of our power requirements from Zambian sources while the rest of our requirements have to be sourced outside of the country.”

The company said it is expected that this regime will continue until year end.

“The challenges relating to low commodity prices on the global market have led to some of our customers scaling back on their operations with the effect.

Source: Lusaka Times

Investee Company News

CEC records K1.1 Million loss

COPPERBELT Energy Corporation (CEC) has said the macro-economic environment in Nigeria and the depreciating Naira has increased foreign exchange risks resulting in the loss of K1.140 million.

This is according to CEC’s summary consolidated unaudited results for the period ended June 30, 2016 made available to the Times yesterday.

The company said the macro-economic environment in Nigeria continued posing some challenges to the group’s operations as well as commodity prices which impacted on its customers’ liquidity and ability to meet financial obligations.

“The depreciating Naira resulted in increased foreign exchange risks translating into a loss of K1.140 million,” it stated.

Operationally on the Zambian end, the statement said the business in the stated period continued to operate on partial force majeure under the bulk supply agreement with its main power supplier and power supply agreements with mine customers.

“This entails that we can only access 70 per cent of our power requirements from Zambian sources while the rest of our requirements had to be sourced outside the country.

The challenges relating to low commodity prices on the global market have led to some of its customers scaling back on their operations resulting in power sales dropping by 16 per cent.

The company expected high demand to return by mid to end of 2017 when the projects that a number of its customers have been implementing begin to use power.

Source: All Africa

Investee Company News

Nava Bharat Ventures Company Profile – Chart Analysis

Nava Bharat Ventures Limited is an India-based company, which is engaged in the business of power generation, mining, ferro alloys and agri-business. The Company’s segments include Ferro Alloys, Power and Sugar. The Company operates in geographies regions across India, South-East Asia and Africa. The Company’s domestic operations include power, ferro alloys and sugar. The Company’s power plants in Andhra Pradesh, Telangana and Odisha have a total installed capacity of approximately 440 megawatt.

The Company manufactures Manganese Alloys and Chromium Alloys with a production capacity of approximately 200,000 tons per annum. The Company’s sugar plant, distillery, ethanol plant and co-gen plant is located in Samalkot, Andhra Pradesh. The Company’s international operations include power, mining and agri-business. In Zambia, the Company is engaged in the commercial production of coal and has around two units of 150 megawatt power plant under construction.

Nava Bharat Ventures reported a 32% drop in net profit to Rs. 29.2 Cr in Q1, as against Rs. 43 Cr in the same period last year. The Income from Operations went down by 9.3% to Rs. 313.7 Cr, from Rs. 346 Cr previously. Shares tanked by 6% during the day’s trade.

Balance all updates about the stock will be given under this post in the comments form. So, do remember to read the comments below.

Source: Indian Share Tips
Investee Company News

Chibuluma Mines allocates $4.4m to rehab programme

CHIBULUMA Mines Plc says the company has allocated US$ 4.4 million under the rehabilitation programme aimed at restoring the landscape to its original state after the projected closure of the mines in 2022.

Although, the mines accounts for less than two percent (13, 300 tonnes of copper in 2015 out of the country’s output of 711, 000 tonnes of annual Copper production), Chibuluma Mine, is one of Zambia’s most successful mines in safety, productivity and profitability.

The company has had only one fatality in eight years, and it has paid corporate tax every year since 2007, with a total of US$ 112 million paid to date, according to the latest Mining for Zambia report.

Chibuluma Mines head of finance Eustus Munsaka said the biggest challenge is that the current mineral deposit will be mined out within the next few years.

“Unless our ongoing exploration finds a new copper deposit worth exploiting soon, Chibuluma will probably close sometime between 2020 and 2022. All mines have a natural lifespan, and we are about to reach the end of ours,” he said.

He said the company has a multi-million rehabilitation programme that is under way to restore the landscape to its original state.
“Some 33, 000 trees have been planted, carpet grass has been laid, and firebreaks have been built.

“Once the mine stops operating, various structures and buildings will be demolished, roads will be scraped, more land will be replanted with vegetation, and any contaminated land will be neutralised with lime. The entrance to the mine will be sealed to reduce the risk of acid mine drainage,” he said.

After closure, the shareholder Metorex and its parent company Jinchuan will shift their focus to the larger copper-mining investments in the neighbouring Democratic Republic of the Congo.

He said even though closure is still a few years off, Chibuluma has developed a good track record in its contribution to Zambia since it was privatised in 1998.

“The mine has paid taxes to Government, uplifted the community through its corporate social responsibility programme, and stimulated the local economy and job creation through the spending power of its employees,” Mr Munsaka said.

And Chibuluma Mine chief geologist Narendra Shekhawat said small quantities of silver are recovered as a by-product during the copper smelting process and it amounts to about US$16,000 a month.

Source: Daily Mail
Investee Company News

Maamba Collieries says it can generate 600MW if tarrifs are increased

MAAMBA Collieries Limited is ready to double its thermal-generated power at the newly-commissioned plant to 600 megawatts (MW) once tariffs are increased to reflect actual cost of producing electricity.

Currently, the Maamba coal-fired power plant has an installed capacity of 300MW but only 150MW was commissioned last week and connected to the national grid through Zesco Limited, which signed a memorandum of understanding with the company to start supplying electricity to the latter.

Zambian electricity tarrifs are said to be the lowest in the region and cost below US$0.6 cents per kilowatt hour for domestic consumers while the regional average is between US$10 and 20 cents.

Maamba Collieries Limited chairman Ashok Devineni said the company is ready to increase the generation capacity of the thermal power plant from the current 300MW to 600MW if tariffs are increased to reflect actual cost of electricity.

The coal-fired power plant was commissioned last week with 150MW connected to the national grid while the other 150MW will be connected this month-end and it is expected to help reduce the power cuts, which have affected the country recently.

Mr Devineni said the planned increase in electricity generation has to happen to keep pace with the growing demand in the country.

“Maamba can contribute by expanding the capacity of the power plant by an additional 300MW to ensure a total of 600MW if Zesco can guarantee the off-take. Our expansion will be time, cost and resource efficient. It can be set up in 24 months.

“We must, however, acknowledge the fact that creating new generation capacity will be an uphill task unless and until the electricity tariffs are revised to reflect the true cost of procurement for Zesco. Actually, sustaining the present 300MW generation will itself be difficult, given the present miss-match of tariff and cost of supply,” he said.

The plant, whose investment is US$738 million, will help diversify the power generation sources in the country, which is heavily dependent on hydro power, thereby insulating Zambia from energy shortage during the years of low rainfall.

And Zesco Limited managing director Victor Mundende said there is need to migrate and start charging cost-reflective tariffs.

“Once we have cost-reflective tariffs in place, Maamba or any other independent power producer can sell anywhere while Zesco can help by providing its transmission network,” he said.

Source: Lusaka Times
Investee Company News

Maamba Collieries plans to increase power

MAAMBA Collieries Limited is ready to double its thermal-generated power at the newly-commissioned plant to 600 megawatts (MW) once tariffs are increased to reflect actual cost of producing electricity.

Currently, the Maamba coal-fired power plant has an installed capacity of 300MW but only 150MW was commissioned last week and connected to the national grid through Zesco Limited, which signed a memorandum of understanding with the company to start supplying electricity to the latter.

Zambian electricity tarrifs are said to be the lowest in the region and cost below US$0.6 cents per kilowatt hour for domestic consumers while the regional average is between US$10 and 20 cents.

Maamba Collieries Limited chairman Ashok Devineni said the company is ready to increase the generation capacity of the thermal power plant from the current 300MW to 600MW if tariffs are increased to reflect actual cost of electricity.

The coal-fired power plant was commissioned last week with 150MW connected to the national grid while the other 150MW will be connected this month-end and it is expected to help reduce the power cuts, which have affected the country recently.

Mr Devineni said the planned increase in electricity generation has to happen to keep pace with the growing demand in the country.
“Maamba can contribute by expanding the capacity of the power plant by an additional 300MW to ensure a total of 600MW if Zesco can guarantee the off-take. Our expansion will be time, cost and resource efficient. It can be set up in 24 months.

“We must, however, acknowledge the fact that creating new generation capacity will be an uphill task unless and until the electricity tariffs are revised to reflect the true cost of procurement for Zesco. Actually, sustaining the present 300MW generation will itself be difficult, given the present miss-match of tariff and cost of supply,” he said.

The plant, whose investment is US$738 million, will help diversify the power generation sources in the country, which is heavily dependent on hydro power, thereby insulating Zambia from energy shortage during the years of low rainfall.

And Zesco Limited managing director Victor Mundende said there is need to migrate and start charging cost-reflective tariffs.

“Once we have cost-reflective tariffs in place, Maamba or any other independent power producer can sell anywhere while Zesco can help by providing its transmission network,” he said.

Source: Daily Mail

Investee Company News

Maamba commissioning to end load shedding

THE commissioning of 150 megawatts of the 300MW coal-fired power plant at Maamba Collieries Limited is a milestone in the country’s diversification of energy production.

Like President Lungu said during the commissioning of the 150 megawatts yesterday, Zambia is on course to becoming a net exporter of electricity and energy-related products.

We are delighted that commissioning of the plant in Sinazongwe district represents the diversification of the country’s mix which now includes solar, wind, thermal, coal and many others.

Zambia had for a long time depended heavily on hydro energy but the dry spell in the last few years, especially during the 2014- 2015 rainy season, has taught the country lessons in electricity diversification.

The dry spell had a devastating impact on hydro power. The reduction on water levels in our reservoir translated into reduced energy use because power plants operate for fewer hours.

That is why President Lungu said yesterday that the country’s dependence on hydro-power has consequences when we experience low rains, which has justified the diversification towards other forms of energy.

However, diversification should be attractive to the private sector to make their business profitable.

President Lungu hinted yesterday at Government considering cost-effective tariffs in the power sector.

Zambia has the lowest tariffs in the Southern African Development Community and should the status quo continue, the country will continue experiencing power deficits as power developers will continue to shun the country.

So far, Zambia is on course towards power diversification going by the various efforts being made by the government which has provided a conducive environment, as well as its partners and the private sector.

The Industrial Development Corporation (IDC) is in the process of developing at least 600 MW of solar power to help mitigate the country’s electricity shortage.

This is part of Government’s determination to finding a lasting solution to the power crisis.

The International Finance Corporation (IFC) of the World Bank and IDC Zambia have signed a memorandum of understanding to explore the development of two independent 50MW solar power projects in Zambia through the scaling solar programme.

Zambia Sugar Plc, on the other hand, is pondering expanding thermal power generation capacity from the current 30MW to 50MW.

This is in response to the current power reduction on the national electricity grid caused by low water levels in major hydro stations in Zambia.

The sugar company currently produces 30MW of electricity from sugar factory residues.

Through interventions such as Maamba Collieries, the IDC and Ndola Energy Company Limited, which intends to expand its power generation capacity to over 100MW, Zambia is indeed on course to reducing its dependence on hydro energy.

Credit should go to the Patriotic Front government and President Lungu in particular for ensuring that the country diversifies its sources of power.

Power drives the main economic sectors and it is gratifying that the mining, agricultural and manufacturing sectors will now be supplied with the power they need.

That will undoubtedly increase production, which will in turn improve the country’s forex earning and ultimately spur economic development.

The rationing of power has now been effectively ended.

Source: Zambia Daily Mail