HINGOLA, 11TH December 2015, Konkola Copper Mines (KCM) operations and production have been affected by a countrywide power blackout which occurred from about 10:35 PM on Thursday, 10th December, 2015.

Following the power outage, KCM was able to bring on line 16MW of power using its own emergency diesel generator set at Konkola mine supported by another 40MW in emergency power supplied by the CEC from its gas turbines. This power allowed KCM to continue to pump water and withdraw its employees in a planned and disciplined manner. All employees at both the Nchanga and Konkola underground mines were withdrawn without injury or incident.

However, around 04:30 AM on Friday, KCM lost the emergency power supply after the national power system tripped as attempts were being made to reconnect the company to the national grid. Full supply of power was finally restored to KCM at about 09:40AM today. Production was suspended during the power outage.

Consequently, it will take KCM about 16 hours to restart operations at its Nchanga smelter in Chingola. The company will also suffer some slight loss of production at Konkola while pumping out of water continues from the deeper sections of the mine.

The rest of the operations are being systematically returned to production following full safety and environmental checks.

Shapi Shachinda

Manager Public Relations & Communications

Mobile: 0978 871958

Zambia’s First Lady Esther Lungu has said Konkola Copper Mines (KCM) is a trusted development partner for the country following its expansive social investments in the last 11 years.

The first lady said this when she addressed hundreds of residents of Shimulala, Helen and Kakosa settlements on the outskirts of Chingola, where the company’s corporate head office is located. She visited sites of KCM’s corporate social responsibility (CSR) programmes.

Mrs Lungu commissioned the new Helen Bridge which was constructed by KCM at a cost of Zk877,635.00 (US$82,640.00). She also laid a foundation stone for an Out-Grower project seeking to empower local farmers and toured other KCM-funded CSR projects.

The newly constructed Helen Bridge has eased movements of over 4,000 people living in the area as they carry produce and other goods to markets in Chingola and beyond. It also connects people to health and education facilities outside of their settlements.

The Nabona out-growers programme targets to provide about 500 small and medium scale farmers with access to markets in an organised way to ensure quality and planned production.

I want to urge the community to continue to work closely with Konkola Copper Mines (KCM) because this is your trusted partner. KCMhas stood by you in good and difficult times,

she said.

“I must commend KCM for providing 22 hectares of land on lease to proprietors of Nabona as this will create employment for farmers and the young people,” Mrs Lungu said.

Mrs Lungu also paid glowing tribute to KCM for empowering women with life-saving skills in cattle rearing, tailoring and farming.

“I want to attest that it is evident that KCM has spent US$160 million in communities over the last 11 years,” Mrs Lungu told residents after touring some CSR projects, including the cattle restocking project.

I have seen some of the key projects where these funds have been spent.

She said it was heartening that the company was focusing on four corporate social responsibility pillars, namely education, health, sustainable livelihoods and sport.

The first lady encouraged KCM to continue uplifting the lives of people in its areas of operations. KCM has given out over 596 cattle in Chingola, Chililabombwe and Nampundwe and also provided 2,327 goats to 26 self-help groups.

Mrs Lungu said social investments by KCM fitted into President Edgar Chagwa Lungu’s vision for a public private partnership models for diversifying the economy and shoring up growth.

hingola, 4th November 2015 – Konkola Copper Mines (KCM)has reaffirmed its commitment towards Zambia’s development agenda despite the current challenges it is facing that have affected its operations.

KCM Chief Executive Officer Steven Din says the company’s investment in the mines amounting to $3 billion dollars over the last eleven (11 years) is a clear demonstration of its commitment to this development agenda.

Mr. Din has said this in a statement in commemoration of the company’s 11th anniversary which falls today.

Mr. Din notes that despite the current challenges KCM is facing such as low copper prices and power deficits, the company’s 50 year vision will ensure that KCM still remains in operation for a long time to come through enhanced sustainable operations of its mines.

He adds that to achieve this agenda KCM is examining local economic development opportunities aimed building up the economic capacity of the communities around KCM’s operations to improve their economic futures and the quality of life for all.

He also highlighted the company’s commitment to its CSR programmes in the areas of rural livelihoods, education, health and sports. KCM has spent more than $160million on its CSR projects since Vedanta acquired its interests in the company.

Hesays the company aspires to use the KCM assets as a catalyst to secure economic activity in the Copperbelt and surrounding areas for the next fifty years and beyond, long after KCM has ceased mining.

KCM is working a 50 year vision but this vision depends on the Copperbelt realizing its potential as an economic hub. Mining alone will not achieve this. Agriculture, tourism, logistics, services and trade will all need to make a contribution,

Mr. Din said.

The CEO is confident that with the right strategy, carefully executed in partnership with government, donors and civil society groups, KCM can add substantially to additional economic activity per year in non-mining sectors and create many jobs.

He further notes that generating employment beyond the life of the mines will be the single greatest economic legacy of KCM in the Copperbelt.

Zambia-based copper miner Konkola Copper Mines (KCM) has affirmed that it has not made a decision to close its Nchanga underground mine or scale down operations at the Nkana refinery, following media reports alleging closures. KCM, a subsidiary of London-listed global diversified natural resources company Vedanta Resources, is one of Africa’s largest integrated copper producers.

It has mines at Konkola in Chililabombwe, Nchanga near Chingola and Nampundwe in the Central province of Zambia. Its operations include openpit and under-ground mines, several concentrators, a state-of-the-art smelter and a refinery. In addition to copper, the company also produces cobalt, pyrite and acids. “The company’s operations remain open and production is continuing. No workers have been laid off and no contracts have been terminated,” the company states, noting that the basis of media stories circulating is an unofficial memo, which has no official sanction from within the company.

However, KCM notes that the implications of electricity cuts are still unclear, with the company in consultation with power provider Copperbelt Electricity Company and the Zambian government regarding the implications of load-shedding.

Zambia is experiencing a power supply deficit of 30%, as water levels at State-owned power utility Zesco’s hydroelectric plants decreased significantly, owing to drought.

Performance Focus

Meanwhile, KCM CEO Steven Din noted in the company’s July newsletter that, while the company continues to improve its operational performance, KCM has “a long way to go in ensuring that business plan target”. Din highlighted that integrated mine metal production at the end of the first quarter is 85% of the business plan target.

KCM is developing the flagship Konkola Deep Mining Project, in Chililabombwe. The project involves expanding the production of copper ore at the Konkola mine by accessing the rich orebody that lies beneath what current operations have been exploiting. “This involves the sinking of a new mine shaft to the depth of 1 500 m, the deepest new shaft sinking project in Africa,” according to Vedanta Resources’ website.

Din further highlighted in the company newsletter that there is steady improvement at the Konkola underground mine. “Phase 1 mining of ventilation and slot raises has been completed in the Konkola East section and Phase 2 of secondary development is progressing well,” he stated. Moreover, copper-in-concentrate production has been sustained above 4 000 t for the last two months, Din noted, adding that Konkola “achieved 85% of the business plan target in the first quarter, with production constrained by power outages resulting in flooding at the end of April and beginning of May”.

Nchanga Smelting and Refining He further highlighted that “overall, Nchanga has continued seeing an upward trend in production [having] achieved 89% of the business plan in the first quarter”. The Nchanga mining operations are situated near Chingola. The operations mine primary copper and cobalt through underground and openpits.

Media reports in the newsletter also highlighted that the Nchanga Open Pit Cut II increased production in the first quarter and “beat monthly targets by more than 100% in April and May”. Din noted that, although the company was affected by challenges, such as low dump truck availability, Old East Mill throughput constraints, power outages and power grid instability, the team has corrective action plans in place to stabilise production. Further, the Nchanga openpit mine achieved 123%; Nchanga underground mine achieved 97%; Tailings Leach Plant achieved 97%; and support service achieved 93% of the amount detailed in the business plan.

Din, however, acknowledged that the Nchanga smelter was unable to achieve its targets, owing to low receipts of integrated and custom concentrates resulting in knock-on, low production at the Nkana refinery. The Nchanga smelter achieved 67% of business plan targets, while the Nkana refinery achieved 56%. He added that the company has no control over the copper price, which is set in international markets.

“While we saw steady increases in the copper price at the start of the year, in June and July, this reversed sharply,” he stated. Therefore, Din emphasised the company’s need to redouble its business efforts under the circumstances.