Vedanta Resources Plc, owners Konkola Copper Mines, a Zambian unit, has asked over 400 squatters living on a mine land and has disbursed K588, 000 to those farming in the same area earmarked for mine expansion.

The 402 residents who have encroached in Chabanyama area in Chingola, one of its mining areas, have set up settlements on the mine land which the miner has set up as a dumping site in its continued expansion programme.

Company spokesperson, Shapi Shachinda, concerned with the encroachments, urged residents around mining areas to avoid conducting any activity on mining land as this is against mining regulations. The mining company has since intensified patrols to ensure that no fresh encroachment occurs, the spokesperson said in a statement to the Mining news Zambia.

And the company has provided K588, 000 in compensation to squatters in Chabanyama who are carrying out farming activities as a support to the residents whose farming activities have been affected by the company’s decision to relocate them from the mining land which is now a dump site company’.

Zambia Consolidated Copper Mines Investment Holdings (ZCCM IH owns 20.6 percent of KCM and the other 79.4 percent is owned by Vedanta Resources. KCM is one of Zambia’s major integrated copper producing companies. It is primarily engaged in the exploration for, mining, production and sale of copper and copper by-products.

KCM aims to be a world class Copper Mining and Metals company and has therefore adopted a growth and efficiency strategy. Since 2008, over $2.5bn has been invested to upgrade equipment, build new facilities and expand capacity. These investments have increased reserves & resources and increased the life of the mines.

KCM currently produces 2 million tons of copper ore per year. The company’s US$1 billion Konkola Deep Mining Project (KMDP) will expand its capacity to 6 million tons of ore per year when completed by 2016.

Source: Mining News Zambia

The US$800 million thermal powered power plant under construction at Maamba Collieries is an advanced stage with Government hopeful that its commissioning and subsequent operation will ease power outages being experienced in Zambia, one of Africa’s top copper producers.

Zambia’s power generation, at an average 1400 megawatt which increases to 1800 during peak periods daily, has failed to meet the consumer demand in the country and for export markets as espoused by the Southern African Power Pool (SAPP), which promotes energy sharing among the 15 SADC member states.

The construction of the 300 megawatt thermal power is expected to reduce the inadequate power capacity generation by Zambia when connected to the national grid in collaboration with the state utility-Zambia Electricity Supply Corporation, or Zesco. The plant is planned for takeoff by 2016.

Commerce, trade and Industry deputy minister who is also Sinazongwe constituency lawmaker, where it is located, Richwell Siamunene, says, the thermal power plant, when completed, will ease power outages experienced in the Southern Province and Maamba area.

The connection to the grid will also benefit the entire country in which low energy capacity has stifled its envisaged economic growth rate averaged between 8-10% per annum as demand for power grows.

Xing Zhonghua the Site Manager for SEPCO Engineering, the company carrying out construction works says 60 per cent of the works on the project has been done.

And the Government is still looking for an equitable partner to take up Ndabwe Mine formerly Collum Coal Mine to resume operations at the 12000 tons per annum producer to resume operations after it was shut down by Government for various safety and environmental reasons when it was running under a Chinese company.

Owners of Maamba collieries and Singapore-based Nava Bharat Pvt, earlier projected to double coal output at Maamba mine by 2011 after modernizing the facility it acquired in 2010 for US$26 million.

The company acquired a 65% stake in Maamba, a key supplier of the heating substance to many of the copper mines and various private sector-driven companies in Zambia. A total 35% of the shares were retained by the state-run ZCCM-IH.

Earlier plans by the new owners were to build a new $12 million coal processing plant by the end of 2010. Maamba mine has 78 million tons of known coal reserves expected to last over 70 years.

The mine, produced 600,000 tones coal during peak production in the 1980s and had aimed to reach a maximum output capacity of 2 million tones of coal per year in the long term.

It was envisaged that the Maamba colliery at its peak capacity could reach 1 million tonnes of marketable coal and about the same tonnage of power grade coal to feed the power plant. The power project was estimated to cost $630 million of which 70 % was expected to be financed through debt and the remaining 30 % from equity by shareholders.

There are plans by the Government to eventually list 25 % of the shares in Maamba Collieries on the local bourse with a larger share of that coming from the government’s stake once the firm established a track record of profitability.

Source: Mining News Zambia

The mining company has since taking over the unit pledged to cut down the emissions from the smelter a gas which will now be converted into production of acid which the company seeks to maximize in its production unlike releasing to the atmosphere.

The completion of the upgrade programme means that the smelter will now be able to capture 97 percent of the sulphur dioxide emitted to the atmosphere in conformity with the rules under the World Health Organisation (WHO).

Company Chief Executive Officer Danny Callow said in a statement to the mining News Zambia that the smelter had been completed 15 months ahead of schedule. The smelter was done in three phases to address the sulphur dioxide emissions which were at 100 per cent from 1937 to Glencore’s investment in 2000 since the company took over operations.

Mopani Copper Mines, he added was committed to upgrading the smelter to comply with international standards just after the acquisition of the asset in 2000. The company has to date invested over US$2 billion in rebuilding the mine, much of which is underground operated to meet the international mining and latest standards to maximize on its production of copper and cobalt.
At the time of acquisition, Callow stated, the Mufulira smelter was emitting 100 per cent of its sulphur dioxide emissions into the atmosphere. A decision was made to build a new smelter within the confines of the existing smelter, whilst increasing production and maintaining job stability, which were two key areas of government focus.

“One option we had involved closing the processing plant, which would have enabled us to complete the work earlier but would have resulted in around 900 job losses at the time, with a major impact on the local economy, which is heavily reliant on the operation.

“The second and more viable option was to keep the plant operational and upgrade the smelter in stages,” Callow stated and described the upgrade project as one of the biggest environmental projects ever undertaken in Zambia.

The first phase of the project was completed in 2007, which involved replacing the existing electric furnace and construction of an acid plant at a cost of US$ 213m, enabling the capture of emissions of 50 per cent. In the second phase, two new bigger anode furnaces and twin anode casting wheels were installed at a value of US$81million and were successfully commissioned in 2009.

“With the completion of phases one and two, the smelter capacity improved to about 625,000 tpa concentrate treatment from 420,000 tpa, whilst sulphur capture improved to 51 per cent. In the third and final phase which involved the installation of three larger converters, assorted gas handling equipment and a second acid plant, all costing US$206 million, was completed in March this year, 15 months ahead of schedule agreed with the Zambian government,” Callow added.

It is envisaged that the completion of the Mufulira smelter upgrade project would result in a greatly improved environment for the local community and Mopani employees.

There have been concerns from various stakeholders, civil rights campaigners over the emissions of sulphur dioxide at the mines with some of the residents, especially those living in areas closest to the mines like in Butondo, Kankoyo and Sections eight, F, E,D, C as being victims of the emissions.

They argued recently that the emissions and other mining blasting activities were affecting their livelihood as they were subjected to harsh and chocking fumes while their houses had developed cracks as a result and some, were even demanding compensation from the mining company over their respiratory problems arising from the fumes, commonly referred to as “Centa”, a Boer word meaning strong chocking fumes arising from untreated acid.

Last year, residents of Mufulira’s Kankoyo township, which was heavily affected by the emissions, had staged protests against the health risk sulphur dioxide emissions from Mopani’s Copper Mines-Mufulira smelter has been posing on many people, including children. They claimed they were suffering from serious respiratory infections due to pollution from the mine, although no notable deaths have been recorded to date.

THE Southern Africa Resource Watch (SARW), one of the civil right campaigners had recently argued that the emissions needed to be redressed to save people, animal and enivoronmental effects that characterized Mufulira townships especially those living near the mining areas. SARW, after assessing the recent efforts made by Mopani Copper Mines said it is now satisfied with efforts to mitigate the impact of sulphur dioxide emissions in Mufulira district.

SARW campaign officer for Zambia, Edward Lange said the organisation undertook a survey to observe the situation on a balanced basis, monitoring MCM readings from their community air monitors stationed at some health centres dotted around the district for the past 20 days, adding that the independent assessment showed that there had been drastic improvement on the quality of air in areas like Kankoyo township.

“It was important to note that sulphur dioxide emissions popularly known as ‘senta’ among the locals, was a legacy issue, which had been a challenge in Mufulira since 1937 and efforts by agencies and Mopani Copper Mines that had massively invested in projects aimed at improving the air quality must be commended”.

In the case of Kankoyo and Kantanshi residents, the problem had persisted for over 80 years. It was then that the company decided to redress the historical problem hence the modernisation of the smelter through the smelter upgrade project. Mopani proved its commitment to a clean and safe environment by investing approximately US $450 million to end the historical problem of sulphur dioxide emissions.

Source: Mining News Zambia

COPPERBELT Energy Corporation says the revocation of SI 33, which banned the use of foreign currency in local transactions, will help expedite sourcing of finances for the Kapombo Hydropower project.

Copperbelt Energy Corporation managing director for operations, Owen Silavwe, said revocation of Statutory Instrument 33 would ease some of the challenges the company was facing in building the 40 megawatts hydropower plant. He said the revocation of SI 33 came as a “huge relief” as several challenges pertaining to project implementation were mitigated.

“From our side, it has come as a big relief – not just for Kabompo but for also CEC,” he said.

The government last month revoked the Statutory Instruments 33, which prohibited the use of foreign currency for domestic transactions while SI 55 empowered the Bank of Zambia (BoZ) to monitor inflows, outflows and international transactions.

Silavwe stated that bureaucratic hindrances had slowed CEC’s plans to invest in the vast hydropower potential in Luapula Province.

“What you have got on the Luapula river is the number of potential sites that you can develop, and the consultant basically tried to come up with an optimal way of developing those sites,” said Silavwe.

Source: Mining News Zambia