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ZCCM-IH News

EU funds Zambia to boost gold mining

The Zambian government on Thursday received gold mining equipment funded by the European Union (EU) to improve gold mining.

The equipment, including four sluice boxes, four gold detectors, 12 panning dishes, two shaking tables to be used in gold mines in Vubwi and Lundazi districts in the southern part of the country, will be administered by the Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH), a government agency that holds shares in all mining firms on behalf of the government.

The equipment was purchased at a total cost of 70,000 Euros with support of the EU under the Southern African Development Community (SADC) Trade-Related Facility project aimed at the formalization of the gold mining sector.

Mushuma Mulenga, Permanent Secretary in the Ministry of Commerce, Trade and Industry, said ZCCM-IH was chosen to administer the equipment in recognition of the effort the company was making in the gold mining sector and in view of the need to maintain and sustain the use of the equipment, according to a release.

Mabvuto Chipeta, Chief Executive Officer of ZCCM-IH, thanked the government for entrusting his firm with the responsibility of playing a key role in formalizing the artisanal gold mining sector in the country.

He said the formalization of Zambia’s artisanal and small scale gold sector was a significant, timely and pressing developmental opportunity that must now be realized. 

Source: https://newsghana.com.gh/eu-funds-zambia-to-boost-gold-mining/
Industry News

Mine needs winwin solution

MOPANI Copper Mines’ (MCM) decision to resume operations early this week is indeed commendable and reignites hope for the many employees whose lives were in a limbo.

Last month, the mine suspended its operations in Kitwe and Mufulira, sending 11,000 employees on forced leave.
It is however elating that after Government engaged Glencore, who are the majority shareholders in Mopani over the matter, in talks, the two parties have finally come to an agreement this week to recall miners.
According to Mineworkers Union of Zambia (MUZ) George Mumba, the mine started recalling the workers on Wednesday.
“Mopani has started recalling the workers and some of them have since reported for work. They are not calling them at once but they have been doing it in phases,” he said.
And United Mineworkers Union of Zambia (MUZ) president Wisdom Ngwira has also confirmed that the mine has resumed production in Mufulira and that the miners are now being inducted on the safety measures.
“The miners had stayed away from work for some time now, so they will have to be inducted on the safety measures at the mine before normal work resumes,” he said.
A double thumbs up to Government and MCM for reaching such an amicable decision to restore the dignity of the employees.
When Mopani Copper Mines announced its decision to close operations in Kitwe and Mufulira last month and subsequent laying off of 11,000 employees, many people were taken aback and even angered, understandably so.
Sending 11,000 workers home meant 11,000 families losing their livelihoods.
Given that most of these employees live hand-to-mouth, it meant that these families could no longer afford decent meals, shelter, education and health care services.
The closure of the mine and sending workers home could be equated to sentencing the employees and their families to instant destitution.
The fact that the Copperbelt Province wholly depends on mining, the closure of the mine meant stripping the province of its economic dignity.
At national level, the decision meant Government losing out on revenue through taxes and worsening the poverty situation.
While it is acknowledged that companies are going through a difficult time due to COVID-19, there is need to find win-win solutions.
Companies must look at the bigger picture when coming up with drastic decisions. In this case Mopani should understand that behind those 11,000 employees are families, both nuclear and extended.
There are many lives that get support from these employees.
Taking away their only source of livelihoods means a network of family and friends is affected.
Government should be commended for standing for the Zambian workers when Mopani seemed adamant with their position.
While it is commendable that MCM has come to an agreement to recall workers, it is worrying that the matter has not be completely resolved.
Mopani still insists on issuing a 90-day notice to again place the mine under care and maintenance.
This should not be an option for MCM. Opting out when things are tough is not a solution.
Mopani should instead engage workers and strategize on how they can weather the storm.
This is the time they need to unite as a company to sustain operations. There is life after COVID-19, the prevailing situation is only temporary.
Moreover there are many other companies that have been affected by the pandemic but have not resorted to such drastic measures.
Mopani needs to hang in there and find a win-win situation.
In as much as the mine is motivated by profits, it should put on a human face and remember that these are the employees that have contributed immensely to its success over the years.
We also urge Government not to relent in engaging the mine until a win-win solution is found.

Source: https://www.daily-mail.co.zm/mine-needs-winwin-solution/

 
Investee Company News

Mopani miners trickle back to work

MOPANI Copper Mines (MCM) has started recalling workers it sent on forced leave following its decision to resume operations early this week.
Last month, the mine suspended operations in Kitwe and Mufulira and sent workers on forced leave. It also terminated contracts with some companies it gets services from.
Glencore, the majority shareholders in MCM, did not give Government sufficient notice about its intention to place the Kitwe and Mufulira operations under care and maintenance, in accordance with provisions of the Mines and Minerals Development Act.
MCM’s decision also sparked protests among various stakeholders in the mining sector, who urged Government to revoke the mine’s licence. 

Source: https://www.daily-mail.co.zm/mopani-miners-trickle-back-to-work/
ZCCM-IH News

Three cities to be the first to use Gold exploration equipment says ZCCM-IH CEO

ZCCM IH has announced that it will be working with registered gold mining cooperatives in Rufunsa, Vubwi, and Lundazi in gold recovery and exploration activities according to CEO Mabvuto Chipata.

ZCCM-IH has been mandated by the Government to drive the national gold agenda. The key to this mandate is to help formalize the activities of the artisanal gold miners doted in about 21 districts. This is why the Ministries of Mines and Minerals Development, and Commerce and Trade Industries handed over some gold equipment to ZCCM-IH for this purpose.

“We believe that formalizing Zambia’s artisanal and small-scale gold sector is a significant, timely, and pressing developmental opportunity that must now be realized”, said Mabvuto Chipata at the handover ceremony held in Lusaka on 7 May 2020 at Government Complex.

“This is aligned with the aspirations of the Seventh National Development Plan specifically regarding employment creation, revenue generation, supporting intra-sector diversification to other minerals such as gold and other precious minerals”.

The Ministry of Commerce, Trade and Industry secured the 140,000 euros from the SADC Trade Related Facility Project to procure the equipment that was handed over to the cooperatives. “I wish to inform you that our two Ministries, with the support from the European Union under the SADC Trade-related Facility (TRF) Project, purchased gold mining equipment to further support the formalization of the gold mining sector”, said Barneby Mulenga.

With the security of Gold mining a huge concern for Government, the Permanent Secretary of Ministry of Mines and Minerals Development, Barneby Mulenga gave some background to have Government, through a multi-stakeholder committee were able to carve out the guidelines for Gold mining that would enable the security of the products whilst preventing illicit trade. “It is gratifying to note that since the approval of recommendations of the inter-ministerial committee, the ministries of mines and minerals development and commerce, trade and industry have made strides in bringing into fruition, some of the recommendations that were made by the committee in an effort to formalize illegal gold mining and trading”, disclosed Barneby Mulenga.

The Ministry of Commerce who also collaborating in the formation of the 13 cooperatives, disclosed that they also provided skills development. “Ministries of Commerce, Trade and Industry and Mines and Minerals Development have collaborated in facilitating the formation of more than thirteen (13) gold mining cooperatives in Rufunsa and Petauke Districts and have trained them on both the production and business sides”.

With capacity building and equipment in place, all is for a new era of mining that begins with the grassroots. However, even the Government is aware that this journey must be steered by capable hands. “Recognizing similar efforts that the Zambia Consolidated Copper Mines – Investments Holdings (ZCCM – IH) is making in the gold mining sector and in view of the need for sustainability of the equipment that the Project purchased, the two Ministries have opted to assign ZCCM – IH to administer the equipment, on behalf of the cooperatives. In administering this equipment, ZCCM – IH is expected to collaborate with local authorities and the office of the District Commissioner in the respective Districts”.

Source: https://fizambia.com/?p=6802
ZCCM-IH News

The importance of due process in Gold and Manganese Mining for ZCCM-IH

According to a report published by the International Labor Office, “small-scale mining is expanding rapidly and often uncontrollably in many developing countries, employing large numbers of women and children in dangerous conditions and generating a workplace fatality rate up to 90 times higher than mines in industrialized countries”.

The report further states that “as much as 80 percent of small-scale mining falls outside any legal or regulatory framework”. This is why ZCCM IH’s Gold and Manganese ambitions need to be applauded as they are bringing structure to an industry in Zambia that has the potential to rewrite the mining history of a country.

Recently, “works at the manganese mine in Serenje have commenced following the end of the heavy rains that had hampered kick-starting operations, posing a challenge in accessing the mine site areas”. The works being undertaken are part of ZCCM-IH, through its wholly-owned subsidiary Kabundi Resources Limited (KRL), works that have started on Phase one of the project in the small-scale mining license, with an initial capital injection of K18.6 million. This comes a few days after they had announced an injection of approximately K45 million for the initial phase of the Kasenseli Gold Mine Project in Mwinilunga.

In both instances, ZCCM IH is craving out and executing their ambitions by the book as can be seen by their Resettlement Action Plan (RAP) which was approved by the Zambia Environmental Management Services (ZEMA) and involves the construction of an additional one-by-two classroom block, a health center, nine-by-three bedroomed houses for the relocation of the Project Affected Families, one house for a teacher, and another house for a medical staff.

Responsible project implementations are one of the hallmarks that financiers of various projects that have environmental impact often seek out when investment companies such as ZCCM IH seek out capital. This ensures that during the life of the project and hereafter, minimal litigation cases can be envisaged as due process has been followed.

This is also the reason why it is important to protect such assets as the mining sector is prone to illicit mining. Most recently ZCCM IH advertised a tender for security services to help address security concerns at its mining outfits that are in the development stage.

Source: https://fizambia.com/?p=6799
Investee Company News

ZCCM-IH starts mining manganese in Serenje, Zambia

Works at the manganese mine in Serenje have commenced following the end of the heavy rains that had hampered kick-starting operations, posing a challenge in accessing the mine site areas.

ZCCM Investments Holdings Plc (ZCCM-IH) through its wholly-owned subsidiary Kabundi Resources Limited (KRL) are on-site and have started Phase one of the project in the small-scale mining license, with an initial capital injection of K18.6M.

Phase two of the project which is scheduled to start before the onset of this year’s rainy season will be extended to other areas of the ZCCM-IH Large Scale Exploration area in Serenje.

ZCCM-IH Chief Executive Officer Mr. Mabvuto Chipata undertook a site visit end of April 2020, where he also inspected works at the Kampumbu Resettlement area earmarked for the relocation of nine (9) households from the Kabundi mine site.

The Resettlement Action Plan (RAP) approved by the Zambia Environmental Management Services (ZEMA) involves the construction of an additional one-by-two classroom block, a health center, nine-by-three bedroomed houses for the relocation of the project affected families, one house for a teacher, and another house for a medical staff.

These buildings will also be serviced and fully connected with piped water sourced from water boreholes to be drilled in the area.

Mr. Chipata was happy with the progress made both at the mining operation and the RAP sites.

He stated that the mine will be fully operational by July 2020, and looked forward to having it officially launched by August 2020.

ZCCM-IH will spend a total of K4.5M to fulfill the RAP obligations, which are scheduled to be handed over to the beneficiaries in June 2020.

The RAP project has so far employed over 20 locals. KRL will further employ over 150 youths at the mine site as production scales up upon relocation of the affected families.

KRL targets to mine about 60,000 tonnes of manganese by the end of the year during the ramp-up period of operations.

Production is targeted to reach 240,000 tonnes of manganese ore annually once commercial production is achieved.

The Company is a strategic investment aimed at diversifying the commodity mix of the ZCCM-IH’s portfolio which is largely comprised of copper producing assets.

Source: https://furtherafrica.com/2020/05/07/zccm-ih-starts-mining-manganese-in-serenje-zambia/, https://fizambia.com/?p=6770
Investee Company News

Manganese Mine In Serenje District Reopens

Works at the Manganese Mine in Serenje District of Central Province have commenced following the end of the heavy rains that had hampered kick-starting operations, posing a challenge in accessing the mine site areas.

ZCCM Public Relations Manager Loisa Kakoma says ZCCM Investments Holdings PLC through its wholly owned subsidiary Kabundi resources limited are on site and have started phase one of the project in the small-scale mining license, with an initial capital injection of k18.6 million.

Mrs Kakoma explains that phase two of the project which is scheduled to start before the onset of this year’s rainy season will be extended to other areas of the ZCCM-IH large scale exploration area in Serenje.

She says ZCCM-IH Chief Executive Officer Mr. Mabvuto Chipata undertook a site visit end of April 2020, were he also inspected works at the Kampumbu Resettlement area earmarked for relocation of 9 households from the Kabundi mine site.

Source: https://www.phoenixfm.co.zm/business/manganese-mine-in-serenje-district-reopens/
Annual Report Summaries, Investee Companies

Consolidated Gold Company of Zambia Limited (CGCZ) Extract from 2020 Annual Report

Consolidated Gold Company of Zambia Limited is a joint venture partnership between ZCCM-IH (45%) and Karma Mining Services and Rural Development (55%). Incorporated in the year 2020, this Special Purpose Vehicle is focused on developing a gold processing and trading hub in Zambia. Phase 1 will be undertaken in Rufunsa District and will require ZCCM-IH to invest US$1.4 million towards the total set-up cost of US$3.5 million.  
Investee Company News

ZCCM-IH Manganese project starts

ZCCM-IH has targeted to produce 60,000 tonnes of manganese this year at its mine in Serenje, which has commenced following the end of heavy rainfall.

The rain pattern had posed a challenge in accessing the mine sites, hence operations could not start earlier.

ZCCM-IH, through its wholly owned subsidiary Kabundi Resources Limited (KRL), has started phase one of the project in the small-scale mining license, with an initial capital injection of K18.6 million.

Public Relations Manager, Loisa Mbatha-Kakoma, yesterday told the Daily Nation that phase two of the project which was scheduled to start before the onset of this year’s rainy season would be extended to other areas of the ZCCM-IH large scale exploration area in Serenje.

Ms Kakoma said ZCCMIH Chief Executive Officer, Mabvuto Chipata, undertook a site visit last month and inspected works at the Kampumbu Resettlement area earmarked for relocation of nine households from the Kabundi mine site.

She said the Resettlement Action Plan (RAP) approved by the Zambia Environmental Management Services (ZEMA) involves the construction of an additional one-by-two classroom block and a health centre.

Nine three bedroomed houses for the relocation of the Project Affected families, one house for a teacher, and another house for a medical staff were also part of RAP.

“These buildings will also be serviced and fully connected with piped water sourced from water boreholes to be drilled in the area. Mr Chipata was happy with the progress made both at the mining operation and the RAP sites.

“The mine will be fully operational by July 2020. ZCCM-IH will spend a total of K4.5 million to fulfil the RAP obligations, which are scheduled to be handed over to the beneficiaries in June 2020,” Ms Kakoma said.

 

Source: https://www.pressreader.com/zambia/daily-nation-newspaper/20200506/281835760869622
Investee Company News

Serenje town set to ride the electric car curve

The central province town of Serenje, has joined the list of mining towns in Zambia after the confirmation that manganese mining has resumed and is expected to give it an alternative economic engine. The town which lies next to one of Zambia’s largest commercial farming hub of Mkushi, has mostly been an agricultural area and houses the massive 110,000 hectares Nansanga farm block.

The resumption of manganese mining is not only good for the economic diversification of Serenje, but for Zambia as a country. Manganese has recently become a well sought out metal following the shift in mostly the motor vehicle industry from combustion engines (petrol or diesel powered engines) to manganese-lithium battery powered electric cars.

ZCCM Investments Holdings Plc has announced that its subsidiary, Kabundi Resources Limited has commenced works at the manganese mine located in Serenje district following the end of the heavy rains that had hampered efforts to kick-starting operations, posing a challenge in accessing the mine site areas.

Kabundi Resources Limited – KRL are on site and have started phase one of the project via a small-scale mining license, with an initial capital injection of K18.6 million (about US$1 million). The ore grade is on average at 45%, which is relatively considered rich.

The company has disclosed that KRL targets to mine about 60,000 tonnes of manganese by the end of the year during the ramp up period of operations while production is targeted to reach 240,000 tonnes of manganese ore annually once commercial production levels are achieved.

ZCCM-IH Chief Executive Officer – CEO Mabvuto Chipata said in a statement made available to the Zambian Business Times – ZBT on April 05, 2020 that phase two of the project which is scheduled to start before the onset of this year’s rainy season will be extended to other license areas of the ZCCM-IH large scale exploration area in Serenje.

“I undertook a site visit end of April 2020, were we also inspected works at the Kampumbu resettlement area earmarked for relocation of nine (9) households from the Kabundi mine site,” He said.

He added that the Resettlement Action Plan (RAP) approved by the Zambia Environmental Management Services – ZEMA involves the construction of an additional one-by-two classroom block, a health center, nine-by-three bedroomed houses for the relocation of the Project Affected families, one house for a teacher, and another house for a medical staff.

Chipata was happy with the progress made both at the mining operation and the RAP sites saying the mine will be fully operational by July 2020, and looked forward to having it officially launched by August 2020. ZCCM-IH is set to spend a total of K4.5 million to fulfil the RAP obligations, which are scheduled to be handed over to the beneficiaries in June 2020.

The ZCCM IH CEO further said the RAP project has so far employed over 20 locals and the KRL will further employ over 150 youths at the mine site as production scales up upon relocation of the affected families.

Zambia as a country has many avenues to turn around its fortunes and even pay off its national debt, but the pace of implementation of key revenue generating projects remains a challenge. As they say, the proof of the pudding is in the eating, it remains to be seen if ZCCM IH and it’s subsidiary Kabundi Resources will deliver the planned production levels and exports.

ZCCM Gold company is also another avenue to boost the countries revenue earnings which is moving at a snails pace. When the countries debt serving obligations are mounting, the country defaults to asking the government to get an IMF/world bank bail out package, why not instead put pressure for realizing such projects one may ask?

Source: https://zambianbusinesstimes.com/serenje-town-set-to-ride-the-electric-car-curve/