Press Statement on Commencement of Manganese Mining in Serenje by Kabundi Resources Limited

ZCCM-IH COMMENCES MANGANESE MINING OPERATIONS IN SERENJE

05th May 2020, Lusaka, 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 K18.6 million.

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, were he also inspected works at the Kampumbu Resettlement area earmarked for 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 K4.5 million to fulfil 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.

-END-

Issued by:
Loisa Mbatha-Kakoma
Public Relations Manager
ZCCM Investments Holdings Plc

kakomal@zccmnew.wpenginepowered.com

Download the Press Release here: Press Statement on Commencement of Manganese Mining in Serenje by Kabundi Resources Limited

Mopani Copper Mines plc (MCM) Extract from 2020 Annual Report

During the financial year to 31 December 2020, Mopani Copper Mines (MCM) recorded net revenue of ZMW4.93 billion (US$ 714.44 million) [December 2019: ZMW4.93 billion (US$369.84 million)]. The net loss for the period under review was ZMW9.31 billion (US$ 474.56 million) [December 2019: ZMW9.31 billion (US$ 698.92 million net loss)].  

During the year ended 31 December 2020, MCM produced a total of 90,050 tonnes of copper (2019: 21,554 tonnes).  On 31st March 2021, ZCCM-IH and Glencore signed an agreement in which ZCCM-IH would purchase the 90% interest in Mopani held by Carlisa Investments Corp. (“Carlisa”), in which Glencore holds 81.2% of the shares for a US$1 consideration and US$1.50 billion in Transaction Debt. 

There were no dividends paid during the financial year ended 31st December 2020 (2019: Nil). 

Zambian emeralds beam hope to world as birthstone of May

EMERALDS have been a beacon of hope across the world since time immemorial.

Now Zambia is taking its place as the leading source of these precious gemstones, thanks to the world’s largest producing emerald mine – Kagem – in Lufwanyama, which is owned by Gemfields in partnership with the Zambian government through the Industrial Development Corporation (IDC).

Emeralds from around the world have always had an opulent allure and an aura of healing about them. Twenty times rarer than colourless diamonds, they were first discovered some 5,000 years ago. In that time, they have been credited with everything from curing snakebites to easing childbirth, divining truth and seeing the future. Emeralds are believed to symbolise hope, growth and fresh starts – particularly apt in the challenging days we currently face.

Fittingly, emeralds are the birthstone for May, that freshest and most verdant of months, when thawed land springs into new life and buds with flower. Joanna Hardy, a fine jewellery specialist and author of the book Emerald, sums up the special connection between these precious green gems and this time of year: “Once again, our parklands, woodlands and gardens are bursting with renewed life; there is nothing quite like the haze of green as new leaves burst forth. The green colours of spring remind us of hope, rebirth, renewal and nature, and it is no coincidence that emeralds have always been associated with these calming and rejuvenating properties. Wearing an emerald connects us with the earth, reminding us that there is hope in the air.”

And after what has been a particularly challenging start to 2020, it is fair to assume that the green shoots of spring will be more welcome than ever this year, and so too the gemstones that so perfectly encapsulate the spirit of this season as thoughts turn to jewellery, and the increasing popularity of birthstone gifting (a top trend currently with engagement rings). Those born in May are lucky indeed. One of the ‘big three’ precious gemstones – alongside rubies and sapphires – emeralds belong to the mineral family beryl and range in colour from a bluish green to a pure green, with vivid colour saturation, the shade varying with the country of origin.

East African emeralds are amongst the oldest of all, deriving their intense colour from a rare combination of minerals. The world’s leading supplier of responsibly sourced coloured gemstones, Gemfields has been mining emeralds at its Kagem mine in Zambia since acquiring the mine in 2008 in partnership with the Zambian government. Zambian emeralds are believed to be over 500 million years old and, due to their high iron content, more robust than others. They are known for their rich colour and are some of the largest and most exceptional emeralds found anywhere in the world. The ‘Lion Emerald’, discovered by Gemfields at Kagem in 2018, is, at 5,655 carats, one of very few exceptional gemstones to have merited its own name, displaying rare colour and clarity characteristics in addition to its significant weight.

As well as their exquisite physical characteristics, the talismanic properties that have long been associated with emeralds are a large factor in their enduring popularity. Romans believed they could revitalise the soul of those who wore them; early Christians believed they symbolised the resurrection of Christ; Cleopatra – after whom early Egyptian emerald mines were named – used to present them to subjects as talismans; the ancient Egyptians viewed emeralds as sacred, and ancient civilisations in general valued them for their healing properties far more than for their material value. In 1609, a Belgian physician suggested they could cure everything from dysentery, fever and bleeding to epilepsy and panic. Since these times, a rooted belief in an almost otherworldly ability to heal has attached to these beguiling gemstones. Who can forget the cherished emerald and diamond tiara that Prince Albert had made for Queen Victoria, or the ones given to Elizabeth Taylor by Richard Burton, subsequently auctioned at Christie’s?

When shopping for emeralds, Joanna Hardy suggests looking for, above all, transparency on origins and treatments; each emerald of note should come with a report from a recognised gemmological laboratory. You should also look for evenness of colour and good saturation; the cut matters too, and it is important to remember that natural inclusions are part of the gem’s DNA and should be welcomed: these are what makes each and every emerald unique.- Langmead Media

Source: https://www.themastonline.com/2020/05/04/zambian-emeralds-beam-hope-to-world-as-birthstone-of-may/

COVID-19: Not all-gloomy picture

SINCE the outbreak of coronavirus (COVID-19) in Wuhan in 2019, there are so many ways in which society and economies have had to pay.
Some of the social costs that society has had to pay include the disruptions in social activities such as closure of schools, churches, universities and a suspension of many social activities that we hold so dear as a people.
From the economic point of view, we have seen companies close, job losses, loss of human capital (deaths) and a general reduction in economic activities whose cost we cannot easily estimate.
In as much as COVID-19 has cost Zambia and the world at large so dearly, should we just focus on the gloomy picture? The answer is a big NO because there are so many positives that we can draw at individual, community, national, continental and global levels.
For decades, money has been spent to drive an improvement in people’s personal hygiene habits but with little success as evidenced by perennial diseases such as cholera.
During the COVID-19 fight, we have witnessed a massive change in terms of people’s personal hygiene habits as well as improved community hygiene levels. The hygiene levels we are witnessing in markets, supermarkets and bus stations have never been witnessed before.  Yes, due to COVID-19, at individual and community levels, we now have a cadre of health and hygiene-conscious citizens that will outlive the pandemic.
Psychologists say that if you do anything consistently for a period of 30 days or more, it becomes a habit. Sanitising and frequent washing of hands will therefore become habitual for most Zambians
They say “necessity is the mother of innovation” and we have seen a rise in all manner of innovations that are meant to help save lives and for the human race to move forward.
Since the outbreak of COVID-19, we have seen innovations by companies in the medical, pharmaceutical and non-pharmaceutical industries. These innovations include products ranging from face masks, hand sanitisers, test kits and those focused on how to drive production costs down.
Apart from innovations to do with medicines and health supplies, we have seen innovations meant to keep the social activities and the human race moving in areas such as communication, education and entertainment. During this period, we have seen a rise in the adoption of video-conferencing facilities.
We have further seen a rise in adoption of technology platforms to deliver live entertainment and education platforms electronically.
These innovations will surely outlive the pandemic and serve humanity for many years to come.
Another big positive that has been brought by the COVID-19 is that it has helped us assess our levels of preparedness and response strategies with regard to handling a pandemic or a global crisis.
Prior to the outbreak of COVID-19, certain institutions in Government, companies or in the community were seen to be irrelevant. For example, a safety, health, environment and quality (SHEQ) officer may be seen to be irrelevant until disaster strikes.
Scientists and researchers working in the Centre for Disease Control or climate change issues may be seen to be irrelevant until there is a disaster. Investments in certain sectors such as prevention and research centres may not be a priority and you can only see their importance when disaster strikes, as is the case now.
Investing in refresher courses for different professionals is not given any priority and it becomes too late when disaster strikes.
COVID-19 has taught us investment in preventive measures, and research is key for adequate preparation and response to any crisis. These lessons will outlive the pandemic and make us better prepared for any future crisis.
One of the biggest positives coming out of the COVID-19 is that in today’s world, coopetition rather competition is still attainable.
When competitors are supposed to be rivals, we have witnessed them cooperate during this pandemic by donating for the same cause. We have shown as a people that it is possible for subordination of individual interests to the interests of the general population.
The COVID-19 pandemic has helped us discard the selfish nature of a human being encapsulated in the slogan “each one for himself and God for us all” and replace it with the three musketeers’ mantra of “All for one and one for all”.
The same coopetition that we have seen in the COVID-19 fight is what is needed to fight some of society’s pressing problems like climate change and global warming.
Challenges make us grow either at individual level or organisational level. The COVID-19 pandemic has helped us grow both at individual, community and organisational levels.
During this time, both at individual and organisation levels, companies have learnt to be resilient and innovative in order for them to stay afloat.
A review of history gives examples of so many global crises that we have faced and have managed to overcome.
The first example that comes to mind is the Spanish flu of 1918 which infected an estimated 500 million (one third of the planets population) and killed between 20 million and 50 million.
The Spanish flu is considered the deadliest flu outbreak and it was overcome through cooperation and sacrifices such as those that we are making today. The sacrifices included masking up, closure of public places, avoiding handshakes, and staying at home, to name but a few.
A second example of a global crisis that a majority of us can all relate to is the global financial crisis which took place between 2007 and 2008.
This crisis was considered the most serious financial crisis since the great depression of the 1930s. This too was overcome through togetherness and cooperation and the world emerged better and stronger.
The battle against COVID-19 continues and we can’t predict when it will end, but we can predict that we will come out of this battle stronger and better than we were before the outbreak.
It is not an all-gloomy picture because we will be better in terms of the levels of preparedness and more resilient for the next global crisis awaiting us.

Source: https://www.daily-mail.co.zm/covid-19-not-all-gloomy-picture/

Glencore’s Mopani Copper to temporarily resume operations

Mopani Copper Mines (MCM), the Zambian subsidiary of Glencore, will be resuming mining operations for 90 days, and will be placed on care and maintenance once the 90-day period is up.

The company will remain in discussions with the Zambian government throughout this period as it looks for potential solutions to its current challenges. The company’s statement, released on Sunday, came following constructive talks with Zambian officials.

Initial plans to place Mopani Copper under care and maintenance measures were met with backlash from the government, threatening the company with revoked mining licenses due to a failure to provide a reasonable notice period. The company also allegedly broke labour laws in the country by making workers opt for forced leave whilst ending contracts of mining supplies and services.

Mopani was forecast to produce between 50,000 and 70,000 tons of copper this year, but the outbreak of the COVID-19 pandemic and decline in the price of copper led to Glencore’s decision to disrupt production. International mobility, transportation and supply chain disruptions have all contributed to Mopani’s situation.

MCM has placed the health and safety of its staff and the surrounding communities as its top priority in its decision making. The company will remain in contact and engage regularly with its employees and relevant contractors, whilst also staying in touch with the local communities. Operations will not restart without the correct consultations taking place between all of these groups.

The closure would potentially affect approximately 11,000 workers, however, these employees would all continue to be paid and receive staff benefits, according to Glencore. The talks between Mopani and the Zambian government will be used to discuss how officials can work with companies to improve the mining sector. Import duties have already been introduced on certain goods that negatively impact copper producers in the country.

Operations originally shut down for Mopani on April 8th, although it continued to process materials it had on-site at its smelter and refinery. A number of projects have been placed on indefinite hold, with key personnel unable to travel and complete commissioning.

Glencore will be cutting capital expenditure by between $1bn and $1.5bn, in a bid to lessen the impact of COVID-19 across its assets. A number of Glencore assets around the world have also seen production curtailed, with the disruption being felt around the world.

Source: https://www.miningglobal.com/mining-sites/glencores-mopani-copper-temporarily-resume-operations

Mopani Copper Mines Restarting operations for 90 days

Glencore-managed Mopani Copper Mines confirmed on Sunday that constructive discussions had taken place with the Zambian government and that mining operations would be restarted and a notice issued of the company’s intention to place the mining operations on care and maintenance after 90 days.

During the 90-day period, Mopani would continue to engage with the government on potential solutions to its current challenges, the company said in a media release to Mining Weekly.

The health and safety of the workforce and surrounding communities was the top priority of the company, which would engage with its employees, relevant contractors and local communities regarding the restart of operations.

Mopani stated that it remained committed to supporting its community projects, hospitals and schools.

Mopani, owned 73.1% by Glencore, is an integrated copper producer located near the city of Kitwe, in the Copperbelt.

In its first-quarter report, Glencore stated that Mopani’s first-quarter smelter restart processed 5 000 t of a potential 10 600 t of copper contained concentrates produced, while the smelter underwent a multi-month rebuild.

Last month, Mopani said in a media statement to Mining Weekly that in addition to the impacts of a rapid decline in the copper price, Mopani’s situation had been further impacted by the critical disruptions to international mobility, transportation and supply chains arising from Covid-19.

A number of projects the company was in the process of commissioning have had to be placed on hold until key personnel are able to travel to site.

In the circumstances, and following consultation with its majority shareholder and funder, Mopani said it would be transitioning its mining operations to care and maintenance with effect from 8 April.

Regarding the smelter and refinery, material on site would continue to be processed until further notice.

Mopani said that it believed that the transition to care and maintenance would help to protect its value and preserve the option to deliver growth projects when market conditions improve.

During the care-and-maintenance period, Mopani said it would look to continue to maintain its commitments to the national workforce and host communities.

Mopani would work with the local authorities and community leaders on how best it could continue to support its partners in light of the government decrees relating to minimising the spread of Covid-19.

In April 2000, Mopani purchased assets of the Zambia Consolidated Copper Mines Limited (ZCCM), made up of underground mines, a concentrator, a smelter and a refinery at Mufulira mine site and underground mines, opencast mines, a concentrator and a cobalt plant at Nkana mine site in Kitwe.

ZCCM-IH  still has a 10% shareholding and First Quantum Minerals a 16.9% shareholding. 

Source: https://www.miningweekly.com/article/mopani-copper-mines-restarting-operations-for-90-days-2020-05-03

LILAYI COPS GUARD GOLD MINES

PARAMILITARIES from Lilayi Police College have been deployed to Kasenseli and newly discovered gold sites in Mwinilunga to beef up security, Mwinilunga District Commissioner Arnot Mapulanga has said.

Mr Mapulanga said the paramilitaries had been deployed to intensify security with the police officers from Kanfinsa who were earlier deployed in the area.

“There is some paramilitaries who have just come, so we are hoping that they do a good job to remove all the foreign illegal miners who have been hiding in the bush.

“We had mobile security officers from Kanfinsa and now we have paramilitaries from Lilayi who have come to beef up the team. So we shall ensure that all these foreigners who are stealing from Zambians are removed,” Mr Mapulanga said.

He said in an interview yesterday, Government had deployed more security officers.

“This time around with this beef up of the security officers we shall be able to remove all foreign illegal miners who are illegally exploiting the mineral,” Mr Mapulanga said.

He said that he would not relent until people who had taken advantage of the absence of the ZCCM-IH which was legal licence holder, are kept in check.

Mr Mapulanga said the government was on firm ground to ensure that the strategic resource was mined in a well-structured manner.  – DN

Source: https://www.zambianobserver.com/lilayi-cops-guard-gold-mines/

Work with locals, ZCCM-IH urged

ZCCM-IH has been encouraged to work with artisanal miners to quarry for gold in secured areas to empower locals, a mining expert has said.

Mr Edward Simukonda said it was imperative that ZCCM-IH works with locals to mine gold to stop the continued illegal mining which is denying Zambians to benefit from the resource.

Mr Simukonda said delays were abetting illegal gold mining and foreigners rapidly taking advantage of the resource.

He said in an interview yesterday, it was prudent for ZCCM-IH to move in as quickly as possible before the mineral was depleted.

Mr Simukonda said revelations by North-Western Province Minister, Nathaniel Mubukwanu, and Mwinilunga District Commissioner, Arnot Mapulanga,that foreigners had invaded Kasenseli and new discovered gold areas was evidence enough that the mineral was being depleted.

This lucrative mineral is supposed to be mined in a transparent manner so that Zambians can benefit, he said.

Mr Simukonda said if the mineral continued to be exploited illegally and smuggled out of the country, then the nation would be denied much needed revenue.

“What is really happening in these gold mining areas is very worrying and cannot be overlooked. This must draw serious attention of ZCCM-IH because by the time they will be moving in, they will find that most of this mineral is taken.

“Our aim as a country must be the issue of safeguarding this lucrative mineral because it is our hope to improve the wellbeing of the country,” he said.

Mr Simukonda said seriousness was needed in ensuring that the mineral was properly mined.

Source: https://www.pressreader.com/zambia/daily-nation-newspaper/20200501/281543703084496

ZCCM Gold Company has injected approximately K45 million in Kasenseli Gold Mine Project in Mwinilunga

ZCCM Gold Company has injected approximately K45 million for the initial phase of the Kasenseli Gold Mine Project in Mwinilunga.

With the granting of the exploration licence by the Ministry of Mines and Minerals Development end of March 2020, ZCCM Gold moved on site and started mobilisation in the first week of April 2020 to undertake detailed exploration that will determine the extent of gold mineralisation in the licence area.

According to a statement released to the media by Loisa Mbatha-Kakoma, the Public Relations Manager for ZCCM Investments Holdings Plc, the extensive exploration works which includes geophysics, geochemistry and diamond drilling activities are aimed at delineating the hard-rock (underground) gold deposit in the licence area.

The mining and processing of the alluvial (surface) gold is pending approval of the Environmental Project Brief (EPB) by the Zambia Environmental Management Authority (ZEMA), and the granting of the mining licence by the Ministry of Mines.

The capital injection will also go towards the fencing of the licence area to avoid and prevent any intrusion from outsiders.

Over 40 locals will be employed in the fencing exercise scheduled to start this week. The fence is an additional security measure to the state security that is already on the ground and keeping vigil, patrolling the area to wade off any illegal activities.

Speaking during a courtesy call on Chief Chibwika early April, ZCCM-IH Chief Executive Officer Mr. Mabvuto Chipata indicated that it has taken a bit of time to start the operations at the mine due to a number of statutory and regulatory approvals that are required.

Mr. Chipata said that ZCCM-IH is a listed entity and cannot start any operations without obtaining the necessary and required approvals. He said ZCCM-IH is required to comply with best corporate Governance practices as required by the Lusaka Securities Exchange listing rules, the Mines and Minerals Development Act, the Zambia Public Procurement Authority Act, and the Zambia Environmental Management Authority Act.

Commenting on the coming on board by ZCCM-IH, Chief Chibwika expressed happiness that this will help address the challenges they have been facing in the area with regards to security and the need for development in the area and the district.

He appealed to ZCCM Gold that preference should be given to the local community in terms of jobs and local participation in the supply of various goods and services.

Chief Chibwika said that there is a lot of expectation from the local community with the coming of ZCCM Gold.

ZCCM-IH through ZCCM Gold has been mandated to drive the national gold agenda, working in collaboration with the Ministry of Mines and Minerals Development and other stake holders.

ZCCM Gold is undertaking and overseeing all gold related investments throughout the gold value chain in the country including exploration, mining, processing, refining, marketing, trading and beneficiation in Zambia.

ZCCM Gold is owned 51% by ZCCM-IH and 49% by the Ministry of Finance.

Kabundi Resources Limited Extract from 2020 Annual Report

Kabundi Resources Limited (KRL) appointed a Board and Project Manager to operationalise their manganese mining activity. Manganese mining commenced, and as at 31st December 2020 12,000 tonnes of manganese ore had been stockpiled. A 40 tonne per hour wash plant and 75 tonne per hour crusher were installed on site. The installation of office containers, construction of a community clinic, Project Affected Persons (PAP) houses and school blocks were completed. KRL reported total revenues for the financial year ended 31st December 2020 of ZMW 912 thousand and a loss after tax of ZMW958 thousand.  

There were no dividends declared during the year under review.