ZCCM GOLD COMPANY INJECTS AN INITIAL K45 MILLION TO DEVELOP
KASENSELI GOLD MINE IN MWINILUNGA
27th April 2020,Lusaka, Zambia – 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.
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.
With the ruling Party Provincial Chairman in North Western and the Provincial Police Chief being transferred to Lusaka headquarters over alleged gold dealings in Mwinilunga, North Western Province Minister Nathaniel Mubukwanu has directed Police to arrested all those engaged in the buying and selling of Gold in Kasenseli.
Mubukwanu who has visited the gold site said all activities have to be halted to ensure sanity in the management of the mineral resources. He said President Edgar Lungu has already issued a directive to arrest any persons found trading in gold.
Mubukwanu expressed disappointment and said the sale of gold by illegal dealers has to be stopped immediately.
Last week,President Edgar Lungu removed Hudson Namachila as North Western Province Police Commissioner for failure to provide security in illegal gold mining.
The Zambia Chamber of Mines has urged the government to urgently engage with the sector and agree relief measures to address the issues facing mining companies in the midst of COVID-19.
The chamber said in a statement it had submitted a broad three-phase economic plan to the government, to urgently manage the economic impact arising from the coronavirus pandemic.
“Since then all mining industry stakeholders have been hoping that some significant stimulus measures would be instituted, as is being seen across the world,” it said.
This proposal included immediate relief measures that could be followed by an emergency support package whose financing could be sought from the IMF and World Bank, the chamber said.
“This was with a view to providing some guidance to government on the critical areas to be urgently addressed,” the statement said.
The proposal also included the implementation of a “fight back” fiscal regime once the COVID-19 pandemic had abated and investment was needed to rebuild the economy, it said.
The IMF last week forecast Zambia’s economy will contract by 3.5% in 2020, from growth of 1.5% in 2019, as coronavirus hits economies across the world. Zambia’s economic activity has also been hampered by widespread power shortages.
Tax relief measures announced such as the suspension of import duties on concentrates and export duties on precious metals were a welcome first step but were yet to be introduced, it said.
The industry’s circumstances had become very desperate and the issues at Glencore’s Mopani Copper Mines were an example of this distress, the chamber said.
Glencore will reverse its earlier decision to shutter its Zambia subsidiary Mopani if it reaches an agreement with the Zambian government, the company said on Monday.
Mopani copper mines plc has confirmed that it has submitted a proposal to government and would resume mining operations as soon as an agreement is reached.
Mopani copper mines public relations manager Nebert Mulenga who revealed this to phoenix news says the mining firm will issue a notice of its intention to place its mining operations on care and maintenance after 90 days.
He says
during the 90 day period, Mopani copper mines plc will continue to engage with the government on potential solutions to its current challenges.
This decision comes after the mine went against government’s directive not to place its Mufulira and Kitwe mines on care and maintenance which was followed by a 7-day ultimatum from the state couple with mine unions led protests in Kitwe.
FINANCE Minister Dr Bwalya Ng’andu has refuted claims that government is considering giving away Mopani Copper Mines Plc in exchange for wiping out Chinese debt.
According to an article published in the Wall Street Journal (WSJ), Monday, the Zambian Government is considering handing over the Glencore-owned mining asset to China in exchange for debt relief.
“Officials in Zambia, for example, say Beijing is demanding collateral in exchange for debt deferral or forgiveness. Two senior Zambian officials on a government panel negotiating with China said they are considering giving the Chinese copper-mining assets including the country’s third-largest mine, Mopani, owned by Glencore Plc, a London-listed mining company, in exchange for debt relief,” read the article in part.
But speaking during a media briefing on the economy in Lusaka, Monday, Dr Ng’andu rubbished the claims, arguing that if the proposed transaction was in the pipeline, government would have no need to hide if the alleged asset handover would help Zambia out of debt.
“Let me start with the famous question of Mopani assets being swapped for debt. I was disrupted last (Sunday) night by a phone call from Washington, from the IMF, wanting to find out how true this is. My simple response was: ‘it is not true.’ Some people might want to refer to this as ‘fake news,’ but here is the situation: the team that has been negotiating or discussing the issues of debt with the Chinese is a very small team from the Ministry and we are all here, on this side. Nobody spoke to any of us on that issue. Secondly, in the discussions, we have not asked for such debt swap from the Chinese, neither have the Chinese asked us to do this. So, all I can say is it is not true, where it came from, I don’t know,” said Dr Ng’andu.
“Sometimes, I find that when journalists want to fabricate a story, they will refer to some sources who are never known, and in this case, they are supposed to be some senior government officials, who are involved with the negotiations who revealed this information, but I frankly don’t know who those officials are. And as far as I know, there is no basis in truth. I would know about it and here is the thing, if we were negotiating for this as a solution, why would we want to hide it? If we think it is a sensible thing to do, why would we want to keep it under wraps? And if we think that that’s a way of getting out of debt, we would be very happy to announce that we are doing it and to give a justification for it. But we are not doing it and that is the position as it stands right now.”
Anglo American is facing a huge class lawsuit for its past corporate practices over lead poisoning in Zambia’s Kabwe town.
Johannesburg-based attorneys Mbuyisa Moleele and London-based human rights law firm Leigh Day are preparing the case and an application to certify a class action will be filed in the Johannesburg High Court.
This is seen as a necessary first step in a class action against Anglo-American.
Indian mining giant Vedanta Resources which the Zambian government does not want anymore, is also connected to Anglo Americans.
The case of lead contamination involving Anglo stems from health issues linked to Kabwe, which Leigh Day said in a statement was once the world’s largest lead mine and operated from around 1915 until its closure in 1994. The law firm said Anglo owned and operated the mine from 1925 to 1974.
However, the diversified miner argues that the operation was nationalized and has been operated by the government for two decades.
Anglo American was one of the six companies involved in the R5bn silicosis class-action case in SA brought on behalf of former gold miners made ill by inhaling silica dust.
“The purpose of the action will be to secure compensation for victims of lead poisoning, including the cost of an effective medical monitoring system for blood lead levels among the community,” the two firms said in a statement on Friday.
They argue the mine was “owned and operated and/or managed” by Anglo American SA between 1925 and 1974 — the operation’s “most productive period”.
“It is alleged that from 1925 to 1974, Anglo American SA played a key role in the management of the medical, engineering and other technical services at the mine, and that it failed to take adequate steps to prevent lead poisoning of the local residents,” the lawyers said.
The mine was closed in 1994, after it was nationalised and taken from Anglo in 1974.
In its defence, Anglo said on Friday it was “one of a number of investors in the company that owned the Kabwe mine”.
“Anglo American was, however, at all times, far from being a majority owner. In the early 1970s, the company that owned the mine was nationalised by the government of Zambia and for more than 20 years thereafter the mine was operated by a state-owned body until its closure in 1994,” the London-based miner said.
“Since the nationalisation more than 40 years ago effectively placed these issues under the control of the Zambian government, we are not in a position to comment further about the matter, but we certainly don’t believe that Anglo American is in any way responsible for the current situation.”
The Human Rights Watch has published a report that puts Kabwe as the most toxic town, having disastrous effects on children’s health.
or almost three months, COVID-19 has devastated the healthcare systems of some of the world’s most developed countries, killing thousands of people every day since it spread from its epicentre in China in January. The virus’ 14-day incubation period means that it can quickly spread among unsuspecting, asymptomatic people, putting businesses with large workforces such as mining companies at particularly high risk. As Gertrude Musunka, Health Programs and Projects Advisor for Kansanshi Mining Plc and Kalumbila Minerals Limited (‘FQM Zambia’) put it, “It only takes one employee to bring an infection to the site, and then we have problems.”
Preventing the spread of infection is the most powerful tool that Zambia has to avoid a crisis that would cripple both the economy, and the health and wellbeing of the country at large. So, what are mining companies in Zambia’s North-Western Province doing to prevent the spread of COVID-19?
Knowledge is power
FQM Zambia didn’t waste any time at all in equipping its workforce with information about COVID-19, explains Musunka. “We started our programs when the COVID-19 cases were still in China. We’ve been ahead of the game; we’ve been educating our employees from Day 1.”
The company weighed up the inherent risks and began carrying out community sensitisation in the areas around Solwezi and Kalumbila right away. “We recognised the fact that avoiding a medical disaster in future lies in what we do now. Then, when the Ministry of Health’s Epidemic Preparedness Committee was formed, we joined that.”
“We recognised the fact that avoiding a medical disaster in future lies in what we do now. Then, when the Ministry of Health’s Epidemic Preparedness Committee was formed, we joined that.”
Ensuring that people can access information in their mother tongue is central to any successful public health campaign. Barrick Lumwana has stepped in to supplement the efforts of Kalumbila District’s COVID-19 Preparedness Committee by printing and distributing an increased number of awareness brochures in the local Kaonde language.
Supporting Government’s efforts to prevent the spread of COVID-19 has, in fact, been central to both Barrick Lumwana and FQM Zambia’s approach.
“We realised that it didn’t make sense for us to only roll out measures at the mine and at the district level,” says Nathan Chishimba, Barrick Gold Corporation’s country manager for Zambia. “We also had to look at COVID-19 prevention and awareness at the provincial and national level.”
An FQM Zambia COVID-19 sensitisation program in progress
Putting your money where your mouth is
On 7 April, Barrick Lumwana pledged $530 000 (approximately K9.8 million at the current exchange rate) towards containing COVID-19. “As a committed partner to Zambia, we would like to make a contribution to the government’s fight against the pandemic,” Chishimba announced. “We are consequently funding the provision of medical equipment to the value of $340,000 at the national level, $100,000 for the North-Western province and $90,000 for the Kalumbila district.”
On 1 April, FQM’s Kalumbila Minerals Limited pledged to donate 50% (K620, 201.25) of the district’s total epidemic preparedness and response budget (K1.2 million), with Assistant General Manager Junior Keyser’s assurance that this is a fight which everyone is in together.
Kansanshi Mining Plc initially made its own pledge of $120 000 (approximately K2.2 million), in addition to Kalumbila Mine’s contribution. But, since Kansanshi’s team got started, some of the costs have spiralled and the company has also undertaken to purchase additional equipment including a GeneXpert COVID-19 test machine, currently on its way from Sweden.
“Our projected expenditure was $120 000,” says Musunka, “But, knowing what we know now, our calculations are standing at about $400 000 (K7.4 million).”
Where is the money going?
“Working with the Ministry of Health, we’ve identified critical supplies to combat the pandemic,” says Chishimba. “As we speak, we’ve triggered our regional supply chain management to procure a range of about 54 items which we’ll be supporting the government with — including ventilators, respirators, hazmat suits, hand sanitiser, face masks, remote thermometers, and so on. The package that we’ve rolled out for the government at the national level comes to $340 000.” The funds are being allocated in consultation with Government, rather than cash being handed over.
The mine is also working with Kalumbila’s provincial Director of Health, who has earmarked areas where they need assistance. At the district level, Barrick Lumwana is responding to a request to construct an isolation centre for COVID-19 patients.
FQM Zambia has undertaken a major construction project, too. After Government closed all schools and colleges to prevent the spread of infection, Solwezi Nurses Home was designated for renovation as an isolation facility. Funds have also been allocated to stocking the isolation facility with the necessary Personal Protective Equipment (PPE), such as goggles, gowns, and examination gloves. Beds for an Intensive Care Unit, oxygen concentrators, and certain medication are being bought, too.
“COVID-19 is a public health disease, so we’re following the policy and regulatory framework of the Ministry of Health,” says Musunka. “When you’re dealing with anything that is of public health importance, you need to take a population-level approach. That means, instead of focusing on ourselves, we are part of the Provincial and District response.”
Protecting employees
Chishimba says that a robust intervention strategy is being followed at Barrick Lumwana Mine. “We’ve limited the rotation of staff going on and off site, and have a rigorous visitor management and monitoring program, with our security department reporting all the visitors that come onto site daily. Temperature monitoring is also being done on a daily basis. In the rare instances where employees do return from other parts of the country, they are required to be quarantined for 14 days before they report to the workplace.”
“Working with the Ministry of Health, we’ve identified critical supplies to combat the pandemic. The package that we’ve rolled out at the national level comes to $340 000.”
Daily temperature monitoring and mandatory quarantine for staff who have travelled recently is also ‘the new normal’ at FQM’s Kansanshi and Kalumbila mines. “If somebody is flagged with a temperature, they follow a certain protocol to ensure we are preventing any potential COVID-19 patients from entering the mine site,” says Musunka. “In addition, we’re offering health screening at the mines’ borders, to give our employees an opportunity to get tested — and treated — for malaria. We have a lot of asymptomatic malaria in our environment, and we don’t know the impact of COVID-19-malaria comorbidity, so we don’t want anybody to risk that. We’re taking a very holistic, proactive approach to all of this.”
But how do you proactively identify potential COVID-19 cases beyond the workforce, one might wonder.
“We’ve been driving around, carrying out disease surveillance within the communities around the mines so that when there’s an alert [of a suspected case], we can obtain samples and transport them to Lusaka,” explains Musunka. “And when I say ‘we’, I’m talking about the Ministry of Health and us, because FQM Zambia doesn’t have a mandate — we’re supporting what Government is doing.”
The company undertook to repair an ambulance from Solwezi General Hospital, at a cost of $4 900, to serve this purpose.
Protecting and empowering communities
“In addition to our interventions on site, we’ve gone into the communities, where we’ve installed hand-washing stations, and are complementing the local health authorities’ COVID-19 sensitisation efforts,” says Chishimba. “Our interventions extend to all of the areas where we currently undertake our CSR around the mine” — including Mutanda Secondary School, where Barrick Lumwana has been running a scholarship program for several years.
Kansanshi and Kalumbila’s interventions have also extended far beyond their sites. “We are distributing Information Education Communication (IEC) materials in the community at large,” says Musunka. “We’ve also committed to doing education programs outside of the [official] mine-supported areas, such as in communities that we’ve consistently ‘adopted’ in Kalumbila and Kansanshi.”
Earlier this month, FQM Zambia contracted women in communities surrounding its operations in Solwezi and Kalumbila Districts to make Ministry of Health-approved face masks to prevent the spread of the virus. Each of the company’s employees will receive two masks.
The ‘new normal’
“We have to be cautious that people don’t think masks will do all the magic,” warns Musunka, who emphasises that social distancing, hand hygiene and environmental hygiene need to be observed in conjunction with correct mask-wearing. Chishimba says that Barrick Lumwana is adhering very closely to the guidelines that have been issued at corporate level, including social distancing, while trying to continue operating as normally as possible.
“The beauty is that we’re in a very good position at FQM because, historically, we’ve always employed health care professionals,” says Musunka. “My role revolves around dealing with public health issues, for instance, so it doesn’t take attention away from the people who should be doing mining.”
In expressing his appreciation for the mining company’s contribution, Kalumbila District Commissioner Robinson Kalota said that, even if the Ministry of Health is leading, the fight against COVID-19 is a responsibility for everyone. “I am very delighted by this gesture [of financial support] as it shows what we can achieve by working together.”
CEC Plc has notified shareholders that the arbitration matter regarding outstanding amounts owed to ZESCO Limited is still ongoing despite the epilogue of the BSA on 31st March 2020, according to the latest SENS announcement from the company.
“Shareholders are referred to the cautionary announcement, dated 27th September 2019, issued by the Board of Directors of Copperbelt Energy Corporation Plc (“CEC” or “the Company) informing the market that CEC was in receipt of a notice of intention to arbitrate from ZESCO Limited (“ZESCO”), pursuant to the Bulk Supply Agreement and Article 3 of the UNCITRAL Arbitration Rules 1976, resulting from ZESCO’s claim that CEC has failed to pay money due to them for electricity supplied under the BSA”, read a statement by Julia C Z Chaila, CEC’s Company Secretary, issued in Lusaka, Zambia on Thursday, 16th April 2020.
The debt in contention is related to amounts owed by Konkola Copper Mines (KCM) whom CEC had also taken legal action against in the past. “Copperbelt Energy Corporation, Zambia’s supplier of electricity to mining companies on the Copperbelt has dragged Konkola Copper Mines to court over a US$30 million debt it is owed based on an internal agreement”, read a report by the Post Newspaper published in 2014 and available on the ZCCM IH website. Fast forward to 2019, following Mines Minister Richard Musukwa’s statement to parliament which indicated that KCM faced high indebtedness and insolvency concerns, ZCCM Investment Holdings Plc asked the Lusaka High Court to grant them an order to appoint Milingo Lungu of Messrs Lungu Simwanza and Company as provisional liquidator of Konkola Copper Mines Plc.
Sponsored by Royal Air Charter
CEC further disclose in the SENS announcement that there was a further ground for disagreement. “ZESCO’s other cited ground is its disagreement with a statement in CEC’s 2018 annual report relating to the contingent liability arising from the 2014 Energy Regulation Board electricity tariff increase specific to the mining companies, which the mining customers have legally contested and were granted a Court injunction, pending determination of the matter by the High Court for Zambia”.
According to Edwin Goli Mulenga in his article published this website (An autopsy of the death of CEC-ZESCO BSA), On Wednesday 11th October 2017, the then Minister of Energy David Mabumba, announced policy measures that were being taken to migrate electricity tariffs to cost reflectivity for all customer categories. “Madam Speaker, in December 2016, negotiations were held between ZESCO, the Copperbelt Energy Corporation (CEC) and the mining houses in good faith on moving tariffs towards cost reflectivity and achieving closure on all outstanding billing issues by January, 2017”, read the speech by the Minister, available on the National Assembly website. “Madam Speaker, arising from the negotiations, the interim average mining tariff was determined at US$9.3/kWh effective January, 2017, pending the conclusion of the cost-of-service study”.
The Mineworkers Union of Zambia -MUZ- has demanded that Mopani Copper Mines plc cancels all letters given to miners when they placed the mine on care and maintenance as the mine owners seek dialogue with government.
MUZ President Joseph Chewe has told ZNBC News in Kitwe that Glencore, the owners of Mopani Copper Mines have engaged President Edgar Lungu seeking dialogue in view of the happenings at the mine.
Mr. Chewe has also demanded that Mopani Copper Mines apologizes to all miners who received letters.
He said the petition sent to President Edgar Lungu by mine unions when they held a peaceful protest demanding the restoration of all workers or have Mopani Copper Mines license revoked has been received.
Mr. Chewe stated that from the dialogue, mine unions want all workers to get back to work and that Mopani Copper Mines be given strict conditions that will stop them from engaging in activities that put workers’ jobs at risk.
The government has given Mopani Copper Mines a Seven Day ultimatum to show cause why its large-scale mining licences for Mufulira and Kitwe must NOT be revoked.
This follows Mopani Copper Mines alleged breach of provisions of the Mines and Minerals Act and the Employment Code Act.
This is according to a letter to Mopani Copper Mines, Chief Executive Officer, Nathan Bullock from Mining Licensing Committee Secretary Micheal Chibonga and made available to ZNBC News.
Mr Chibonga said the committee is in receipt of investigations report by the Director of Mines which has established that the mines have proceeded to place the NKANA and Mufulira Mines on Care and Maintenance.
He said this is without giving sufficient notice as required by law and in total defiance of the directive against such action, and the employees have already been given letters.
Mr Chibonga says it has also been established that all critical contracts for mining services and suppliers have been terminated with immediate effect.
He said the Mining Licensing Committee intends to revoke the large-scale mining licences for Nkana and Mufulira mine in accordnace with the Mines and Minerals Development Act of 2015.
Mr Chibonga said the Mine also breached section 37 of the Mines and Minerals Development Act of 2015 by defying the directive by the Director of Mines to resume mining operations
“Shareholders are referred to the cautionary announcement, dated 27th September 2019, issued by the Board of Directors of Copperbelt Energy Corporation Plc (“CEC” or “the Company) informing the market that CEC was in receipt of a notice of intention to arbitrate from ZESCO Limited (“ZESCO”), pursuant to the Bulk Supply Agreement and Article 3 of the UNCITRAL Arbitration Rules 1976, resulting from ZESCO’s claim that CEC has failed to pay money due to them for electricity supplied under the BSA”, read a statement by Julia C Z Chaila, CEC’s Company Secretary, issued in Lusaka, Zambia on Thursday, 16th April 2020.
