Mining minister calls on investors to employ Zambia’s resources

The article was first published on https://www.iol.co.za and has been republished with the permission of the author

Zambian Mines Minister Richard Musukwa on Wednesday wooed investors at the Investing In African Mining Indaba to take advantage of the country’s resource potential despite the government’s provisional liquidation of the Konkola Copper Mines (KCM) for failure to pay dividends. KCM, which is 20.6 percent owned by state-owned Zambian Consolidated Copper Mines (ZCCM) and 79.4 percent owned by Vedanta Resources, is at the centre of an ongoing litigation battle by the London-headquartered company to regain it.

Musukwa said Zambia remained a stable investment destination for serious investors. “Serious investors need to consider Zambia as an opportune destination. With Vedanta, Zambia is dealing with an investor that broke the law,” said Musukwa.

“Zambia is a victim and it needs support. Vedanta Resources pledged to put in $300 million (R4.44 billion) they further pledged $500m and another $250m they did not bring that money. What do you

Musukwa said that Zambia was one of the top 10 best performers in Africa as rated by the World Banks’ 2020 Ease of Doing Business Report.

Last May, ZCCM filed a petition in the High Court of Zambia to wind up KCM on “just and equitable” grounds. ZCCM also obtained an ex parte order from the High Court of Zambia, appointing a provisional liquidator of KCM pending the hearing of the petition.

Since all the significant decision-making powers, including carrying on the business of KCM and taking control over all the assets of KCM, rests with the Provisional Liquidator, Vedanta previously said that it believed that the appointment of the Provisional Liquidator had caused a loss of its control over KCM.

The company deconsolidated KCM last May.

Musukwa said that Zambia was a host to investors from Canada, Australia, India and China. “You are welcome to Zambia if you follow the law,” he said, adding that the company broke the law.

“When we give you a mining license, we give you the conditions of the grant. If the conditions of the grant are broken, because we are Africans we must watch you break the law? We deserve African and international support to ensure that Vedanta Resources pays the price. The failure of Vedanta Resources to operationalise its mine plan is criminal.”

Source: Financial Insight Zambia

Africa: A Tale of Two Indabas – Cape Town’s Parallel Mining Conferences and ‘The New Scramble for Africa’

PRESS RELEASE

In Cape Town this week, two very different conferences on the mining sector have been taking place. The annual African Mining Indaba (industry indaba) brings together the global mining industry and African governments to showcase the types of investment opportunities that make extraction and trade in minerals a billion dollar industry. Across town, the Alternative Mining Indaba (AMI), which was set up due the historical exclusion of civil society from the main conference, reveals the often catastrophic human and environmental impacts of the mining industry.

Two sides of the mining story

The division between the two events underscores two sides of the mining sector and the operational opacity which its corporate contingent often strives to maintain. Community activists at AMI catalogue some of the devastating consequences of mining on the lives of their communities. For example, accounts of children suffering painful skin conditions linked to polluted water sources or of the violence meted out by private and state security forces in mining areas are commonplace. Meanwhile, champagne sits on ice ahead of the lavish parties thrown around town after a frenetic day of wheeling and dealing at the industry indaba. To witness the harrowing human stories shared at AMI side by side with the extravagance of a mining industry evening soiree makes for a deeply uncomfortable and shameful contrast.

This year, alongside topics such as the ‘investment battlefield’ and ‘business matchmaking’, ‘sustainable development’ has been added to the industry mining indaba’s packed agenda. Slots on responsible business at the conference could be read as a step in the right direction, as could yesterday’s statement of solidarity with the AMI by industry stakeholders. But these are meagre offerings on a topic which should be at the forefront of the mining industry’s activities. While paying lip service to protecting human rights and the environment, industry still largely excludes civil society and affected communities from the conversation.

A glance at the mining news stories that have hit the headlines over the past year indicates why the industry must take the concerns of affected communities a lot more seriously.

Access roads leads to the deep open pit mine at the Nchanga copper mine, operated by Konkola Copper Mines Plc, in Chingola, Zambia, 2016. Waldo Swiegers/Bloomberg via Getty Images

Signs of a new era for corporate accountability?

A more global spotlight has been shone on the dark underbelly of the mining industry over the past year. Recent stories about charges and court cases linked to corporate accountability for serious harms experienced by communities affected by mining have featured some of the industry indaba’s major players.

Vedanta, a sponsor of this year’s industry indaba, hit the headlines in 2019 when the UK Supreme Court ruled that 1826 Zambian villagers could sue Vedanta and its Zambian subsidiary Konkola Copper Mines (KCM) in the UK over alleged damage to their land and water from copper mining effluent, and claims that this effected their health, causing illnesses and permanent injuries. The decision was a landmark for the legal treatment of parent-subsidiary relationships in UK law. This could have wide-ranging implications for the understanding of corporate accountability for parent companies, ultimately leading, one might hope, to greater care to respect human rights and mitigate risks of harm.

Another regular indaba attendee, international mining giant Vale, made the news after the collapse of a tailings dam in Brumadinho, in the Brazilian state of Minas Gerais, killed 250 people in January 2019. Video footage of collapse unfolding revealed the shocking scale of the destruction. Last month it was announced that Brazilian prosecutors have filed charges against 16 people, including murder charges, in relation to the disaster. The individuals charged include the former CEO of Vale. While impunity for harms is a trend that has long been associated with the mining industry, in this case at least, it may not be a story of business as usual for those responsible.

Malvina Firmino Nunes, who lost her son in the January 2019 Brumadinho dam collapse, holds a portrait of him, almost one year on from the disaster. Douglas Magno/AFP via Getty Images

These stories, and many more that have garnered less attention, illustrate the devastation that can be wrought by the mining industry. It is perhaps not surprising that discussion of human rights and environmental protections at the civil society-led AMI focus not only on how mining can be carried out more responsibly, but whether it should be carried out at all. The extraction, trade and transport of minerals has long been recognised as a business linked to serious risks along the supply and value chain. It is often the poorest and most vulnerable that bear the brunt of harm, a world away from the luxurious industry-sponsored parties in Cape Town tonight.

The race for clean energy minerals

The increasing drive for minerals used in renewable energy is a hot topic at the industry indaba this year. As part pf the transition to a low-carbon economy, the OECD has predicted that by 2060 global metal use will more than double.

The race for clean tech minerals has been described–ominously–as ‘the new scramble for Africa’, as companies compete for the minerals that will fuel the technology of the future. Already the risks associated with cobalt, one of the propellers of the clean tech revolution, have come under the spotlight, through links to child labour in the Democratic Republic of Congo (DRC). It would be a gross contradiction if the drive for more sustainable energy is fuelled by human rights and environmental abuses in producer countries.

Global Witness has long investigated and exposed links between minerals and human rights abuse, environmental destruction and corruption in African countries including DRC, Republic of Congo, Zimbabwe and Angola, and across the globe.

Responsible business is about how companies do business, through the policies and practices they adopt to prevent human rights and environmental harms linked to their business. International guidelines for responsible mineral sourcing of minerals have been in place for years. But the industry’s dire track record is testament to its ongoing failure to put responsible conduct at the heart of its operations, and above the pursuit of profit.

Without a systemic shift, any gains made in the battle against climate change will come with significant human and environmental cost. Meaningful inclusion of those directly affected by the unacceptable face of the mining industry is a fundamental first step. AMI takes place just a few kilometres away from the industry indaba at Cape Town Convention Centre, yet it feels like an ocean apart. A sea-change is long overdue.

Mining minister calls on investors to employ Zambia’s resources

CAPE TOWN – Zambian Mines Minister Richard Musukwa on Wednesday wooed investors at the Investing In African Mining Indaba to take advantage of the country’s resource potential despite the government’s provisional liquidation of the Konkola Copper Mines (KCM) for failure to pay dividends.

KCM, which is 20.6 percent owned by state-owned Zambian Consolidated Copper Mines (ZCCM) and 79.4 percent owned by Vedanta Resources, is at the centre of an ongoing litigation battle by the London-headquartered company to regain it.

Musukwa said Zambia remained a stable investment destination for serious investors.

“Serious investors need to consider Zambia as an opportune destination. With Vedanta, Zambia is dealing with an investor that broke the law,” said Musukwa.

“Zambia is a victim and it needs support. Vedanta Resources pledged to put in $300 million (R4.44 billion) they further pledged $500m and another $250m they did not bring that money. What do you want the Zambian government to do?”

Musukwa said that Zambia was one of the top 10 best performers in Africa as rated by the World Banks’ 2020 Ease of Doing Business Report.

Last May, ZCCM filed a petition in the High Court of Zambia to wind up KCM on “just and equitable” grounds.

ZCCM also obtained an ex parte order from the High Court of Zambia, appointing a provisional liquidator of KCM pending the hearing of the petition.

 

Since all the significant decision-making powers, including carrying on the business of KCM and taking control over all the assets of KCM, rests with the Provisional Liquidator, Vedanta previously said that it believed that the appointment of the Provisional Liquidator had caused a loss of its control over KCM.

The company deconsolidated KCM last May.

Musukwa said that Zambia was a host to investors from Canada, Australia, India and China.

“You are welcome to Zambia if you follow the law,” he said, adding that the company broke the law.

“When we give you a mining licence, we give you the conditions of the grant. If the conditions of the grant are broken, because we are Africans we must watch you break the law? We deserve African and international support to ensure that Vedanta Resources pays the price. The failure of Vedanta Resources to operationalise its mine plan is criminal.”

Source: Bussiness Report- Independent Online

Mining companies embrace Sandvik’s high-tech solutions

APE TOWN (miningweekly.com) – High-tech and global engineering group Sandvik is helping greenfield mining projects in Africa to power ahead through automation and digitalisation aimed at making mining safer and more efficient and sustainable.  

“If you look at the global automation footprint, Africa is using some of the most sophisticated technology compared to the rest of the world. All the greenfield projects are starting off with this intention,” said Sandvik West Africa VP Nuhu Salifu

Sandvik Mining and Rock Technology offers equipment and tools, and service and technical solutions, for mining and rock excavation. It covers rock drilling, rock cutting, crushing and screening, loading and hauling, tunnelling, quarrying and breaking and demolition.  

“Automation is being embraced in the mining industry. The advantages are very clear. We are able to drive sustainable mining businesses which are more environment-friendly,” said Sandvik Mining and Rock Technology Southern Africa VP Simon Andrews.  The company is committed to investing in research and development and as a result, has created a working environment which has boosted efficiency and helped to bring consistency to mining operations, says Andrews. Its mine automation systems range from single equipment to full fleet control.

With the help of Sandvik, artificial intelligence is being deployed in mines. An example is its advanced analytical cognitive data processing and modelling based on data that is generated by sensors on loaders and trucks.

Technology is able to proactively identify maintenance problems before something even breaks. This has led to both time and cost savings. Sandvik Mining and Rock Technology, together with IBM, launched OptiMine Analytics in 2019, which has helped greatly in transforming data into improving processes.

“Automation brings consistent results. You are also able to use the technology in remote areas, and adapt it to any part of the world,” said Salifu, who has seen this successfully done in remote parts of Mali in West Africa.  

“You will have an operator sitting in an office environment or a containerized environment operating machines remotely. These can be anything from automated drills to loaders and trucks.” 

Andrews says it is vital to partner with its customers for a digital mine future.

“Our customers starting with greenfield projects adopt digital as a principal way of working, rather than the conventional way of mining. The Intelligent series is more expensive than conventional machines to start off with, but the efficiencies kick in very quickly, and very soon, it far outweighs the capital initially spent.”

While trucking automation has been around for a long time, a combination of algorithms, high-tech advancements and experience has helped to vastly improve the way loaders are filled optimally with minerals, from copper to diamonds and gold.

The company has also recently acquired privately-owned Newtrax, a supplier of leading technology in wireless connectivity, which is able to monitor and provide insights on underground operations, including people, machines and the environment.

Ventilation on demand is another innovation and ensures that air is channelled to chosen areas.

While experience is still greatly valued, digitalisation is opening up new career paths,  with greater appeal for a new generation of young people who are able to operate machinery remotely from an office instead of at the coal face, or immerse themselves in data analytics.

Various levels of products and Sandvik solutions on automation and technology have been rolled out in African countries such as Ghana, Mali, the Democratic Republic of Congo, Zambia, Botswana, South Africa and Zimbabwe.

Source: Mining Weekly

Day Two at the Mining Indaba – ESG and Traceability Key

The panel discussion which was moderated by S. Vijay Iyer, Vice President and Chief Operating Officer at MIGA featured the CEO of Barrick Gold, CEO – Energy, and Minerals from Rio Tinto, Jonas Mcebisi the former Deputy Finance Minister of South Africa, and Caroline Donally the Managing Director of Denham Capital.

Traceability, which is a facet of supply chain management, is one type of Cost of Chain model whereby the material in the chain can be traced back to its actual sources. Depending on the solution deployed, it enables mining organizations to make informed, actionable decisions, better engage with their employees and communities and more efficiently manage resources.

Panelists were in agreement that while many of the big mining firms were implementing traceability strategies, the rise of small scale mining posed a threat to the mining value chain and surrounding communities. The increase in small scale mining is something many African countries, including Zambia, have begun to see in recent times as communities seek out the value creation opportunities that come with it.

However, because small scale mining is highly unregulated, issues such as environmental impact concerns whilst participating in the extractive activity are becoming a huge concern. Furthermore, the practice also encourages nonconsideration of labour laws and standards leading to child labor, for example, in some African countries. Should the practice go unchecked, small scale mining will fail to be a big contributor to African Economy’s Gross Domestic Product (GDP).

One initiative that ZCCM IH in Zambia has taken on in Zambia to address the aforementioned is to put in place mechanisms that will see traceability be implemented as the group invests in Gold mining.

The panelists also discussed Environmental, Social, and Governance (ESG) and how many of in ‘Big Mining’ had graciously adopted it.  Environmental, Social, and Governance (ESG) refers to the three central factors in measuring the sustainability and societal impact of an investment in a company or business. These criteria help to better determine the future financial performance of companies (return and risk) and ‘Big Mining’ is adapting it to meet the changing landscape of modern business.

Source: Financial Insight Zambia

Key to unlocking mining sector growth

ANALYSIS: HELEN LUBAMBA
MINING’S status as one of the main pillars of Zambia’s economy can hardly be over-emphasised.
After Government, the extractive industry is the country’s largest employer. The sector’s contribution towards employment extends beyond its direct workforce to include contractors in the mining value chain and other businesses down-stream.
The industry plays a crucial role in stimulating development in the areas of its operation, as new roads, housing projects and utilities are built to service the mines and surrounding communities, contributing to the overall development of the country.
However, for the country’s mineral resources to maintain this impact, mining companies must invest for the future, invest in capital projects, and invest in the very latest technology to remain competitive.
That is why the world’s mining executives, along with government experts and financiers, converged on Cape Town recently for the industry’s most important annual gathering – the Mining Indaba.
I am joined by colleagues there from both Stanbic Bank Zambia and our parent group Standard Bank to network with industry leaders and gain further insight into what they need from us as a bank.
There is need for stakeholders to put in place measures that will not only ensure the survival of the mining sector but also increase its contribution to national gross domestic product (GDP) by facilitating its growth as a viable business.
And as anyone in business knows, growing an enterprise requires fresh capital injections both for asset investment and general operational expenses. Mining companies by the nature of their size need this in much larger quantities than most businesses.
Crucially, that investment is not only large, but also long-term, hence the need for a steadfast financial partner that will work hand in hand with the sector and understands the challenges, cyclical nature of the business, and the need for stable funding.
Both Government and private sector firms have invested heavily in Zambia’s mining sector to help maintain stability and sustainable growth. Financial partners must be prepared to support the mining sector during times of good fortune as well as during the downturns in whatever format these may present themselves. To this end, financial partners need to critically assess and select the mining firms that they would have a high probability of standing next to through the cycles.
Stanbic Bank Zambia has in the last decade invested more than US$3 billion in the mining sector’s growth – illustrating the value placed on the industry by the bank. It is the sector key to driving Zambia’s growth. However, growth in the mining sector is typically a source of both excitement and stress as the age-old debate on whether mines are contributing enough to the treasury often follows any upturn in the sector.
A taxing situation
In 2018, Government announced an upward adjustment in mining taxes in the 2019 national budget. This was heavily criticised by some mining companies that felt the new taxes would render their operation unviable economically.
While the mines claimed they would need to scale back expansion projects and cut their labour force to save costs and remain operational, Government insisted that there was no evidence the new taxes would cripple mining operations.
The uncertainty of how the new tax system would affect mining operations demonstrated that there was still a lot of work to be done in promoting higher levels of transparency and deeper engagement among all stakeholders in the industry. Critical for this sector is a consistent, long-term tax regime, as frequent changes are disruptive to an industry that requires long-term planning and investment.
This is what makes events like the 2020 Investment in African Mining Indaba so important. Such forums create a platform for mining companies, policy makers, value chain players and other stakeholders to discuss issues affecting the sector helping improve transparency and trust as a result of improved collaboration and engagement.
As a major player in Zambia’s mining sector, Stanbic Bank participates in such platforms to maintain its contact with key stakeholders in the extractive industry.
By remaining in frequent contact with industry players, we can keep our business strategy in line with the sector’s needs which enable us to deliver the best services through customised solutions and products contributing to the industry’s growth and economic development.
Stronger local capacity imperative
For the value of mining to have a meaningful impact on Zambia, there is need for local communities to take a leading role in shaping and growing the sector and spread its benefits to the rest of the country.
Stanbic Bank has over the years directed resources to help intensify the extractive industry’s multiplier effect through innovative, efficient and unique services at personal, SME and corporate levels. As a responsible citizen it is also key for us to partner with mining companies that have clearly outlined sustainability policies around social upliftment and environmental protection.
The bank has partnered with various value chain players to develop strategies that make it easier for them to identify and harness business opportunities in mining.
Through this support, suppliers – especially those in mining towns – can increase their capacity to fulfil contractual obligations, hence creating more opportunities for investment that eventually trickle down to the community.
Annually, the bank holds its annual Stanbic Mining and Economic Roadshow which is a multi-stakeholder and multi-sectoral roadshow designed to engage the main stakeholders in the industry and supporting industries.
During the event, Stanbic sends its sector experts to Zambia’s mining towns to participate in discussions on issues affecting the industry as well as help create modalities to strengthen the relationship between mining companies, suppliers, government agencies and communities. It’s an opportunity for the bank and our group partners to see what is happening on the ground, engage with our clients and impart our views and forecasts of the state of the sector in the context of the wider global economic environment.
Mining has the potential to leave Zambia with a skilled labour force to propel the country’s development, and the goal is to help ensure mining remains a viable business in Zambia and that the public benefit from the country’s mineral wealth.
We can achieve this only through intensive training and education both at the grassroot and professional levels. As a country, we ought to do more to expose our young people to the opportunities in mining and the value chain to make the sector’s growth and contribution to the economy sustainable.
It is up to everyone to help push this agenda for the good of the country.
As a bank that proudly calls Zambia our home, Stanbic Bank will continue to provide support to the sector at all levels. The bank is committed to developing new ways to help stimulate growth in the mining industry by pushing the boundaries of innovation to deliver quality sector-specific solutions for industry players.

The author is head of corporate and investment banking at Stanbic Bank Zambia.

Source: Zambia Daily Mail

Day One at the Mining Indaba – Cape Town South Africa

Mining commerce is alive! This is part of what the annual Mining Indaba, currently going on at the illustrious Cape Town International Convention Center seeks out to achieve.

Now in its 26th year, this year’s event has found the South African economy at crossroads. The big talking point is energy for South Africa. They, like Zambia, are currently faced with energy poverty. Mining success is heavily dependent on consistent supply. This inevitability feeds into the growth trajectory. As of 2019, South Africa’s GDP stood at approximately US$ 70.613 billion, according to the World Bank, while Zambia’s came in at US$32 billion.

The event organizers have over the years strived to continuously improve return on investment and time for participants. That is why this year, they added a nice touch of launching a newly designed online matchmaking platform, to bring investors and industry closer together. Furthermore, this year, the legal fraternity now has what is known as a General Counsel Forum which they have done in conjunction with Africa Legal. Notably, Baker Mckenzie whose work in energy and mining has been phenomenal, is playing a large role as one of the sponsors of the event.

This year’s event also strives to bring topical issues such as the impact of Mining Investment on the Millenials. Sitting through this discussion, one of the key takeaways was that as opposed to informing this particular generation about the significance of mining, the extractive industry needs to listen to them and focus on some of the key concerns they have to issues such as sustainability of the sector and environmental impact.

During the morning event, President Félix Tshisekedi, was one of the main speakers on the opening day. He came with a message of Congo being open for mining. Speaking to some of the delegates from congo in the mining sector, one of their biggest concerns was energy. Recently, one of the two contractors engaged to build the long-awaited Inga Dam project pulled out following concerns over the feasibility study and pricing of the EPC contract, according to a high ranking source spoken to at the Mining Indaba who works for the Ministry of Mines in Congo, on 3rd February 2020.

On Tuesday, delegates will listen to Zambia’s Minister of Mines as he explains what Zambia’s strategic intent is going forward on Mining. This will be Zambia’s opportunity to sell the mining story in Zambia. ZCCM IH has recently made a number of announcements around its investment in the Gold mining sector. This is a key focus area that head of the ZCCM IH delegation, CFO Chilandu Sakala, will be speaking to prospective partners and investors. Her company is re-writing the narrative of how mining can be conducted in Zambia but building a complete local value chain that can be the difference for Zambian in years to come.

Source: Financial Insight Zambia

Let IDC and ZCCM-IH have stake in any company – Habazoka

STEVEN MVULA, Lusaka
ECONOMICS Association of Zambia (EAZ) president Lubinda Haabazoka has urged Government to allow the Industrial Development Corporation (IDC) and ZCCM-IH to own shares in any company which will invest in oil drilling in Gwembe if the resource is commercially viable in the district.
Dr Haabazoka said in an interview that it is important that IDC and ZCCM-IH have ownership in the oil company so that the foreign exchange can remain in the country.
“We hope the prospects of oil in Gwembe are commercially viable as this will help our economy greatly and CLICK TO READ MORE  

Source: Daily Mail

ZCCM-IH | Job Advertisements – Subsidiary Companies

ZCCM Investments Holdings PLC is a company with diversified interests in mining, energy and other sectors of the Zambian economy. The Company’s majority shareholder is the Industrial Development Corporation Ltd (IDC), an investment company wholly owned by the Zambian Government and the rest of the shareholders include institutions and private shareholders spread across the world.

The Company intends to fill positions of Chief Executive Officer for its subsidiaries namely Misenge Envirnmental Technical Services (METS), Kariba Minerals Limited (KML) and ZCCM Gold Company Ltd

Chief Executive Officer – Misenge Environmental & Technical Services

Misenge Environmental and Technical Services Ltd (METS) is a 100% owned subsidiary of ZCCM-IH based in Kalulushi on the Copperbelt. It is a multifaceted full-service company whose core competencies are environmental management particularly in the mining and mineral processing industry in Zambia.

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Chief Executive Officer – Kariba Minerals Limited

Kariba Minerals Limited (KML), a 100% subsidiary of ZCCM IH is a global leader in the production and supply of amethyst. Its operation in Mapatizya, Kalomo is the largest amethyst mine in the world with over 50 years of mining. It produces one of the best quality amethyst in the world.

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Chief Executive Officer – ZCCM Gold Company Ltd

ZCCM Gold Company is a Zambian newly established company that will oversee the mining, processing, refining and marketing of gold.

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Applications together with copies of certificates and detailed curriculum vitae should reach the undersigned not later than 10th February 2020.

Chief Executive Officer
ZCCM Investments Holdings Plc
ZCCM IH Office Park
P O Box 30040
LUSAKA

ZCCM-IH | Job Advertisement

ZCCM Investments Holdings PLC is a company with diversified interests in mining, energy and other sectors of the Zambian economy. The Company’s majority shareholder is the Industrial Development Corporation Ltd (IDC), an investment company wholly owned by the Zambian Government and the rest of the shareholders include institutions and private shareholders spread across the world.

The Company intends to fill the following positions(click the links to download the detailed job description):

Applications together with copies of certificates and detailed curriculum vitae should reach the undersigned not later than 7th February 2020.

Chief Executive Officer
ZCCM Investments Holdings Plc
ZCCM IH Office Park
P O Box 30040
LUSAKA