Zambia ventilation shaft project finalised

Mining contracting and engineering services company Redpath Mining Africa has completed what it has dubbed the “milestone” Synclinorium Ventilation Shaft project for Zambia-based copper miner Mopani Copper Mines.

Redpath Mining Africa’s Zambian branch, Redpath Zambia, was initially awarded the project by Mopani Copper Mines in 2014 and completed it in June this year. The project – which took 49 months to complete and required 135 crew members at its peak – forms part of Mopani Copper Mines’ recapitalisation programme to extend the life span of its Kitwe-based Nkana copper and cobalt mine by 25 to 30 years.

“The project is certainly a milestone project for Redpath and one that it will refer back to for years to come for its remarkable safety statistics, challenging conditions and introduction of novel raiseboring equipment,” Redpath Synclinorium project contract manager Cape Marais tells Mining Weekly.

Redpath Zambia mine planner Errol Harcombe explains that the project entailed the provision of a new ventilation shaft for deepening work on the 2 370 Level (L) of the mine’s main Synclinorium shaft, which will enable the mine to further expand its mining production operations. The shaft includes a new access drive that serves as the 550-m-long connection between the vent shaft and the main shaft. The new ventilation shaft supplies fresh refrigerated air to working areas in the main shaft.

Harcombe states that the project required two separate legs of development. The first leg was from surface down to 2 370 L and the second leg was from 2 370 L to 3 960 L, with a further 514 m of development also required on 2370 L to reach the ventilation shaft position. Conventional raiseboring and blind sink methods were used throughout the project.

The four-year project was not without its challenges, with waste rock handling having been a major challenge for the Redpath team on site, he adds. Mining operations and the Redpath team had to use the same rail system for their rock-handling requirements, which Harcombe says created a “logistical nightmare”. Transporting equipment down the shaft system was also hampered by this shared transport system, with orebodies requiring preferential transport, he points out.

While these initial challenges slowed operations down, they were solved through proper communication with mine management, carefully planning transportation and using muck bays, Harcombe explains.

Redbore 100 Enters Africa

The Synclinorium Ventilation Shaft project also marked the entry of Redpath Mining’s Redbore 100 raise drill into Africa for the first time.

The Redbore 100 – that can raisebore up to 8 m in diameter and reach depths exceeding 1 000 m – was shipped from Australia in late 2014 and used to drill a 1 117-m-deep and 6.1-m-diameter shaft in two sections of 670 m and 447 m.

“Transporting the Redbore 100 from Australia to arrive on site on time was a mammoth task,” says Marais, elaborating that the 76 t raisebore machine took three months to complete its journey.

The drill had to be shipped from Australia to South Africa and was then transported to Zambia in 34 shipping containers. A further five shipping containers holding additional spare parts for the drill were shipped from Redpath’s North Bay offices, in Canada, to Zambia.

“The Redbore 100 is the most powerful, largest-capacity proven raise drilling system ever manufactured,” says Marais.

Strong on Safety

Marais and Harcombe agree that the most remarkable feature of the Synclinorium Ventilation Shaft project was its positive safety record throughout the project duration.

Harcombe enthuses that “Redpath worked 1 500 lost-time-injury-free shifts, with only three minor medical incidents occurring during the entire course of the project”.

Marais attributes the positive achievements to Redpath employees abiding strictly to the company’s fatal risk elimination protocols, together with adherence to the client’s Mopani Way Safety Programme – an initiative aimed at making its operations safe and sustainable through several modern safety interventions.

“Throughout the project, morale and spirit was high and we all believed and trusted in one other,” concludes Marais.


Source: Mining Weekly

Greater emphasis on safety at Konkola

Diversified miner Vedanta Resources is strengthening its focus on safe production at its subsidiary Zambia-based integrated copper producer Konkola Copper Mines (KCM) through the implementation of its Safety Stand Down campaign.

Vedanta’s campaign was launched by KCM CEO Deshnee Naidoo in July to raise safety standards and curb mine accidents and fatalities at KCM operations. The implementation follows four fatalities at its mines this financial year.

KCM operates underground and openpit mines, as well as several concentrators, a leaching plant, a flash smelter, a modernised refinery and a sulphuric acid plant. Its operations at Nchanga, Konkola, Nkana and Nampundwe are located on one of the highest-grade copper seams in the world.

The campaign – also aimed at intensifying safety awareness at operations – comes in the wake of KCM’s June announcement of a safe 400-t/d production focus that the miner initiated to meet its goal to raise monthly production to 12 500 t/m.

The company reiterates its commitment to safety while acknowledging that its “record to date has not been ideal”. At the campaign launch, Naidoo told employees that she found it unacceptable to have had multiple fatalities across KCM’s operations over the past six years. She further pleaded with all staff at KCM to internalise the company’s safety commitment of “zero harm and zero waste” and translate it into daily operations.

“All fatalities are preventable. Even when KCM is pushing to achieve a higher production target, the first thing on my mind – as a priority – is safety. It should also be the first thing on your minds. KCM cannot have production if it does not come safely. When there is a fatality, it hurts and devastates everyone.”

Naidoo emphasised that the campaign had been structured to recognise the impact of mine accidents on the families of the deceased and the economy, and renewed management’s and employees’ commitment to safe working practices. Leaders of the three unions representing employees at KCM have also agreed to provide extra oversight in the implementation of the safety campaign.

Naidoo further stressed that she would always opt to pause production if there was a threat to the safety of employees.

Investments Pay Off

Vedanta has been mining at KCM for 13 years and has invested more than $3-billion in upgrades to and expansions of the KCM mines and processing plants.

Vedanta chairperson Anil Agarwal announced in 2017 that the company would invest an additional $1-billion in KCM to improve mines’ operational efficiency and increase production capability.

Since the announcement, $300-million has been used for operational support programmes, clearing outstanding debts owed to contractors and suppliers, and concentrate procurement. The rest of the $1-billion investment will be spent on the construction of a new cobalt refinery, mine development at Konkola to access new areas of mining, and a new training centre.

Supporting these investments will be a 300 MW coal-fired power plant, in southern Zambia. Vedanta aims to invest about $300-million in the plant, for which prefeasibility studies have started.

Moreover, through continued investment, Vedanta and its joint venture partner, State-owned investment holdings company ZCCM Investments Holdings, have managed to extend the mines’ expected life-of-mine from under 20 years to 50 years, and now plan to focus on further optimising production.

With a clear focus to increase production at KCM to 400 000 t within the next five years, the company enthusiastically reports that production averaged 350 t/d, just short of the 400 t/d target, during the last two weeks of June.

KCM will continue to aim for the 400 t/d safe production target – and work to reclaim KCM’s position as Zambia’s premier copper producer from there.

“KCM’s focus will now be on tapping into the rich orebody at Konkola Deep mine, in Chililabombwe, which has a grade of about 3%. This will give KCM a competitive edge over its peers and fulfil our vision for 50 years of mining in Zambia.”


Source: CREAMER MEDIA MINING WEEKLY

ZCCM-IH | Update to shareholders based in France regarding the refund of Withholding Tax of 15% on the ZCCM-IH dividend

Introduction

At the ZCCM-IH Annual General Meeting held on 29 June 2018, the shareholders of the Company approved a Final Dividend of K0.84 per share for the financial year ended 31 March 2017.

Subsequently, Dividend payments were made from Monday, 30 July 2018. For shareholders whose shares are listed on Paris Euronext, dividend payments were made from 28 August 2018.

Shareholders based in France could be exempted from paying withholding tax of 15% on the strength of the provisions of the Double Tax Agreement (DTA) of 1950 signed between Zambia and France…


Download the full announcement here…

Government Backs KCM

Copperbelt Minister Japhen Mwakalombe has outlined the Government’s commitment towards the growth of Konkola Copper Mines (KCM), saying enhanced operations are a springboard for creating jobs and increasing government revenue.

The minister was speaking when he toured KCM operations on Wednesday, 12 September, on a familiarization visit. He was accompanied by Chingola Mayor Titus Tembo, District Commissioner, Mary Chibesa and Nchanga Member of Parliament Hon. Chali Chilombo.

“The Government values KCM and wants to see the company grow. The country’s economy is driven by the private sector and so Government would like to maintain good relations with the sector,” he said.

Hon. Mwakalombe said that the Government was aware of the challenges KCM was facing and called for dialogue between the company and its stakeholders in order to find solutions.

The Minister also said he would champion the diversification of the Copperbelt economy into agriculture, aided by mining in order to reduce dependency and pressure on existing mines.

“There is heavy dependence on the mines, which puts them under a lot pressure hence the need to diversify into agriculture in the province. Most youths just supply to the mines and can’t venture into other things,” The Minister added.

KCM Chief Operating Officer Frank Russo-Bello said KCM was committed to the development of the Copperbelt and the entire economy in spite of some cash flow challenges affecting the business.

Mr Russo-Bello said KCM had initiated measures to raise production and improve its cash flows.

“Our focus is to expand and raise production safely in order to improve cash flows and so we have put in place initiatives such as the Safe 400+ tonnes per day campaign, which is the key driver to raise copper ore production at both the Nchanga and Konkola mines,” Mr Russo-Bello said. “Other initiatives include explorations for new resources and options to develop open pit mines into underground mines.”

He said KCM appreciated the Government’s stance to assist in resolving valued added tax (VAT) refunds, a matter that is receiving attention at top leadership levels of Government and Zambia Revenue Authority (ZRA). He also pledged KCM’s resolve KCM to settle payments to its suppliers.


Source: KCM News

Tax stability and opportunities for growth in Zambian mining

The Zambia Chamber of Mines President Nathan Chishimba and CEO Sokwani Chilembo featured on Hot FM on Thursday 30th August where they talked about a number of issues, the main one being tax stability and opportunities for growth in the mining sector.

Other issues they discussed were; The continued dialogue with the Zambia Revenue Authority over Value Added Tax (VAT) refunds, the effects of inconsistent mining policies, mining’s contribution to Zambia besides tax revenue and the attractiveness of Zambia to mining investors.


Source: Zambia Chamber of Mines

Emerald auction raises $15m

GEMCANTON Investment Holdings says Government’s favourable policies in the mining sector have enabled it to raise US$15 million from the emerald auction held last week.
Company chief executive officer Abdul Ba said the incentives that Government has put in the acquisition of mining machinery is helping the emerald sector enhance the quality of gemstones.

Mr Ba said in an interview on Sunday that last week’s auction attracted about 36 international buyers from Russia, India and Israel.

The sale was conducted from August 15 to 18.

“Government is really playing a critical role in the way we are marketing our minerals. We are now able to bring in machinery that has the capability to polish and add more value to our gemstone.


Source: Zambia Chamber of Mines

Chinese firm launches $832 million Zambia copper mine

LUSAKA (Reuters) – NFC Africa, majority owned by China Non-ferrous Metals Company Limited (CNMC), on Wednesday launched output at a new $832 million Zambian copper mine, extending the firm’s lifespan by over 20 years.

Zambia, Africa’s second-largest producer of the metal, saw output rise 10.6 percent in the first half of the year on the back of stable power supply and relatively higher metal prices in recent months.

Trial production begun last week at Chambishi South-East Mine, which is expected to produce 60,000 tonnes of copper at full capacity by 2020, NFC Africa spokesman John Mtonga said.

NFC Africa currently mines at the Chambishi Main Mine and Chambishi West Mine and had been developing the Chambishi South-East Mine, Mtonga said.

Zambia’s President Edgar Lungu said during the launch that NFC Africa had so far invested more than $500 million of the total planned project investment of $832 million in the project, about 400 km (250 miles) northwest of Lusaka.

The South East Ore Body has copper ore reserves estimated at more than 76 million tonnes at an average grade of 2.18 percent, according to a document submitted to the environmental agency.

Other foreign mining companies operating in Zambia include Canada’s First Quantum Minerals, Glencore, Barrick Gold and Vedanta Resources.


Source: Reuters

Size isn’t everything

It accounts for less than 2% of annual copper production, yet Chibuluma Mine, situated on the Copperbelt, is one of Zambia’s most successful mines in safety, productivity and profitability.

Chibuluma Mine has had “only” one fatality in eight years. Its copper output per employee is 50% higher than the Zambian industry average, and its flagship Chibuluma South project was profitable barely two years after production, which is unusual for the industry. The mine has paid corporate tax every year since 2007, with a total of $112 million paid to date.

Chibuluma is a highly mechanised underground mine just outside Kalulushi, about 22 km from Kitwe. It employs 850 people, about 500 of whom are contractors. The mine produced 13 300 tonnes of copper in 2015 – a fraction of the country’s output of 711 000 tonnes.

Chibuluma was one of the first Zambian mines privatised in 1997. It is 85%-owned by the South African mining company Metorex, a wholly owned subsidiary of China’s Jinchuan Group since 2012.

What accounts for its success?

“We mine one of the highest-grade copper deposits on the Copperbelt,” says chief geologist, Narendra Shekhawat. “That means we do proportionately less work to produce the same amount of copper.”

Although the ore body is not very big, it has an average copper grade of 3%. This contrasts with large open-pit mines such as Barrick Lumwana or FQM’s new Sentinel Mine, where the grade is so low (barely 0.5%) that colossal quantities of ore have to be unearthed and treated, at considerable cost, to extract the copper. Chibuluma’ s smaller operation means not only lower costs but a simpler work set-up – problems are easier to spot and fix, approvals happen faster and turnaround times are shorter.

The mine has none of the frenetic activity characteristic of larger mines. About 600 metres underground, after carefully controlled blasting to expose the ore, a small fleet of only five articulated dump trucks drive up a long winding tunnel and bring the ore to the surface. After crushing and grinding, the ore passes through the small processing plant and emerges as copper concentrate, which is then driven to nearby Chambishi copper smelter and turned into blister copper. Very small quantities of silver are recovered as a by-product during the smelting process –about $16 000 worth a month.

Despite its enviable track record, Chibuluma has not escaped the effects of the current mining downturn. Like Zambia’s other mines, it had to shed workers in 2015, embarked on major cost-cutting and scaled back production. At the height of the copper boom in 2013, Chibuluma produced 18 000 tonnes of copper a year; that is now down to 10 000 tonnes.

“Chibuluma has one of the highest grades of copper on the Copperbelt”
“Reduced production means reduced volumes of ore through our processing plant, so we have a lot of excess capacity,” says Barry Kalumba, Head of Processing.

To maintain processing volumes, Chibuluma is scheduled to start mining a low-grade deposit of 2% at its new Chifupu project. It is also trying to persuade potential new mining ventures in the area to send their ore to Chibuluma for processing, instead of building their own processing plants.

However, the biggest challenge is that the current mineral deposit will be mined out within the next few years.

“Unless our ongoing exploration finds a new copper deposit worth exploiting soon, Chibuluma will probably close sometime between 2020 and 2022,” says Eustus Munsaka, Head of Finance. “All mines have a natural lifespan, and we are about to reach the end of ours.”

Already, a $4.4 million rehabilitation programme is under way to restore the landscape to its original state. Some 33 000 trees have been planted, carpet grass has been laid, and firebreaks have been built. Once the mine stops operating, various structures and buildings will be demolished, roads will be scraped, more land will be replanted with vegetation, and any contaminated land will be neutralised with lime. The entrance to the mine will be sealed to reduce the risk of acid mine drainage.

After closure, the shareholder Metorex and its parent company Jinchuan will shift their focus to the larger copper-mining investments in the neighbouring Democratic Republic of the Congo.

Even though closure is still a few years off, Chibuluma has developed an enviable track record in its contribution to Zambia since it was privatised in 1998. The Mine has paid taxes to government, uplifted the community through its Corporate Social Responsibility programme, and stimulated the local economy and job creation through the spending power of its employees.


Source: Mining for Zambia

ZCCM-IH | Delay in Dividend Payments to Shareholders on the Paris Euronext Access Stock Exchange

STATEMENT TO ZCCM INVESTMENTS HOLDINGS PLC SHAREHOLDERS
Delay in Dividend Payments to Shareholders on the Paris Euronext Access Stock Exchange

Lusaka, Zambia – At the ZCCM Investments Holdings Plc (ZCCM-IH) Annual General Meeting held on 29 June 2018, the shareholders of the Company approved a Final Dividend of K0.84 per share for the financial year ended 31 March 2017. Subsequently, dividend payments were effected on Monday, 30 July 2018.

However, due to financial and other regulatory requirements governing transactions across different jurisdictions, ZCCM-IH could not make the payments directly to shareholders based in France, and such has had to appoint an Agent to facilitate dividend payments.

Thus, for Shareholders based in France, payments await the conclusion of the engagement processes for a Dividend Paying Agent which has taken longer than anticipated. It is hoped that the engagement process will be concluded soon.

All affected shareholders will be notified once the engagement process is finalised. The inconvenience caused is deeply regretted.

Yours Sincerely,

ZCCM INVESTMENTS HOLDINGS PLC

Dr Pius C Kasolo
Chief Executive Officer