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ZCCM-IH Starts Mining Maganese In Serenje

The ZCCM-IH has started operations at its Manganese mine in Serenje, Central province, with expected production of 240, 000 thousand tonnes annually, once commercial production is achieved.

This is through ZCCM-IH’s Kabundi Resources, with an initial capital of K18.6 million.

The start of operations follows the end of the rains, which had hampered the project, as there was a challenge in accessing the mine area.

Phase two of the operations is expected to start before the onset of this year’s rain season, with large scale exploration in the same area.

ZCCM-IH Chief Executive Officer, Mabvuto Chipata says the mine will be fully operational by July 2020, and the company is looking forward to having it officially launched by August, this year.

Mr Chipata has also visited the Kampumbu Resettlement area, which is earmarked for relocation of 9 households, displaced from the Kabundi mine site.

He has explained that ZCCM-IH will spend K4.5 million to fulfil the relocation of affected families.

This is according to a statement availed to ZNBC news today by ZCCM-IH Public Relations Manager, Loisa Kakoma.

Source: https://www.znbc.co.zm/news/zccm-ih-starts-mining-maganese-in-serenje/
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ZCCM-IH STARTS MANGANESE MINING OPERATIONS IN SERENJE

Works at the manganese mine in Serenje have commenced following the end of the heavy rains that had hampered kick-starting operations, posing a challenge in accessing the mine site areas, the ZCCM Investments Holdings Plc (ZCCM-IH) has said.

ZCCM-IH Public Relations Manager Loisa Kakoma reviewed that the company through its wholly-owned subsidiary Kabundi Resources Limited (KRL) is already on-site to commence the initial works of the project.

“We have started the first phase of the project in the small-scale mining license, with an initial capital injection of K18.6 million,” Ms. Kakoma said.

She added: “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.”

Ms. Kakoma also disclosed that ZCCM-IH plans to spend a total of K4.5 million to fulfill the Resettlement Action Plan (RAP) obligations, which are scheduled to be handed over to the beneficiaries in June 2020.

“RAP 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,” She added.

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

The ZCCM-IH mouth piece further said: “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.”

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

Source: https://www.techwatch.news/zccm-ih-starts-manganese-mining-operations-in-serenje/
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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
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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
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Mopani To Resume Mining Operations As Soon As Government Approves Its Latest Proposal

By Michael Kaluba

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.
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We’re not trading Mopani with Chinese debt relief – Ng’andu

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.”
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Glencore to report Zambia Copper mines pending agreement with government

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.

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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.

Country

 
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CEC arbitration matter still ongoing despite end of BSA

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.

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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”.
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CANCEL ALL LETTERS-MUZ

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.
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Government give Mopani Copper Mines a 7 days ultimatum before Revoking their Mining Licence

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