Kansanshi Mining Plc renews drill fleet

Amidst lacklustre global commodity prices Zambia’s largest copper mine, Kansanshi, has opted to renew its fleet of blast hole drill rigs with more efficient and reliable Sandvik D25KS and DP1500i drill rigs.

In the face of tough times in the Zambian copper mining industry, Rob McMaster, key account manager for First Quantum Minerals Sandvik Zambia says, mining contractor, First Quantum Mining & Operations (FQMO), have taken a progressive step to ensure improved efficiency and reliable production by renewing their DR500 fleet with Sandvik D25KS and DP1500i drills that are easier to maintain and operate on site.

He adds that Sandvik has entered into a buy-back agreement with FQMO to trade in the company’s 11 Sandvik DR500 series fleet that are used for blast hole and pre-split drilling in preference for the 9 new Sandvik D25KS rigs and 4 new Sandvik DP1500i rigs. The bundled deal makes the transaction more affordable and is in-line with FQMO’s overall objectives.

Efficient production

“We work closely with our customers to ensure operations are run optimally at all times. When circumstances change and a mine’s requirements are altered along with it, then we do our utmost to restructure equipment and fleets in such a way that the customer’s new needs are met. This is precisely what we have done at Kansanshi where we are proud to deliver a solution that is tailored to Kansanshi’s current and changing future requirements. The new Sandvik D25KS and DP1500i drill rigs are machines that will require less maintenance and specialised care than the predecessors.”

“They are also hardworking and well-suited to the current conditions in the mine, so are expected to deliver many years of reliable service with the highest levels of availability throughout as have the previously supplied D45KS, D25KS and DP1500i drills. FQMO has a fleet of 30 drills and the new Sandvik D25KS & DP1500i drills are required to assist with the high production requirements.

“They will be joining a number of other Sandvik D25KS drill rigs, as well as the larger Sandvik D45KS and Sandvik DP1500i top hammer drills. The standardisation will in many ways simplify maintenance, stock holdings of spares, rock tools and parts to make the operation easier to manage,” McMaster says.

FQMO’s manager optimisation drill & blast James Bravery was the direct link for the deal and through numerous discussions and negotiations we came to an agreed solution which is the result of this buy back agreement, McMaster says.

About the D25KS rig

Thanks to its compact size, proven design and durable power groups, the Sandvik D25KS blast hole drill is a very stable and highly manoeuvrable surface drill for surface mining and large-scale quarrying.

It’s a down-the-hole (DTH) hammer drill with a high pressure air compressor, air-line lubricator and fine feed control. It is commonly used in large mining operations globally with a choice of hole sizes from 127 mm to 172 mm (5” to 6 ¾”). It is also the drill of choice among many contractors due to its efficiency and extreme reliability on difficult grades.

One of the biggest selling points is its speed and fast set-up with effective pipe handling of 9.14m length pipes with pipe sizes in diameters ranging from 89 -140 mm. Pipe loading is controlled from the operator’s cab with the effective handling of drill pipe contributing to shorter cycle times and getting more holes drilled.

About the DP1500i rig

The Sandvik DP1500i is an intelligent, self-propelled, self-contained, crawler based surface drilling rig equipped with a cabin, movable boom and a rod changer. It is perfect for production drilling in large quarries or open pit mines and construction work sites. It is also well suited for wall control (pre-split drilling) and development works. The rig can be customised to meet special customer requirements.

Investing for the future

The Sandvik D25KS and DP1500i machines will be required to work up 5000 hours per year and in the well-maintained environment of Kansanshi the rigs will see service for many years. “This deal underscores our willingness to work with mines to ensure that they have appropriate equipment at all times that are able to deal with their changing requirements. While a number of underground mines in Zambia have shut down or gone into managed care the surface mines in the North West copper-belt are faring better. Moves such as the drill rig fleet renewal at Kansanshi to more efficient varieties are a positive step and an investment in the future of the mines,” McMaster concludes.

Source: MQWorld

Kansanshi Mining Plc Extract from 2016 Annual Report

Kansanshi Mining Plc (KMP) had sales revenue of K15, 699 million (US$1, 586.1 million) (2015: K10, 204.4 million (US$1, 568.7 million) for the financial year ended 31st March 2016. The net loss for the year was at K5, 110.9 million (US$517.4 million) (2015: Profit of K4,169.6 million (US$792.7 million). Total copper production was down 14% at 226,674 tonnes (2015: 262,287 tonnes) due to lower oxide and sulphide throughput during the first half of the year.

KMP intentionally reduced throughput in order to match KMP’s acid consumption with the smelter’s ramp-up to commercial production, while gold production was 12% lower at 136,257 ounces (2014: 154, 431 ounces) due to lower concentrate production and lower head grade. The lower sales volumes were offset by the introduction of the KMP smelter in 2015 that recorded revenue of US$403 million.

In 2015, KMP completed the copper smelter well ahead of schedule and commercial production was declared on 1st July 2015. KMP’s smelter processed 709,188 tonnes of concentrate in 2015 and produced a total of 150, 292 tonnes of copper anode and 645,000 tonnes of sulphuric acid. The KMP smelter achieved an overall copper recovery of 98%.

Subsequent to year end, ZCCM-IH filed a Notice of Arbitration on 26th October 2016 in London (UK) against Kansanshi Holdings Limited and Kansanshi Mining PLC. Further, on 28th October 2016 ZCCM-IH commenced legal proceedings in Lusaka, Zambia, against First Quantum Limited, FQM Finance Limited, Philip K.R. Pascal, Arthur Mathias Pascal, Clive Newall, Martin R. Rowley and Kansanshi Mining PLC for various claims arising from transactions between Kansanshi Mining Plc and FQM Finance Limited.

Total dividends paid during the period under review amounted to K59.3 million (US$8 million) (2015: K113 million (US$18 million). The amount payable to ZCCM-IH was K11.9 million (US$1.6 million) (2015: K22.6 million (US$3.6 million).

Enviro company limits dust at Zambia copper mine

Environmental management company I-Cat Environmental Solutions is supplying Zambian copper mine Kansanshi, owned and operated by mining companies First Quantum Minerals and ZCCM-IH, with its GreenGrip gravel road sealant.

The sealant eliminates dust on the mine’s semipermanent roads, preventing the adverse effects of dust on miners and reducing maintenance costs caused by dust-related failures, explains I-Cat Zambia director Chris Smit.

He notes that GreenGrip, which is an environment-friendly polymer-based product, was first applied at the mine in June 2013.

“Normally, mines use water to get rid of dust, but by applying GreenGrip, you prolong the effect, as GreenGrip has a special ingredient mixed with the polymer that binds soil and seals the road.

Dust is a huge problem on Zambian mines, particularly at this time of year, owing to the dry and windy conditions

– Chris Smit

“Instead of water bowser trucks constantly spraying water, GreenGrip needs to be applied only once every two to three days, depending on the dust levels at the mine. This significantly reduces maintenance and associated costs,” Smit tells Mining Weekly.

He notes that, while Zambia currently has air-quality laws in place, Zambian mines do not often adhere to them. This, however, is starting to change, says Smit, as international companies, which need to adhere to a country’s laws to remain operational, are becoming more prevalent in Zambia’s mining industry.

Smit highlights that dust is a huge problem on Zambian mines, particularly at this time of year, owing to the dry and windy conditions.

“Many people work in plant and pit areas, and on haulage roads, which are very dusty. Dust affects their health and, by applying these products, mines can reduce the dust levels by 40% to 50%, making a significant difference to the health of mine personnel,” he emphasises.

Smit adds that temporary roads, particularly around pit areas, that are not treated with GreenGrip are, however, treated with RDC 20, which is a more cost-effective dust palliative product offered by I-Cat.

Supplying Zambian Mines
He notes that I-Cat has been supplying the Zambian market since 2011 with its liquid soil additive RDC 20, which binds fine soil into heavier particles to prevent dust from becoming airborne. I-Cat has also introduced its new bitumen-based GreenBit product, which can primarily be used on main haulage roads to prevent roads from being washed away by rain.

“Owing to heavy rainfall in Zambia, GreenBit was developed in 2013 for application on main haulage roads and is currently being used on ferrous metals miner Assmang’s Bruce and King mines, in the Northern Cape, South Africa, with huge success. We apply this product to roads in Zambia to stabilise the roads during rainy seasons,” he explains.

GreenBit, as the name suggests, has an additive mixed with a lower dose of bitumen, which reduces the environmentally harmful impact of the more traditional bitumen-based products.

“We are an environment-friendly company and, as such, we strive to supply products to mines that have the same effects as a bitumen road – commonly known as asphalt – but with lower toxicity levels.

“Our mission is to prevent environ- mentally harmful products from spilling into runoff streams and dams, which is why we developed green products such as GreenGrip and RDC 20.

I-Cat Zambia has been registered with the Zambian Environmental Management Agency (Zema) since 2012 and all its products have been tested and declared environment-friendly by Zema.

Source: Mining Weekly

First Quantum, Metorex mining increase Copper production, turnover in Zambia

Two of some of the leading multinational mining companies operating in Zambia, Africa’s leading copper producer, have found a niche for their investment and have this year increased mineral production and also increased their earnings.

First Quantum Minerals Limited, the Australian listed and diversified miner, with operations in Zambia at Kansanshi and the new ‘Greenfield’ US$2 billion Kalumbila Mine in north western province increased its copper production by four percent during the last three months to 30 June this year to 107,808 tons compared to 103.694 tons three months prior.

Copper sales per ton rose over 10 percent to US$114,449 against US$95,491 during three months ending 30 June this year at Kansanshi mine in Zambia as the cash cost of copper production per pound also increased to US$1.45 against an earlier US$1.34 three months earlier.

Nickel production in contained tons dropped to 10,651 against 11,927 three months earlier, although realized copper prices/per pound rose to US$12,223 against US$10,875 recorded three months prior to 30 June, the company said.

Gold sales rose US$60,135 against US$59,381 during the three months to 30 June this year while gold production dropped 60,723 ounces against 63,567 ounces three months prior to the period under review, it said in its report.

Sales revenues increased to US$945.1 million against US$869.3 million during the three months ending 30 June with gross profit rising to US$293 million against US$201.1 million.

Expected group production has been revised to be between 418,000 and 444,000 tons of copper, 45,000 and 48,000 tons for nickel, 221,000 tons and 242,000 tons for gold between 55,000 and 60,000 tons for Zinc respectively.

It has revised its capital expenditure for the group at US$2.4 billion from an initial US$2.2 billion, excluding capitalization of any pre-commercial production and capitalized interest.

Metorex Minerals Ltd. achieved a turnover of US$60.4 million at its owners Chibuluma Mine in Zambia during the six months ending 30 June this year as profit before tax re declined to US$14,490 at the end of the six months ending 30 June this year from US$15,888 recorded a year earlier.

Despite recording an increased production of the red metal to five percent, turnover for the company during its operations over six months remained flat chiefly on account of reduction in average copper price.

At 30 June, this year, Metorex Ltd’s Chibuluma mine spent US$3.8 million on development of its ‘Greenfield’ Chifupu copper project on the outskirts and south of Kalulushi on the Copperbelt, intended to extend the mine lifespan to the year 2020 from the estimated 2017.

To boost mine operations and increase copper outturn Metorex Mining, the owners of the Chibuluma mine have approved about US$24 million to be spent on the development phase of the Chifupu project and ensure it is done as scheduled, says Eustus Munsaka, Metorex’s Chief Financial Officer in his report.

During the period the company paid US$5.882 million to shareholders in interim dividends.

First Quantum Minerals and Metorex are among the multinational miners that emerged into Zambia after the privatization of the mining conglomerate-Zambia Consolidated Copper Mines (ZCCM) in the late 1990s as Zambia sought to promote private sector ownership of the mines in the copper-rich country.

Since the privatization of the mines, an investment of US$8 billion has been ploughed into the mines with copper production projected to rise to 1.5 million tons by next year and later rise to over 5 million tons by 2022, according to projections by the chamber of mines of Zambia, basing on the oncoming projects at various mining companies in the country.

Source: Mining News Zambia