Konkola: Key to hitting 3 million tonnes copper target

The new dawn government of President Hakainde Hichilema has set its vision clearly when it comes to copper mining – it wants to ramp up production to three million tonnes per annum in the next decade.

With current production standing around 800,000 metric tonnes (mt) per annum, it is quite an ambitious plan – too ambitious, some in the industry have argued.
But there is good motivation for such efforts – an expected huge demand for copper driven by the nascent electric car industry, and the price for the red metal, which peaked above US$10,000 per tonne about two years ago.

Copper prices reached an all-time high of US$10,512 per metric tonne on May 9, 2021, but have receded to about US$8,000 in the recent past, which is still a good price for copper producing countries such as Zambia.

Some mining companies in the country are already responding accordingly to the prospect of high demand, making new investments to increase production. But one major player, Konkola Copper Mines (KCM), cannot rush to the table yet, held back by


Read more: http://www.daily-mail.co.zm/konkola-key-to-hitting-3-million-tonnes-copper-target/

KCM team wins national mine-rescue competition

Konkola Copper Mines Plc (KCM) mine rescue teams have emerged winners of the 2022 national mine rescue competition, a dress-rehearsal undertaken to ascertain the preparedness of underground mine rescue teams to manage major mine accidents in the mining sector.

The annual event, which was held for five days from July 25, 2022 at the Victoria Falls Hydro-Power Station in Livingstone, comprised nine underground mine rescue teams from KCM, Mopani Copper Mines (MCM), NFCA, CNMC Luanshya, Lubambe Copper Mines and Mabiza Resources Nickel Mine.

The participants are assessed on various critical requirements in mine rescue such as fitness, team-work, firefighting and life-saving techniques, as well as disaster management.

KCM’s Nchanga Team C emerged overall winners of the national final heat competition, which is organized by the Zambia Mines Rescue Association (ZMRA).

The KCM Nchanga Team C scored 179.4 points in the tightly contested final heat where another KCM team Konkola Team A came out second with 179.1 points. Last year’s winners Lubambe Copper Mine Team B were in third position with 177.3 points.

KCM Group Safety Manager Operations Felix Sikaonga said the performance of the KCM teams underlined the Company’s priority placing Safety ahead of production and also an indication that the safety teams had not dropped the bar despite being away from the competition for three years.

Mr Sikaonga said, “We last participated in the final heat competition in 2018 where Nchanga C won the competition. They have replicated that victory, which is proof of the Company’s robust safety standards. It reinforces our continuous focus on safety trainings and other internal measures intended to safeguard life and our assets.” “KCM will continue to play a part in ensuring safety is upheld in all out operations as we also keep exchanging global best practices with our peers in order to make Zambia mining and communities in and around mining areas safe havens,” he said.

The KCM team, which won the 2018 competition is scheduled to represent Zambia at the 2022 International Mine Rescue Competition (IMRC) in West Virginia, USA in September, after the resumption of the international competition derailed by the Covid-19 pandemic.

Nchanga C team, the winners of the year’s final will again represent the country with two other teams from Mopani and Lubambe who won in 2019, 2020 and 2021 respectively, in the international competitions which will be held in Colombia next year.

“These are exciting times in the sense that it is the first time that a KCM team will represent the country in an international mine rescue competition. We are confident of an award[1]winning performance from the KCM team,” he said.

This is contained in a statement issued by KCM General Manager Corporate Affairs Shapi Shachinda.


Source: https://tiozambia.com/kcm-team-wins-national-mine-rescue-competition/

KCM, Zanaco to increase business partnership

Konkola Copper Mines (KCM) and ZANACO Bank have agreed to deepen their business partnership with possibilities of the bank increasing its short to medium term lending to the Company while KCM would explore ways of increasing its quantity in terms of business with the bank.

A delegation comprising six senior ZANACO officials led by Head Corporate and Investment Banking Andrew Muyaba met with Jason Kazilimani, the agent for the KCM Provisional Liquidator, Celine Nair to explore further business opportunities that would enable KCM to fund some growth projects intended to increase production in the short to medium term.

The Acting CEO of KCM Enock Mponda and four senior KCM officials also attended the discussions in Chingola.

The two parties agreed to sustain the current position of ZANACO as the biggest lender to KCM for letters of credit, which enable KCM to procure additional copper concentrates from local and foreign third parties for blending with KCM’s own copper concentrates in order to meet specifications for production of copper anodes at the Nchanga smelter.

The KCM officials told the bankers that the Company was strategically positioned to participate in the booming global industry of electric vehicles by enhancing copper and cobalt production, which are some of the metals used for wiring of electric vehicles and production of car batteries, respectively.

The Company seeks $17 million in financing to carry out an annual shutdown of the Nchanga smelter, which requires major upgrades to infrastructure in order to improve its efficiency, as well as other funds for the re-opened Chingola Open Pit (COP F&D), earmarked to commence ore production at the end of July. Other production areas at Konkola deep mine and Nchanga Open pits also need bridge financing to raise production.

“We need additional letters of credit for procurement of concentrates and we take note of the need for KCM to increase business transactions with ZANACO,” Mr Kazilimani said.

“We found ourselves as major lender to KCM and hope to grow our business portfolio with yourselves. We see this business relationship getting bigger and better, especially that we are now a one billion kwacha bank,” Mr Muyaba said in reference to ZANACO becoming the first bank to hit one billion kwacha in profit after tax in the 2021 financial year.

This is contained in a statement issued by Shapi Shachinda General Manager Corporate Affairs.


Source: https://tiozambia.com/kcm-zanaco-to-increase-business-partnership/


MINES and Minerals Development Minister Paul Kabuswe says the process of appointing a new Konkola Copper Mines provisional liquidator is underway, following Milingo Lungu’s resignation. In an interview, Kabuswe said the UPND government had the will, desire and drive to fund KCM and would go out of its way to ensure that the mine succeeds. “That is the route that we are taking, the process of another liquidator is already underway. Of course, those are now processes that should be done by the official receiver, so it is not the

Read more: https://diggers.news/business/2022/03/23/process-appointing-new-kcm-provisional-liquidator-underway-kabuswe/


FINANCE and National Planning Minister Dr Situmbeko Musokotwane says government is working behind the scenes to resolve issues surrounding Konkola Copper Mines (in liquidation) and Mopani.

In an interview, Dr Musokotwane said government was already dealing with legacy issues from existing mines in order to increase mining output.

“In the plan to increase mining output, the government is already dealing with legacy issues from the existing mines. You know when the PF left, they left a big mess in KCM, put it under liquidation, so the output from that mine is obviously adversely affected. Government is working behind the scenes through ZCCM to resolve the issues of KCM. I can’t go into more details because these are delicate issues. Similarly, under PF, Mopani was also left in a limbo, the previous investors Glencore left behind a debt of billion Dollars. So once again that is a problem, if we don’t deal with that all the money coming out from the mines [will go] to service that debt left behind by the PF. There will be no money to develop the mine further so that it produces more copper. So once again this is something that is being done behind the scenes to see how we can get partners so that the mine is properly funded and it can contribute towards copper production,” he said.

Dr Musokotwane said powerful steps were being taken to increase copper production in the country.

“These are very powerful steps that are being taken so that we produce more copper. Look, the Congolese, who 10 years ago were only producing half of Zambia’s copper, today they are producing double that, of what Zambia produces in copper. Hence you see all this money that is [being] thrown around in Congo DRC, because it is from Copper, meaning we are behind. The good thing is that the government is on top of things to resolve all the legacy issues. We have also said that we are negotiating with investors so that there is copper value addition. We have been speaking to investors to say ‘in Zambia, we have an opportunity of turning into a country that makes more of the car engines in the world’, because car engines are moving away from petrol, to electrical motors. So we can actually manufacture most of the car engines of the future. Those are discussions that are underway with investors,” said Dr Musokotwane.


Source: https://diggers.news/business/2022/03/08/were-on-top-of-things-in-terms-of-resolving-kcm-mopani-issues-musokotwane/


Investment house, ZCCM IH, has announced that it has secured a US$ 10 million facility that will assisting Konkola Copper Mines from local bank, ZANACO Bank Plc, according to a statement issued to shareholders.

“The Board wishes to inform the shareholders and the market that ZCCM Investments Holdings Plc (“ZCCM-IH” or “the Company”), has agreed to provide a Corporate Guarnatee to Zambia National Commercial Bank Plc (“Zanaco”) for the amount of USD10 million (the “Transaction”)”, read the statement published on SENS and issued by Company Secretary Chabby Chabala on 25th January 2022.

The reason for securing the facility is to assist the mining company with much needed working capital. “The support of ZCCM-IH to the operations of KCM is quite critical at this juncture. KCM needs working capital urgently in order to procure concentrates from Trafigura to sustain its metallurgical and production operations”.

The two-fold facility is comprised of a Letter of Credit (LC) valued at US$ 8 million and an Overdraft facility of US$ 2 million. “A USD 8 million Standby Letter of Credit (“SBLC”) by Zanaco Plc in favour of Trafigura, the suppliers of copper concentrates to KCM and buyers of the finished copper” and “A USD 2 million overdraft facility”.

Government has backed the transaction by issuing an instrument that provides guarantee for the facility on behalf of ZCCM IH. “Promissory note issued in favour of ZCCM-IH by Ministry of Finance for the amount of the Corporate Guarantee.”

The provision of USD 10 million Corporate Guarantee to Zanaco Plc is valid until 31st December 2022.

Source: https://fizambia.com/zccm-ih-secures-us-10-million-working-capital-for-konkola-copper-mines/


Konkola Copper Mines Plc remains under the management of the Provisional Liquidator, according to an official statement from the mining company.

Konkola Copper Mines Plc (“KCM”) remains under the management and control of the provisional liquidator, pursuant to the Court Order dated 21st May 2019”, read a statement issued by General Manager Corporate Affairs Shapi Shachinda on 10th December 2021. “We note a Vedanta Resources Holdings (“Vedanta”) statement dated 7th December 2021 which seeks to give the impression that they have regained management control of the KCM asset”.

According to a media release attributed to Vedanta, Dr Moses Banda was announced as the Spokesperson of Vedanta in Zambia. “Vedanta Resources Holdings Limited and its parent, Vedanta Resources Limited is pleased to announce that Dr Moses Banda, Vedanta’s Country Director as the official spokesperson in Zambia”.

“Dr Banda is a prominent voice Vedanta is extremely pleased to have Dr Banda’s experince on board to focus on rebuilding KCM, protecting 12,000 jobs in KCM and looks forward to engaging with the Zambian communities”, further read the statement.

However, “Members of the public are advised to disregard this deliberate attempt to mislead the nation”, in a rebuttal to the aforementioned statement by Shachinda. “Vedanta remains uninvolved in the running of operations at KCM”.

Sensing that the Vedanta statement may cause concern amongst key stakeholders, Shachinda further stated that “they appealed to all KCM employees, labour unions representing KCM employees, KCM Creditors, Contractors and Suppliers as well as the Company’s business partners and other key stakeholders to remain calm”.

Further Cautionary Announcement from ZCCM IH as at 28th July 2021

The following is an extract of the SENS announcement published in July this year regarding the matter from ZCCM IH’s Company Secretary Chabby Chabala on behalf of the Board of ZCCM IH regarding the Arbitration matter.

Shareholders of ZCCM Investments Holdings Plc (“ZCCM-IH”) are referred to the announcement dated 23 May 2019 concerning the following:

  • ZCCM-IH filing a petition in the High Court of Zambia for the winding up of Konkola Copper Mines PLC (“KCM”) on 21 May 2019 (the “Petition”) and the appointment by the Court of Mr Milingo Lungu as provisional liquidator of KCM (the “Provisional Liquidator”);
  • The legal proceedings commenced by Vedanta Resources Limited and Vedanta Resources Holdings Limited (together “Vedanta”) against ZCCM-IH on 2 July 2019 in the High Court of South Africa;
  • Vedanta’s applications to the High Court of Zambia to stay the liquidation proceedings and refer the matter to arbitration.

The South African proceedings were pursuant to the Arbitration proceedings which were yet to be commenced and were eventually commenced by Vedanta against ZCCM-IH on 31 July 2019. The Arbitration proceedings (which are confidential as between the parties) are underway and yet to be finally resolved. Shareholders, are however, advised that on 7 July 2021 the Sole Arbitrator made a Partial Final Award (“the Award”). The Award was in some parts in favour of ZCCM-IH and in some parts in favour of Vedanta. The Award has no effect on ZCCM-IH’s application for leave to appeal against the decision of the Court of Appeal announced in ZCCM-IH’s further cautionary announcement of 23 June 2021. Further, the Award has no effect on the position of the Provisional Liquidator, who remains in office.

ZCCM-IH will provide details on this matter in due course.

In the meantime, Shareholders of ZCCM-IH are advised to exercise caution when dealing in securities of the Company until further information is published. 

By Order of the Board

Chabby Chabala

Company Secretary

Issued in Lusaka, Zambia on 28 July 2021



Invest in job rich sectors-Finance Minister urges IDC

Minister of Finance and National Planning Dr. Situmbeko Musokotwane says the IDC Group of Companies should take advantage of their numbers and invest more in job-rich sectors of tourism and construction, to foster economic transformation and wealth creation.

Speaking during the official opening of the 5th IDC Annual Group Conference held at Avani Hotel in Livingstone over the weekend, Dr. Musokotwane said that it was the Government’s plan that the IDC takes the lead in spearheading value addition and job creation in the key priority sectors of tourism, manufacturing, agriculture and mining.

He encouraged Chief Executive Officers and the Board Members, who were delegates at the Conference, to seize opportunities in the Multi-Facility Economic Zones, farming blocks and other growth projects to move their organizations to the next level.

Meanwhile, speaking earlier, Mr. David Kombe, who is the Chairperson of the Finance and Administration Committee of the IDC Board, said that despite some challenges recorded, including the Covid-19 pandemic, a good number of companies had demonstrated resilience, judging by their overall performance in the 2020 and 2021 financial years.

Mr. Kombe commended the IDC Group Chief Executive Officer as well as Boards and Management teams of the subsidiaries and investee companies, who worked hard to adjust their operations and adapt quickly to the changing business environmental.

Source: https://www.lusakatimes.com/2021/11/29/invest-in-job-rich-sectors-finance-minister-urges-idc/

Huge Amount Of Capital Required To Resuscitate KCM And Mopani – Musokotwane

Finance Minister Situmbeko Musokotwane has indicated that a large amount of capital is required to revive operations at Konkola Copper Mines (KCM) and Mopani Mines but that the government is working to bring the facilities back up to speed as a matter of urgency. 

Speaking at a post-budget symposium in Lusaka on Monday, Dr Musokotwane said that discussions were already underway to bring about a lasting solution and that the public would be informed of the results in due course.  

Both KCM and Mopani Mines were brought under effective government control by the previous Patriotic Front administration. In May 2019, the government’s investment arm ZCCM-IH seized control of KCM and appointed a liquidator, Milingo Lungu, to oversee the breakup and sale of the mine’s assets. 

Since then the mine has been haemorrhaging money, with productivity falling some 70% since coming under government control. Private owners Vedanta have also challenged the liquidation process at an arbitral tribunal in London and in September, Mr Lungu was arrested for allegedly stealing and laundering more than $2 million during the liquidation process.

Likewise, at Mopani Mines, the government took over operations in January 2021, accruing a further $1.5 billion in debt to purchase the mine from majority owners Glencore. Since then the government has been unable to find a private investor to help run the mine at full capacity. 

On Monday, Dr Musokotwane revealed that the government is also subsidising fuel for the mines to the tune of $21 million per month. The finance minister admitted that this was a major predicament. 

It follows on from Fridays budget, at which the minister announced a tax break for mining companies by allowing them to deduct their royalties payments from income taxes. 

The UPND government has previously indicated that it would be willing to bring private investors back to the mining sector, with Mines Minister Paul Kabuswe telling a meeting at KCM last month, “part of the mess that we are in is because of that liquidation process”. 

“We must never ever bring politics in[to] the private sector,” he emphasised. 

Vedanta, for their part, have promised a further $1.5 billion of investment into KCM if the facility is restored to their private ownership. This is estimated to be enough to restore productivity at the mine back to pre-pandemic levels. 

Source: https://www.openzambia.com/economics/2021/11/2/huge-amount-of-capital-required-to-resuscitate-kcm-and-mopani-musokotwane

ZCCM IH Signals Intention to continue with KCM Appeal Process

ZCCM IH has advised shareholders that it intends to appeal against the decision of the Court of Appeal and to stay the judgment in the matter relating to KCM, according to a statement from the Company.

According to the statement, “Shareholders of ZCCM Investments Holdings Plc (“ZCCM-IH”) are referred to the announcement dated 23 May 2019 concerning the following:

  • ZCCM-IH filed a petition in the High Court of Zambia for the winding up of Konkola Copper Mines PLC (“KCM”) on 21 May 2019 (the “Petition”), the appointment by the Court of Mr Milingo Lungu as provisional liquidator of KCM (the “Provisional Liquidator”).
  • The legal proceedings commenced on 2 July 2019 in the High Court of South Africa and applications made to the Zambian High Court by Vedanta Resources Limited and Vedanta Resources Holdings Limited (together “Vedanta”) to stay the liquidation proceedings and refer the matter to arbitration.

Shareholders are informed that the High Court of Zambia ruled against Vedanta on 7 August 2019. On 13 August 2019 Vedanta appealed to the Court of Appeal of Zambia against the decision of the High Court of Zambia which denied them their application to stay the liquidation proceedings and refer the matter to arbitration. The Court of Appeal on 20 November 2020 ruled in favour of Vedanta and stayed the liquidation proceedings and referred the matter to arbitration.

The statement issued by ZCCM IH Company Secretary Chabby Chabala further stated that “ZCCM-IH will provide details on this matter, as it progresses, in due course”.

Source: http://fizambia.com/zccm-ih-signals-intention-to-continue-with-kcm-appeal-process/