KCM cuts cost of production by 18%

By KENNEDY MUPESENI –

KONKOLA Copper Mines (KCM) has reduced the cost of production by 18 per cent while production has increased by seven per cent despite the challenges mining companies are facing.

KCM vice-president for local economic development, David Paterson said to reduce the impact of low copper prices on the international market, the company had worked on the new business strategy which had seen production costs drop by 18 per cent.

“We have developed a new production strategy which has seen production costs dropping by 18 per cent while increasing copper ore production by seven per cent despite the unfavourable business conditions on the international market,” Mr Paterson said.

He was briefing United Nations country coordinator Janet Rogan who toured the mining company’s facilities in Chililabombwe and Chingola on Wednesday.

Mr Paterson said KCM had been working on increasing efficiency by deploying one of the best modern technology equipment which had seen production costs go down.
He said the company wanted to prepare for the future.

“We want to prepare for the future so that when commodity prices start picking, they find us in a much better condition,” Mr Paterson said.

He said since the company took over mining operations in the country, the parent company, Vedanta Resources Plc, had invested to a tune of US$3 billion, a demonstration of the company’s commitment to the future of its mining in the country.

KCM geological services manager Davy Mubita said the sinking of the shaft at Konkola underground mine in Chililabombwe had expanded the lifespan and copper ore production for KCM.

“We recently extended the production capacity of the mine to eight million tonnes of ore after deepening shafts as well as sinking new ones at Konkola underground mine,” Mr Mubita said.

Source: Times of Zambia

Stage is set for Zambia Open Golf Championship

With only 10 days to go before the prestigious KCM 2016 Zambia Open tees off, all is set for Konkola Copper Mines (KCM) and the Nchanga Golf Club to host yet another major golf tournament.

The golf championship is scheduled to take place from Tuesday 31st May to Saturday 5th June 2016.

The Golf Championship has attracted over 130 international and local players who include former champions, Scottish Doug McGuigan, who scooped the last KCM Zambia Open staged at Nchanga Golf Club in 2011, the 2008 winner Tyrone Ferreira and Justin Harding the 2012 Champion.

From the local front, Zambia’s most celebrated golfers Madalitso Muthiya and his Ndola-born counterpart Dayne Moore will be leading the pack with the hope of snatching the coveted title.

The Zambia Golf Union (ZGU) has confirmed that 25 sponsors cutting across the telecommunications, banking, insurance, mining and construction sectors have come on board to help raise $480,000 out of $500,000 required to host a successful tournament.

ZGU President Jason Kazilimani has thanked the various partners for their response to the clarion call to support this tournament which is a major event on the Sunshine Tour calendar. He has appealed for more financial support.
Although we are just a few days from the tournament we are still appealing to other partners to come on board because the Nchanga Golf Club requires further financing to make this a memorable event that will not only boost the profile of golf and its development, but will make it a bigger and better event. I encourage Zambian companies to support this noble event.

KCM’s involvement in the Zambia is anchored on its extensive Corporate Social Responsibility (CSR) programme, underpinned on four pillars including sport.

CEO Stephen Din said recently “KCM supports sport because it is an excellent way to develop leadership. We are always looking to develop the next generation of leaders for Zambia and for our business. Golf is one of the sports which helps individuals to keep fit and provides an excellent platform for business interactions”.

Stanchart gives ZMW 200,000 sponsorship towards the 2016 KCM Zambia Golf Open

he Standard Chartered Bank has given a sponsorship of ZMW 200,000 towards the KCM 2016 Zambia Golf Open scheduled to take place from 31st May to 4th June at the Nchanga Golf Club in Chingola.

The Bank expressed delight at being part of the prestigious tournament and anticipates that its sponsorship of this international tournament would contribute to its success.

Our support towards the 2016 Zambia Open Golf Tournament demonstrates Standard Chartered Bank’s commitment to sporting activities in Zambia. This sponsorship is also testimony to the high importance we attach to the Copperbelt region as a key business hub. This year we are proud to commemorate 110 years of doing business in Zambia, since we opened our first branch in Kalomo in 1906. We have no doubt that the Zambia Open Organizing Committee (ZOOC) will put on yet another formidable show this year, and we look forward to being part of this unique event.

Andrew Okai, CEO, Standard Chartered Bank Zambia.

And ZGU President Jason Kazilimani says Standard Chartered Bank’s generous donation will ensure a successful tournament that lives up to its reputation of being one of the most prestigious events on the Sunshine Tour calendar.

Mr. Kazilimani expressed gratitude towards the bank noting that it would be impossible to host the tournament without various sponsors coming on board and urged other companies to join Standard Chartered Bank in contributing to the hosting of the event, whose main sponsor is KCM Plc.

Although we are just a couple of weeks from the tournament we are still appealing to other partners to come on board because the Nchanga Golf Club requires further financing to make this a memorable event that will not only boost the profile of golf and its development, but will make it a bigger and better event. Those companies that have pledges should come forward and honour them. I encourage Zambian companies to support this noble event.

Jason Kazilimani, President, Zambia Golf Union

He also thanked Konkola Copper Mines (KCM) for once again accepting to be the major sponsor of this year’s Zambia Open Golf Championship, a major fixture on the Sunshine Tour annual calendar. Mr Kazilimani said that the event would enhance the development of golf in the country.

Konkola Copper Mines reopens health facility in Chililabombwe

ver 11,800 residents of Chililabombwe’s Mine Township, the RB and Helen Kaunda settlements will access quality healthcare closer to their homes following the reopening of a Health Centre 4 in the copper mining town.

Commissioning the refurbished facility, Deputy Minister of Tourism and Arts, Esther Banda, who is also Chililabombwe Member of Parliament said the facility would impact positively on the lives of employees and residents.

“The reopening of clinic 4 will increase the number of people benefiting directly from KCM health services to over 70,000 people,” Mrs Banda said. KCM currently operates two major hospitals and 14 clinics in Chililabombwe, Nampundwe, Kitwe and Chingola which provide health care services to over 63,000 people.

Mrs. Banda said the reopening of the health centre was in line with the government policy to bring quality health care closer to communities.

My government is keen on fostering public private partnerships (PPPs) in all areas of development, including health as this is the most robust way of ensuring sustainable development,

Mrs. Banda said.

The Deputy Minister commended KCM for complementing the government’s efforts to provide quality health care to employees and communities around its mining areas.

Speaking at the same function, KCM Chief Executive Officer Steven Din said reopening Health Centre 4 was symbolic of KCM’s continued focus to deliver quality health care to the people in the communities in which it operates.

Mr. Din said KCM would continue to support the health sector as a healthy population was essential for supporting higher production in the mining industry.

I am aware that the government cannot on its own meet the demands for health service delivery. Therefore, the private sector has a major role to play in providing quality health services and KCM will continue to take a lead in this area,

Mr. Din said.

Kangwa Chirwa, a miner’s spouse and mother of two, said the facility would not only improve the healthcare of the community but would ease the burden of people walking more than two kilometres to the nearest health facility.

“I am very happy because I experienced the difficulties of walking long distances to the nearest clinic. It was more difficult when a mother fell ill at the same time as her child. It meant she would not be able to go to the clinic, thereby worsening the illness. But I thank KCM that we now have a clinic close to our homes,” she narrated.

KCM spent k800,000 on the rehabilitation works which included reinforcing the foundation of the building, replacing the roof and ceiling, improving water reticulation and sanitation facilities. Other works were done on the Antenatal, VCT and main consultation rooms. The clinic offers free VCT, under-five clinic and family planning services.

KCM appoints Mrs Chimango Chikwanda as Vice President Human Capital Management

CM is pleased to announce the appointment of Mrs. Chimango Chikwanda as Vice President Human Capital Management effective 1st April 2016.

She joins KCM from ZANACO where she made significant contributions to the cultural transformation of the largest retail bank in Zambia. She has over 20 years’ experience in strategic and operational Human Resource with other ‘ best-in-class’ multinationals such as Zain Zambia, SABMiller and Pricewaterhousecoopers.

Mrs. Chikwanda holds a BSc in Economics from the University of London, a MSc in Economics from the university of Warwick, an MS degree in Consultancy and Coaching for Change from HEC (Paris) in partnership with Oxford University and is a certified MBTI and Belbin practitioner.

Her predecessor, Mr. Njovu leaves KCM after completing close to two years in the role where he has provided leadership to the KCM function and maintained cordial relations with the unions.

Management has thanked Mr. Njovu for his contribution to the organization and wishes him well in his future endeavors.

Governance, Risk and Compliance Column!

ear Colleagues,

I would like to introduce to you our first article on KCM’s commitment to a culture of compliance and governance. In this column, we will look at various aspects around this subject which are critical to the growth of thee business.

We have embarked on a programme of ‘Zero Tolerance to Non-Compliance and our participation in this undertaking is critical. The company is required to be fully compliant with all company policies, procedures, technical specifications, regulations, general guidelines and the country’s laws.

Every one of us need to exercise responsibility and accountability in discharging our roles and responsibilities to ensure the growth and success of KCM. Compliance is not a requirement for only senior management, it is everyone’s responsibility.

There is need to strengthen our internal control environment in KCM. Every single person has a role to play a as we seek to achieve the company objectives. Being compliant has to first be a personal resolution, and then a collective corporate way of doing business. I wish to encourage all of you to join hands in ensuring100 percent compliance to our rules, guidelines, regulations and legal obligations.

Good attributes to compliance start with being punctual on duty and good time management. It requires upholding safety standards, using company assets and resources in a prudent manner. It must then extend to softer issues of our value system of being ethical in our conduct. We need to exhibit integrity – a culture of honesty in both private and business lives. We need to embrace this as a value system and not just a norm.

Compliance and ethical conduct eventually builds integrity which then leads to a robust business culture. The growth of our society, families and the company cannot be detached from a strong value system, underpinned on compliance to statutory requirements and company procedures and policies.

In our next discussion, I will share with you a synopsis of KCM’s compliance programme which will focus on the realisation of a stronger business environment that guarantees the survival of this organisation. I urge you to be compliant!

Sharad Gargiya

Chief Financial Officer

KCM Employees a part of a global Chairman’s “virtual town hall”

HINGOLA, 6 March 2016, Anil Agarwal, the Chairman for Vedanta Resources addressed more than 300 Konkola Copper Mines (KCM) employees as a part of a global “virtual town hall meeting.”

The Vedanta founder and Chairman was speaking during a live broadcast through a video link to more than 300 KCM employees and about 5,000 in total from all Vedanta subsidiaries and businesses in 30 locations in 5 countries. Employees from all locations were able to ask questions to the Chairman, who was participating in London.

This was the first time that this technology has been used in KCM and enabled a wide cross section of the company to interact directly with the Chairman of the company’s largest shareholder.

The event was well received by KCM employees: According to Innocent Chiluba, a metallurgist in the company: “It was great to be able to hear the Chairman talk directly to us from London and answer the questions on our mind. I was amazed to see groups from so many different places on the screen.”

Mr Agarwal spoke about his affection for Zambia and Vedanta’s long term commitment to the country. He said Vedanta’s 50-year vision to continue mining in Zambia would be fulfilled, underpinned on the world-class and high grade ore body at the flagship Konkola mine in Chililabombwe.

Mr Agarwal told the employees that,

our main intention at the moment is to survive the current challenges. It is all about our determination to take our company forward. You need to work hard, cut costs and increase production. We have to be innovative.

Mr Agarwal said Vedanta subsidiaries, including KCM, would continue to nurture young people into positions of leadership. The company would also promote the ascendancy of women into leadership positions as it seeks to expand its asset portfolio as a diversified global resources company.

I encourage all of you to remain ambitious for success, humble and hardworking. To find and recognise talent is the most important thing for us. Our success will be based on trust and honesty. I have seen a great passion from our employees at KCM and there is also great potential. We have done everything possible to develop this asset by investing over $3 billion on processing plants and the mines,

Mr Agarwal said, addressing KCM.

Vedanta Chief Executive Officer Tom Albanese, who is also KCM’s Chairman, reiterated that a strong foundation had been created at KCM.

“There is so much enthusiasm about copper mining in Zambia. Everyone is passionate about the KCM 50-year vision,” Mr Albanese said.

Mr Albanese said that companies which emerge strong from the downturn in mining are those that inevitably benefit most from the return to higher commodity prices.
“This is not the first time we have faced these challenges. I am optimistic we will come out stronger,” he added.

Konkola Copper Mines announces the death of Mr Fighton Simukonda, the Head Coach of Nchanga Rangers Football Club (NRFC)

HINGOLA, 17 February 2015, it is with deep sorrow that Konkola Copper Mines announces the death of Mr Fighton Simukonda, the Head Coach of Nchanga Rangers Football Club (NRFC).

The late Mr Simukonda died at about 06:00 hours on 15 February 2015, at the Konkola Mine Hospital in Chililabombwe, after an illness. The funeral will be held at House Number 68, 8th Street, Nchanga South in Chingola.

KCM Management and staff pass their heartfelt condolences to the bereaved family. The company wishes the family God’s comfort, strength and guidance during this difficult moment.

The deceased was appointed Head Coach of Nchanga Rangers in 2012, after coaching stints with several top Zambian clubs.

During his spell with Nchanga Rangers, he brought stability to the club and raised several young players, who are now with various youth national teams and the Chipolopolo national team.

We join the rest of the nation in mourning our deceased football icon – one of Zambia’s most decorated football players and coaches.

Nationwide power outage impacts KCM operations

HINGOLA, 11TH December 2015, Konkola Copper Mines (KCM) operations and production have been affected by a countrywide power blackout which occurred from about 10:35 PM on Thursday, 10th December, 2015.

Following the power outage, KCM was able to bring on line 16MW of power using its own emergency diesel generator set at Konkola mine supported by another 40MW in emergency power supplied by the CEC from its gas turbines. This power allowed KCM to continue to pump water and withdraw its employees in a planned and disciplined manner. All employees at both the Nchanga and Konkola underground mines were withdrawn without injury or incident.

However, around 04:30 AM on Friday, KCM lost the emergency power supply after the national power system tripped as attempts were being made to reconnect the company to the national grid. Full supply of power was finally restored to KCM at about 09:40AM today. Production was suspended during the power outage.

Consequently, it will take KCM about 16 hours to restart operations at its Nchanga smelter in Chingola. The company will also suffer some slight loss of production at Konkola while pumping out of water continues from the deeper sections of the mine.

The rest of the operations are being systematically returned to production following full safety and environmental checks.

Shapi Shachinda

Manager Public Relations & Communications

Mobile: 0978 871958

First lady says KCM is trusted development partner

Zambia’s First Lady Esther Lungu has said Konkola Copper Mines (KCM) is a trusted development partner for the country following its expansive social investments in the last 11 years.

The first lady said this when she addressed hundreds of residents of Shimulala, Helen and Kakosa settlements on the outskirts of Chingola, where the company’s corporate head office is located. She visited sites of KCM’s corporate social responsibility (CSR) programmes.

Mrs Lungu commissioned the new Helen Bridge which was constructed by KCM at a cost of Zk877,635.00 (US$82,640.00). She also laid a foundation stone for an Out-Grower project seeking to empower local farmers and toured other KCM-funded CSR projects.

The newly constructed Helen Bridge has eased movements of over 4,000 people living in the area as they carry produce and other goods to markets in Chingola and beyond. It also connects people to health and education facilities outside of their settlements.

The Nabona out-growers programme targets to provide about 500 small and medium scale farmers with access to markets in an organised way to ensure quality and planned production.

I want to urge the community to continue to work closely with Konkola Copper Mines (KCM) because this is your trusted partner. KCMhas stood by you in good and difficult times,

she said.

“I must commend KCM for providing 22 hectares of land on lease to proprietors of Nabona as this will create employment for farmers and the young people,” Mrs Lungu said.

Mrs Lungu also paid glowing tribute to KCM for empowering women with life-saving skills in cattle rearing, tailoring and farming.

“I want to attest that it is evident that KCM has spent US$160 million in communities over the last 11 years,” Mrs Lungu told residents after touring some CSR projects, including the cattle restocking project.

I have seen some of the key projects where these funds have been spent.

She said it was heartening that the company was focusing on four corporate social responsibility pillars, namely education, health, sustainable livelihoods and sport.

The first lady encouraged KCM to continue uplifting the lives of people in its areas of operations. KCM has given out over 596 cattle in Chingola, Chililabombwe and Nampundwe and also provided 2,327 goats to 26 self-help groups.

Mrs Lungu said social investments by KCM fitted into President Edgar Chagwa Lungu’s vision for a public private partnership models for diversifying the economy and shoring up growth.