SINCE the 2019 budget was announced and eventually passed, there has been very little good news coming out of mines.
In the 2019 budget, Government has introduced a 1.5 percentage point increase on all mineral royalty tax bands, and an additional two royalty bands of 8.5 and 10 percent when the copper price exceeds US$7,500 and US$9,000 per tonne respectively. Further, mineral royalties will cease to be deductible from corporate income tax.
The measures have seen mining companies hitting back saying they will shed off as many as 21,000 jobs and cut or withhold US$500 million in capital spending over the next three years.
That is significant.
Yet, against this gloomy picture, Lubambe Copper Mines (LCM) in Chililabombwe projects to increase its copper production by about 60 percent this year.
Company chief executive Nick Bowen says they produced 22,000 tonnes of copper last year but expect to increase this to 36,000 tonnes this year. EMR Capital, the current investors, bought the mine at a time when it was facing financial challenges. But now, stringent measures have been instituted to help sustain operations of the firm. Mr Bowen said the changes have not been easy to implement but management has made it a policy to incorporate the workforce in its strategic plans.
Certainly, Lubambe needs commendation. It shows that the company is not here for the short term but has rather aligned itself with the aspirations of the nation. This is unlike some mining companies that have only kept one foot in Zambia to just take advantage of the economic boom, yet are ready to flee when hard times hit or they have made enough money and start thinking the country’s environment no longer suits them.
This is unacceptable.
As a nation, we have not always universally agreed with all our policy positions. But if there is one area where there is near consensus, it is the one to do with the new mining legislation. The Zambian public is largely in agreement that we have not sufficiently benefited much from the mines, particularly during the period after privatisation. Yet, the mines are supposed to be the goose that lays the golden egg for the country.
The jury is that mining companies have not been paying their fair share of taxes despite the privileges and advantages they have secured.
There is an argument by some mining companies that Zambia is a very high cost producer of copper. But it is difficult to swallow this wholeheartedly. The suspicion is that some mining companies inflate their production costs in order to avoid paying taxes.
We know for instance the findings of ECON Poyry, a Norwegian consulting company and engineering group that was commissioned by the Zambia Revenue Authority (ZRA) in 2009 to do a pilot audit of the operational costs, revenues, transfer pricing, employee expenses and overheads of one mining company on the Copperbelt.
The investigating report concluded that the reported numbers from the company were in doubt. It was found that the company had not paid income tax for a good number of years but had only paid royalty fees. But the chairman of this company reported that they had paid millions of dollars to Government in taxes. Yet, those monies included pay as you earn (which is paid by employees), import duties, property rates paid to municipalities, vehicle registration fees, value added tax, licence fees and none which directly comes under the category of company tax. But the fact that they were reporting it as company tax could only mean that they were trying to hide the fact that they pay little or no income tax at all.
It is the reason why the Zambian public is frustrated with the mining companies. The feeling is that they try so much to hold us to ransom; rushing to cutting jobs every time new mining legislation is passed meant to get more from the mines.
Yes, as a country, we are open to foreign direct investment but we also need our investors to appreciate the unique challenges that we face.
From the time the new mining legislation was announced, Lubambe is the first mining company to provide a spark.

Source: Zambia Daily Mail

Lubambe Copper Mines has donated assorted food items to One Way Mission Children Home and Lusungu Children home as part of celebrating the New Year.

The donation worth K15,000 is part of the mines corporate social responsibility in Chililabombwe and Chingola respectively.

Lubambe Copper Mines acting General Manager Operations Venus Kasito said the policy is to plough back into the community.

Mr Kasitu said the mine has donated to the needy as a way of enhancing their lives and a way of supporting the children.

He said the lives of the children are important hence the need to help them in any way possible.

“The company wants to reach a production capacity of 220 tones by the 4th quarter of 2019 then the company will be able to boost up its corporate social responsibility,” he said.

Loveness Sakala Director at One Way Mission was grateful for this gesture in supporting the vulnerable children.

Ms Sakala said other stakeholders should emulate and do the same to give support and enhance the children’s lives and future.

Lusungu orphanage Director Caddie Ng’ambi said the act of love by the mining firm would go a long way.

Bishop Ng’ambi said the orphanage accommodates a number of children whose educational needs are taken care of by the orphanage

He expressed gratitude towards the gesture of an act of love by Lubambe mine to the children.

Source: The Independent Observer

Lubambe Copper Mine has procured the first ever self-contained mine Emergency Refuge Chambers in Zambia. The consignment of five refuge Chambers has been procured at a cost of US$ 475,000 from Mine Arc Systems of Australia.

Lubambe Mine Communications Manager Loyce Saili said the procurement of the refuge Chambers by the copper miner is a move toward enhancing Emergency Response in case of mine accidents arising from fire, explosions, flooding and release of smoke and other forms of toxic gas.

“The refuge Chambers will enable Lubambe to provide safe refuge for the miners where evacuation is not immediate in the event of an incident. The refuge Chambers will provide a safe and secure go to area for Miners to gather and wait extraction, “ she said.

Speaking yesterday during the media site visit at Lubambe Mine in Chililabombwe, she added that the refuge Chambers are with vital life support systems to create a safe, ongoing environment for occupants.

She further narrated that the system include, oxygen supplies, air conditioning system, electrical system, gas detection system and CO2 and carbon monoxide removal system as well as communication system, camera, seats of 20 in each and chemical toilet.

“Safety is our number one priority, we want our miners to be safe through ensuring preparedness for any eventuality,” Saili stated.

And General Manager Tony Davies said the chambers will be placed underground in the coming months and the workers will under go training on how to operate the equipments.

He also said the Chambers will last forever and has the capacity to accommodate above 20 people during an emergency, as what is required is the increase in oxygen supply.

Lubambe Copper Mine is a large-scale underground Mine owned by EMR capital of Australia who have 80 percent shares and ZCCM-IH who hold 20 percent.

Source: Miningnews Zambia

EMR Capital, an Australian mining giant has taken over operations at Lubambe Copper Mine in Chililabombwe.

EMR Capital Group Chief Executive Officer Jason Chang says the mining giant has invested 100 million U.S Dollars in taking over operations at the mine.

Mr. Jason says EMR Capital will invest a further 15 million Dollars in the next 6 to 12 months and continue to re-investing cash proceeds at the mine to expand the mine and double production.

He says EMR Capital will double copper production at Lubambe Copper Mine from its current 15,000 tonnes to about 40,000 tonnes per year.

Mr. Jason has told ZNBC News in Perth, Australia that EMR Capital will localize the company by retaining all the 1-thousand 500 plus jobs including management so that decisions of the company are made by the local management.

And Nick Bowen, the Chief Executive Officer at Lubambe Copper Mine said after looking at other African Countries, a decision was made to invest in Zambia because of its rich mineral resource and stable political environment.

Mr. Bowen said it is the first time that EMR Capital limited is investing in Africa and Zambia.

And Minister of Mines Christopher Yaluma said the take over at Lubambe copper mine is a relief to government.

He said government through ZCCM-IH endorsed the investment deal with EMR because of its enormous appetite of wanting to invest in the country’s mining sector.

Source: ZNBC

To empower farmers with a diversified source of income in Chililabombwe, Lubambe Copper Mine has constructed a fish farm with a capacity to stock up 3,000 fingerlings bream, representing a market value of K60.000.

Bream is one of Zambia’s most sought-after fish and is a money-spinner.

Lubambe’s corporate social responsibility manager Joel Bwalya said the mining company partnered with a local farming co-operative in Kasapa village to build the fish farm near Kebumba stream.

According to a latest newsletter on mining in Zambia, an initiative by the Zambia Chambers of Mines, Mr Bwalya said the implementation has proved to be a success and as such the mine intends to build another fish farm.

He said the enterprise is a good source of revenue for most farmers in the area and far exceeds what they would get by selling maize.

“We reckon that this time, we will be able to seed the fish farm with 4,000 fish, and that means a bigger harvest. The villagers are clearly excited by the potential of fish-farming and its ability to help them diversify,” Mr Bwalya said.

He said the fish farm is a partnership between the mine and farmers.

Mr Bwalya is hopeful that fish-farming of this sort will evolve into a fully-fledged business with huge commercial potential for the entire country.

Commenting on the development, Kasapa village headman Langson Pensulo said the fish farm has helped improve the livelihood of the villagers in the area.

Source: Daily Mail

Murray & Roberts Cementation’s second contract, for the trackless high speed development at Lubambe Copper Mine in Zambia, has been extended by a further two-year period.

The Lubambe Copper Mine which is a joint venture between African Rainbow Minerals, VALE and Zambia Consolidated Copper Mines Investment Holdings, is expected to produce 45 000 tonnes of contained copper at steady state by 2015.

The current contract involves all horizontal development work using trackless high speed technology in Ramps 1, 2, 3, 4 and 5.

In addition, the Murray & Roberts Cementation team was also requested to undertake the vertical development of return airways, service raises and silos and maintenance work on the surface infrastructure, provided by Murray & Roberts Cementation on the first phase of the contract, will continue for the duration of the entire contract.

Murray & Roberts Cementation Senior Project Manager at Lubambe Wyllie Pearson, added that they will continue with several projects that were started under the first contract.

“We will continue the development of infrastructure for two conveyor belt systems and supply and install all temporary compressors and air piping reticulation necessary for the development works and diamond drilling section. Furthermore, we will install all temporary ventilation fans and ducting,” he said.

“We also operate and maintain the owner’s equipment fleet. Six Sandvik TH 540 dump trucks, four Sandvik LH 410 and one Sandvik LH 514 LHD, as well as nine Sandvik TH540 40-ton articulated dump trucks allocated to load and haul. Face charging is performed with three Getman emulsion charging units and the transport and lifting equipment consists of two Getman scissor lifts, a Fermel scissor lift and two Getman cassette handlers. A Fermel grader and Manitou 742 telehandler complete this fleet,” added Pearson.

Allocated to drilling are five Sandvik DS320 double boom split-feed jumbos, a DS320 fixed rail jumbo and a DS 420 long hole rig used for raise mining. The support and supervision vehicles are Toyota Land Cruisers, which have been converted to mining specifications.

“All maintenance work on this equipment as well as the Murray & Roberts Cementation equipment fleet is undertaken in our well-equipped on-site workshop by a highly experienced team of mechanics and technicians, to ensure optimised operability and uptime. All consumables are supplied by the mine,” he revealed.

Pearson said that the contract is characterised by a high level of cooperation between the Murray & Roberts Cementation and Lubambe Copper Mine teams.

“We have developed a mutually beneficial relationship that sees us providing our client with a ready and continuous supply of power and water handling facilities, to ensure efficient interaction within overlapping areas. In addition, the mine provides our team with rock bolts, split sets, mesh and cement, while diesel and lubrication oils are supplied as free-issue items.”

Since the extension of the first contract by 15 months, a total of 24 653 metres has been developed against a target of 23 458 m.

“We have made excellent progress to date and met every one of our scheduled targets. The two main underground tipping arrangements consisting of four tipping points and two silos were completed and commissioned within the scheduled construction dates. A mineral sizer was installed and commissioned ahead of schedule on the tips,” Pearson said.

The six level crusher chamber was rehabilitated and supported with welded mesh and 6 m cable anchors, with the crusher and equipment in place. In order to assist with the main return air system, a series of ventilation raises were developed from the ramp 3 225 Level and two 225 kW surface fans installed and commissioned.

The project has not been without its challenges. Some parts of the Lubambe ore-body can only be accessed by mining through a very weak zone of sand-like material. The sand zone developing and support project comprises four successfully completed sections with a fifth in progress.

These sand zones require specialised support methods developed specifically for Lubambe and are similar to civil tunnelling support methods. Pearson explains that this has been effectively achieved by using Titan soil nails, Becker Arch Sets, 5,6 mm welded mesh and shotcrete as support mediums. Sand is excavated out of the face using a Hyundai 35Z7 mini excavator.

At the request of the client, a drop raising programme was undertaken, with 12 345 metres completed concurrently with contractual development.

Pearson expressed belief that the success of the project to date can be attributed to a number of factors, including the creation of a highly efficient team of experienced and multinational operators, supervisors and management, mostly with previous expatriate experience. The drilling team is a mixture of Australian decline mining specialists and Filipino and South African expats.

The team comprises 405 employees, with approximately 12% expatriates. The Zambian national component of the team is made up of HR staff, surveyors, accounts and administration staff, skilled operators, officials and workmen. The expat component of the crew consists of site management, safety and training staff and expert miners, operators and maintenance staff.

Similarly, training plays a big role in ensuring that the requisite regulations and quality standards are achieved and maintained.

“The training at Murray & Roberts Cementation’s Bentley Park facilities included trackless mining modules. The nature of the ore bodies in Zambia is such that most of the mining is fully trackless, with the exception of the haulage levels. There is a vast pool of fully trained and experienced mine workers available to recruit from, which has greatly simplified the human capital element of the project,” Pearson pointed out.

He said there was a successful transformation from a small highly skilled decline sinking crew, to a team responsible for ore and main development, sometimes in remote and scattered areas of the mine.

Employees also have access to a modern e-learning centre which has been opened at Murray & Roberts Cementation’s Synclinorium shaft sinking project in Kitwe

“This centre provides the same high quality standards as the Bentley Park facility in South Africa. The comprehensive Murray & Roberts electronic library and learning system is available for learners and facilitators alike,” quipped Pearson.

Appropriate and successful training is reflected in the safety record achieved on site, with no Lost Time Injuries (LTI) recorded for the first year. There have also been no fatal incidents on the contract to date, a noteworthy achievement given the nature of the project.

The award of the Synclinorium shaft sinking project, as well as the shaft sinking and development of the Mufulira Deeps project are a true reflection of the company’s reputation in the region.

In addition, Murray & Roberts Cementation’s Raise Boring Division is presently operating in Kansanshi, a further indication of the significant growth in the company’s presence in Zambia.

“Murray & Roberts Cementation has demonstrated complete commitment to its Zambian projects through the formation of a Zambian division with corporate offices situated in Kitwe. We are presently able to offer prospective clients a full shaft sinking and development portfolio, including training and administration from Zambia, with the benefit of technical and logistical support from Murray & Roberts Cementation in South Africa,” Pearson said.

Source: Mining News Zambia