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Zambia’s KCM smelter set to restart after two-week delay – minister

LONDON, Nov 26 (Reuters) – Zambia’s Konkola Copper Mines (KCM) smelter could restart next week after a delay of around a fortnight, mines minister Richard Masukwa told Reuters.

The smelter was shut down in early October for annual maintenance, two days earlier than planned due to a leak. It was initially scheduled to reopen on Nov. 15.

“This week we are testing and I hope that next week (the smelter) will be up and running,” Masukwa said on the sidelines of the London Mines and Money conference.

He did not elaborate on the reason for the delay to the restart of the smelter, which has a capacity of 311,000 tonnes.

KCM is the local unit of Mumbai-listed Vedanta, which owns about 80% of the company.

Vedanta has been locked in a dispute with the Zambian government since May when Lusaka appointed a liquidator to run KCM, which is 20% owned by Zambia’s state mining company ZCCM-IH. Zambia accused KCM of breaching the terms of its licence, an accusation the company has denied.

An arbitrator has been appointed to settle the dispute and both sides are negotiating dates for official proceedings, Vedanta executive Deshnee Naidoo told Reuters on Monday. (Additional reporting by Barbara Lewis; Editing by Pravin Char)
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Lubambe Mine, a partner in ‘health wealth’-Chililabombwe Deputy Mayor

Chililabombwe Deputy Mayor Gift Musukwa has commended Lubambe Copper Mines for its continuous engagement in the Keep Zambia clean campaign.

Mr Musukwa said a healthy nation is a wealthy nation where he urged the residents of Konkola to fully participate in the activity which takes place every Saturday.

He said Chililabombwe council loves working with noble minded corporate entity involved in uplifting the lives of the people such as cleaning and giving chemicals and sanitary products to the community.

The Deputy Mayor said the continued participation of the mine in the anti-cholera and anti-malaria activities in Konkola is doing a great job in helping the community stay free from preventable ailments.

He also thanked Lubambe Copper Mine corporate social responsibility (CSR) Manager Lomthunzi Mbewe for continued efforts in partnering with the local authority.

And Joseph Mwila Ward Councillor Spolian Simwanda thanked Lubambe Copper Mines for the good gesture.

Mr Simwanda also thanked the new partner Nvumambaranda for providing packs of chlorine and 30 bins to be used in the community.
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CEC Ponders Building Renewable Energy Plant

THE Copperbelt Energy Corporation (CEC) is conducting feasibility studies for the construction of a 350 megawatt renewable energy plant. CEC senior manager for special projects Cassius Chongo said this during a presentation on alternative renewable sources of energy in Kitwe on Thursday. Mr Chongo said the plant will be generating electricity through the use of solar and wind energy CLICK TO READ MORE
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Kansanshi Reduces Costs with Linatex

Kansanshi, Africa’s largest copper mine, is located near Solwezi in Zambia. The mine site is very remote, so getting parts and replacement material to site is time consuming and costly.

Of particular concern for the operation was excessive wear in the tailings lines, as well as the overflow tank in the continuous counter-current decantation (CCD) circuit.

There is approximately 8km of tailings pipes running from the plant to the tailings dam. The mine had previously lined its pipes with a combination of high-density polyethylene (HDPE) liners and alumina ceramic tiles. These, however, only achieved a wear life of approximately nine months.

Kansanshi approached Weir Minerals Africa for an alternative solution and the company, which has a long-standing relationship with the mine, specified Linatex premium rubber to line the tailings pipeline. Known for its excellent wet abrasion properties, Linatex rubber also requires a considerably shorter time for lining installation when compared to alumina ceramic tiles.

The lining was completed well within the allotted time, saving Kansanshi unnecessary and costly plant downtime.

After 36 months in operation, the Linatex lining showed minimal signs of wear, and the installation has reduced the mine’s total ownership cost by over R1.6 million (US$107,000) per year.

Kansanshi also needed a more cost-effective wear solution for the overflow tank in the CCD circuit. This had previously been lined with alumina ceramic tiles, which only lasted between 60 and 90 days. The tiles were wearing away quickly due to the high impact and abrasion of the stones and sand flowing through the tank. Wash out between the tiles was preventing the tiles from adhering to the metal substrate and the subsequent damage to the tank required repair work.

In response, the Weir Minerals team specified Linagard nitrile-based rubber (NBR). The expected cost savings from the increased production and reduced maintenance offset the installation costs.

The Weir Minerals technical lining manager was on site for the duration of the tank re-lining to provide technical assistance to Kansanshi’s maintenance team.

Since installation, the Linagard NBR 30 has lasted 36 months without any visible signs of wear. According to Weir Minerals, this represents 18 times longer wear life than the previously installed alumina ceramic tiles and eliminated the need to repair the tank every 2-3 months.

Kansanshi has experienced significantly reduced downtime and increased productivity since the installation of the Linatex solutions, and mine maintenance personnel can focus on other areas of the mine. Weir Minerals stated that the mine’s costs have been reduced by R10.4 million (US$698,000) per year with its Linatex solutions.

 
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Mopani Appoints Bullock as New CEO

MOPANI Copper Mines has announced the appointment of Nathan Bullock as its new chief executive officer.

Bullock takes over from Chris Vermeulen who left the mining giant in July this year.

Mopani public relations manager Nebert Mulenga made the announcement in a statement yesterday.

“Mopani Copper Mines Plc is pleased to announce the appointment of the new Chief Executive Officer, Mr Nathan Bullock, who joins the company from BHP Olympic Dam Mine in Australia. Mr Bullock takes over from Mr Chris Vermeulen, who left Mopani Copper Mines Plc in July 2019. The new Chief Executive Officer has since taken up his appointment and will be based at the head office in Kitwe. Mopani Copper Mines Plc Chief Services Officer, Mrs Senga Chitoshi, announced the appointment and arrival of Mr Bullock in a statement to the employees on Friday, 8 November 2019,” stated Mulenga.

“Mr Bullock, a geologist who holds a Master of Business Administration degree from Griffith University in Queensland, Australia, a Bachelor of Applied Science (Honours) in Applied Geology and a Bachelor of Applied Science in Geoscience, both from Queensland University of Technology, has a range of experience in mining and processing; including strategic planning, underground technical, concentrators and smelting/refining operations. He has also previously worked at Glencore’s Mount Isa Copper Mine and Ernest Henry Mine in Australia in a number of management roles.”
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CNMC-LCM Donates Fertiliser, Seed To Luanshya Farmers

Luanshya Copper Mines Chief Executive Officer Wang Jingiun says the growing farming community in the district has posed a serious challenge on government to provide farming inputs.

Meanwhile, CNMC-LCM has donated farming inputs to the farmers in Luanshya for the 2019/2020 farming season.

Jingiun said this when he donated bags of seeds and fertilizer to Luanshya Mayor Nathan Chanda and Luanshya Central Member of Parliament Steven Chungu.

“The growing community in Luanshya has posed a challenge on the government to supply farming inputs. I am pleased to announce that this year, we have decided to donate fertilizer and seed to the vulnerable but viable farmers at the cost of K110,000 inputs this year. We have doubled the quantity of both seed and fertilizer,” Wang said.

He said LCM was going through challenges but has decided to help the vulnerable farmers.

“Despite the past challenges our company has continued to face due to the pressure on the global economic downturn, we have nevertheless continued to support our small scale farmers. This demonstrates the importance we attach to the social and economic well being of the people of Luanshya,” said Wang.

Luanshya Mayor Nathan Chanda said the gesture to support farmers comes at a time when the country is trying to diversify from mining to agriculture.

“These donations are made despite the company facing some financial operational challenges. But we will create an environment for you to operate freely. The local authority will ensure that you operate well. We want to assure you that these inputs will be put to good use. These inputs will go to the intended beneficiaries. We want to commend the President Dr Edgar Lungu for the first time, that the inputs for the farmers have been received on time in the entire Copperbelt province,” said Chanda.

“Once we support the agriculture sector, then we are assured of food security. Please don’t sell these inputs that you are given. Let us make Luanshya the food basket of the Copperbelt.”

Later, Chungu expressed concern that only the same farmers were benefiting from the support.

He said the fertilizer and seeds will be taken to the churches who will identify the vulnerable.

“Since 2009, LCM has been giving out seed and fertilizer. But it is the same farmers who are benefiting. Are they growing or what? So we will take the fertilizer and seeds to the Church who will identify the vulnerable farmers,” Chungu said.

However, the truck carrying the fertilizer and seeds was offloaded at the Luanhsya Municipal Council, a sign that the inputs will not be take to the Churches as directed by Chungu.
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US $200m Solar Power Projects to be Built in Zambia

US $200m two solar power projects are set to build in Zambia. Funded by the Japanese Renewable Energy Company Univergy Solar, the two plants are expected to add a total of 200MW to the country’s national grid next year.

According to a statement from Zambia’s embassy in Tokyo, Univergy Solar Company is expected to develop and implement a 135MW project in northern Zambia and another 65MW project in Zambia’s copperbelt.

Furthermore, the solar power project will be implemented in collaboration with a Zambian company and is expected to create hundreds of jobs and business opportunities for local firms engaged to maintain the solar farms and generation plants.

Construction timeline

The Japanese firm will sign a Memorandum of Understanding (MOU) with the Zambian government to start work on the projects in the first quarter of 2020. The two projects are expected to be completed between six and eight months after the commencement date.

Also Read:Zambia to establish 107 MW solar energy plant in Hwange District

Zambia mainly relies on hydropower and has an electricity deficit of about 750MW due to low water levels at generation plants after a severe drought hit power production. The country cut its economic growth forecast to around 2% for 2019, from an estimated 4%, due to the impact of the drought on its power supply and agricultural production.

Solar power in Zambia

Zambia expects to triple power output to 6,000 megawatts (MW) in 2 years through expansion of solar energy by foreign investors, the head of its investment agency said.

Erratic electricity supplies have hit mining in the continent’s second-biggest copper producer, where the bulk of its generation capacity of 2,200MW of power is water-powered. The power problems and copper price slide have driven the kwacha currency to record lows amid a selloff in commodity-linked currencies as top copper consumer China’s economy has slowed.
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Maamba Collieries in Zambia Sets Record Straight on Load-Shedding

Maamba Collieries in Zambia needs ZESCO to clear outstanding debts owed to the company so it can maintain efficient operations at its 300 MW coal-fired power plant.

Due to a continued shortfall in monthly payments of its power bills by ZESCO, Maamba Collieries (MCL) has not been able to keep up a robust maintenance programme at its modern eco-friendly thermal power plant – which has been contributing significantly to the energy balance of the country.

Read more about mining for coal

The cash flow shortage has resulted in the company being unable to sustain quality proactive maintenance to the 300 MW facility, and the recent forced shutdown of one of its two generation units, halving its power supplied to the national grid of Zambia to 130 MW.

“Maamba Collieries makes a significant contribution to the national grid and provides a vital diversification from the reliance on hydropower that has proved so vulnerable to climate change.

“We stand ready, willing and able to supply significant base load power to Zambia,” says Maamba Collieries CEO, Rear Admiral Venkat Shankar.

“But without payment from ZESCO – our sole source of revenue – we have insufficient funds to pay for costly spare parts and maintenance as also the project dues to our principal equipment supplier whose expertise we depend on, which is not a desirable situation in these times of energy crisis that the country is facing and may face over the next couple of years.”

The company confirmed that one of its two units was forced to shut down on October 17, 2019 owing to technical fault and requires extensive consultations with the equipment supplier.

A statement from ZESCO on October 18, 2019, attributed an additional three hours of load-shedding to the Maamba shutdown.

Typical of the state-of-the-art technology, the power plant requires intensive regular maintenance involving high expenditure for spares, support services from the equipment manufacturers and other maintenance activities.

However, since commencing supplying power in August 2016, there has been a continuous shortfall in monthly payments received from ZESCO against Maamba Collieries’ power bills, explained Rear Admiral Shankar.

The company has not disclosed the amount of funds owed but explained that the payment shortfall has left it with inadequate cash for conduct of operations and maintenance activities. 

“Maamba Collieries considers the emerging situation as being largely attributable to non-receipt of full payments from ZESCO, leading to MCL being cash strapped, which is increasingly beginning to impact the continued running of the plant and its machinery, and its ability to undertake repairs and proactive maintenance.

Under these conditions we are unable to confirm the timeline for resumption of operations of the unit that is shut down or guarantee continued availability of the second unit currently operating,” says Rear Admiral Shankar.

“We are hopeful of ZESCO’s cooperation in meeting our monthly payments, which would ensure that Maamba Collieries will be able to run its plant at full capacity in these difficult times of acute power shortage,” he added.
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Kansanshi Flags Off 2019/2020 Farming Season

Kansanshi Mining Plc has flagged off the 2019/2020 farming season by releasing farming inputs to more than 7,400 farmers in Solwezi and the surrounding areas in North-Western Province.

Solwezi District Commissioner Rosemary Kamalonga, who flagged off the 2019/2020 farming season, said government recognized the importance that Kansanshi Mining Plc attached to uplifting people’s living standards.

She said it was relieving to note that Kansanshi Mining Plc, which had trained more than 36,000 farmers under its Conservation Farming Programme, had continued to distribute farming inputs to farmers supported by the mine’s Corporate Social Responsibility (CSR) wing.

“Government is happy with its current partnership with Kansanshi Mining Plc in the crusade to improve food security through concerted efforts to ensure that agriculture assumes its rightful position as an alternative to mining and that Solwezi alone can be a food basket for Zambia,” Kamalonga said.

She added that the government equally recognized the mining company’s efforts to meet various community needs and extend social services to the people.

Kamalonga expressed government’s gratitude to what Kansanshi Mining Plc had done to empower residents in Solwezi and surrounding areas.

Kansanshi Foundation Supervisor Maximillian Katanga explained that 12,600 bags each of D Compound, Urea and seed respectively were ready for distribution to local farmers.

“Farmers pay K425 towards the inputs comprising a 50Kg bag of Urea, a 50Kg bag of D Compound and 10Kg bag maize seed to which Kansanshi adds the balance for each farmer so that they can manage to complete one lima of crops. 300 tonnes of lime has also been distributed to farmers, free of charge, with a view to boosting their yields,” explained Katanga.

Solwezi District Agriculture Coordinating Officer (DACO) Muyobo Shimabale also expressed gratitude for being part of the programme and thanked Kansanshi Mining Plc for supplementing what the Ministry of Agriculture was doing.

“I wish to encourage farmers to continue practicing conversation farming as it is in tune with climate change. When conversation farming is practiced, even in low rainfall periods, farmers are able to get the best results,” Shimabale said.

One of the beneficiaries of the farming inputs, Victoria Musumali, who produced 48 bags of maize from one lima during the 2018/2019 farming season, thanked Kansanshi Mine for the input support because she was able to feed her family and sell surplus maize to the Food Reserve Agency (FRA) and pay for her children’s school fees, among other needs for the family.

Kansanshi Mine provides training in farming’s best practice to farmers, farming input loans and close monitoring of the farmers’ activities to ensure maximum returns from their farming projects.

The model applied in the farming practices strictly observed sustainable permaculture rotation of maize, soya and groundnuts with minimum tillage, the use of mulch and early planting.