During the period under review, Chambishi continued to be under care and maintenance due to lack of feedstock for the plant and other strategic reasons.
There were no dividends paid during the year under review (2022: Nil).
Kansanshi Mining Plc (Kansanshi Extract from 2023 Annual Report
The principal activities of the mine includes mining, prospecting for minerals and processing of ore in Solwezi area of North Western Province. The key notable occurrences in 2023 were:
The successful conversion of ZCCM-IH’s dividend right in KMP to a 3.10% Life of Mine Royalty Right. This will ensure that ZCCM-IH’s cashflows are more stable and predictable going forward.
KMP implementation of the S3 Expansion project commenced. The S3 Expansion is a significant $1.5 billion investment by First Quantum Minerals aimed at extending the mine’s life into the 2040s, enhancing its production capacity, and generating employment opportunities. It includes expanding the mining pit, upgrading the fleet, and enlarging the processing plant and smelter. This expansion is pivotal for adding value within Zambia and contributes to the nation’s goal of increasing mineral processing locally and aiming to maximize the mine’s output and efficiency, thereby contributing to local economic development and job creation. Completion is anticipated by mid-2025.
For the year ended 31 December 2023, Kansanshi recorded revenue of ZMW32.30 billion (US$1.57 billion) (2022: ZMW25.98 billion US$1.52 billion). Net profit over the period reduced to ZMW343.83 million (US$16.75 million) from ZMW 2.62 billion (US$153.93 million) in 2022. The geological and hydrological challenges at Kansanshi continued to affect average grades which were at 0.6% in 2023, significantly affecting the amount of copper and gold recovered.
Royalties received in 2023 were ZMW1,200.19 million (US$56.13 million) and dividends received were ZMW170.74 million (US$9.05 million).
Maamba Collieries Limited (MEL) Extract from 2023 Annual Report
In 2023, significant developments were observed at Maamba Collieries Ltd (MCL), particularly around the Maamba Power Station and its coal mining operations. MCL operates a modern Coal Handling and Processing Plant (CHPP) that facilitates the production of different coal products with consistent quality. Since its privatization in 2010, MCL has made significant improvements in managing coal dumps to mitigate air pollution caused by spontaneous combustion in the overburden dumps. These efforts in environmental management have been recognized through awards from the Zambia Environmental Management Agency (ZEMA) .
Maamba Collieries Limited (MCL) reported total revenue of ZMW5.00 billion (US$243.69 million) for the year ended 31 December 2023 (2022: ZMW4.75 billion (US$278.68 million)) and had a profit after tax of ZMW2.57 billion (US$125.04 million) (2022: profit of ZMW1.53 billion (US$89.95 million).
In 2022, ZESCO, Zambia’s state power utility, reached a settlement in international arbitration with Maamba Collieries Ltd to pay $518 million by August 2024 to settle outstanding arrears for power supplied. This settlement follows arbitration in London where both parties agreed on the terms for resolving the debt. According to the agreement, ZESCO will discharge the arrears in tranches by August 2023, after adjusting for a cash discount of $60 million extended by Maamba. The settlement was reached amicably to address overdue power purchase bills while ensuring that monthly payments for power sales from May 2022 are fully paid to Maamba. As at the year ended 31 December 2023 the outstanding debt from ZESCO to Maamba was USD323.18 million (2022:US$539.93 million).
The Maamba Power Station, fuelled by low-grade coal from MCL’s Maamba mine, plays a crucial role in Zambia’s energy sector. Currently, the station has two operating units, each with a capacity of 150 MW, commissioned in 2016. There is potential for expansion, with plans to add two more units, each also with a capacity of 150 MW, to meet the growing electricity demand in the country. This expansion, projected to cost around US$400 million, would potentially double the station’s output to 600 MW.
Maamba Collieries has also explored the possibility of increasing the power station’s capacity to 600 MW to support Zambia’s ambition to become an electricity hub in the region. A technical feasibility study for the expansion was completed, and MCL is seeking third party funding for the project. These developments indicate MCL’s commitment to enhancing energy production capabilities in Zambia, contributing significantly to the national grid and supporting sustainable energy security in the region.
During the year, Maamba undertook semi-annual maintenance on unit 1 of the 150 MW thermal power units between 4th August 2023 to 17th August 2023. Unit 2 underwent semi-annual maintenance between 25th March 2023 and 7th April 2023 as well as forced shut
CEC records 3% increase in amounts of power sold in 2022
THE Copperbelt Energy Corporation (CEC) has described its business performance in 2022 as “generally well”. CEC Managing Director Owen Silavwe says the corporation saw a 3 percent increase in the amount of power it sold last year. Addressing the media, Friday, Silavwe said although the 3 percent was a modest growth, it was good for a mature business like CEC. “We believe as a company that we performed generally well in 2022. And when we talk about performance, one of our key priorities, and we would like to start with how we are performing from a safety perspective. And for us, we look at that holistically; so we look at health, safety, environmental and social. And when you look at……
Source: News Diggers
Mopani Copper Mines Plc Extract from 2023 Annual Report
For the year ended 31st December 2023, Mopani Copper Mines (MCM) recorded cumulative net revenue of ZMW11.55 billion (US$562.87 million), (2022: ZMW11.85 billion (US$695.25 million)). The net loss for the year under review was ZMW8.96 billion (US$435.29 million) (2022: ZMW5.05 billion (US$292.55 million)).
During the year under review, MCM produced a total of 65,602 tonnes of finished copper (2022: 72,694 tonnes). The lower production during the year under review was mainly due to low equipment availability, and limited ore sources to mine due to delayed development. In addition, there were multiple outages of the fixed plants across all shafts.
After the year ended 31 December 2023, ZCCM-IH achieved a significant development on Mopani involving a new partnership and an investment that marks a transformative chapter for Zambia’s mining sector and its economy at large. Zambia selected the United Arab Emirates’ International Resources Holdings (IRH), a unit linked to Abu Dhabi’s most valuable listed company, International Holdings Company (IHC), as the new strategic equity partner for Mopani Copper Mines. This partnership is aimed at investing funds into Mopani to help with short-term working capital and finance the completion of the mine development to unlock its long-term potential. Additionally, this move is expected to restructure the Mopani’s balance sheet and increase copper production to at least 200,000 metric tons per annum in future.
In 2024, ZCCM-IH has a 49% equity stake in Mopani Copper Mine, with IRH through its subsidiary Delta Mining Limited (Delta) holding a 51% equity stake after an initial investment of US$1.1 billion was made. This agreement included financing MCM’s Project Development Plan (PDP) by providing working capital and restructuring certain existing Glencore liabilities. A new Board of Directors reflecting the revised shareholding structure has been established, and further capital has been made available as shareholder loans based on future working capital requirements.
There were no dividends declared during the period under review (December 2022: Nil)
Copperbelt Energy Corporation Plc (CEC) Extract from 2023 Annual Report
Copperbelt Energy Corporation PLC (the “Company”) is incorporated in Zambia under the Zambia Companies Act as a public limited Company and listed on the LuSE. The Company and its subsidiaries (together “the Group”) is involved in power generation, transmission, distribution, supply, and professional football through its Club subsidiary.
Key milestones noted during the year:
CEC commissioned the 34 MW Solar PV plant at our Riverside location in Kitwe and commenced with the evacuation of power into the grid. In addition, CEC commenced the implementation of the 60MW Solar PV plant located at Itimpi in Kitwe. All this is in line with the green growth agenda and comes alongside technological improvements to the transmission network. The combined capital investment made for the Riverside and Itimpi Solar plants was US$75 million.
Copperbelt Energy Corporation (CEC) has also initiated Zambia’s first green bond program to raise $200 million on the LuSE for further investment in solar and other renewable energy generation projects. Through the Green Bond, CEC’s subsidiary, CEC Renewables raised US$454 million in the oversubscribed first tranche of the bond program, and this expected to anchor CEC’s green energy generation ambitions.
For the year under review, CEC reported total revenue of ZMW7.85 billion (US$382.27million), (2022: ZMW6.38 billion (US$374.449 million)) and profit after tax of ZMW2.83 billion (US$137.65 million), (2022: ZMW866.41 billion (US$50.82 million)). Further, the CEC share price opened at ZMW3.78 per share and closed at ZMW7.09.
The Company declared a dividend of US$ 55.25 million with ZCCM-IH receiving US$14.59 million (2022:US$10.3 million).
Job Advertisement: Chief Executive Officer at Kabundi Resources Limited
EMPLOYMENT OPPORTUNITY
Kabundi Resources Limited (KRL), is a wholly owned subsidiary of ZCCM Investments Holdings Plc, managing the manganese licence that ZCCM holds in Serenje District, Central Province of Zambia.
The Company invites applications from suitably qualified and experienced persons who are innovative, energetic and performance driven to fill the position of CHIEF EXECUTIVE OFFICER.
Duty Station: Kabundi Resources Ltd, Serenje, Central Province.
Application clearly marked ‘CHIEF EXECUTIVE OFFICER’ together with copies of certificates and detailed curriculum vitae should reach the undersigned not later than Wednesday 3rd May 2023.
Women are strongly encouraged to apply.
Physical
Chief Human Resource & Administration Officer
ZCCM Investments Holdings Plc
ZCCM IH Office Park, Alick Nkhata Road
P O Box 30040
LUSAKA
Electronic
Visit the ZCCM-IH Career page for this job advertisement at http://zccm-ih.com.zm/careers
Alternatively, forward your applications to: jobs@krl.com.zm
ZCCM-IH/HRD/Vacancy Announcements.
Please refer to the Job Description Below for detailed information about the position.
*Only shortlisted candidates will be contacted for interviews.
Accelovant Deploys Fiber-Optic Sensors to Improve Efficiencies at Kansanshi Copper Mine
Sensors installed in “smokestack scrubbers” dramatically reduce plant downtime, enabling processing at higher capacities and facilitating automated control.
NORTH VANCOUVER, BC / ACCESSWIRE / April 13, 2023 / Accelovant, an innovative developer of fiber-optic sensing solutions for semiconductor, industrial, IoT, manufacturing, and power distribution markets, announced the deployment of its fiber-optic temperature sensors at Kansanshi Mining PLC, a First Quantum-owned company located in Zambia, and one of the world’s largest and most productive copper mining and smelting sites. The Accelovant sensors replaced older technology devices that were highly prone to failure under the extreme operating conditions within the wet electrostatic precipitators (ESP) utilized to scrub dangerous toxins and pollutants from gas streams generated in the copper smelting process.
“Accelovant specializes in high-temperature fiber-optic sensors which are also immune to electrical noise and interference,” said Michael Goldstein, chief executive officer for Accelovant. “Our patented Kristonium material has created a new class of fiber-optic temperature sensors that offer long service life at temperatures exceeding 450 degrees Celsius. In systems like the ESPs at the Kansanshi mines, the sensors replaced electrical devices that could not survive the harsh high voltage and electrical noise environment.”
To operate at peak efficiency, the plant must maintain precise temperature levels between 325 and 340 degrees Celsius through the use of in-stream sensors. This is a challenge in the harsh operating environment surrounding the wet ESPs (high voltage, electrical noise, and high temperature).
Pieter Oosthuizen, control instrumentation superintendent at the Kansanshi plant, noted that the ESP units operate with a typical 45 kilovolt charge. “In this kind of environment, there is tremendous electromagnetic noise and induced currents in anything that is conductive or that utilizes electronics. We tried many different sensor types, but in all cases the electronics would burn out and fail due to the stray electromagnetic fields – until we installed the Accelovant sensors.”
Read more: Bloomberg
NFCA posts increased copper & gold production
The Chinese owned NFC Africa Mine has recorded an annual increase in both its copper and gold production at its Chambishi based mine of kalulushi district on the Copperbelt. At this rate of production, Kalulushi town is expected to get some linkage industry success if local authorities negotiate proper deals.
Copper production at Non-Ferrous China Africa (NFCA), a subsidiary of the state-owned China Nonferrous Metals Corporation (CNMC) increased by over 5,000 tons in 2022 from about 62,300 tons recorded in 2021 to 67,600 tons recorded in 2022. An an average copper price of $9,000 per ton, the mine has produced copper worth $608 million.
The Chinese owned mine has posted two consecutive years of increased production as the report further shows an increase of 18,675 tons when compared to the about 48,900 tons of copper produced in 2020.
According to the consolidated report obtained by the Zambian Business Times – ZBT – compiled by the Ministry of Mines and Minerals Development, Gold production at the chinese mine also increased by about 3kgs from about 51 kgs in 2021 to about 54 kgs in 2022
Non Ferrous Company Africa Mining – NFCA was established in March 1998 as the holding company of Chambishi Copper Mine as part of the privatization of Zambia Consolidated Copper Mines Limited (“ZCCM”). It is majority owned by China Non-ferrous Metals Company Limited (“CNMC”), which holds an 85% shareholding stake, whilst ZCCM – Investments Holdings holds a 15% shareholding stake.
Source: Zambian Business Times
Konkola Copper Mines Plc (KCM) Extract from 2023 Annual Report
KCM’s challenges continued during the year as the fundamental problems surrounding the underdevelopment of the Konkola Deep Mining Project (KDMP) remained unresolved, resulting in the Company reporting low production from own sources and therefore having to rely on third-party copper concentrates to feed its Smelter. As a result, finished copper production was also negatively impacted.
The Provisional Liquidator continued to have full control over the operations at KCM and the Company continues to face financial challenges and is currently unable to produce sufficient output to support its operations. On 5th September 2023, the Government of the Republic of Zambia announced that it had reached an agreement with Vedanta Resources Limited to resolve all outstanding disputes and Vedanta committed to investing US$1.27 billion towards working capital and mine development at KCM.
Following the announcement made by GRZ, ZCCM-IH and Vedanta have entered into various agreements which are intended to pave way for the settlement of outstanding creditors, vacation of the Provisional Liquidator and finally the reinstatement of the Board of Directors at KCM.
There were no dividends declared during the year (2022: Nil).