Nava Bharat Ventures Ltd’s Zambian subsidiary, Maamba Collieries Limited (MCL) has concluded accession of additional long term debt. With this, MCL’s integrated coal and power project is funded, with long term external total debt of US$ 590 million (including the debt of US$515 million for which the financial closure was announced earlier).

Following the disbursement of loan by the additional lender, MCL has repaid the sponsor bridge loan to Nava Bharat group in full, pursuant to common terms agreement with the lenders.

Shares of NAVA BHARAT VENTURES LTD. was last trading in BSE at Rs.220.85 as compared to the previous close of Rs. 217.25. The total number of shares traded during the day was 49542 in over 1655 trades.

The stock hit an intraday high of Rs. 224.15 and intraday low of 218.75. The net turnover during the day was Rs. 10983874.

Source: Equity Bulls

NOMSA NKANA, Lusaka

CHIBULUMA Mines earned more than US$70 million in 2015, a senior company official disclosed recently.

Chibuluma country manager Jackson Sikamo said the company sold 13,303 tonnes of copper in 2015, earning US$71 million in gross revenue.

Mr Sikamo also said as at May 31, this year, Chibuluma spent US$14.4 million on development.

He said Chibuluma’s current major project is the company-financed US$24 million Chifupu copper development project.

Mr Sikamo was speaking in Lusaka during the just ended 6th Zambia International Mining and Energy Conference which was held under the theme, ‘Mining and energy on the growth path to support and grow the Zambian economy.’

“However, the mine’s performance in the financial year 2015 has been characterised by low production volumes, and this, coupled with the continuously falling copper prices, has put severe pressure on the company’s cash flow,” he said.

He said Chibuluma Mines is facing operational challenges due to, among other issues, the copper price reduction and increasing cost of production.

Mr Sikamo said other challenges facing the company are current resources mined out by 2019 (excluding the Chifupu reserve), skills retention, underground collisions, supervisor safety culture, historically supervisor- dependent and equipment availability and reliability, among others.

He said to address the challenges, Chibuluma Mines is looking for acquisitions, explorations and joint-venture partnerships with local or foreign companies to expand its operations in the country.

Chibuluma Mines plc is a modern mechanised underground copper mine which is 85 percent owned by Jinchuan Group Company Limited and 15 percent by ZCCM-IH plc.

Source: Zambia Daily Mail

The 800 million dollar Maamba thermal power plant project has reached pre-commissioning stage.

Maamba Thermal Power plant chief executive officer Venkat Shankar says the tests on the plant are going on smoothly with some adjustments being made to reach the required parameters.

Mr. Shankar has told ZNBC news in a telephone interview that all systems have been checked and found to be correct.

He has however not disclosed when the plant will fully start generating electricity for commercial use but was quick to state that the plant is close to doing so.

Mr. Shankar further said the tests on the plant have been going on for over a month now.

The Maamba Thermal Power Plant will start producing one hundred and 50 mega watt, which will be increased to 3 hundred mega watts.

Source: ZNBC

First Quantum Minerals Ltd. agreed with a trio of unions on pay increases over three years for workers at its copper operations in Zambia.

Wages will rise in increments of 6 percent to 7 percent starting in January 2017 and education allowances will also be increased in stages, the company said in an e-mailed statement from London on Thursday.

Miners in Africa’s second-largest copper-producing country are struggling with higher production costs and lower metal prices, which are cutting into profits and have led companies to announce thousands of job cuts. Facing sluggish economic growth and soaring inflation, the government is under strain to ease public discontent before elections in August.

“Even though our profitability has been hit by falling copper prices and rising operational costs, the company understands the pressure that increasing costs of living place on its employees and their families,” FQM said in the statement.

FQM owns 80 percent of the Kansanshi mine, located about 180 kilometers (112 miles) northwest of the Copperbelt town of Chingola, which has the capacity to produce 340,000 tons of copper and 120,000 ounces of gold every year. Copper output at the mine declined 14 percent to 227,000 tons last year, which together with lower prices for the metal cut gross profit by 70 percent, the company said on Thursday.

Kansanshi, which has a workforce of 2,841, is the largest producer of copper on the continent, FQM said. ZCCM Investments Holdings, the company formed to hold Zambian state’s minority stakes in local copper mines, has the remaining ownership of Kansanshi, according to FQM’s website.

Source: Bloomberg

MOPANI Copper Mines says it will sink two more shafts in excess of 2,000 metres at its Mufulira and Mindola Mines in Kitwe as part of its US$1.1 billion investment earmarked for high profile projects.

President Edgar Lungu last week launched a US$323 million Synclinorium Shaft that is aimed at extending the life of the mine at Nkana beyond the current expected depletion dates of the existing reserves by 25-30 years.

Announcing the projects, Mopani chief executive officer Johan Jansen said the two shafts that would be sunk at Mufuliraand Mindola would be the deepest ever sunk in Zambia and the deepest copper mines on the African continent.

“Investments from our major shareholders Glencore since 2000 stands US$3.04 billion and is one of the single largest private investments in Zambia. A further US$ 1.1 billion investment has been earmarked for a number of other high-profile projects over the coming years,” Jansen said.

He said the shafts would help make operations more efficient and cost effective.

He said like the Synclinorium Shaft, the two would add a further 25-30 years of mining life to Mindola and Mufulira mines.

“What we want is to develop a world class operation that is safe, efficient and cost effective as well through investment and value to our stakeholders,” Jansen said.

He further congratulated Mopani’s major contractor for the Synclinorium Shaft, Murray and Roberts, for delivery of a world-class project.

Jansen said through such huge projects, the company would continue to significantly contribute to the government treasury for many years, amongst many other benefits.

Further, Jansen said Mopani wanted to realise its vision to be a profitable, sustainable and world-class copper producer by 2023.

Source: The Post Zambia

President Edgar Lungu has commissioned the synclinorium shaft at Mopani Copper Mines in Kitwe.

The 3 hundred and 23 Million US dollars project is set to extend the life span of the mine to between 25 and 30 years.

Speaking when he commissioned the shaft, President Lungu says the shaft is a mark of confidence in governments resolve to turn around the economy of the Copperbelt and the country as a whole.

The President urged Zambians not to be cheated because the PF is ready and able to deliver development.

The President disclosed that Genclore the owners of Mopani Copper Mines has further set aside 1 point 1 billion US Dollars for a number of projects aimed at transforming Mopani into a modern mining operation.

The President noted that these investments will make the mine more resilient to global metal price shocks because they will be cost effective and more adaptive to various other challenges.

This investment covers two other similar investments in Mufulira and Mindola where Mopani is sinking two deep shafts to be the deepest in Africa.

And speaking at the same function, Mopani Copper mines Chief Executive Officer Johan Jansen said the commissioning of the shaft has given a beacon of hope to employees and various business entities on the Copperbelt.

Mr Jansen said the project is of great economic significance not only to Mopani but the whole country.

And Minister of Mines Christopher Yaluma says despite the slump in commodity prices , Zambia ‘s mining sector has continue to record positive growth.

Mr Yaluma says the sector has recorded a 2 percent growth following Copper Production of 7 hundred and 10 thousand 5 hundred and 60 Metric tonnes compared to last year’s 7 hundred and 8 thousand 2 hundred and 4 metric tonnes.

Meanwhile, Mines Workers Union of Zambia President Chishimba Nkole appealed to Mopani Copper Mines to re-engage some of the retrenched miners at the shaft.

Mr Nkole says Mopani’s massive investment has given a ray of hope to the country’s economy and job sustainability.

And Kitwe Chamber of Commerce President Allan Nyirenda has urged small and medium entrepreneurs- SMEs to explore new business opportunities in the city.

Mr. Nyirenda says SMEs should take advantage of the development projects in Kitwe to grow their businesses.

He cited the construction of the Edgar Lungu Shopping mall, which he says will create opportunities for SME’s in the Province.

Mr. Nyirenda however advised small and medium scale entrepreneurs to provide quality products and services to the public.

He was speaking this morning when he appeared on Kitwe’s Morning Live News and Current Affairs Programme.

Source: ZNBC

ZAMBIA’S mining sector is set to continue on a recovery path with 5,000 new jobs expected to be created on the Copperbelt next year by China Non-Ferrous Corporation Africa (NFCA) when its US$832 million South East Ore Body (SEOB) project in Chambishi becomes operational.

Thousands more jobs will be created by Mopani Copper Mines (MCM) at its operations in Kitwe and Mufulira through multi-million dollar investments that will certainly change the economic status of the Copperbelt Province.

MCM Plc, a unit of global commodity trader and Switzerland-based Glencore Xstrata, will receive investment of over US$1.1 billion from Glencore to sink three copper mine shafts with new technology that will extend the mine’s life by over 25 years.

Glencore plans to make the investments between now and 2018, and it is expected that MCM will be turned into a world-class mining operation by 2023. And NFCA, which has 3,000 employees, is developing an underground mine located within the Chambishi Mine licence area, about seven kilometres south-east of the main ore body.

The jobs galore will not only benefit unemployed Copperbelt youths but also the workers who recently lost jobs in the mining sector due to falling copper prices on the international market. The development of the SEOB project is in line with the development agreement signed in 1998 between government and NFCA, covering three ore bodies that include the main one and the west ore body.

Known reserves for the SEOB lie between 550 metres and 1,200 metres deep and the designed annual copper ore production capacity is 3.3 million tonnes containing 60,000 tonnes of copper. NFCA chief executive officer Chunlai Wang says the 5,000 jobs to be created will be for Zambians and that the company’s copper output is also expected to reach 100,000 tonnes from 30,000 tonnes per year when the SEOB project starts full production.

Mr Wang says although there is a positive trend in employment levels, diminishing mineral resources at NFCA’s main ore body could result in reduction in employment levels hence the development of new projects. “In order for NFCA to increase productivity and profitability and ensure continued and guaranteed revenue contribution to the government and the local community, we are developing the South East Ore Body with an investment of US$832 million.

“The company endeavours to develop and operate the South East Ore Body project to process the ore deposit to concentrate stage. At full production, the project is expected to employ 5,000 Zambians,” Mr Wang shares.
According to Mr Wang, the project’s estimated contribution to the government is US$4.9 billion in 25 years, of which US$302 million will be through dividends to the Zambia Consolidated Copper Mines Investments Holdings (ZCCM-IH) for its 15 percent shareholding. And US$4.6 billion will be raked from various taxes such as the pay as you earn (PAYE), mineral royalty, company income tax and value added tax (VAT).

The company is also on top of things in terms of fulfilling its corporate social responsibility obligations by ploughing back part of its resources into communities in which it operates. NFCA has so far spent K13 million on the resettlement of residents of Mukulumpe, Twashuka and the host land areas, who were relocated to Fitanda in 2012 to pave way for the company to expand its operations.

The company has since handed over 90 houses to affected families, a health post, five classrooms with two offices, water supply facilities and two churches all valued at K13,297,500.

The massive investment in the project that guarantees jobs to the local people and those in surrounding towns has cheered Kalulushi member of Parliament Rayford Mbulu.

Mr Mbulu, who is also Deputy Minister of Foreign Affairs, says the Patriotic Front government is happy with NFCA’s project as it will greatly contribute to Zambia’s economic development. He said the 5,000 jobs that will be created when the SEOB project becomes operational, will change the lives of many Zambians who will secure employment. “As the local authority, we will support development brought to our district and the country at large,” Mr Mbulu points out.

He has commended NFCA for restoring the dignity of 90 families that were relocated to Fitanda area to pave way for the development of the multi-million dollar project. “The success of the project shows what can be achieved when all stakeholders share a common vision,” Mr Mbulu says of the SEOB project, whose exploration works were done between 2008 and 2011.

With the job losses which recently embroiled the mining sector resulting in MCM retrenching over 4,000 workers with Chibuluma Mines and Konkola Copper Mines also trimming part of the workforce, NFCA’s move is most welcome. Mineworkers Union of Zambia general secretary Joseph Chewe says mine unions will always support investments that are aimed at creating jobs for Zambians and contributing to national economic development. “We’ll always support such investments. So many Zambians will be employed and it will boost the country’s revenue from the mines. We would like to commend NFCA for such a massive project,” Mr Chewe notes.

And Jonathan Bwalya, a school-leaver residing in Chambishi, says young people in the area are anxiously looking forward to the completion of the project so that they can get employed at the new project. “We can’t wait to get permanent jobs at this mine. We are tired of working for contractors who pay us peanuts which can’t even sustain us,” Mr Bwalya says.

NFCA is a large-scale mining company operating in Kalulushi district on the Copperbelt and is co-owned by China Non-Ferrous Metal Mining Company Limited (CNMC) and ZCCM-IH. CNMC is the major shareholder in NFCA with 85 percent stake, while ZCCM-IH holds 15 percent shares.

NFCA acquired Chambishi Mine in 1998, and in 2000 it embarked on the refurbishment of its underground and surface facilities at a cost of US$160 million.

Chambishi Mine started as an open pit mine in 1965 but was closed in 1978. Underground mining started in 1974 but was closed in 1987 and the mine was placed under care and maintenance due to high production costs.
In October 2002, NFCA, which holds a large-scale mining licence, commenced production of copper concentrates.
So far, the main ore body and the west ore body are fully developed with the maximum production capacity of two million tonnes of copper ore per year containing 32,000 tonnes of copper.
The mining sector accounts for almost 70 percent of Zambia’s export earnings and remains the major productive industry which has attracted over US$8 billion in investments.

Source: Daily Mail Zambia