Providing an update on power supply to its Zambian operations, dual-listed base metals miner First Quantum Minerals noted on Tuesday that its Kansanshi mine and smelter, as well as its Sentinel project, in the North-Western province, were being consistently provided with a total of about 285 MW, despite the country’s electricity woes.

Nevertheless, the miner revealed that is was also evaluating a number of options to independently secure power for its operations both in the near and long term.

Zambia’s electricity shortage and weaker copper prices – owing to slow growth in China – have put the country’s mining industry under pressure, threatening output, jobs and economic growth in Southern Africa.

However, the Zambian Chamber of Mines revealed last week that the country’s copper production increased to 711 515 t in 2015 from 708 000 t the previous year, which was mostly attributed to the February ramp-up at First Quantum’s Sentinel mine.

POWER SUPPLY IN ZAMBIA

In a show of support for its host country, First Quantum explained that Zambia was in the midst of its annual rainy season, which generally starts in November and runs through April. With the onset of the rains, the catchment area that feeds the Kariba dam, from which the majority of the country’s electricity is generated, was being recharged.

The river flows at all four upstream measuring stations above Kariba dam were all showing significant increases in flow rates over the past month. Water from the catchment area typically makes its way into the Kariba dam over a period of months with dam recharge occurring from January to June.

In addition to this annual replenishment, electricity availability would be augmented by about 420 MW of new in-country capacity expected online during the current year from projects nearing completion, including 300 MW of thermal power and 120 MW hydropower.

Zambia’s State-run power company Zesco had been importing power from neighbouring countries and recently announced that it would receive additional power imports of up to 300 MW from South Africa’s State-owned power utility Eskom, as well as 200 MW from an independent power producer.

First Quantum also confirmed that plans to reduce its net debt position by over $1-billion by the end of March, 2016, through a combination of asset sales and other strategic initiatives, were going ahead with the continued support of its secured lenders

Source: Zambian Mining Magazine

CHIBULUMA Mines on the Copperbelt is to restructure its operational plan for 2016 and develop the Chifupu copper project in order to prolong the mine’s lifespan from 2018 to 2022.

Chibuluma Mines board chairman Jackson Sikamo said the restructuring plan was scheduled to be carried out in the first quarter of 2016.He said that would result in 263 employees being made redundant.

Mr Sikamo said in order to mitigate the magnitude of job losses and ensure decent alternative jobs, the company has made arrangements for a significant proportion of the employees affected to be taken on by the contractors who would carry out the outsourced services.

He said for the company to continue the development of the Chifupu copper project to prolong the mine’s life from 2018 to 2022, the mining output from Chibuluma South will reduce to 27,000 tons per month from 45,000 tonnes.

“This adopted option will be implemented expeditiously whilst ensuring that all the operational and business risks are identified and a systematic risk management mechanism is put in place to address them,” he said.

Chibuluma Mines Plc was incorporated in October 1997 following the privatization of the then Zambia Consolidated Copper Mines Limited.

The parent company is Metorex (Pty) Limited of South Africa who own 85% of shares while ZCCM Investments Holdings Plc own the remaining 15%.

Metorex is in turn wholly owned by Jinchuan International of China.

Source: Daily Nation

KABANDA CHULU, Lusaka
ZCCM Investments Holdings Plc has engaged the Ministry of Foreign Affairs to ensure that information is circulated to Zambians living in the diaspora participate in the buying of the 28 million government shares being sold on the Lusaka Stock Exchange.

ZCCM-IH chief executive officer Pius Kasolo said President Lungu directed that all Zambians living locally and abroad be engaged to participate in the running of the mining industry through shares, which are being sold at K38 per share.

“We have started working with the Ministry of Foreign Affairs to ensure that information about the sale down is disseminated to Zambians wherever they can be found and use all channels available to reach them.

“Generally, the response was slow at first but there is an improvement, and it is time Zambians get exposed to owning shares. In other countries, people in bars and clubs talk about shares they own and this is the culture which should be embedded in our society,” Dr Kasolo said.

When asked if the response will be good considering the low copper price on the international market, Dr Kasolo said ZCCM-IH is not worried.

“People buy shares when they are down and when things improve, you rise up together”, he said.

Dr Kasolo also urged companies to take advantage of the share offer which ends on November 30.

Zambia – First Quantum Minerals said on Monday that the Zambian power situation is stabalising enough that it anticipates its Sentinel copper mine, in Zambia’s North Western province to begin commercial-level production by the end of the year.

Sentinel, which has been in construction by First Quantum Minerals since June 2012, will produce between 280 000 and 300 000 tpa of copper at full production from a large low-grade ore body containing 0.51% copper.

Sentinel’s ramp-up to date has been affected by the limited power supply. Despite this, good progress has been made. One power line, supplying 55 MW is currently connected and supplying power to the Sentinel mine while construction of the second power line connecting Sentinel to Lusaka West is complete and scheduled to be energized shortly.

Once the second power line is connected and energized, Sentinel will be entitled to its full power requirement of 160MW. This will allow for the mine to ramp-up towards commercial-level production expected by the end of 2015.

Further, full power of 153 MW is currently being provided to First Quantum Minerals’ other Zambian operation – the Kansanshi mine and smelter.

ZESCO, the state-run power company, has requested the mining industry to use supplementary power for 30% of their requirements. Discussions are currently underway regarding the related tariffs for this supplementary power. First Quantum Minerals expects full production at both Kansanshi and Sentinel through the purchase and sharing of this power.

It is also expected that the country’s generating capacity will improve following the rainy season starting in November. In addition, approximately 400 MW of new power generation capacity is expected online in Zambia in 2016 from projects nearing completion – which includes 300 MW thermal and 100MW hydro power.

Meanwhile, in response to low commodity prices, market volatility and power shortages to its Zambian operations, First Quantum Minerals has taken steps to protect itself in the current market conditions, says First Quantum Minerals Chairman and CEO Philip Pascall.

“Our focus has been clear. It is first to ensure that profitability and cash flow from our mining operations are maximized and protected in these volatile market conditions and sustained lower commodity prices and second, that cash outflows are limited to essential and economically attractive projects so that our balance sheet integrity is maintained.

“Additional initiatives to further strengthen the balance sheet are being prioritized and are under active review.