Vedanta Resources Plc, owners Konkola Copper Mines, a Zambian unit, has asked over 400 squatters living on a mine land and has disbursed K588, 000 to those farming in the same area earmarked for mine expansion.

The 402 residents who have encroached in Chabanyama area in Chingola, one of its mining areas, have set up settlements on the mine land which the miner has set up as a dumping site in its continued expansion programme.

Company spokesperson, Shapi Shachinda, concerned with the encroachments, urged residents around mining areas to avoid conducting any activity on mining land as this is against mining regulations. The mining company has since intensified patrols to ensure that no fresh encroachment occurs, the spokesperson said in a statement to the Mining news Zambia.

And the company has provided K588, 000 in compensation to squatters in Chabanyama who are carrying out farming activities as a support to the residents whose farming activities have been affected by the company’s decision to relocate them from the mining land which is now a dump site company’.

Zambia Consolidated Copper Mines Investment Holdings (ZCCM IH owns 20.6 percent of KCM and the other 79.4 percent is owned by Vedanta Resources. KCM is one of Zambia’s major integrated copper producing companies. It is primarily engaged in the exploration for, mining, production and sale of copper and copper by-products.

KCM aims to be a world class Copper Mining and Metals company and has therefore adopted a growth and efficiency strategy. Since 2008, over $2.5bn has been invested to upgrade equipment, build new facilities and expand capacity. These investments have increased reserves & resources and increased the life of the mines.

KCM currently produces 2 million tons of copper ore per year. The company’s US$1 billion Konkola Deep Mining Project (KMDP) will expand its capacity to 6 million tons of ore per year when completed by 2016.

Source: Mining News Zambia

The US$800 million thermal powered power plant under construction at Maamba Collieries is an advanced stage with Government hopeful that its commissioning and subsequent operation will ease power outages being experienced in Zambia, one of Africa’s top copper producers.

Zambia’s power generation, at an average 1400 megawatt which increases to 1800 during peak periods daily, has failed to meet the consumer demand in the country and for export markets as espoused by the Southern African Power Pool (SAPP), which promotes energy sharing among the 15 SADC member states.

The construction of the 300 megawatt thermal power is expected to reduce the inadequate power capacity generation by Zambia when connected to the national grid in collaboration with the state utility-Zambia Electricity Supply Corporation, or Zesco. The plant is planned for takeoff by 2016.

Commerce, trade and Industry deputy minister who is also Sinazongwe constituency lawmaker, where it is located, Richwell Siamunene, says, the thermal power plant, when completed, will ease power outages experienced in the Southern Province and Maamba area.

The connection to the grid will also benefit the entire country in which low energy capacity has stifled its envisaged economic growth rate averaged between 8-10% per annum as demand for power grows.

Xing Zhonghua the Site Manager for SEPCO Engineering, the company carrying out construction works says 60 per cent of the works on the project has been done.

And the Government is still looking for an equitable partner to take up Ndabwe Mine formerly Collum Coal Mine to resume operations at the 12000 tons per annum producer to resume operations after it was shut down by Government for various safety and environmental reasons when it was running under a Chinese company.

Owners of Maamba collieries and Singapore-based Nava Bharat Pvt, earlier projected to double coal output at Maamba mine by 2011 after modernizing the facility it acquired in 2010 for US$26 million.

The company acquired a 65% stake in Maamba, a key supplier of the heating substance to many of the copper mines and various private sector-driven companies in Zambia. A total 35% of the shares were retained by the state-run ZCCM-IH.

Earlier plans by the new owners were to build a new $12 million coal processing plant by the end of 2010. Maamba mine has 78 million tons of known coal reserves expected to last over 70 years.

The mine, produced 600,000 tones coal during peak production in the 1980s and had aimed to reach a maximum output capacity of 2 million tones of coal per year in the long term.

It was envisaged that the Maamba colliery at its peak capacity could reach 1 million tonnes of marketable coal and about the same tonnage of power grade coal to feed the power plant. The power project was estimated to cost $630 million of which 70 % was expected to be financed through debt and the remaining 30 % from equity by shareholders.

There are plans by the Government to eventually list 25 % of the shares in Maamba Collieries on the local bourse with a larger share of that coming from the government’s stake once the firm established a track record of profitability.

Source: Mining News Zambia

The mining company has since taking over the unit pledged to cut down the emissions from the smelter a gas which will now be converted into production of acid which the company seeks to maximize in its production unlike releasing to the atmosphere.

The completion of the upgrade programme means that the smelter will now be able to capture 97 percent of the sulphur dioxide emitted to the atmosphere in conformity with the rules under the World Health Organisation (WHO).

Company Chief Executive Officer Danny Callow said in a statement to the mining News Zambia that the smelter had been completed 15 months ahead of schedule. The smelter was done in three phases to address the sulphur dioxide emissions which were at 100 per cent from 1937 to Glencore’s investment in 2000 since the company took over operations.

Mopani Copper Mines, he added was committed to upgrading the smelter to comply with international standards just after the acquisition of the asset in 2000. The company has to date invested over US$2 billion in rebuilding the mine, much of which is underground operated to meet the international mining and latest standards to maximize on its production of copper and cobalt.
At the time of acquisition, Callow stated, the Mufulira smelter was emitting 100 per cent of its sulphur dioxide emissions into the atmosphere. A decision was made to build a new smelter within the confines of the existing smelter, whilst increasing production and maintaining job stability, which were two key areas of government focus.

“One option we had involved closing the processing plant, which would have enabled us to complete the work earlier but would have resulted in around 900 job losses at the time, with a major impact on the local economy, which is heavily reliant on the operation.

“The second and more viable option was to keep the plant operational and upgrade the smelter in stages,” Callow stated and described the upgrade project as one of the biggest environmental projects ever undertaken in Zambia.

The first phase of the project was completed in 2007, which involved replacing the existing electric furnace and construction of an acid plant at a cost of US$ 213m, enabling the capture of emissions of 50 per cent. In the second phase, two new bigger anode furnaces and twin anode casting wheels were installed at a value of US$81million and were successfully commissioned in 2009.

“With the completion of phases one and two, the smelter capacity improved to about 625,000 tpa concentrate treatment from 420,000 tpa, whilst sulphur capture improved to 51 per cent. In the third and final phase which involved the installation of three larger converters, assorted gas handling equipment and a second acid plant, all costing US$206 million, was completed in March this year, 15 months ahead of schedule agreed with the Zambian government,” Callow added.

It is envisaged that the completion of the Mufulira smelter upgrade project would result in a greatly improved environment for the local community and Mopani employees.

There have been concerns from various stakeholders, civil rights campaigners over the emissions of sulphur dioxide at the mines with some of the residents, especially those living in areas closest to the mines like in Butondo, Kankoyo and Sections eight, F, E,D, C as being victims of the emissions.

They argued recently that the emissions and other mining blasting activities were affecting their livelihood as they were subjected to harsh and chocking fumes while their houses had developed cracks as a result and some, were even demanding compensation from the mining company over their respiratory problems arising from the fumes, commonly referred to as “Centa”, a Boer word meaning strong chocking fumes arising from untreated acid.

Last year, residents of Mufulira’s Kankoyo township, which was heavily affected by the emissions, had staged protests against the health risk sulphur dioxide emissions from Mopani’s Copper Mines-Mufulira smelter has been posing on many people, including children. They claimed they were suffering from serious respiratory infections due to pollution from the mine, although no notable deaths have been recorded to date.

THE Southern Africa Resource Watch (SARW), one of the civil right campaigners had recently argued that the emissions needed to be redressed to save people, animal and enivoronmental effects that characterized Mufulira townships especially those living near the mining areas. SARW, after assessing the recent efforts made by Mopani Copper Mines said it is now satisfied with efforts to mitigate the impact of sulphur dioxide emissions in Mufulira district.

SARW campaign officer for Zambia, Edward Lange said the organisation undertook a survey to observe the situation on a balanced basis, monitoring MCM readings from their community air monitors stationed at some health centres dotted around the district for the past 20 days, adding that the independent assessment showed that there had been drastic improvement on the quality of air in areas like Kankoyo township.

“It was important to note that sulphur dioxide emissions popularly known as ‘senta’ among the locals, was a legacy issue, which had been a challenge in Mufulira since 1937 and efforts by agencies and Mopani Copper Mines that had massively invested in projects aimed at improving the air quality must be commended”.

In the case of Kankoyo and Kantanshi residents, the problem had persisted for over 80 years. It was then that the company decided to redress the historical problem hence the modernisation of the smelter through the smelter upgrade project. Mopani proved its commitment to a clean and safe environment by investing approximately US $450 million to end the historical problem of sulphur dioxide emissions.

Source: Mining News Zambia

COPPERBELT Energy Corporation says the revocation of SI 33, which banned the use of foreign currency in local transactions, will help expedite sourcing of finances for the Kapombo Hydropower project.

Copperbelt Energy Corporation managing director for operations, Owen Silavwe, said revocation of Statutory Instrument 33 would ease some of the challenges the company was facing in building the 40 megawatts hydropower plant. He said the revocation of SI 33 came as a “huge relief” as several challenges pertaining to project implementation were mitigated.

“From our side, it has come as a big relief – not just for Kabompo but for also CEC,” he said.

The government last month revoked the Statutory Instruments 33, which prohibited the use of foreign currency for domestic transactions while SI 55 empowered the Bank of Zambia (BoZ) to monitor inflows, outflows and international transactions.

Silavwe stated that bureaucratic hindrances had slowed CEC’s plans to invest in the vast hydropower potential in Luapula Province.

“What you have got on the Luapula river is the number of potential sites that you can develop, and the consultant basically tried to come up with an optimal way of developing those sites,” said Silavwe.

Source: Mining News Zambia

A JOINT venture company where Copperbelt Energy Corporation ( CEC) has 50 per cent shareholding has acquired 60 per cent interest in the Abuja Electricity Distribution Company that supplies power to over 10 million people in Nigeria.

KANN Utility Limited is a joint venture company between CEC Plc and XerXes Global Limited and was confirmed as the preferred bidder to acquire Abuja Electricity Distribution Company ( AEDC) in November 2012 following rigorous international bidding process.

According to information released by CEC Plc yesterday and also posted on the Lusaka Stock Exchange ( LuSE) website, the consideration payable for the 60 per cent interest in Abuja Electricity Development Company ( AEDC) is US$ 164 million, out of which 25 per cent ( US$ 41 million) is payable within 15 days of signing the agreement, with the balance of 75 per cent ( US$ 123 million) payable after six months.

The financing plan for the acquisition has been developed with Standard Bank of South Africa. The transaction is expected to be finalised and shares transferred when the final payment is made ( anticipated August 2013).

During the interim period, preparations will be made to take over the management of AEDC and CEC Plc would be the operator of AEDC, which has a franchise for distributing electricity in four states, comprising the Federal Capital Territory of Abuja, Niger State, Kogi State and Nasarawa State, which has a combined population of 10.5 million people in 2.3 million households.

AEDC purchases power from the Nigeria Bulk Electricity Trading Plc and is connected to various power generation plants by the Transmission Company of Nigeria.

Nigeria has one of the worst electricity distribution records in the world with almost each household and business entity having a back- up generator.

Source: Mining News Zambia

China’s Non Ferrous Africa Mining Corporation (NFCA) plans to spend US$100 million this year towards the development of the South East Ore Body Mine (SEOB) at its Chambishi unit in Zambia as it seeks to expedite the project.

It is estimated that when the project is complete more than 5,000 jobs would be created; the Times of Zambia reported citing NFCA chief of executive Wang Chuilai. The mining company is committed to developing the SEOB because the future of the company largely depended on the project, according Wang.

During a recent visit to the mine by Copperbelt Minister Mwenya Musenga said NFCA’s planned investment in the development of the SEOB was US$830 million and that by last year, the company had injected in a total of $123 million.

“The future of NFCA depends on the SEOB and this is why we are determined to have the project successfully completed, we are so far on course in the implementation of the project and its completion date is 2017,”

When completed, the SEOB would increase the life span of the mine by 25 years. NFCA has made significant social and economic contributions and that the company had a workforce of more than 3,000 workers. Apart from creating employment, NFCA is contributing to the economy of the country through the various forms of taxes we are paying to Government.

From inception up to the end of 2013, the company had paid to the Government a cumulative US$150 million in taxes, which included mineral royalty tax, company income tax, Payer as You Earn (PAYE), Value Added Tax (VAT).

Wang further said the company had paid dividends to the Zambia Consolidated Copper Mines-Investment Holding (ZCCM-IH). During the tour Musenge was happy with the Chinese investment in the country noting that NFCA had significantly contributed to the growth of the economy.

“We are actually grateful for the contribution you are making to this country and it is our desire that we continue building on our bilateral relations,” Musenge said and commended NFCA for its outstanding safety record. He urged the company to continue investing in the safety of its workers. The Zambia Environmental Management Agency recently halted the implementation of the SEOB on grounds that NFCA had failed to comply with regulations on compensation and relocation of surrounding communities. This action by the agency ultimately led to over 500 miners who were working on the project being laid off.

Last month the Government lifted the suspension on the construction of Non-Ferrous Mining Corporation Africa’s Chambishi South East Ore Body Project, the delay which according to the mine management had cost the company about US $10 million during the 48-day closure of the project.

Following the closure of the project for alleged failure to meet certain environmental conditions, the Government said it had decided to waive the decision according to Labour and social security minister Fackson Shamenda after a closed door meeting with NFCA management and unions.

“The suspension of the construction of Chambishi South East Ore Body has been lifted. Various concerns from some stakeholders surrounding the project will be resolved well and we hope to close this whole matter by the end of the month,”

According to Shamenda, any issues that were being raised by other stakeholders should not affect the operations of the mining company adding that where there are different companies or people, there will always be complaints but the differences must be resolved in an amicable manner.

Source: Mining News Zambia

Glencore Xstrata increased its copper outturn by more than 12 percent at its Mopani Copper Mines in Zambia last year compared to a year earlier, as expansion bolstered by investment in the local unit rose; company says.

Annual Copper output rose 12 percent to 111,000 tons last year compared to 99,000 tons recorded a year earlier, spurred by an expansion drive embarked upon by the copper producer-bolstered by the more than US$2 billion injected into the local operations at Mufulira and Nkana mines on the Copperbelt.

Glencore Xstrata has raised over US$2 billion towards recapitalizing its operations in Zambia, Africa’s rich copper producer of which over US$320 million has been injected into the sinking of the deep mine project, the synclinorium, to boost the company’s copper outturn as one of the country’s leading producer of the red metal as well as cobalt.

The sinking of the shaft expected to be operational by 2015, will elongate the lifespan of the Nkana mine in Kitwe-an old mining town; by 25-30 years with access to 115 million tons of the copper ore and this will further create over 3,000 additional jobs for the local people according to its chief executive officer Danny Callow.

Additionally, MCM, in its quest to remain competitive as one of Zambia’s leading producer of copper and cobalt has invested in the expansion and upgrading its cobalt plant at a value of $27million to ostensibly double the current production capacity to 7,000 tons from an estimated 2,800 tons by next year.

Mopani Copper Mine forecasts to invest over US$300 million in completing the final phase of the smelter at its more than 80-year-old Mufulira mine and assist capture over 98 percent of the sulphur dioxide (senta) emissions that has remained a menace to the local people since the inception of the mines.

The captured gases is anticipated to be rechanneled into the acid plant to make the substance that will assist in copper production and cut down the cost incurred in procuring the product for mining operations including ore leaching in Mufulira west.

According to Mopani, the company has spent over US$2.4 billion to date in upgrading the Mufulira smelter and various operations at its units including various corporate social responsibilities which have seen communities become self-reliant, both in health and general welfare of the people where the company operates and surrounding areas stated chairman, Emmanuel Mutati.

Source: Mining News Zambia

Coal production at Zambia’s sole producer, Maamba Collieries Limited in Southern Province, more than doubled last year as the company ramps output up to meet demand from various end-users, the company says.

In 2012 production of the heating substance at Maamba Collieries in Sinazongwe, about 350 kilometres south of Lusaka, was 90,000 tones per annum which last year rose to 400,000, company spokesperson Janardhan Lavu said citing fairly stable policy environment and conditions in the country as reasons spurring the increase in outturn.

“In 2013, coal production levels at Maamba Collieries reached over 400,000 tonnes compared to only 90,000 tonnes in 2012,” said Lavu adding that the performance by the collier in 2013 had been fair since the mine was reopened in May, 2010.

The company, majority owned by Nava Bharat of Singapore and bought for US$26 million over three years ago, has continued registering an upward trend in coal production, although the break-even point had not been reached yet.

“The good performance in both production and sales can be safely attributed to a fairly stable and growing economic position Zambia occupies,” said Lavu.

This good performance has seen the company record orders from within and outside the Southern Africa Development Community or SADC.

Maamba Collieries says Lavu, has the ability to produce adequate coal requirements for the country and that the lower production scales recorded earlier, were mainly due to the small coal market in the country but the policy framework by the Government has helped the company grow since it was taken up.

“The policy environment has remained stable and conducive for investment and we have continued to receive tremendous support from all stakeholders,”

MCL is a joint venture between the Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) and Nava Bharat of Singapore. Nava Bharat holds 65 per cent shares while ZCCM-IH owns the remaining 35 per cent.

The coal miner was bought off for a net value of US$26 million with the Zambia Consolidated Copper Mines Investment Holdings having 35 percent share in the collier.

Maamba Collieries Limited (MCL) was incorporated in 1971 under the ownership of the Government through the Zambia Industrial and Mining Corporation (ZIMCO).

Maamba Collieries has operated under the current mining title since 1970. The mining title encompasses approximately 7,900 hectares located on the Siankondobo coalfield in the Gwembe Valley, in the Southern Province of Zambia, the company said on its website.

The company is the largest producer of coal in Zambia with estimated coal reserves of 103 million tonnes of high grade coal and 70 million tonnes of low grade coal. MCL is operating an open cast coal mine with a production history of almost 40 years.

Source: Mining News Zambia