CNMC Luanshya Copper Mines

Investee Companies, Investee Company News

Luanshya 28 Mine Shaft Project Explained

 

President Hakainde Hichilema recently commissioned the process of de-watering the flooded 28 Shaft at Chinese-owned CNMC Luanshya Copper Mines in Luanshya.

The pumping out of water from 28 Shaft will pave the way for the commencement of actual copper mining at the site which has been dormant for over 20 years.

According to CNMC Luanshya Copper Mines – Manager Corporate Affairs – Sydney Chileya, the $500 Million project will see water pumped out from 14 and 18 Shafts that are aligned to the famous 28 Shaft.

Mr. Chileya has revealed that the process of pumping out water from the three shafts is expected to commence on April 29 and will last between 18 and 21 months.

At the peak of the project about 3000 jobs are anticipated to be created.

“That project will create about 3000 jobs in total, which will be about 1,800 direct jobs and 1,200 contractual jobs. The 28 shaft is going to have its own concentrator, so we are constructing a concentrator about two to three kilometers away from 28 Shaft. That is a treatment plant for the copper to be coming from 28 Shaft,” Mr. Chileya told Radio Icengelo News.

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Investee Companies, Investee Company News

CNMC to invest US$1.3bn

China Non-ferrous Mining Corporation (CNMC) has pledged US$1.3 billion investment for the next five years to cater for its various operations in mining, science and education technology.

CNMC group chairperson Xi Zhengping yesterday told President Hakainde Hichilema that by the end of 2025, half of the US$1.3 billion investment would have been completed and the Chambeshi Copper Mines would also receive US$450 million.

He said there were plans to reopen shaft 28 at the Luanshya Copper Mine with an investment of US$600 million while about US$200 million would be invested in Sino Metals and a warehouse project.

Mr. Xi Zhengping who was on a three-day visit to Zambia said just like Zambians, his company had confidence in the Government to attract investment and improve the people’s lives. He said his company was also ready to assist Zambia in mineral explorations and greenfields using its expertise in geological explorations.

“Zambia is also endowed with other mineral resources such as lithium, manganese, zinc and other resources, so we are willing to do more work on this as well,” he said.

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Annual Report Summaries, Investee Companies

CNMC Luanshya Copper Mines Plc (CLM) Extract from 2023 Annual Report

The principal activity of the Company continued to be the mining of copper and exploration for other base and precious metals.  

As at 31st December 2023, CLM recorded revenue of ZMW8.5 billion (US$414.51 million) (2022: ZMW7.95 billion (US$467.47 million). The drop in year-on-year revenue was attributable to a reduction in copper production due to the loss of ore from Baluba underground mine which was decommissioned in December 2022. During the period under review, CLM produced a total of 48,904 tonnes of copper compared to copper output of 53,952 tonnes produced in 2022.  

Key developments:  

CNMC Luanshya Copper Mines (LCM) is set to revitalize the old Luanshya Mine with a $500 million investment, aiming to create over 3,000 jobs and annually produce 40,000 tonnes of copper concentrate. This initiative comes after the mine was dormant for 22 years due to waterlogging issues. The feasibility study for reopening the mine is underway, with dewatering scheduled to start in April 2024 following the rainy season.  

For the year ended 31st December 2023, the Company recorded a profit of ZMW2.93 billion (US$142.71 million) (2022: ZMW1.68 billion (US$98.71 million). Despite a drop in copper production, strong copper price and cost reduction initiatives led to the increase in profitability in 2023.  

Due to this improved performance and positive equity position, the Company declared dividends of US$30 million with US$6 million paid to ZCCM-IH (2022: US$70 million was declared). 
Annual Report Summaries, Investee Companies

CNMC Luanshya Copper Mines Plc (CLM) Extract from 2022 Annual Report

For the year ended 31 December 2022, CLM recorded revenue of ZMW 7.95 billion (US$ 466.26 million), (2021: ZMW 10.17 billion (US$ 516.69 million)). The drop in year-on-year revenue was attributable to a slight reduction in copper prices and production. CLM produced a total of 55,597 tonnes of copper for the year under review compared to copper output of 57,786 tonnes produced in the 2021 financial year.  

For the year ended 31 December 2022, the Company recorded a profit of ZMW1.68 billion (US$ 99.71 million) (2021: ZMW2.83 billion (US$ 143.71 million)).  

Due to the positive equity position, the Company declared dividends of ZMW 1.63 million (US$ 80 million) with ZMW 0.31 million (US$16 million) paid to ZCCM-IH (2021: Nil).  
Annual Report Summaries, Investee Companies

CNMC Luanshya Copper Mines Plc (CLM) Extract from 2021 Annual Report

For the year ended 31 December 2021, CLM recorded revenue of ZMW 10.17 billion (US$516.69 million), [2020: ZMW6.4 billion (US$345.45 million)] compared to the budget of US$329.40 million for the financial year of 2021. This was due to favourable copper prices for the year. CLM produced a total of 32,369 tonnes of copper cathodes for the year under review compared to copper output of 55,976 tonnes produced in the 2020 financial year. 

For the year ended 31 December 2021, the Company recorded a profit of ZMW2.83 billion (US$143.71 million), [(2020: ZMW7.97 million (US$42.13 million)]. Due to this improved performance and positive equity position, the Company declared an interim dividend of US$40 million with US$8 million payable to ZCCM-IH which went to clear most of the amount due under the Dividend Advance Agreement signed in October 2020. 
Annual Report Summaries, Investee Companies

CNMC Luanshya Copper Mines Plc (CLM) Extract from 2020 Annual Report

CLM increased its production volumes in 2020 with total copper output of 55,976 tonnes, up from 55,000 tonnes in 2019. This was due to increased mining activities and increased slag reclamation at Muliashi and Baluba.  

During the year, revenue increased to ZMW6,435.79 million (US$345.45 million) from ZMW2,992.91 million (U$S 224.67 million) as at December 2019 with net profit increasing to ZMW784.97 million (US$42.13 million) from ZMW 274.91 million (US$20.64 million).  

In the quarter under review, ZCCM-IH signed a loan facility with CLM. With a positive equity position, the company shall continue to explore the possibility of dividend payments in 2021 so as to reduce this loan amount.  

No dividends were declared during the year (31 December 2019: nil).
Investee Companies, Investee Company News

Govt grounds Luanshya Copper Mines

By BENNIE MUNDANDO
MY ministry has suspended all mining operations by Luanshya Copper Mines including ground clearing in the Roan Basin until the mine meets all the conditions of approval of the project, Mines Minister Richard Musukwa has said.
Mr. Musukwa told the Sunday Nation that the Roan Basin Pit is part of the five open pits comprising ore sources for the Muliashi Copper Project of LCM.
He said the other four open pits were Muliashi North Pit, Muliashi South Pit, Baluba East Pit, and Baluba Central Pit.
He said the Roan Basin Pit Site is overlain with critical surface infrastructure that includes the Cricket Club, the Tennis Club and lies in close proximity to the main General Offices, soccer field and residential houses.
He said the Zambia Environmental Management Agency (ZEMA), with input from Mines Safety Department, approved the Muliashi Copper Project by CLM through a letter dated November 10, 2010.
He said the project was approved subject to, amongst other conditions, that “CNMC Luanshya Copper Mines Plc shall not implement mining of the Roan Basin which was close to the general offices for the company and the residential areas within the Town Centre without submitting a specific plan that shall be approved by relevant authorities.”
“With total disregard of the condition in the Decision Letter, management commenced clearing the site for the Roan Basin Open Pit and in the process disturbed some surface infrastructure such as the Cricket Club and the Basketball Court. Management’s explanation for this action was that they first wanted to clear the surface area and not to commence mining operations.
“They further claimed that they wanted to ward off the illegal miners by maintaining their presence on the ground. The truth of the matter is that clearing of the ground is commencement of project implementation. The company is in clear breach of the condition of approval of the project by the Zambia Environmental Management Agency,” Mr. Musukwa said.
He said for this reason, the ministry had suspended all mining operations, including ground clearing in the Roan Basin, until the mine meets all the conditions of approval of the project.
“Further, appropriate sanctions (penalties) will be applied on the mine as provided for under the Mines and Minerals Development Act in addition to sanctions to be applied by the Zambia Environmental Management Agency,” Mr Musukwa said.

Source: Daily Nation
Investee Companies, Investee Company News

MINING OPERATIONS SUSPENDED

By Robert Mwanza:

Government has suspended mining activities at the Roan Basin CNMC-Luanshya copper Mines PLC.

Mines Minister Richard Musukwa says this is because the firm has not met all the conditions of approval of the project.

Mr. Musukwa says it is sad that the firm had started to carry out some activities even before the project is fully approved.

To this effect, Mr. Musukwa says appropriate sanctions will be mated out on the mining company by Government.

In a statement to ZNBC News today, The Minister said with total disregard of the conditions, management started clearing the site for the roan basin open pit and in the process disturbed some surface infrastructure such as the cricket club and the basketball court.

However, management’s explanation for the action is that the firm wanted to clear the surface area and not to start mining operations.

According to the production projections submitted to the Ministry of Mines and Mineral Development, Mining of the Roan Basin is scheduled to start towards the end of the Muliashi Project in 2025.

Source: ZNBC
Annual Report Summaries

CNMC Luanshya Copper Mines Extract from 2019 Annual Report

CNMC Luanshya Copper Mines Plc (CNMC) recorded a turnover of ZMW3.39billion (US$303.19 million) for the year ended 31st March 2019 (2018: ZMW2.22 billion (US$232.1 million). The
profit after tax was ZMW366.04 million (US$32.69 million), (2018: ZMW444.81million (US$ 46.58 million)). The increase in revenue and profitability was as a result of increased production
during the year as output at Baluba and the slag reclamation project complimented production from Muliashi open pit mine.
Total 2018 copper production increased to 47,256 tonnes from 43,177 in 2017. Focus has been placed on managing the high production costs at Baluba by balancing it out with production from slag reclamation. There were no dividends declared during the year ended 31 December 2018 (2017: Nil)
Investee Company News

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.