Konkola Copper Mines reopens health facility in Chililabombwe

ver 11,800 residents of Chililabombwe’s Mine Township, the RB and Helen Kaunda settlements will access quality healthcare closer to their homes following the reopening of a Health Centre 4 in the copper mining town.

Commissioning the refurbished facility, Deputy Minister of Tourism and Arts, Esther Banda, who is also Chililabombwe Member of Parliament said the facility would impact positively on the lives of employees and residents.

“The reopening of clinic 4 will increase the number of people benefiting directly from KCM health services to over 70,000 people,” Mrs Banda said. KCM currently operates two major hospitals and 14 clinics in Chililabombwe, Nampundwe, Kitwe and Chingola which provide health care services to over 63,000 people.

Mrs. Banda said the reopening of the health centre was in line with the government policy to bring quality health care closer to communities.

My government is keen on fostering public private partnerships (PPPs) in all areas of development, including health as this is the most robust way of ensuring sustainable development,

Mrs. Banda said.

The Deputy Minister commended KCM for complementing the government’s efforts to provide quality health care to employees and communities around its mining areas.

Speaking at the same function, KCM Chief Executive Officer Steven Din said reopening Health Centre 4 was symbolic of KCM’s continued focus to deliver quality health care to the people in the communities in which it operates.

Mr. Din said KCM would continue to support the health sector as a healthy population was essential for supporting higher production in the mining industry.

I am aware that the government cannot on its own meet the demands for health service delivery. Therefore, the private sector has a major role to play in providing quality health services and KCM will continue to take a lead in this area,

Mr. Din said.

Kangwa Chirwa, a miner’s spouse and mother of two, said the facility would not only improve the healthcare of the community but would ease the burden of people walking more than two kilometres to the nearest health facility.

“I am very happy because I experienced the difficulties of walking long distances to the nearest clinic. It was more difficult when a mother fell ill at the same time as her child. It meant she would not be able to go to the clinic, thereby worsening the illness. But I thank KCM that we now have a clinic close to our homes,” she narrated.

KCM spent k800,000 on the rehabilitation works which included reinforcing the foundation of the building, replacing the roof and ceiling, improving water reticulation and sanitation facilities. Other works were done on the Antenatal, VCT and main consultation rooms. The clinic offers free VCT, under-five clinic and family planning services.

KCM appoints Mrs Chimango Chikwanda as Vice President Human Capital Management

CM is pleased to announce the appointment of Mrs. Chimango Chikwanda as Vice President Human Capital Management effective 1st April 2016.

She joins KCM from ZANACO where she made significant contributions to the cultural transformation of the largest retail bank in Zambia. She has over 20 years’ experience in strategic and operational Human Resource with other ‘ best-in-class’ multinationals such as Zain Zambia, SABMiller and Pricewaterhousecoopers.

Mrs. Chikwanda holds a BSc in Economics from the University of London, a MSc in Economics from the university of Warwick, an MS degree in Consultancy and Coaching for Change from HEC (Paris) in partnership with Oxford University and is a certified MBTI and Belbin practitioner.

Her predecessor, Mr. Njovu leaves KCM after completing close to two years in the role where he has provided leadership to the KCM function and maintained cordial relations with the unions.

Management has thanked Mr. Njovu for his contribution to the organization and wishes him well in his future endeavors.

Governance, Risk and Compliance Column!

ear Colleagues,

I would like to introduce to you our first article on KCM’s commitment to a culture of compliance and governance. In this column, we will look at various aspects around this subject which are critical to the growth of thee business.

We have embarked on a programme of ‘Zero Tolerance to Non-Compliance and our participation in this undertaking is critical. The company is required to be fully compliant with all company policies, procedures, technical specifications, regulations, general guidelines and the country’s laws.

Every one of us need to exercise responsibility and accountability in discharging our roles and responsibilities to ensure the growth and success of KCM. Compliance is not a requirement for only senior management, it is everyone’s responsibility.

There is need to strengthen our internal control environment in KCM. Every single person has a role to play a as we seek to achieve the company objectives. Being compliant has to first be a personal resolution, and then a collective corporate way of doing business. I wish to encourage all of you to join hands in ensuring100 percent compliance to our rules, guidelines, regulations and legal obligations.

Good attributes to compliance start with being punctual on duty and good time management. It requires upholding safety standards, using company assets and resources in a prudent manner. It must then extend to softer issues of our value system of being ethical in our conduct. We need to exhibit integrity – a culture of honesty in both private and business lives. We need to embrace this as a value system and not just a norm.

Compliance and ethical conduct eventually builds integrity which then leads to a robust business culture. The growth of our society, families and the company cannot be detached from a strong value system, underpinned on compliance to statutory requirements and company procedures and policies.

In our next discussion, I will share with you a synopsis of KCM’s compliance programme which will focus on the realisation of a stronger business environment that guarantees the survival of this organisation. I urge you to be compliant!

Sharad Gargiya

Chief Financial Officer

KCM Employees a part of a global Chairman’s “virtual town hall”

HINGOLA, 6 March 2016, Anil Agarwal, the Chairman for Vedanta Resources addressed more than 300 Konkola Copper Mines (KCM) employees as a part of a global “virtual town hall meeting.”

The Vedanta founder and Chairman was speaking during a live broadcast through a video link to more than 300 KCM employees and about 5,000 in total from all Vedanta subsidiaries and businesses in 30 locations in 5 countries. Employees from all locations were able to ask questions to the Chairman, who was participating in London.

This was the first time that this technology has been used in KCM and enabled a wide cross section of the company to interact directly with the Chairman of the company’s largest shareholder.

The event was well received by KCM employees: According to Innocent Chiluba, a metallurgist in the company: “It was great to be able to hear the Chairman talk directly to us from London and answer the questions on our mind. I was amazed to see groups from so many different places on the screen.”

Mr Agarwal spoke about his affection for Zambia and Vedanta’s long term commitment to the country. He said Vedanta’s 50-year vision to continue mining in Zambia would be fulfilled, underpinned on the world-class and high grade ore body at the flagship Konkola mine in Chililabombwe.

Mr Agarwal told the employees that,

our main intention at the moment is to survive the current challenges. It is all about our determination to take our company forward. You need to work hard, cut costs and increase production. We have to be innovative.

Mr Agarwal said Vedanta subsidiaries, including KCM, would continue to nurture young people into positions of leadership. The company would also promote the ascendancy of women into leadership positions as it seeks to expand its asset portfolio as a diversified global resources company.

I encourage all of you to remain ambitious for success, humble and hardworking. To find and recognise talent is the most important thing for us. Our success will be based on trust and honesty. I have seen a great passion from our employees at KCM and there is also great potential. We have done everything possible to develop this asset by investing over $3 billion on processing plants and the mines,

Mr Agarwal said, addressing KCM.

Vedanta Chief Executive Officer Tom Albanese, who is also KCM’s Chairman, reiterated that a strong foundation had been created at KCM.

“There is so much enthusiasm about copper mining in Zambia. Everyone is passionate about the KCM 50-year vision,” Mr Albanese said.

Mr Albanese said that companies which emerge strong from the downturn in mining are those that inevitably benefit most from the return to higher commodity prices.
“This is not the first time we have faced these challenges. I am optimistic we will come out stronger,” he added.

Konkola Copper Mines announces the death of Mr Fighton Simukonda, the Head Coach of Nchanga Rangers Football Club (NRFC)

HINGOLA, 17 February 2015, it is with deep sorrow that Konkola Copper Mines announces the death of Mr Fighton Simukonda, the Head Coach of Nchanga Rangers Football Club (NRFC).

The late Mr Simukonda died at about 06:00 hours on 15 February 2015, at the Konkola Mine Hospital in Chililabombwe, after an illness. The funeral will be held at House Number 68, 8th Street, Nchanga South in Chingola.

KCM Management and staff pass their heartfelt condolences to the bereaved family. The company wishes the family God’s comfort, strength and guidance during this difficult moment.

The deceased was appointed Head Coach of Nchanga Rangers in 2012, after coaching stints with several top Zambian clubs.

During his spell with Nchanga Rangers, he brought stability to the club and raised several young players, who are now with various youth national teams and the Chipolopolo national team.

We join the rest of the nation in mourning our deceased football icon – one of Zambia’s most decorated football players and coaches.

Nationwide power outage impacts KCM operations

HINGOLA, 11TH December 2015, Konkola Copper Mines (KCM) operations and production have been affected by a countrywide power blackout which occurred from about 10:35 PM on Thursday, 10th December, 2015.

Following the power outage, KCM was able to bring on line 16MW of power using its own emergency diesel generator set at Konkola mine supported by another 40MW in emergency power supplied by the CEC from its gas turbines. This power allowed KCM to continue to pump water and withdraw its employees in a planned and disciplined manner. All employees at both the Nchanga and Konkola underground mines were withdrawn without injury or incident.

However, around 04:30 AM on Friday, KCM lost the emergency power supply after the national power system tripped as attempts were being made to reconnect the company to the national grid. Full supply of power was finally restored to KCM at about 09:40AM today. Production was suspended during the power outage.

Consequently, it will take KCM about 16 hours to restart operations at its Nchanga smelter in Chingola. The company will also suffer some slight loss of production at Konkola while pumping out of water continues from the deeper sections of the mine.

The rest of the operations are being systematically returned to production following full safety and environmental checks.

Shapi Shachinda

Manager Public Relations & Communications

Mobile: 0978 871958

First lady says KCM is trusted development partner

Zambia’s First Lady Esther Lungu has said Konkola Copper Mines (KCM) is a trusted development partner for the country following its expansive social investments in the last 11 years.

The first lady said this when she addressed hundreds of residents of Shimulala, Helen and Kakosa settlements on the outskirts of Chingola, where the company’s corporate head office is located. She visited sites of KCM’s corporate social responsibility (CSR) programmes.

Mrs Lungu commissioned the new Helen Bridge which was constructed by KCM at a cost of Zk877,635.00 (US$82,640.00). She also laid a foundation stone for an Out-Grower project seeking to empower local farmers and toured other KCM-funded CSR projects.

The newly constructed Helen Bridge has eased movements of over 4,000 people living in the area as they carry produce and other goods to markets in Chingola and beyond. It also connects people to health and education facilities outside of their settlements.

The Nabona out-growers programme targets to provide about 500 small and medium scale farmers with access to markets in an organised way to ensure quality and planned production.

I want to urge the community to continue to work closely with Konkola Copper Mines (KCM) because this is your trusted partner. KCMhas stood by you in good and difficult times,

she said.

“I must commend KCM for providing 22 hectares of land on lease to proprietors of Nabona as this will create employment for farmers and the young people,” Mrs Lungu said.

Mrs Lungu also paid glowing tribute to KCM for empowering women with life-saving skills in cattle rearing, tailoring and farming.

“I want to attest that it is evident that KCM has spent US$160 million in communities over the last 11 years,” Mrs Lungu told residents after touring some CSR projects, including the cattle restocking project.

I have seen some of the key projects where these funds have been spent.

She said it was heartening that the company was focusing on four corporate social responsibility pillars, namely education, health, sustainable livelihoods and sport.

The first lady encouraged KCM to continue uplifting the lives of people in its areas of operations. KCM has given out over 596 cattle in Chingola, Chililabombwe and Nampundwe and also provided 2,327 goats to 26 self-help groups.

Mrs Lungu said social investments by KCM fitted into President Edgar Chagwa Lungu’s vision for a public private partnership models for diversifying the economy and shoring up growth.

Konkola Copper Mines here to stay

hingola, 4th November 2015 – Konkola Copper Mines (KCM)has reaffirmed its commitment towards Zambia’s development agenda despite the current challenges it is facing that have affected its operations.

KCM Chief Executive Officer Steven Din says the company’s investment in the mines amounting to $3 billion dollars over the last eleven (11 years) is a clear demonstration of its commitment to this development agenda.

Mr. Din has said this in a statement in commemoration of the company’s 11th anniversary which falls today.

Mr. Din notes that despite the current challenges KCM is facing such as low copper prices and power deficits, the company’s 50 year vision will ensure that KCM still remains in operation for a long time to come through enhanced sustainable operations of its mines.

He adds that to achieve this agenda KCM is examining local economic development opportunities aimed building up the economic capacity of the communities around KCM’s operations to improve their economic futures and the quality of life for all.

He also highlighted the company’s commitment to its CSR programmes in the areas of rural livelihoods, education, health and sports. KCM has spent more than $160million on its CSR projects since Vedanta acquired its interests in the company.

Hesays the company aspires to use the KCM assets as a catalyst to secure economic activity in the Copperbelt and surrounding areas for the next fifty years and beyond, long after KCM has ceased mining.

KCM is working a 50 year vision but this vision depends on the Copperbelt realizing its potential as an economic hub. Mining alone will not achieve this. Agriculture, tourism, logistics, services and trade will all need to make a contribution,

Mr. Din said.

The CEO is confident that with the right strategy, carefully executed in partnership with government, donors and civil society groups, KCM can add substantially to additional economic activity per year in non-mining sectors and create many jobs.

He further notes that generating employment beyond the life of the mines will be the single greatest economic legacy of KCM in the Copperbelt.

Copper mine to continue production

Zambia-based copper miner Konkola Copper Mines (KCM) has affirmed that it has not made a decision to close its Nchanga underground mine or scale down operations at the Nkana refinery, following media reports alleging closures. KCM, a subsidiary of London-listed global diversified natural resources company Vedanta Resources, is one of Africa’s largest integrated copper producers.

It has mines at Konkola in Chililabombwe, Nchanga near Chingola and Nampundwe in the Central province of Zambia. Its operations include openpit and under-ground mines, several concentrators, a state-of-the-art smelter and a refinery. In addition to copper, the company also produces cobalt, pyrite and acids. “The company’s operations remain open and production is continuing. No workers have been laid off and no contracts have been terminated,” the company states, noting that the basis of media stories circulating is an unofficial memo, which has no official sanction from within the company.

However, KCM notes that the implications of electricity cuts are still unclear, with the company in consultation with power provider Copperbelt Electricity Company and the Zambian government regarding the implications of load-shedding.

Zambia is experiencing a power supply deficit of 30%, as water levels at State-owned power utility Zesco’s hydroelectric plants decreased significantly, owing to drought.

Performance Focus

Meanwhile, KCM CEO Steven Din noted in the company’s July newsletter that, while the company continues to improve its operational performance, KCM has “a long way to go in ensuring that business plan target”. Din highlighted that integrated mine metal production at the end of the first quarter is 85% of the business plan target.

KCM is developing the flagship Konkola Deep Mining Project, in Chililabombwe. The project involves expanding the production of copper ore at the Konkola mine by accessing the rich orebody that lies beneath what current operations have been exploiting. “This involves the sinking of a new mine shaft to the depth of 1 500 m, the deepest new shaft sinking project in Africa,” according to Vedanta Resources’ website.

Din further highlighted in the company newsletter that there is steady improvement at the Konkola underground mine. “Phase 1 mining of ventilation and slot raises has been completed in the Konkola East section and Phase 2 of secondary development is progressing well,” he stated. Moreover, copper-in-concentrate production has been sustained above 4 000 t for the last two months, Din noted, adding that Konkola “achieved 85% of the business plan target in the first quarter, with production constrained by power outages resulting in flooding at the end of April and beginning of May”.

Nchanga Smelting and Refining He further highlighted that “overall, Nchanga has continued seeing an upward trend in production [having] achieved 89% of the business plan in the first quarter”. The Nchanga mining operations are situated near Chingola. The operations mine primary copper and cobalt through underground and openpits.

Media reports in the newsletter also highlighted that the Nchanga Open Pit Cut II increased production in the first quarter and “beat monthly targets by more than 100% in April and May”. Din noted that, although the company was affected by challenges, such as low dump truck availability, Old East Mill throughput constraints, power outages and power grid instability, the team has corrective action plans in place to stabilise production. Further, the Nchanga openpit mine achieved 123%; Nchanga underground mine achieved 97%; Tailings Leach Plant achieved 97%; and support service achieved 93% of the amount detailed in the business plan.

Din, however, acknowledged that the Nchanga smelter was unable to achieve its targets, owing to low receipts of integrated and custom concentrates resulting in knock-on, low production at the Nkana refinery. The Nchanga smelter achieved 67% of business plan targets, while the Nkana refinery achieved 56%. He added that the company has no control over the copper price, which is set in international markets.

“While we saw steady increases in the copper price at the start of the year, in June and July, this reversed sharply,” he stated. Therefore, Din emphasised the company’s need to redouble its business efforts under the circumstances.

3000 KCM jobs on the line as the mine suspends operations at the Nchanga underground unit

KONKOLA Copper Mine Plc has written to its workers at Nchanga, informing them that the Chingola-based underground mine will be put on care and maintenance with immediate effect.

According to a letter addressed to the employees, KCM stated as follows: “This information must be communicated to all staff by Friday 31st July 2015. This includes: all KCM employees and contractors. KCM Plc has been informed by Copperbelt Energy Corporation (CEC) that electricity power supply will be reduced by up to 30 per cent. As a result of the power reduction, KCM has decided as follows: To place Nchanga underground operations on care and maintenance, scale down on the Nkana refinery operations. The above measures are with immediate effect until further notice,” read the notice letter in part.

And Kitwe-based Anglican priest Fr Richard Luonde said his friends who work at Nchanga mine had called him to complain about KCM’s decision.

“I have this letter here, someone just called me and said, ‘Ba Father Luonde, please help us advise this government. Very shortly, there will be mayhem in Nchanga. Bytomorrow morning, it will be disaster’,” Fr Luonde said.

“What this means is that when they put this on maintenance, there are close to 3,000 workers at Nchanga underground who will be declared redundant. People will lose jobs and their families will suffer.”

He said it was clear that KCM was using power cuts as reason to shut down its operations at Nchanga when it has always been wanting to reduce its workforce.

“This KCM has always been wanting to reduce its labour force and they are now using the Zesco load-shedding to get rid of workers. But when they get rid of these 3,000 employees, they will be getting rid of over 20,000 people because these workers have families,” said Fr Luonde.

And sources within senior KCM management revealed that Vedanta Resources, the owners of the mine, had refused to invest in the Nchanga underground mine and management had no option but to close.

“We are folding, yes… we saw this coming because the owners of KCM, Anil Argawal and his friends, have refused to invest in underground operations at Nchanga. We told them at several internal meeting that this is a terrible mistake but they are not ready to do that,’’ sources said.

“The technical aspect of this issue is that Nchanga underground is an old mine as you know; it’s very deep now, and in mining, the deeper you go, the more costly mining becomes. But this is a manageable situation by the investor because we still have a rich copper ore body underground. This issue of saying it’s because of power cuts is just an excuse they want to put up.”

The sources said news of the mine shutting down operations had created serious apprehension among workers and the labour movement.

“As we speak, the president of the Zambia Congress of Trade Unions Nkole Chishimba is on his way to KCM. Other union officials are here and they have told us in our faces that they will not accept this; they have challenged KCM and the government, which has a stake in KCM, to invest in the mine and maintain these jobs,” the source said.

Mineworkers Union of Zambia general secretary Joseph Chewe said the union would issue a statement after receiving official communication.

“We have received those reports but we are waiting for official communication. We are making frantic efforts to get the details as we speak. We will give you details later together with our position on this matter,” said Chewe.

And National Union of Miners and Allied Workers general secretary Steven Mukupa said the union had also gotten the report and it would be unfortunate if KCM decided to take a drastic measure without involving stakeholders.

“I am just waiting for an email over this but we have heard the reports. What we want is official communication. They (KCM) should have alerted us, this is a serious matter. It is extremely unfortunate if that’s what they have done. We will give you our comprehensive statement later,” said Mukupa.