Baluba Copper Mine starts blasting
By Business Reporter
Baluba Copper Mine has started blasting for copper and other underground activities ahead of planned resumption of production in December. This comes after the mine’s completion of most of the rehabilitation works and replacement of obsolete machinery by the new owners, the Non-Ferrous Corporation (NFC) Africa.
Baluba Mine is a unit of Luanshya Copper Mine (LCM), in which China Non-Ferrous Corporation (CNMC) recently bought
85 per cent shareholding from
Enya Holdings, which withdrew and placed the mines under care and maintenance.
The balance of the stake in Baluba is held by the Government through the ZCCM Investment Holdings (ZCCM-IH).
CNMC took over the operations of the Baluba and Mulyashi copper project, which was due to start producing 60,000 tonnes of copper in 2010, and said it would spend US$400 million to develop Mulyashi and start operations at Baluba.
NFC Africa chief executive officer, Luo Xingeng said in a statement released in Lusaka yesterday that the company had undertaken the major rehabilitation works involving replacement of equipment.
Mr Luo said the replacement of obsolete and outdated equipment was almost over, and the company conducted the first blasting last Sunday morning.
“The previous investor had exhausted all the developed reserves and the development being embarked on is both primary and secondary,” he said.
The Government had initially said production at Baluba would start in May this year when the takeover was completed, but the new owners undertook a thorough study on the assets and operational requirements.
Mr Luo said the study had revealed that the cost of rehabilitating and replacing equipment at Baluba had risen.
He said NFC Africa would give priority to the development of the Baluba underground mine, the 11.4kilometre cable that conveys copper ore from the mine to the processing plant, and the upgrading of the copper processing plant.
“Initially, $60 million was earmarked for the rehabilitation and replacement of equipment but the figure has gone up to $74 million after more malfunctioning equipment was discovered,” he said.
Previously, underground development at Baluba mine was carried out by a contractor but CNMC had decided that they should carry out the development on their own.
Mr Luo said NFC Africa has since employed 200 former workers at Prosec Amco, the previous contactor, as part of the underground development team.
Enya Holdings, which is a joint venture of the Bein Stein Resources Group (BSRG) and the International Minerals Resources (IRM), previously owned LCM but they placed the mine under care and maintenance in December before CNMC purchased it for US$50 million.
Labels: BALUBA MINE, CNMC, COPPER, ENYA HOLDINGS, LCM
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Baluba mine floods
Written by Zumani Katasefa and Mutuna Chanda
Friday, January 23, 2009 6:58:27 AM
SOME sections of the troubled Luanshya's Baluba underground mine have flooded.
Luanshya Copper Mine (LCM) manager concentrator Venus Kasito could neither confirm nor deny the development, but referred further queries to chief operations manager James Bethel. However, Bethel's phone went unanswered.
Company public relations officer Sydney Chileya referred queries to the chief executive officer Derrick Webbstock whose phone was switched off.
But reliable sources at the mine said the anti-pollution pump chamber at the concentrator flooded two days ago and that some engineers were busy trying to dewater the section.
"It flooded two days ago and the fear is that the flooding may damage equipment at the mine. Just today [Thursday] a team of workers who are in the care and maintenance team are pumping out water from that section," the source said.
The source said the situation is likely to affect the Luanshya stream, which flood and completely cut off people staying in North township, from the rest of the town.
"This part which has flooded was not planned for in the care and maintenance programme, that is what we were telling them, but they never understood," said the source.
He said the floods were also likely to damage other equipment on the mine such as the motors, adding that this would make it difficult for the next investor to take over the mine.
"We are just engaging government not to quickly conclude the discussions over the future of the mine, otherwise if they take long things would become worse. Government must make sure that people are given their jobs as soon as possible," the source said.
Mineworkers Union of Zambia (MUZ) president Rayford Mbulo said his team would go to Luanshya today to study the situation.
"We cannot say anything, but will be in Luanshya tomorrow [today] to study the situation. We cannot just issue the statement," Mbulo said.
Late last year, MUZ officials in Luanshya expressed fear that the mine may flood because some sections of the mine were not planned for in the care and maintenance programme.
Meanwhile, former LCM miners have started getting their terminal benefits.
MUZ officials talked to said it was likely that no miner got more than K35 million, saying that the least paid got as low as K2 million as terminal benefits.
LCM paid a total of K27.6 billion in terminal benefits to its former employees on Wednesday.
Sources at the mine disclosed that the money used to pay the miners was a refund from the government for the licence for the suspended Mulyashi project.
"The government had tried to find out from management how much was involved in paying the workers their benefits and initially management had cooked up figures but when government said the refund was going directly to the workers, that is when they gave the actual figures which came to something like K27.6 billion," the source said.
The source further said despite the miners being paid their terminal benefits, there were indications that they were willing to continue working in the event that the government found a new investor to take over LCM.
"We are a mining community, we miners are excited on getting our benefits. Some will buy cars and plasma TVs, but within two months that money will finish and they will be broke," the source said. "So many are willing even tomorrow to return to work and take up their jobs."
And Chileya confirmed that workers got their pay statements and had started receiving their benefits.
Chileya said by the end of business on Wednesday, all the workers got their pay statements.
"I can confirm that as of the 20th of January 2009, workers started receiving their pay statements for both their terminal benefits accrued and January pay," Chileya said. "By the end of business today 21st January, all workers will have received their pay statements."
Chileya declined to give any details on how much the total package was.
MUZ secretary general Oswell Munyenyembe urged Luanshya miners who obtained loans from various banks to negotiate with the respective banks on how the money could be recovered.
Munyenyembe said some banks started paying miners on Wednesday for both Chambishi Metals and Luanshya Copper Mine (LCM).
Munyenyembe said there was information that government had refunded the mining firm money which it paid as licence fee for the Mulyashi open pit mining project.
"Yes, I have heard about that, but I have not yet confirmed with government. But sources close to management are saying so," Munyenyembe said.
However, some miners said the company promised to pay them out of the sale of the last copper concentrates.
"They promised to pay us out of the sale of the last copper concentrates and they have done according to the programme," said the miner.
At a time a decision was reached to place LCM on care and maintenance, management undertook to pay terminal benefits to its employees by January 31.
President Rupiah Banda during a meeting with LCM management and other stakeholders ordered the mining firm to pay miners their terminal benefits before winding up.
Labels: BALUBA MINE, DERRICK WEBBSTOCK, ENVIRONMENT, FLOODS, LCM, MUZ, POLLUTION, RAY MBULO, SYDNEY CHILEYA, VENUS KASITO
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Baluba mine shuts down pumps, ventilation fans
Written by Zumani Katasefa in Luanshya
Saturday, January 03, 2009 7:32:05 AM
LUANSHYA‘s Baluba Mine faces serious flooding following the shutting down of vital installations at the mine.Briefing the press yesterday, Mine Workers Union of Zambia (MUZ) Luanshya branch chairman Stanslous Mwimbe disclosed that management at the mine had decided to shut down pumps and ventilation fans.
Mwimbe said the critically affected areas of the mine were 480 meter level flat area, climb centre, strike lump and SS 40 where all fans and pumps had been isolated from the areas. Other areas affected are 545 to 560 meter levels strike lump.
“At 580 level, all fans and pumps have been isolated except two small pumps. The 580 meter level centre haulage and exploration haulages SS 34 and SS 33 where there are boreholes and main collecting points for water underground have also been left without any ventilation and dewatering pumps.
As of 2nd January 2009, these areas are inaccessible because there is no ventilation and water is building up fast such that the crew which was sent this morning to go and collect the fans failed to reach the sections. If this situation is allowed to continue for a few more days, the mine will flood,” Mwimbe said.
He said in normal circumstances, mine rescue teams together with the ventilation officers were expected to carry out inspection exercises in areas which were not accessible by ordinary miners.
“The mine rescue and ventilation officers are not part of the care and maintenance plan. The fire services department has been left out of the care and maintenance team. Should any fire occur on any part of the mine, there would be no one to quench the fire on the mine,” he said.
He added that the Muzi Dam which was at the tail end of the mine and contains all the tailing and water from processing plants of the mines, had water contaminated with dangerous chemicals such as cyanide and its maintenance was controlled by environmental law.
“Under normal circumstances, the dam is maintained by a minimum of 50 people day and night with equipment such as front end loaders graders and tippers. In the current care and maintenance plan, they only provided for two people. This dam if not properly maintained has the potential to flood the mine and surrounding townships that is Roan and Luanshya townships,” he said.
Mwimbe said Luanshya Dam contained water from Luanshya streets and other streams in the surrounding area which was used in the processing plants of the mine.
He feared that with the plants closed down and the heavy rains being experienced, there would be no outlet for the water.
“The outlet foot pipe which used to drain water from Luanshya Dam was uprooted and sold off as scrap. Failure to manage the pumping of water from the Luanshya Dam and Baluba mines would result in Luanshya township and Baluba Mine to completely cut off north township like it happened in 2006,” he said.
Mwimbe added that the anti-pollution and pump chambers at the concentrator were some of the facilities which were not under care and maintenance plan.
“These are key facilities which pump out tails to the dams, if left unattended to and out of operations, the pump houses will easily flood and expensive equipment will be lost. Even under Binani/Ramcoz care and maintenance programme of 2000 with 600 employees with fully operational ventilation and pumping facilities at Baluba, 28, 18 and 14 shafts and management of Luanshya dam and concentrator facilities, the mine flooded and there was rampant vandalism which made it very expensive and difficult to restart the mine,” he said.
Mwimbe who described the action to shut down the pumps as criminal appealed to the government to take over the mine immediately to avoid the impending disaster.
He said government should bring ZCCM -IH on site with resources to manage the mine or find a credible investor since the current management had abandoned the facility.
Labels: BALUBA MINE, JOBLOSSES
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