ZCCM-IH to disclose the whereabouts of K850 billion next month after board approval
TIME PUBLISHED - Monday, November 7, 2011, 5:13 am
ZAMBIA Consolidated Copper Mines Investment Holdings (ZCCM-IH) has
broken its silence regarding the whereabouts of the US$167.5 million Barrick Gold paid for a 2.28 percent stake in Lumwana Mining Company (LMC).“The funds are
placed in short-term investments with local financial institutions,” ZCCM-IH said in a statement placed in the Daily Mail following
concerns from minister of Mines and Minerals Development Wylbur Simuusa that the company might have either ‘misplaced’ or ‘misapplied’ the money.
ZCCM-IH, in a management statement, said it will disclose the whereabouts of the money after a board approval next month because doing so before the board’s consent would be tantamount to flouting listing rules. The company is listed on the Lusaka and New York bourses.
Last week, Mr Simuusa gave the company a one-week ultimatum to account for the money which in Kwacha terms stands at tens of billions and could provide a major boost to poverty reduction programmes.
Former minister of Finance Situmbeko Musokotwane, in an interview via phone from Zimbabwe where he is doing some work, said he is confident the money could not have been misapplied.
ZCCM-IH, in a management statement, said it will disclose the whereabouts of the money after a board approval next month because doing so before the board’s consent would be tantamount to flouting listing rules.
“If there are any suspicions by the minister (Mr Simuusa) that the money is missing,” Mr Situmbeko said, “the matter must be reported to the police.”
The Peter Munk owned gold digger paid Australia’s Equinox Minerals up to US$7.5 billion for LMC and insisted on buying off the 2.28 percent stake Zambia had even after the local competition commission advised that ZCCM-IH must maintain the stake which by extension gave ZCCM-IH a stake in the multi-billion Jabil copper and gold mine in Saudi Arabia.
Criticism mounted regarding ZCCM-IH’s decision to take a ‘measly’ US$167.5million from the largest gold digger in the world instead of actually demanding a large stake in the mine that has an extendable 35-year lease life.
However, speculation has been escalating that ZCCM-IH only agreed to give up the 2.28 percent stake in LMC after Canada’s Prime Minister from 1984 to 1993 Brian Mulroney visited State House with a Zambian author based in the United States.
Barrick Gold is a Canadian owned mine. The nature of discussions Mr Mulroney “quietly” had at State House with the Zambian author and State House officials remains unknown.
[Zambia Daily Mail]
Labels: CANADA, CORRUPTION, LUMWANA MINING COMPANY, SITUMBEKO MUSOKOTWANE, WYLBUR SIMUUSA, ZCCM-IH
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Under developement in N/Western Province unacceptable despite Lumwana mine
TIME PUBLISHED - Monday, July 18, 2011, 9:02 am
Aspiring PF parliamentary candidate Davies Kapijimpanga said in Solwezi that he was very disappointed with the level of underdevelopment in the North Western Province despite the province having one of the biggest copper mines in the world ( Lumwana Mine ) and Kansanshi Mine. He said there should have been industries developing in tandem with the mines to produce spares etc for the mines. He said there wasn’t even a single industry producing bolts and the mines have to import nearly all their requirements from outside the country.
He added that the mining investors were reaping huge profits and living in luxury whilst the majority of the people of North Western Province still wallow in poverty.
Meanwhile copper prices rose for a third straight week last week.The prices for the three-month copper on the London Metal Exchange (LME) rose 0.7 per cent to US$9,720 a tonne while the most-active September copper contract on the Shanghai Futures Exchange jumped nearly 1.9 per cent to 72,460 Yuan per tonne.
Labels: LAND RIGHTS, LUMWANA MINING COMPANY, NORTHWESTERN PROVINCE
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COMMENT - 1,500,000,000 tonnes, even at $3000 per tonne, would be $4,500,000,000,000 or $4.5 trillion dollars. So if that is not a typo, Zambia's future is ensured if it's resources are in it's own hands. Presuming that this is not a typo, or that someone can't count. Or Ndinawe Simpelwe means copper ore, and not copper.
This is why I would like to start an Africa-wide initiative, to ensure that all raw materials in Africa are sold to the state at cost only, and sold by the state at international market prices only.
Barrick projects 1.5bn tonnes of copper at new Lumwana site
By Ndinawe Simpelwe in Solwezi
Tue 28 June 2011, 09:10 CAT
BARRICK, the new owner of Lumwana Copper Mines has estimated another 1.5 billion tonnes of copper at the new Chimiwungo mining site at Lumwana. Barrick general manager Adam Wright said drilling works at the site had identified an additional ore chute east of Chimiwungo.
“Resource is only constrained by drilling to the east and south. Equinox were preparing a feasibility study for an expansion to a 45 Mtpa prior to Barrick take over,” Wright said.
He said Chimiwungo would be the mainstay of Lumwana for many years to come adding that the mine would be significant not only to Zambia but the world.
“Barrick arrival is well timed because it is at a time that Lumwana is expanding. Barrick has the money and the equipment to carry out the projects,” he said.
Wright could, however, not disclose the level of investment the company would pump in and said the exploration works were still on going. Barrick recently bought shares in Lumwana from Equinox.
He said the expansion of Lumwana mines through Chimiwungo would benefit the country because copper prices were expected to remain high following increased demand from China and India.
“One of the reason we took over from Equinox is to see the growth potential on the copper side. Last year, North Western Province produced more copper than the Copperbelt and that shows you that there is a shift in development.
North Western will be the centre of new developments for the country,” Wright said.
He said production of copper at Lumwana had doubled from the time Barrick took over from Equinox adding that over 2,300 local people had been employed.
“Zambia is a good place to do business looking at the mining culture, good multi-party democracy, good institutional capacity and it’s a signatory to EITI,” he said.
And Wright said the company had no immediate plans to start uranium mining because it was concentrating on expanding copper production.
He said the company needed about US $2 million dollars to start uranium mining.
“There are no immediate plans for Uranium as we don't have the market and we need about US$ 2 million,” he said.
Labels: COPPER, LUMWANA MINING COMPANY, URANIUM
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Royal family member decries Lumwana sale
By Ernest Chanda
Fri 03 June 2011, 08:20 CAT
A member of the Kapijimpanga royal establishment says President Rupiah Banda’s government has no respect for the people of North Western Province for allowing the 100 per cent purchase of Lumwana mine by Canada’s Barrick Gold.
Davies Kapijimpanga said it was wrong for the government to allow the transaction that will see the total purchase of Lumwana Copper Mine by Barrick Gold Corporation of Canada as part of the takeover of Equinox Minerals Limited.
“This issue is worrying us as a people coming from the North Western Province. The fact that government has surrendered even the little shares it had in Equinox Minerals shows that the new owners will just come with impunity,” Kapijimpanga said.
“And this irresponsible government is not concerned about our welfare as a people of North Western Province. If this happened in other provinces, this government would have been running about trying to make amends. But because it involves the North Western Province, it’s business as usual.”
He said times had changed and people from that region were alive to the political wind of change.
Kapijimpanga said there was no way a government could relinquish even the small shares it held in the mining company.
“What if Barrick Gold Corporation says we have no need for these employees, therefore we will fire all of them? What will be the benefit of the local people in that area? Already there are no benefits, so shall we just continue to give away our minerals for free?” he asked.
Kapijimpanga said Solwezi Council was not benefiting, as it should from the mining sector.
“Solwezi is supposed to be the richest town in the country because Zambia has been rated the second-biggest mining nation in the world. Solwezi should be collecting about US$15 million annually from the mines, considering the huge profits Kansanshi and other mines make,” said Kapijimpanga.
“We should also revisit the issue of cultural and heritage rights. The government of Australia drew up a charter to respect natives in areas with minerals. For example that government has recognition for the heritage and cultural rights of the Aborigines and they get a percent from the mining sector; we can do the same. I appeal to opposition Patriotic Front president Michael Sata to look into this when he comes into power so that we are not continually ripped off.”
Last week the Competition and Consumer Protection Commission (CCPC) granted final conditional authorisation to the proposed acquisition of 100 per cent shareholding of Equinox Minerals Limited by Barrick Gold Corporation.
CCPC said the approval was on condition that the mining giant honours the subsisting agreements that Lumwana Copper Mines had entered into with the local smelter, local suppliers to the mine and other third line industries.
Labels: CORRUPTION, LUMWANA MINING COMPANY, NEOLIBERALISM, NORTHWESTERN PROVINCE
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Lumwana makes headway with non-mining related plans
By David Chongo in Solwezi
Mon 16 May 2011, 11:10 CAT
LUMWANA Mine in Solwezi is on course with its plans to develop sustainable non-mining related business, says managing director Adam Wright.
Responding to a query on Lumwana’s business development since being granted multi-facility economic zone (MFEZ) status last year, Wright said both local and foreign companies had expressed interest to invest in manufacturing and processing in the area.
“We have had several expressions of interest in MFEZ opportunities, mostly related to agri-business. One group is intending to establish a 3-star hotel and vocational training centre for hospitality trades. Overall, we are making good progress with our plans to develop sustainable non-mine related business at Lumwana,” Wright said.
Lumwana Mine had pledged, during launch of LMFEZ by commerce minister Felix Mutati, that beside creating 13,000 jobs, it would mobilise its partners for venture capital into the area with Japanese company, Hitachi, leading the in-flow with $10 million investment in heavy equipment spare part manufacture for the mine.
Meanwhile, Zambia Development Agency in North Western has targeted Kasempa and Kabompo for a capacity building exercise to develop the honey processing industry.
Regional Enterprise Development Officer, James Malala said there was significant honey production in the two districts by small and medium enterprises which ZDA would help enhance through granting tax exemption incentives.
Labels: ADAM WRIGHT, FELIX MUTATI, LUMWANA MFEZ, LUMWANA MINING COMPANY
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Lumwana Mine records $195.7m profit
By Mutale Kapekele
Fri 12 Mar. 2010, 08:20 CAT
LUMWANA Mine has recorded a US $195.7 million net profit for the 2009 production year.
Announcing the 2009 production results, via a global conference call on Wednesday, Equinox Minerals - the owners of Lumwana - president and chief executive officer Craig Williams said the mine achieved solid financial performance in its first year of production.
“The company recorded an operating profit for the year of $195.7 million and at year end held cash reserves of US $109.1 million,” Williams said.
“Operating costs for the year averaged US $1.49 per pound of copper. The company is continuing to focus on cost management initiatives as Lumwana ramps up to full production.”
He said the Equinox raised C$184,023,000 through the issuance of 102,235,000 common shares of the company.
“Strong first annual copper production of 109,413 tonnes of copper in concentrate was delivered with Lumwana steadily improving towards nameplate capacity,” Williams said.
“Operating profit achieved was of US $195.7 million. This operating profit is stated for the nine month period ended December 31, 2009 due to commercial production commencing April 1, 2009.”
He said operating profit was subsequently offset by non-cash derivative instrument losses resulting from the rising copper price leading to a net loss position, after tax, of US $183.1 million.
“This is primarily related to the remaining hedge book being marked to market at a copper price that has strengthened throughout the reporting period,” he said.
“Revenue was positively impacted by the same rising copper price. Realised copper price, net of smelter treatment charges, was US $2.61 per pound and 20,402 tonnes of payable copper was provisionally priced at $3.33 per pound US ,356 per tonne and remained subject to final pricing adjustment during the first quarter of 2010.”
He said the mine improved productivity, with total annual ore production of 13.1 million tonnes being achieved.
“The ramp up to full production of the Lumwana Mine will continue through the first half of 2010, with a target of achieving design throughput rate of 20 mt per annum for the mine and mill in second half of the year,” he said.
Williams said the target 2010 production guidance remained at 135,000 tonnes [300 M lbs) of copper in concentrate at a cash cost of $1.35/lb Cu.
Williams also said the Lumwana project achieved an excellent health and safety record.
Labels: CORRUPTION, LUMWANA MINING COMPANY
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Equinox Minerals secures $658m to clear Lumwana debt
By Chiwoyu Sinyangwe
Thu 04 Feb. 2010, 04:00 CAT
EQUINOX Minerals Limited has secured up to US $658 million funding from global banks including state-owned Commercial Bank of China to pay off Lumwana Copper Mine debt.
The debt repayment was being seen as a plan by Lumwana Copper Mine to increase the firm’s production ahead of anticipated increases in copper demand.
Equinox, which is dual-listed in Canada and Australia, yesterday stated that it had secured about US $355.4 million corporate loan from Chinese biggest bank, Commercial Bank of China, BNP Paribas, Standard Bank and Standard Chartered Bank.
The loan credit was secured in Australian dollars and the news sent the Equinox Minerals Limited's local shares up by more than six per cent to close at US $3.79.
The funding is expected to be finalised next month and can be increased by up to 180 million Australian dollars if approved by the lenders.
Equinox stated that it would use the funds to repay about US $517 million debt facility signed to develop Lumwana in 2006, which at September 30 last year had about US $319 million owing.
Commenting on the credit line, Equinox Minerals Limited chief executive Craig Williams said: “Refinancing our existing project debt facilities with a corporate loan reflects our transition from a developer to an operator of a world-class mining asset.”
Following the credit line, Equinox Minerals Limited would incur break fees from its existing debt facilities of between US $13 million and US $17.7 million.
Macquarie resource analysts said in a recent note to clients that for pure leverage to a rare, large-scale development project, “we retain Equinox Minerals as our number one pick."
But Equinox has had trouble ramping up Lumwana Copper Mine despite a 23 per cent increase in production in the December quarter last year from the previous quarter.
"The mining team is working on a number of strategies to improve performance and mine productivity," Lumwana Copper Mine stated in its December production results.
Lumwana Copper Mine recorded about US $136.9 million loss over the first nine months of last year.
Labels: EQUINOX, LUMWANA MINING COMPANY
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Lumwana signs pact with MUZ, NUMAW
By David Chongo in Solwezi
Tue 02 Feb. 2010, 04:01 CAT
LUMWANA Mining Company (LMC) has signed an agreement with the Mine Workers Union of Zambia (MUZ) together with the National Union of Mine Workers and Allied Workers (NUMAW) to have, among others terms, its unionised workers put on permanent and pensionable employment contracts.
According to some of the details in the Collective Bargaining Agreement (CBA) agreed at Lumwana and obtained by The Post in Solwezi, the employees, who were previously on operational fixed term contracts, would now be put on permanent and pensionable employment contracts effective January 1, 2010.
Furthermore, they will be entitled to a fixed increase of K300, 000 for the lowest paid employee with a basic pay of K1, 495, 635 and K600, 000 for the highest paid unionised worker earning K3, 985, 540 representing a salary raise of between 20.1 per cent and 15.1 per cent respectively.
In the new agreement, the workers will also receive K75, 000 as education allowance for each child or registered dependent up to a limit of four with the company providing transport for the children to schools along Mwinilunga Road until government builds one at Lumwana.
Additionally, the workers have also been accorded optional medical schemes with Lumwana endeavouring to ensure the selected medical scheme providers deliver beneficial services to the miners.
Lumwana has also undertaken to initiate, together with the unions, a social security pension scheme before the end of the first quarter of this year.
“The parties agree that at individual's choice, employees will be eligible to contribute 6 per cent of basic pay and the company will additionally contribute 7.5 per cent of the employee's basic pay towards a social security pension scheme,” it stated.
While the meeting agreed to a 35 per cent housing allowance of basic pay for employees in rented or mortgaged company accommodation and 13 per cent for those still in temporary boarding quarters provided by Lumwana, they also agreed to reduce the interest rate on mortgage from 12.5 to 5 per cent with a long term pledge to provide accommodation for its workers. For those employees in company houses, the 35 per cent allowance would service their mortgages.
The miners have also been signed to funeral grants ranging from K3 million for employees coupled with services of a professional funeral parlour, K2 million for spouses and K1.2 million for children or dependents.
And speaking in an interview, Lumwana managing director, Adam Wright said the company was satisfied with the manner and terms of the new agreement for the financial year 2010.
He said as a company, they were pleased to have agreed the CBA with the MUZ and NUMAW adding that it (CBA) puts LMC in a competitive position in the labour market with a focus on the introduction of permanent employment contracts for its workers and that the agreement was consistent with the projected mine life of more than 37 years.
Wright said the agreement was a fair settlement for Lumwana and provides a positive position for the company plans for 2010.
And welcoming the 2010 agreement, MUZ general secretary, Oswell Munyenyembe has said while the improved terms may have partly been a reward for the workers hardwork after Lumwana posted a 23 per cent increase in copper production in the last quarter of 2009, as a good employer who has invested a lot in equipment, the mining company also needed to invest much in the workers’ welfare.
He said the general membership of the unions at Lumwana was satisfied with the first CBA between the parties considering that Lumwana was a Greenfield.
Labels: LUMWANA MINING COMPANY, MUZ, NUMAW, SALARIES
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Lumwana records rise in copper production
By Mutale Kapekele
Mon 25 Jan. 2010, 04:00 CAT
LUMWANA Copper Mine has recorded a 23 per cent increase in copper production in the last quarter of 2009, Equinox Minerals Limited president Craig Williams has disclosed.
Williams also announced, in a press statement, that Lumwana’s copper concentrates for 2009 had totalled 109,413 tonnes.
“Preliminary fourth quarter copper production results demonstrate the continued improvement of production from the preceding three quarters,” Williams stated.
“During the December quarter, Lumwana continued the ramp up phase for both the mine and process plant operations. The production result shows continued improvement on the quarter over 2009 with a third quarter to fourth quarter improvement of copper in concentrate production of 23 per cent. Production for the year 2009 totalled 109,413 tonnes.”
Williams also stated that the process plant recoveries had marked an improvement of 92 per cent reflecting the reduced proportion of transitional ore processed during the last quarter.
He stated that progress had been made with suppliers of equipment on improving their maintenance and repair contract performance.
“The Lumwana operations team has continued to focus on mining equipment availability and utilisation,” Williams stated. “Further improvement is necessary to meet equipment availability requirements; however it is expected that these issues will be resolved over the coming quarters.”
He disclosed that mining and stockpiling of uranium mineralisation had continued during the last quarter of 2009 with uranium ore stockpile on the ROM pad currently standing at 2.5 metres.
Williams announced target production for 2010 to be 135,000 tonnes of copper in concentrates.
“Meeting this target is dependent on a range of factors including performance of mine and mill during the wet season which the company expects to particularly impact the first quarter of 2010. It is also dependent on improvement in the availability and utilisation of the mining fleet and performance of the processing plant,” stated Williams.
Labels: COPPER, LUMWANA MINING COMPANY
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Lumwana MD hails Zambia’s tax regime
By Joe Kaunda
Mon 30 Nov. 2009, 04:00 CAT
LUMWANA Mining Company Limited’s (LMC) recently appointed managing director Adam Wright has hailed Zambia’s tax regime as encouraging to investment in the mining sector.
Wright, at his first briefing to the press since taking over as LMC’s managing director earlier this month, said in Lusaka on Wednesday that the government had foresight in putting in place the current tax regime including an array of tax measures aimed at encouraging investment in the sector.
He said while LMC, the largest copper mining project in Africa with an estimated investment of almost US $1 billion, had received concessions from government, the general tax regime for the sector was attractive even to other investors.
“It is important that those measures permit not only our investment but are also seen by the investment community as attractive a package and they will attract other investors,” Wright said.
He said LMC was focused on making the mine robust so that it could survive any future challenges including a possible downturn in the price of copper.
“The secret is not just cutting costs or cutting labour, the secret is to be in full production and produce as much copper as possible and also as efficiently as possible,” Wright explained. “So we are raking up and hiring more people so that we can achieve higher production and we are not anticipating any reduction in labour.”
He further disclosed that the LMC was focusing on employing local people and also creating opportunities for the local communities.
He said a long term project of scholarships to some school children and youths at the universities had already been started to ensure that the local benefited from training that would ensure they are taken on by the mine which has an estimated production life of 37 years and can be extended.
Wright highlighted some challenges in production being the location of the open pit mine in a rain belt including some logistical hurdles but added that LMC was learning to deal with such challenges every year and did not see this persisting into the long term.
“The wet season is upon us and that is quite a challenging period for an open pit but there are no obstacles that can’t be overcome. The mine is actually better prepared this season for the wet season than it was in the previous season, and every year we will learn about how we can deal with these challenges,” he said.
Wright further explained that LMC’s concentration is to ensure that it retires its debt owed to a syndicate of financiers who, together with Equinox Minerals facilitated the US$ 1 billion investment to establish the mine.
The liquidation of the debt would ensure benefits to all stakeholders including the government, shareholders and the community in the 37 years of LMC’s estimated mine life.
LMC is wholly owned by Equinox Minerals which is dual listed in Sydney, Australia and Toronto in Canada.
According to Wright there has been a consistent increase in copper concentrate in the past three quarters this year with the trend expected to continue in the fourth quarter.
He said LMC had this year produced 22,000, 24,000 and 28,000 metric tonnes in the first, second and third quarter respectively and was hoping to achieve over 100,000 tonnes of copper concentrates with an expected improvement in production next year.
On Uranium, LMC which has high grade mineralisation within its Malundwe pit is currently just stockpiling the ore with the potential to build a uranium processing facility in future.
Wright who took over from Harry Michael this month hailed his predecessor for building the mine and said the focus should now be on attaining full production especially with the current favourable prices on the market.
Prior to the LMC posting, Wright who holds a Masters degree in Mineral Process Engineering from the Royal School of Mines in London, was in Papua New Guinea where he was building a gold mine. He has worked in Venezuela and in Canada in Quebec including Namibia at a uranium mine operation.
LMC is located approximately 85km away from the provincial capital of North-Western Province, Solwezi.
Labels: LUMWANA MINING COMPANY, TAXATION, WINDFALL TAX
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New Lumwana MD hails Zambia’s tax regime
By Joe Kaunda
Thu 26 Nov. 2009, 07:00 CAT
Lumwana Mining Company Limited’s (LMC) recently appointed managing director Adam Wright has hailed Zambia’s tax regime as encouraging to investment in the mining sector.
Wright, at his first briefing to the press since taking over as LMC’s managing director earlier this month, said in Lusaka yesterday that government had foresight in putting in place the current tax regime including an array of tax measures aimed at encouraging investment in the sector.
He said while LMC, the largest copper mining project in Africa with an estimated investment of almost US $1 billion, had received concessions from government, the general tax regime for the sector was attractive even to other investors.
“It is important that those measures permit not only our investment but are also seen by the investment community as attractive a package and they will attract other investors,” Wright said.
He said LMC was focused on making the mine robust so that it could survive any future challenges including a possible downturn in the price of copper.
“The secret is not just cutting costs or cutting labour, the secret is to be in full production and produce as much copper as possible and also as efficiently as possible,” Wright explained. “So we are raking up and hiring more people so that we can achieve higher production and we are not anticipating any reduction in labour.”
He further disclosed that the LMC was focusing on employing local people and also creating opportunities for the local communities.
He said a long term project of scholarships to some school children and youths at the universities had already been started to ensure that the local benefited from training that would ensure they are taken on by the mine which has an estimated production life of 37 years that can be extended.
Wright highlighted some challenges in production being the location of the open pit mine in a rain belt including some logistical hurdles but added that LMC was learning to deal with such challenges every year and did not see this persisting into the long term.
“The wet season is upon us and that is quite a challenging period for an open pit but there are no obstacles that can’t be overcome. The mine is actually better prepared this season for the wet season than it was in the previous season, and every year we will learn about how we can deal with these challenges,” he said.
Wright further explained that LMC’s concentration is to ensure that it retires its debt owed to a syndicate of financiers who, together with Equinox Minerals facilitated the US$ 1 billion investment to establish the mine.
The liquidation of the debt would ensure benefits to all stakeholders including government, shareholders and the community in the 37 years of LMC’s estimated mine life.
LMC is wholly owned by Equinox Minerals which is dual listed in Sydney, Australia and Toronto in Canada.
According to Wright there has been a consistent increase in copper concentrate in the past three quarters this year with the trend expected to continue in the fourth quarter.
He said LMC had this year produced 22,000, 24,000 and 28,000 metric tonnes in the first, second and third quarter respectively and was hoping to achieve over 100,000 tonnes of copper concentrates with an expected improvement in production next year.
On Uranium, LMC which has high grade mineralization within its Malundwe pit is currently just stockpiling the ore with the potential to build a uranium processing facility in future.
Wright who took over from Harry Michael this month hailed his predecessor for building the mine and said the focus should now be on attaining full production especially with the current favourable prices on the market.
Prior to the LMC posting, Wright who holds a Masters degree in Mineral Process Engineering from the Royal School of Mines in London, was in Papua New Guinea where he was building a gold mine. He has worked in Venezuela and in Canada in Quebec including Namibia at a uranium mine operation.
LMC is located approximately 85km away from the provincial capital of North-Western Province, Solwezi.
Labels: HYPOCRISY, LUMWANA MINING COMPANY
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Lumwana Mining replaces MD
By Kabanda Chulu in Lusaka and Creavat Chituta in Solwezi
Sat 31 Oct. 2009, 04:00 CAT
LUMWANA Mining Company (LMC) has appointed Adam Wright as its new managing director replacing Harry Michael who is leaving the company next month after developing it from a greenfield project to become Zambia’s single largest investment and Africa’s biggest copper producer.
Announcing the appointment yesterday, Lumwana’s holding company, Equinox Minerals president Craig Williams stated that the company was looking forward to working with Wright in the operational phase at Lumwana in order to drive the mine towards realising its full potential.
“We are very excited that Adam Wright has joined the Equinox team. Adam is a well regarded and highly experienced mining professional with expertise that will provide great benefit to the operational ramp up of the Lumwana copper mine,” stated Williams.
“Harry Michael has played a key role in building Lumwana over the last five years during a very challenging period for the company through the transition from developer to producer. I thank Harry for his outstanding contribution. We look forward to working with Adam in the operational phase at Lumwana in driving the mine towards realising its full potential.”
And Michael has urged newly-graduated multi-skills vocation trainees to utilise their skills acquired from the training to set up business and support their families.
Speaking in Solwezi during the graduation ceremony of 174 LCM-sponsored local community multi-skills vocation graduands who received their certificates after undergoing a sustainability training programme held at Lumwana estate, Michael said trainees should not only hang their certificates in homes, but apply skills acquired to improve their livelihood and become employers in future.
He advised graduands to take advantage of the opportunity to increase their production and improve their standard of living through baking; poultry farming and meat inspection, maize milling, handcrafts and others.
Meanwhile, Solwezi mayor Peter Kikatula commended LCM for its outstanding commitment to the development of the local community in the district.
Labels: ADAM WRIGHT, EQUINOX, HARRY MICHAEL, LUMWANA MINING COMPANY
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Equinox Minerals records rise in production
Written by Nchima Nchito Jr
Tuesday, October 06, 2009 7:38:50 AM
EQUINOX Minerals has recorded copper production of
28,111 tonnes during the
third quarter at its flagship mine Lumwana, according to preliminary output figures.
The performance was an improvement on both the first (22,263 tonnes) and second (24,413 tonnes) quarters of 2009, after the company improved mine truck and shovel productivity and increased its equipment fleet. According to Mining Weekly, Equinox described this as a good development for the mine.
“We continue to ramp up, predominantly focusing on improving material movement as our large Lumwana copper process plant has already demonstrated capacity to operate at and above design throughput levels,” Equinox chief executive Craig Williams said.
The firm said it had stepped up its measures in preparation for the west season, following its experiences last year.
Diversion channels to control surface water ingress into the pit have been constructed, substantial sumps excavated for the collection of in-pit water and pumping capacity has been doubled since 2008.
All main ramps and roads have been also sheeted and surfaced with bitumen emulsion to improve road conditions, particularly during wet periods, Equinox said.
“Management believes that based on the work underway in preparation for the forthcoming wet season, a continuing focus on mining fleet productivity, the commissioning of further trolley-assist infrastructure to help improve truck cycle times and the increasing exposure of new sulphide ore zones, that the fourth quarter of 2009, subject to wet season conditions, should demonstrate additional improvement on quarterly production to date,” stated Equinox.
Full-year output is now forecast at about 110,000 tonnes of copper, which is at the bottom end of the range provided in August.
Labels: EQUINOX, LUMWANA MINING COMPANY
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Lumwana, Zesco settle case out of Court
Written by Maluba Jere
Sunday, May 31, 2009 11:37:58 PM
THE case in which Lumwana Mining Company had sued Zesco over its notice to terminate the Power Supply Agreement (PSA) and disconnect the mine from the electricity grid has been withdrawn from the Lusaka High Court. The parties decided to withdraw the matter after reaching a settlement.
Lusaka High Court judge Martin Imasiku acknowledged the withdrawal and said both parties would meet their own costs.
Zesco in July last year issued a 180-day notice to disconnect power from the mine from January 26, 2009.
Lumwana Mining managing director, Harry Michael stated in an affidavit filed in the Lusaka High Court that the mine wanted a protective relief against the threat to terminate the agreement pending arbitration hearing in the London Court of International Arbitration.
Labels: HARRY MICHAEL, LUMWANA MINING COMPANY, ZESCO
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Lumwana to produce 170,000 tons this year
Written by Kabanda Chulu
Monday, May 11, 2009 11:40:14 PM
LUMWANA Mining Company (LMC) has projected to produce 170,000 tonnes of copper metal in concentrates this year at the
average operating cost of US $1.15 per pound.
And Equinox Minerals, Lunmwana’s holding company, has secured a US $25 million debt facility with FMO Development Funding Institution of Netherlands that would be channeled towards with the development of Lumwana town.
Releasing financial results for the quarter ending March 31 2009 and the expected outlook for the year, Equinox Minerals president Craig Williams last week stated that 23,966 tonnes of copper metal was sold during the quarter.
“During the quarter, 2,877,141 dry metric tonnes of ore producing 57,085 dry metric tonnes of concentrate at an average copper grade of approximately 39 per cent were produced at Lumwana and concentrate deliveries of 63,063 dry metric tonnes were sold to local and international off-takers containing a combined copper metal content of 23,966 tonnes,î Williams stated. ìAs anticipated, the Lumwana has not yet reached ëcommercial productioní and as a result, all copper sales, revenue and operating costs have been capitalised for the first quarter of 2009 but subject to final assessments and we expect that the Lumwana Mine will achieve commercial production from the commencement of the second quarter of 2009.”
Williams stated that Lumwana expected to produce 170,000 tonnes (375 million pounds) of copper metal in concentrates at the average operating cost of US $1.15 per pound for the year.
He stated that abnormally heavy rainfall in March negatively impacted the Lumwana mine, causing the mining and processing operations to be suspended on a number of occasions during the month.
“Within one 24-hour period, an estimated 120 mm of rainfall fell, representing about 10 per cent of the yearís average rainfall with a total of 440mm falling within a 30 day period. This event equated to a greater than one in 100 year incident, occurring within three months of starting the commissioning phase of the mine. Overall, this wet season has been reported in Zambia as being the wettest in 40 years,” Williams stated. “As a consequence, the ramp up of both mine and process operations was interrupted in March, but resumed by the end of the quarter and we continue to have an objective of completing Lumwana ramp up to full production by mid-2009.”
Williams stated there were significant opportunities at the Lumwana project to expand and optimise the concentrator and mine throughput rate and to assess and evaluate the additional near mine deposits discovered to date.
He stated that Equinox had also completed the uranium feasibility study (UFS) investigating the onsite treatment of discrete and high grade uranium mineralisation contained within the Lumwana copper pitshells.
On 14 April 2009, government through Zambia Development Agency (ZDA) approved the establishment of Multi Facility Economic Zone (MFEZ) within the Lumwana Large Scale Mining that would create an investment zone to attract both local and foreign businesses.
“Together with ZDA approval, it is anticipated that government will undertake to support the Lumwana MFEZ by giving explicit protection to Equinox’s cornerstone investments at Lumwana and will also undertake to promote and maintain new and existing investment agreements for businesses within the Lumwana MFEZ,” Williams stated.
The principle of MFEZ developments were incorporated through the ZDA Act of 2006 and its main objective is to catalyse industrial and economic development in the manufacturing sector to enhance domestic and export oriented business.
On the dispute with Zesco Limited over electricity charges, which is in the Lusaka High Court, Williams expressed optimism that the matter could be resolved in a reasonable manner.
Lumwana has since obtained a protective relief action in response to the Notice of Termination initiated by ZESCO and the matter was heard in the Lusaka High Court on March 17, 2009 and again on April 6, 2009 and has subsequently been adjourned by the Lusaka High Court to May 27, 2009, to allow the parties further opportunity to conclude negotiations.
Apart from developing the mines, LMC is also developing the Lumwana town development and with over 500 houses completed to date while commercial and retail developments were advancing and a self-sustaining modern town environment was being developed.
“To support this unique development the Company has established the Lumwana Property Development Company (LPDC) to act as a special purpose vehicle to own and manage the new Lumwana town. LPDC has secured US $25 million debt facility with Nederlandse Financierings-Maatshappij voor Ontwikkelingslanden N.V. (FMO), which is the Dutch government development funding institution, to cover some town infrastructure costs. Drawdown of this facility can commence once Equinox meets a number of conditions precedent,î stated Williams.
Equinox Minerals is an international mining and exploration company with dual listing on the Toronto Stock Exchange and the Australian Securities Exchange.
The Company is focused on operating its flagship and 100 per cent owned Lumwana Copper Mine in Zambia. The Lumwana copper mine is expected to produce an average of 172,000 tonnes per year of copper metal contained in concentrates for the first six years of its 37 year mine life.
Labels: COPPER, EQUINOX, LCM, LUMWANA MINING COMPANY
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Lumwana signs 5-year deal with KCM
Written by Kabanda Chulu
Friday, May 08, 2009 5:30:27 PM
LUMWANA Mining Company (LMC), a subsidiary of Equinox Minerals Limited, has signed a five-year off-take agreement with Konkola Copper Mines (KCM) for the processing of Lumwana copper concentrates.
This agreement comes after Mopani Copper Mines at Mufulira smelter refused to treat Lumwana copper concentrates, claiming that it was not within contract specifications.
Announcing the development yesterday, Equinox Minerals president Craig Williams stated that the agreement would entail annual processing of quantities between 70,000 and 80,000 dry metric tonnes of concentrates from the Lumwana copper mine with an option by mutual agreement for additional annual quantities of Lumwana copper concentrates under the same terms as the agreement.
Williams stated that copper treatment and refining charges under the agreement would be determined annually based on Japanese Smelter Benchmark terms.
“This new long-term off-take agreement with KCM supplements the Lumwana’s existing long-term off-take agreement with Chambishi Copper Smelter Limited and together will account for a large majority of Lumwana’s budgeted production,” stated Williams. “Outside of these agreements, LMC continues to make deliveries of concentrates to international metal traders under short-term contracts providing Equinox with concentrate off-take flexibility.”
KCM is majority owned by Vedanta Resources Plc, a London-listed metals and mining company. The mine recently installed and commissioned the new Nchanga modern smelter with output capacity of 300,000 tonnes per annum of copper anode and 1,850 tonnes per day of sulphuric acid.
KCM also operates the Nchanga and Konkola copper mines, the Nkana Refinery and is developing the Konkola Deep copper mine.
Labels: COPPER, EQUINOX, KCM, LUMWANA MINING COMPANY
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KCM to process Lumwana copper concentrates
Written by Kabanda Chulu
Thursday, May 07, 2009 3:17:02 PM
LUMWANA Mining Company (LMC), a subsidiary of Equinox Minerals Limited, has signed a five-year off-take agreement with Konkola Copper Mines (KCM) for the processing of Lumwana copper concentrates.
This agreement comes after Mopani Copper Mines at Mufulira smelter refused to treat Lumwana copper concentrates, claiming that it was not within contract specifications.
Announcing the development yesterday, Equinox Minerals president Craig Williams stated that the agreement would entail annual processing of quantities between 70,000 and 80,000 dry metric tonnes of concentrates from the Lumwana copper mine with an option by mutual agreement for additional annual quantities of Lumwana copper concentrates under the same terms as the agreement.
Williams stated that copper treatment and refining charges under the agreement would be determined annually based on Japanese Smelter Benchmark terms.
"This new long term off-take agreement with KCM supplements the Lumwana's existing long term off-take agreement with Chambishi Copper Smelter Limited and together will account for a large majority of Lumwana’s budgeted production," stated Williams. "Outside of these agreements, LMC continues to make deliveries of concentrates to international metal traders under short term contracts providing Equinox with concentrate off-take flexibility."
KCM is majority owned by Vedanta Resources Plc, a London listed metals and mining company. The mine recently installed and commissioned the new Nchanga modern smelter with output capacity of 300,000 tonnes per annum of copper anode and 1,850 tonnes per day of sulphuric acid.
KCM also operates the Nchanga and Konkola copper mines, the Nkana Refinery and is developing the Konkola Deep copper mine.
Labels: COPPER, KCM, LUMWANA MINING COMPANY
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Equinox raises K847 billion
Written by Kabanda Chulu
Thursday, April 23, 2009 8:46:39 PM
EQUINOX Minerals has raised over K847 billion (184 million Canadian dollars) from selling part of its shares to finance expansion opportunities at the Lumwana mining project.
The Lumwana Copper Mines was officially opened last week by President Rupiah Banda. But the mining area also contains high grade deposits of uranium (yellow cake), which the mining company has been stockpiling while waiting for guidelines to commence full production.
Announcing the completion of the equity offering on Friday, Equinox Minerals president Craig Williams stated that a total of 102,235,000 common shares had been oversubscribed at a price of K7,303 (1.80 Canadian dollar) per share.
He stated that the equity offering had resulted in having gross proceeds worth K847.7 billion (184 million Canadian dollars).
ÒEquinox intends to use the net proceeds of the offering to improve its cash position, to evaluate and fund expansion opportunities at the Lumwana Project, to purchase and extinguish an existing net smelter return royalty in connection with the Lumwana Project and for general corporate purposes,Ó stated Williams.
To raise these funds, Equinox, which is listed at both the Toronto and Australian stock exchanges, last month engaged a syndicate of underwriters for the offering that was led by CIBC World Markets Inc. and Goldman Sachs Canada Inc.
Other underwriters included Cormark Securities Inc., GMP Securities L.P., Paradigm Capital Inc., Raymond James Ltd., Macquarie Capital Markets Canada Ltd and UBS Securities Canada Inc.
Labels: EQUINOX, LUMWANA MINING COMPANY
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RB happy with Kansanshi and Lumwana Mines’ sustainability
Thursday, April 16, 2009, 20:10
President Rupiah Banda is happy that Kansanshi and Lumwana Mines in North Western Province have sustained operations despite the effects of the global financial crisis.
President Banda said the two mining companies have continued operations despite the global economic recession which has forced many companies to shut down their operations.
The President was speaking when he addressed hundreds of Solwezi residents who welcomed him at the Solwezi Airport this afternoon.
President Banda has since thanked the people of North Western Province for supporting the mining companies he said have continued sustaining their operations in the wake of the financial crisis.
He said his administration is working hard to encourage the exploration of mineral and oil in the province in efforts of encouraging investments in the mining sector.
President Banda said government is determined to ensure that enhanced investment in the mining sector translates into improved economic status for the local people.
“May I take this opportunity to thank the two mining giants for continuing to work hard and sustaining their operations even in the wake of the global crunch.
” May I also thank the people of this province for supporting the two mines that they don’t close down as they continue to face the financial crunch,” Mr. Banda said.
The President also said that government will remain focused at implementing other development programmes that include improved road infrastructure and construction and rehabilitation of schools and hospitals in the province.
He said government has allocated funds the 2009 national budget towards the construction of roads, schools and hospitals in various parts of the country and North Western Province in particular.
Mr Banda said government will work hard to provide in all the sectors of the economy using the available limited resources.
He has since challenged the people at grassroots to help government monitor and supervise development projects by ensuring that funds are utilized for intended purpose.
Earlier, North Western Province Minister Joseph Mulyata said the people of the province were happy with the economic policies being implemented by government thereby making it possible for the two mining companies to operate well in the area.
Mr Mulyata said the people are positive that once the exploration of minerals and oil is completed more economic activities and employment creation for the local people will be achieved.
He also said that the traditional leadership in the province is willing to partner with government in efforts of promoting economic activities and alleviation of poverty in the area.
He disclosed that Chief Mujimazovu and Kalilele have since given government hundred hectares of land for development in the area.
Mr Mulyata further disclosed that the construction of a K14 billion hospital in Lumwana area is scheduled to complete in the next for months adding that the rehabilitation of the Mutanda Chavuma road is progressing well with a 300 portion already tarred.
President Banda is Solwezi to commission the Lumwana Mine Copper Project.
ZANIS/SK/TK/ENDS/MM
Labels: KCM, LUMWANA MINING COMPANY, RUPIAH BANDA
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Solwezi villagers suspect uranium contamination in Lumwana River
Written by Mulimbi Mulaliki in Lumwana
Wednesday, March 18, 2009 1:30:05 AM
VILLAGERS in Lumwana in Solwezi have complained that their drinking water from Lumwana River has been contaminated. But Lumwana Mine managing director Harry Michael has said the water in the river has not been contaminated with uranium as alleged by the villagers.
During a spot check tour with area member of parliament Humphrey Mwanza, the villagers complained that their crops had also been submerged in water and the mine had cautioned them against drinking water from the river.
Speaking on behalf of the villagers, head person Kombe said she was in receipt of a letter from Lumwana Mine advising people not to drink water from the river.
"We have had floods before but people's crops have not been damaged like this. We feel the water has been contaminated with uranium. We are not just being told the truth, people are now living in fear that they might have been drinking water which contained uranium," said Kombe.
She said most people who cultivated along the banks of the river had lost their crops which included maize, cassava, groundnuts that had been submerged in water.
"Some farmers tried to harvest their maize but it has been damaged and groundnuts are looking as if they have been cooked making people suspect that the water contained uranium," said Kombe.
And Mwanza has appealed to Lumwana Mine management to put in measures that would ensure that uranium does not contaminate water in the river as many people depend on the river.
"My appeal to the mine is that let's protect the health of workers and also the villagers around the mine area," he said.
Mwanza also appealed to ECZ to investigate the allegations from the villagers that the water in the river had been contaminated.
But Michael said the mine cautioned people not to drink water from the river not because it was contaminated with uranium but it was muddy and dirty.
"There is no measurable amount of uranium in the water that would raise a safety concern either to humans, fish or animals. We have taken samples of the water and even Environmental Council of Zambia (ECZ) have done their own independent tests to prove that the water in the river has not been contaminated," said Michael.
He explained that the mine wrote letters to village headmen and chiefs, notifying them so that they could caution people as the mines were discharging water from the dam to protect its embankment wall from collapsing.
"We have had heavy rains and we called in a team from ECZ to come and assess and seek permission from them for us to discharge water from the dam and we wrote letters to caution people as this was not anticipated," said Michael.
Labels: ENVIRONMENT, LUMWANA MINING COMPANY, LUMWANA RIVER, URANIUM
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