VOLUME 12 / ISSUE 74 ZMW 29.50 / US $ 5.30
JANUARY / FEBRUARY 2017 ZAMBIAN MINING MAGAZINE
ZCM celebrates imported copper concentrate waiver Z A M B I A’ S L E A D I N G M I N I N G J O U R N A L North-west rail work to commence soon 7
Mining sector investors gain less, society more 16
New stress, fatigue monitoring solution on offer 32
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Contents
ADVERTISERS INDEX
Secutron IFC Instrotech
3
Span Africa
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BME
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Electrical Maintenance Lusaka
18
Blue Rock
21
MMI
21
Ruuber Ace
23
Engineering Top Tech
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KSB
27
Electrical Maintenance Lusaka
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North World Investment
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World Masters
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Time Compression
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Bupa Health
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Whelson IBC Volvo
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EDITIORIAL NOTE 6 Zambian Mining says: It’s a year of abundance : ........................... 6 NEWS BRIEFS 7 North-west rail work to commence soon : ............................................ 7 Power producers call for cost-reflective tariffs : ................................. 8 COVER STORY 9 ZCM celebrates imported copper concentrate waiver : ................... 9 LOCAL NEWS 11 Copper industry miss one million tonnes target : ........................... Dickinson Kalis Zambia flexes muscle, as demand rise : .................. Illegal minerals export deny government revenue - CTPD : .......... Mining sector investors gain less, society more : ........................... Revamp mining tax regime, government urged : ........................... Windfall for ZCCM-IH, KCM pays first tranche of $100m fine : .... Lack of technical capacity set off Zesco’s unbundling : ...................
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INDUSTRY INSIGHT 20 Good governance, great outcomes : ....................................................... 20 INDUSTRY INGOTS 22 Mining and civil engineering reap more, as Atlas Copco split : .... 22 SIKO continue to launch new and technology competent machines : ............................................. 23 Konecranes launches a new low cost overhead crane for lifting needs in emerging markets : ....................................... 24
INTERNATIONAL NEWS 25 Kibo’s two projects gets government green light : ........................................ Kipoi Mine’s production hits Tiger Resources target : ................................... Madagascar’s Andapa mine exhibit large flake graphite concentrates : ........................................................................................... Most up-to-date offerings at Redpath Mining Africa : .................................. SA firm powers Mozambique’s Balama Mine : ......................................... SEW EURODIVE’s exports rise despite stalled operations : .......................... Features: Health & safety in Mining 31 SA Mines challenged to adhere to PDS equipment requirements : ......................................................................... New stress, fatigue monitoring solution on offer : ......................................... Ultima X5000 REWARDS : ........................................................................................
Publisher Evans Mumba General Manager Anorld Chinyemba Acting Editor Evans Mumba Associate Editor Ian Barnes Editorial Contributor(s) Esnala Banda Potipher Tembo Obert Simwanza Jeffrey Sinkamba
Sam Phiri Subscription & Adminstrators: Info@miningnewszambia.com Hazel Mukwamba Graphics and Productions Merlin Wilson (Pty) Ltd Rekai Musari Mutisi– Layout Advertisement Sales Precious Chimbuchimbu Agnes Mumba Chilopa Majorie Kasoma Doris Likonde Dowell Sichitalwe Don Chulu
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JANUARY - FEBRUARY 2017
EDITIORIAL NOTE
Zambian Mining says: It’s a year of abundance
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Evans Mumba: Acting Editor
s we turn a new page to begin a fresh year, new prospects are beaming on the horizon of Zambia’ mining industry, thanks to continued dialogue between Chamber of mines and government.
Despite, a carryover of troubles from 2016, a year that was punctuated with a number of uncertainties, the industry looks set for good growth. Starting with the positive, the annual mining jamboree that attracts most industry governments from the Southern Africa bloc and potential international investors - Mining Indaba is already slated for … The annual exhibition should set tone for the year and highlight projections of both governments and industry experts rolled up on their sleeves. Another welcome development to be celebrated is the resolved impasse between Zambia Consolidated Copper Mines Investments Holdings (ZCCMIH) and Konkola Copper Mines (KCM). With KCM making the first installment of the $100million settlement, the government mining investment vehicle ZCCM-IH is surely starting the year on an optimistic note.
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We hope other predicaments affecting ZCCM-IH operations will be ironed out, this year, the company’s legal tussle with First Quantum Minerals and its subsidiary FQM Finance Ltd should be resolved amicably and allow the mines’ operations to prop up economic activities. Studies have already indicated that benefit economies and societies more that what investors reap, surely we need to make 2017, the year of abundance! Let both the industry and the regulators (government) not suffer frustration, recent expressions by mines minister Christopher Yaluma should not be allowed. The industry needs ‘a good bill of health’ which translates to happiness for all, avoiding desperate situations witnessed in Chililabombwe and Chigola of late payments. Hooray! Someone is driving the nail home for the unbundling of Zesco, this should make power production industry competitive, remember mines need loads and loads of power to operate. Stay in touch, till next edition!
www.miningnewszambia.com
JANUARY - FEBRUARY 2017
NEWS BRIEFS
Nchanga shutdown impacts Vedanta’s production out
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edanta Resources’ plant shutdowns impact at Nchanga underground mine, near Chingola in Zambia has impacted the company’s third quarter output for 2016.
The company said it had made “substantial operational progress” at its Zinc India operations during the three months under review, with mined metal production up 21% to 276 000 t.
The company’s copper division saw total mined metal production of 21 000 t, 33% lower year-on-year, mainly owing to lower production from its Nchanga underground mine which was placed on managed care and maintenance and had contributed 4 000 t last year, and one-off equipment constraints at its Konkola underground mine, also near Chingola.
North-west rail work to commence soon
In addition, production from Konkola was impacted by lower trackless equipment availability.
Government has approved construction of the much-awaited Northwest railway line. Funded through the public private partnership (PPP) to the tune of US$ 1 billion, the project is expected to kick off in the first quarter of 2017.
Meanwhile at the tailings leach plant, production reduced by 25% year-on-year owing to throughput constraints at the mill and lower feeds from current tails.
The railway line to run from Chingola to Lumwana via Solwezi and from Lumwana to Jimbe, connecting Zambia to the port of Lobito in Angola is to be constructed through partnership of North-West Rail Company and government.
However, the diversified miner remains optimistic to achieve its stated guidance of higher mined metal production for the full year.
Brian Mushimba, minister of Transport and Communication said government wants to participate in the 580 kilometre rail line because of its potential to boost trade, commerce and industry between the Copperbelt and North-Western provinces and between Zambia and Angola.
On zinc operations Vedenta Resources recorded lower output at its operations.
“The North-Western corridor is an important corridor and needs to be opened up hence our commitment to work with the private developer in accelerating the project,” he said.
Its total production across operations for the quarter ended December 31, fell to 33 000 t, 35% lower year-on-year, primarily owing to the closure of the Lisheen mine, in Ireland, in November 2015, following 17 years of successful operations.
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The project is expected to run for 36 months and will create about 8,000 jobs during construction.
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Power producers call for costreflective tariffs
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he Energy Regulation Board (ERB) next month plans to award a ‘cost of service tender’ to uncover true cost of electricity supply.
Taxman to sniff out illicit financial flows
The study is to show a cost reflective tariff with spot on charges of supplying electricity without government subsidies.
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Players in the energy sector and various stakeholders have complained about low pricing of electricity in the country.
FIC identified the ‘illicit financial flow’ in the minerals sub-sector, where tax evasion malpractices such as transfer pricing, over and under-invoicing and trade mispricing is rampant.
Alfred Mwila, ERB Director of Economic Regulation said the study is to ascertain electricity production cost.
In an effort to resolve the anomaly, ZRA is seeking the services of an auditing or investigation firm to undertake a forensic audit on a number of large mining companies.
“We have shortlisted five international bidders from five different countries. And have looked at their technical capabilities and now we are looking at their financials and within the month, we should be able to know who is the most competitive,” Mwila said.
“This audit will focus on value added tax (VAT) and will also aim to identify any other areas of non-compliance with legislation, fraud, tax evasion and avoidance schemes perpetrated by the mining companies to, on the one hand, minimise their tax obligations and maximise their profits on the other,” said ZRA.
Five international bidders have been shortlisted for the study to determine the country’s production cost of electricity.
He said the board did not restrict participation of local companies and institutions such as the University of Zambia (UNZA), adding that the university’s department of economics could have applied. Once completed Zambia is to moves towards a cost-reflective tariff pricing model. Meanwhile, Mwila said Zambia has competitive fuel prices in the Southern African region.
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Zambian Mining Magazine
he Zambia Revenue Authority (ZRA) intends to embark on forensic audits of large mining companies.
This comes after the Financial Intelligence Centre (FIC) disclosed the country is losing US$3 billion annually due to illicit financial flows.
The wants the audit firms to produce comprehensive report outlining the issues observed and recommend ways in which ZRA should conduct future audits. According to ZRA the audit will cover the last five accounting periods of the identified mines - reviewing areas such as sales, production, finance, distribution, human resources, and import and export operations. “The investigation will focus on establishing the completeness, accuracy and authenticity of the corporation tax, income tax and VAT returns submitted by the mining companies in relation to the underlying data and information from their business operations.” www.miningnewszambia.com
JANUARY - FEBRUARY 2017
COVER STORY
ZCM celebrates imported copper concentrate waiver
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he Zambia Chamber of Mines has applauded government’s decision to waiver duty on imported copper concentrates.
inciting ZCM to approach Parliamentary Estimates Committee for a waiver. Ng’andwe says improved tax regime will encourage investment in the mining sector for sustainability of the industry and security of direct, indirect and induced jobs.
The finance minister Felix Mutati recently announced removal of 7.5 per cent import duty on copper concentrates. “This will surely help to continue contributing to job creation and poverty alleviation,” said Talent Ng’andwe acting Chief Executive Officer of ZCM.
In addition, ZCM wants a predictable and stable tax regime to enable long term planning by the mine operators and potential new entrants into the industry while encouraging efficiency in the mines by optimising cost profiles.
Ng’andwe said the removal of the import duty will help in stabilizing independent smelters, and finished copper output, in addition to employment and contributions to government revenue.
ZCM hopes government and the mining industry can continue to have open and fruitful discussions going forward, amid uncertainties.
He highlight that the decision indicates the Chamber and government’s commitment to find solutions to the mining industry.
Four Reasons why mining sector approached government for a waiver
The Chamber reiterated that working with all stakeholders to put in place a conducive tax system will increase revenue to the government coffers for social and economic development on a sustainable basis.
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“It must be emphasised that the year 2016 has not been a good year for the mining sector and Government must be commended for striving to make the mining sector stay afloat,” Ng’andwe.
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The country’s mining sector in 2015 and 2016 faced challenges beyond the control of all stakeholders - low copper price and nationwide power deficit, www.miningnewszambia.com
Mining companies with excess processing capacity procure copper concentrates from DR Congo with the aim of utilizing capacity of their respective smelters. However, Zambia’s own concentrate production does not meet processing capacity. Some smelters are in ramp up mode and are yet to reach design capacity. Smelter operations need to have a minimum feed or material treatment rate at about 80 tonnes per hour. If this is not achieved, smelter wear and tear will increase and this will eventuate into frequent shut downs as opposed to the current Zambian Mining Magazine 9
JANUARY - FEBRUARY 2017
COVER STORY
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maintenance shut downs which occur after every two years. The normal costs of such shut downs are estimated at US$10 million for legacy operations. Ideally such costs should only be incurred after 10 years. To operate at this minimum capacity, smelter needs steady rate of feed and currently Zambia does not have sufficient mining capacity to meet all the smelters capacity. To make a blend which optimizes smelting operations, Zambia needs a combination of chalcopyrite and chalcocite. However, availability of chalcocite in Zambia is limited. Only Konkola Copper Mines and Lubambe Copper Mines have high grade material suitable for optimal smelting. The deficit of such material necessitates outsourcing from Congo DR. Therefore, since there is a deficit in the total required Concentrates chemical composition of Chalcocite and Chalcopyrite, procurement of such material from outside Zambia is highly necessitated. If copper concentrates with less chacopyriote are used in the blend plan, operating costs will increase. This is so because Heavy Fuel Oil (HFO) consumption increases. The required design copper grade of 38 per cent cannot be sufficiently maintained with local copper concentrate material. To achieve or get closer to required copper grade, copper concentrates from Congo will have to be procured, whose grade ranges above 40 per cent. This pushes weighted average grade of copper closer to the required grade. This emphasizes the necessity of Congo concentrates. The proposed move will
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greatly diminish the amount of copper concentrates imported into Zambia. Consequently, this will hinder the operations of smelters in the country, especially for independent smelters that solely rely on acquiring concentrates. This will severely decelerate economic growth. Currently, Zambia has an immense deficit in terms of concentrates produced locally compared to the existing capacity to process. The present national processing capacity stands at being more than 3.6 million metric tons of concentrate per year and the output of concentrates in Zambia is around 2.9 million metric tons per year. This compels Zambian smelters to import concentrates from DRC. Stakeholders and the public may wish to know that some companies have already signed long term contracts with mines in the DRC, with fixed terms. If the duty was implemented, the companies would have not been able to execute these contracts because mines in DRC will not be able to afford the duty cost as well. This will have forced the producers of concentrated in the DRC to resort to selling their products to the Far East. The introduction of this duty coupled with the imminent increase in the cost of electricity due to the migration to cost reflective tariffs, would have left mines and smelters with tough decisions to make. If there is insufficient supply of concentrates, finished copper output will be affected, in addition to employment and contributions to government revenue.
www.miningnewszambia.com
JANUARY - FEBRUARY 2017
LOCAL NEWS
Copper industry miss one million tonnes target ZCM, this year expects government to adjust some policies such as statutory instrument number 76 that banned transporting of ore at night.
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he copper industry has failed to reach the one million tonnes production target set for 2016, Chamber of Mines (ZCM) has announced.
“This has given the mines confidence although copper price levels are still very low, and also the policy environment should be stable at all levels to continue attracting investments,” he said.
The industry registered a shortfall of almost 250,000 tonnes, attributed to uncertainties in the tax policy and reduced electricity supply.
Early last year, a two-tiered mineral royalty tax rate system was introduced with underground pegged at six percent while for open cast mining stood at nine percent.
“Zambia has been looking to reach one million tonnes of annual production. The industry experienced challenges such as uncertainties in the tax regime, value-added tax refunds and reduced power supply, among other challenges; all these issues didn’t help the mines to focus on production.
Though analyst argued that enforcing different royalty rates based on mining methods is not conducive to the mining industry and government revenues.
“But production recovered towards the end of 2016, and we expect to produce about 740,000 tonnes compared to 711,000 tonnes produced in the previous year,” said Nathan Chishimba, President of the Zambia Chamber of Mines.
Eventually, Government reverted to the old system of having a six percent royalty rate across all mining methods. ZCM, this year expects government to adjust some policies such as statutory instrument number 76 that banned transporting of ore at night.
However, Chishimba is optimistic the industry is likely to perform well this year, buoyed by unchanged mining tax regime, announced in the 2017 budget.
www.miningnewszambia.com
The interdict mainly affects mines operations, especially, those located in North- Western Province that suffer traffic jam during peak hours.
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JANUARY - FEBRUARY 2017
LOCAL NEWS
Dickinson Kalis Zambia flexes muscle, as demand rise
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s demand for furnace and industrial services rise, Dickinson Kalis Zambia continues to invest in new machinery to meet customer expectations.
Incorporated in 2014, Dickinson Kalis Zambia a branch of Dickinson Group, recently increased its vacuum trucks fleet from one to three, machinery and other components, as part of the on-going efforts to be a market leader. The company also leverage on the Group's 85 years experience in providing specialist furnace and industrial services to the mining, metals smelting, mineral processing, thermal power generation and petrochemical refining industries in Africa.
that handle both liquid and solid materials for a variety of industries including, and not limited to mining and minerals industries - open and underground mining, copper, cobalt, cement, lime, coal, coke, thermal power plants, gold, platinum, nickel, pulp and paper, petrochemical refining, food and feed, edible oils plants, maize and flour milling plants and grain storage sectors, process waste and waste water and environmental management industries and other similar industries. Dickinson Kalis Zambia equipment handles catalyst, copper concentrates, gravel, powders, fly ash, dust, slurries, sludge, slimes and slimes ponds, thickeners, liquids, fats, oils, fuels and chemicals.
The Group’s product range integrates custom-made solutions with internationally sourced and market leading technologies.
In addition, the company cleans; grain and storage silos, holding vessels and pits, sewers and drains, coke ovens and boilers and dust laden process ducts.
Industrial Vacuumation at Dickinson Kalis Zambia
Features
Housed under under the Industrial Services Division of Dickinson Group, ‘Industrial Vacuum Services’ is one the services the company have.
Of the three vacuum service trucks at Dickinson Kalis Zambia - two are MegaVac Loader Units while the other is MegaVac Cyclone Loader.
Dickinson Kalis Zambia has a range of heavy duty mobile vacuum systems
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The MegaVac Loader units are capable of handling both dry and www.miningnewszambia.com
JANUARY - FEBRUARY 2017
LOCAL NEWS facility anywhere in Zambia. The vacuumation service does spillage recovery and plant clean-up in all and un-accessible plant areas and around moving machinery can be achieved safely without overriding Zambia’s Mining Regulation that does not allow lashing of material on or around rotating equipment such as conveyor belts. With our equipment, even warm to hot materials up to about 60oC can be handled without necessarily stopping the process plant. With this scenario at hand, business houses need not worry about losing money due to plant stoppages to facilitate plant clean-up. Plant Clean-up and spillage recovery can be executed online on with reduced production losses. Characteristics The MegaVac Loader units are characterized with powerful Roots blowers which give the units a very high suction and displacement capacity, which makes it possible to process and transport large quantities of dry substances, liquids, gravel, sand, among others in a very short time. Apart from the suction mechanism, our units have three discharge, dumping or offloading mechanisms all aimed at reducing offloading time and delays: i. Valves ii. Blower (blow back) system iii. Door mechanism (1.2m diameter back door) A combination of two or all these mechanisms aid in quick and faster dumping or offloading, dependent on site. With this mechanism, materials can be offloaded into hoppers, silos, pits, ponds, bags/bagged and many other points. Equipment Safety The design and manufacture of Dickinson Kalis Zambia unit meets stringent legal and international standards. wet products while the MegaVac Cyclone Loader is purely for handling dry products. • The MegaVac Loader has a maximum suction capacity of 8, 100m3/hr while the MegaVac Cyclone Loader maximum suction capacity is 6, 000m3/hr, but all with a blow back capacity of 1, 050 mbars. • The tank holding volumes are 14 and 16m3 for the two MegaVac Loaders. The total tonnage these units can hold depends on material density, but can generally hold a maximum of 17 tonnes at once. • The MegaVac Cyclone Loader has reduced and limited capacity as this is mostly used for recovery and bagging of materials being handled. • The trucks have the following dimensions: Length: 11.0m and 19.0m Width: 2.5m Height: 3.8m • The material of manufacture for the steel tank is SS AISI 304. This allows the vessel to be robust and handle different materials and hazardous chemicals. • The trucks and vacuum units are all diesel operated. Compared to conventional plant spillage or clean-up operations needing excessive manual labour and equipment, our industrial vacuumation service (mobile trucks) offers you a cost effective and safe plant spillage recovery and clean-up mechanism. • Our services only employ a maximum of four (04) people to operate the unit, run and manage a network of flexible hoses. This reduced labour only moves the vacuum hoses to different material laden or spillage points for vacuumation and cleaning.
Equipment operation also follows standard operating procedures. Below are some of the features available: 1. All equipment is build in accordance with the latest Pressure Equipment (PED) and ADR (Ceoc) standards and all applicable environmental and safety features to allow safe use of our industrial cleaning equipment. 2. Material of construction (SS AISI 304) is carefully selected to handle even hazardous chemical materials. 3. Our vacuum trucks are equipped with level sensors to monitor vessel filling and are incorporated in the operating system, just as pressure relief is. Benefits of Industrial Vacuum Services 1. 2. 3. 4. 5. 6.
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Apart from their first-class features, Dickinson Kalis Zambia units are mobile, licensed to move on Zambia roads and available for hire to any plant or www.miningnewszambia.com
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Safe, effective and efficient removal, recovery and disposal of dry and wet materials and wastes. Extremely low/reduced manpower requirement for plant cleanups and recoveries Improved housekeeping through reduced and manageable plant clean-up cost Improved equipment reliability and availability on account of improved housekeeping and reduced equipment breakdown and damage Sustainable high plant production/operations Reduced plant shutdown durations on account of system cleanup/preparations. Hard to reach, warm-to-hot materials are accessed safely and easily with little or no human contact or exposure. Ensures on-going production while maximizing quality and efficiency Suction of products in combination with a vacuum unit, storing and bagging in a closed system, free of emissions. Zambian Mining Magazine 13
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LOCAL NEWS
9. Large suction pressure and vacuum tank volume capacity. 10. The company has adopted the latest technologies in compliance with regulatory, environmental and safety standards. :Text box informtion Dickinson Group has handled both greenfield and brownfield smelter refractory installation, repair and maintenance projects (among other specialties) for; Mopani Copper Mines, Kansanshi Copper Mine, Konkola Copper Mines and Chambishi Metals Smelters among the notable firms. For more information please visit our web site www.dgrpafrica.com. So far, Dickinson Group of Companies has a wide footprint across Africa - South Africa, Mozambique, Botswana, Zambia, Zimbabwe, Mauritius, Democratic Republic of Congo, Tanzania, Kenya and Ethiopia. In addition, the Dickinson Group also has agents in Democratic Republic of Congo, Cameroon, Central African Republic, Malawi, Nigeria, Senegal, Rwanda and Angola. Other international operations also exist like in Indonesia, China and Philippines just to mention a few.
In addition provides customers with a wide range of high quality niche products and services, which are underpinned with superior technical expertise, delivery, performance and customer service. Some of the services Dickinson Kalis Zambia provides include: • refractory installation services, • silo cleaning services, • industrial vacuum services & rotary kiln services, • cement plant services • cement plant analysis • audit services. On products and technologies, the company offers: o refractory anchor systems, o stud welding systems, o precast refractory shapes refractory materials, o waste heat recovery technology, o cement plant equipment & spares, o industrial & mining strategic procurement, o bricking solutions products o differential particle separation technology
Though Dickinson Kalis Zambia’s operations are fairly new, the company has capability to handle any refractory supply and installation project and maintenance contract. The company has qualified, experienced, competent technical and professional staff, brokk refractory demolition machines, mixers, gunniting equipment and industrial vacuum trucks for all your housekeeping, spillage and plant recoveries and environmental containment. The company says its mission is to provide an integrated and multidisciplinary ‘One Personalised Solution’ through offering essential furnace and industrial services, and optimal solutions which increase productivity and performance, and reduce costs for our customers.
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www.miningnewszambia.com
JANUARY - FEBRUARY 2017
Illegal minerals export deny government revenue - CTPD
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overnment has been challenged to impose firm authority on companies involved in illegal export of minerals.
The call comes after the recent Auditor General’s report revealed that six mining companies allegedly exported over 624 tonnes instead of 340.2 tonnes permitted. The Centre for Trade, Policy and Development (CTPD) said government should put in place a wellstructured mineral revenue sharing mechanism to seal gaps mining companies use to dodge tax. CTPD proposes stiff punishment on companies that have been stealing money from Zambia through ‘illegal export trade and illicit financial flows’. Isaac Mwaipopo, CTPD acting Executive Director said the Auditor General’s report shows that 80 percent of Zambia’s minerals exported never benefited the country. “It is sad that some mining companies have continued to take advantage of the weak monitoring system for various minerals extracted in Zambia .This is not the only way through which the country loses revenue, as it is estimated that close to K3 billion is lost annually through corporate tax dodging. “We further urge Government through the Zambia Revenue Authority to establish gaps which these companies are taking advantage of in exporting beyond the authorised volumes of minerals,” Mwaipopo said. CTPD also wants communities where these resources are extracted from to adequately benefit from revenue generated by the mines. “One of the ways through which Government can protect mining communities is through the implementation of a legislated well-structured mineral revenue sharing mechanism like was the case under the Mines and Minerals Development act of 2008,” Mwaipopo said.
www.miningnewszambia.com
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LOCAL NEWS
Mining sector investors gain less, society more “The employees of supplier firms in turn spend their wages; overall disposable incomes increase – even among those who are not connected with the mine.
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he International Council on Mining and Metals (ICMM) says the greatest contribution of mining to society is in the local economy – in terms of broad job creation, new business opportunities and increased disposable income filtering through the population.
According to findings of ‘Role of Mining in National Economies’ a 2016 report by ICMM local economy benefits outweighs the fiscal contribution, in terms of mining taxes and royalties paid to governments. The study indicates that during the decades-long life cycle of a typical mine, from exploration and construction to production and closure, there is a constant flow of money into the economy from a mining operation running into hundreds of millions of dollars a year. In addition employees spend their wages and salaries coupled with procurement of products and services from local suppliers made by the mine. “The employees of supplier firms in turn spend their wages; overall disposable incomes increase – even among those who are not connected with the mine. And there is also the economic boost from mine infrastructure such as roads, power lines, homes, lighting and water facilities, all of which reduce the cost of doing business and attract skilled people,” reads part of the report. The same sentiments are shared by Casper Sonesson, Policy Advisor in Extractive Industries at the United Nations Development Programme (UNDP) who agrees that mining plays an important role in the economies of many countries. ICMM further says even in less developed countries like Zambia, although most specialist manufactured goods are imported by the mines, almost 100 percent of their services are locally procured.
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Citing First Quantum Minerals’ Kansanshi Mine in the town of Solwezi in North-Western province, the reports highlights that the mine spends more than $100 million every year procuring goods and services with local companies. The report shows that when a typical mine’s minerals are monetised (turned into money or revenue), the largest beneficiary is direct and indirect employment – 65% to 85% of the total. In contrast, profits paid to shareholders are only 15-20% of the total while tax receipts to governments are also 15-20% of the total. On employment, the report says mining contributes only around 1-2 percent of total employment in a country, which is typical of capitalintensive industries. “However, when indirect and induced employment is included, ‘this can jump to 3-15 percent,” the report says. Mining employment in Zambia is listed in the report as 90 000, out of a total employment figure of 5.4 million. However, the multiplier effect suggests that total employment in the economy as a result of mining could be as high as 800 000. The report emphasize that a country’s mining industry can be the catalyst for broader economic development. “The mining and metals sector – if properly managed, regulated and supported – can be a powerful way of helping a lower-income country transition to higher and more sustainable levels of income and long-term development.”
www.miningnewszambia.com
JANUARY - FEBRUARY 2017
LOCAL NEWS
Revamp mining tax regime, government urged “From a longer historical perspective, the current situation is actually an anomaly; for most of the past 100 years, the country’s tax regime has encouraged investment – it can do so again,”
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ambia Chamber of Mines (ZCM) has embarked on a campaign to encourage government to improve the country’s taxation for the mining industry.
He said government needs to determine the status quo of mining and investment in the country, why mining investment matters before designing a mining tax regime, royalties, profit tax, duties and allowances.
Last year, government announced a new Mineral Royalty Tax based on a sliding scale that varies between 4% and 6%, depending on the copper price, but ZCM wants more changes.
Chishimba also challenged government to heed the mining investor’s perspective and make comparison with other national mining taxation regimes.
“With the renewed spirit of dialogue and cooperation which now exists with government, we believe that it is possible to devise a more competitive mining tax regime that could provide the economic stimulus that will help to grow industry, the wider economy and employment, and ultimately deliver more tax over the long run,” said Nathan Chishimba, ZCM President.
ZCM believes that Zambia’s mining future in the next 10 years will depend on tax and investment policies, currently being implemented. Though over the past eight years changes in mining taxation have occurred ZCM feels, more should be done. “From a longer historical perspective, the current situation is actually an anomaly; for most of the past 100 years, the country’s tax regime has encouraged investment – it can do so again,” Chishimba said.
The Chamber says amending the mining taxation is a benefit to government and investors, allaying fears that government’s authority on the industry will be lessened.
Over the past eight years, eight changes were implemented in the country’s mining tax, making Zambia’s mining tax regime one of the least stable in the world
“Let us be clear, it does not mean ultra-low tax rates, and light regulation. It means being internationally competitive, in every sense,” Chishimba said. www.miningnewszambia.com
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LOCAL NEWS
Windfall for ZCCM-IH, KCM pays first tranche of $100m fine ambia Consolidated Copper Mines Investments Holdings (ZCCMIH) is to receive the first installment of the $100million settlement from Konkola Copper Mines (KCM), end of January.
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(KMP) to FQM Finance Ltd. According to First Quantum the funds on deposits were retained for planned investment by KMP in Zambia.
The development comes after British court ruled against Vedanta Resources and in favour of the Zambian government, ordering the miner to pay ZCCM-IH, the country’s investment arm $103-million.
In addition, FQM Finance paid interest on the deposits to KMP based on an assessment of an arms-length fair market rate, which is supported by independent third party analysis.
The claim relates to outstanding payments under a 2013 copper price participation settlement agreement between KCM and ZCCM-IH.
However, ZCCM –IH disputes that interest rate paid to KMP on the deposits was sufficient.
Vedanta Resources developers of KCM entered into an agreement with Zambian government cancelling the court ruling that had ordered KCM to pay the amount by 13th January.
“Unfortunately ZCCM has taken the extra-ordinary additional step of commencing a further action in the High Court for Zambia, making allegations repeated from the notice of claim against certain First Quantum directors and an executive that are inflammatory, vexatious and untrue.
KCM will now pay ZCCM-IH $20-million on January 30, $22-million at the end of February, and monthly installments of $255 000 thereafter. ZCCM IH the government investment holding company with several subsidiaries - AHC Mining Municipal Services Ltd, Ndola Lime company Ltd, Kansanshi Mining Plc, Copperbelt Energy Corporation Plc, Chibuluma Mines Plc, NFC Africa Mining Plc, Chambishi Metals Plc, and Mopani Copper Mines Plc – currently mixed up in a number issues has been making amicable efforts to clean its house. Last year, ZCCM-IH dragged First Quantum Minerals and its subsidiary FQM Finance Ltd., a number of directors and an executive to court over the rate of interest paid on deposits made by Kansanshi Mining PLC
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Having carefully studied the claims made in both the notice of arbitration and statement of claim, First Quantum is firmly of the view that the claims are utterly without merit, or indeed any foundation in facts,” reads a notice from First Quantum. First Quantum maintains that the KMP deposits were fully repaid to KMP and used to fund a major investment program in Zambia, including the successful construction and commissioning of the Kansanshi smelter and expansion of the processing plant and mining operations. Now First Quantum is engaged in constructive discussions with Zambian Government, which holds a 92% direct and indirect majority shareholding in ZCCM, with a view to achieving an amicable resolution.
www.miningnewszambia.com
JANUARY - FEBRUARY 2017
LOCAL NEWS
Lack of technical capacity set off Zesco’s unbundling
T
he Zambia Development Agency (ZDA) is pushing for Zesco’s unbundling into three units - generation, transmission and distribution.
“Zesco Limited has no financial capacity to take up all the power being generated, so unbundling it into other entities to perform roles of generation, transmission and distribution,” he said.
The agency also wants government to consider public private partnerships (PPPs) model to reduce burden running the three units.
Chisanga told parliamentary committee on Economic Affairs, Energy and Labour that Ghana as one of the countries that have unbundled their power utilities.
Patrick Chisanga, ZDA Director General said Zesco Limited may fail to digest the volumes of power being generated by new players both in hydro and solar energy.
“A burden shared becomes lighter and results in efficiency and Zesco should take that route,” he said.
Chisanga said Zesco lacks technical capacity to harness solar on its grid and financial base to pay for electricity generated by private investors hence the need to consider unbundling and engaging the private sector in the running of the entity.
He said PPPs will go a long way in advancing development and efficiency in the country. Chisanga also said ensuring cost-reflective tariffs in the power sector will go a long way in attracting new investments and industrial consumers to realise profits from the energy sector.
“ZDA’s view is that with the current power shortages, there is need to attract investments in energy. There are investors in solar but the frustration has been that Zesco lacks technical capacity to take up solar on its grid. www.miningnewszambia.com
Zambian Mining Magazine 19
JANUARY - FEBRUARY 2017
INDUSTRY INSIGHT
Good governance, great outcomes industry and develop the potential of other minerals too,” says Siwawa. Realising that this could not happen without the participation of investors willing to take on the high-risk business of exploration, a new investor-friendly Minerals and Mining Act, based on international best practice, was passed in 1999. “It’s absolutely vital for a country to have a good relationship with its mining industry”
H
ow good governance has helped Botswana develop, and diversify its economy
Good governance has been the fundamental reason Botswana has realised the potential of its vast mineral resources and turned what was once a poor country into one of the world’s most successful economies, says Charles Siwawa, Chief Executive Officer of the Botswana Chamber of Mines. Governance is a term used in international development literature to describe how public institutions in government conduct public affairs and manage public resources. “It’s fair to say that mining revenue has been the pillar to the country’s economic growth – particularly from diamonds – but this growth would not have been possible without good governance,” says Siwawa, in an exclusive interview for Mining for Zambia during a governance conference held in South Africa in November 2016. “Good governance in Botswana is reflected in relatively low levels of corruption, a good relationship with the mining industry, an awareness of the need to grow and diversify the economy, and knowing how to invest state revenue for the good of the country,” he says. Botswana is consistently ranked as the least corrupt country in Africa, and one of the least corrupt in the world. Since independence in 1966, it has achieved relatively fast economic growth spurred mainly by its mining sector Long-term policy planning, and a stable regulatory framework consistently applied, is also a key feature of good governance. These attributes are evident in the way in which Botswana has sought to diversify its economy beyond diamond mining. “The Botswana government realised long ago that diamond revenue would not last forever, and that the country needed to diversify the mining
20 Zambian Mining Magazine
“Since the promulgation of the new Act, we have seen significant exploration activity taking place in Botswana, with more than one thousand prospecting licenses granted at one point. It has been a great success, resulting in new mining ventures in copper, gold, coal, and soda ash and potential prospects for lead, zinc and uranium. Diamond mining was the first phase of the economic development of Botswana; the second phase is characterised by these new developments and prospects.” Botswana is also adding value to the minerals mined, he says. In 2012, the government negotiated an agreement with De Beers Diamond Company which saw the diamond giant relocating its aggregation centre (where diamonds are sorted) from London to Gaborone. As a result, a number of cutting and polishing centres have also opened up in Gaborone, albeit encountering teething problems. It is part of a long-term plan to turn Botswana into an international diamond centre. According to a 2016 article in The Wall Street Journal, the move has helped “transform this sleepy capital over the past few years, turning it into a hub for a cosmopolitan crowd of gem buyers” from countries such as Israel, China and the United States. Another move into adding value, says Siwawa, is not just selling coal in its raw format (Botswana has Africa’s second-largest coal resources), but using the coal to generate electricity, and then selling the electricity to other African countries – including Zambia. Siwawa says Botswana has always enjoyed a very good relationship with De Beers and the mining industry in general, and it has been an important reason for the progress made to date. “It’s absolutely vital for a country to have a good relationship with its mining industry. You gain more by working together.” The country has made great strides in diversifying not just its mining industry, but its broader economy too. Statistics by the Bank of Botswana show that tourism is now growing slightly faster than mining, and its steady contribution to GDP has helped to mitigate the effects of the slowdown in the mining sector in the current low-price commodity environment. Of course, Botswana is not immune to some of the challenges facing other mining countries. Some high-cost mines – particularly copper – have struggled to remain competitive against the backdrop of week commodity prices and are on care-and-maintenance until prices improve. In some instances, new investors are being sought to recapitalise the mines and bring them back to sustainable operations. Commodity price cycles are inherent within the mining industry, he says; but if your operations are towards the bottom of the cost curve, the opportunities of sustainable mining remain on the high side. “With good governance, the challenges faced by the mining industry are that much easier to overcome,” he says. www.miningnewszambia.com
JANUARY - FEBRUARY 2017
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Zambian Mining Magazine 21
JANUARY - FEBRUARY 2017
INDUSTRY INGOTS
Mining and civil engineering reap more, as Atlas Copco split
A
s part of effort to increase customer focus for the mining and civil engineering sector, Atlas Copco Group has announced a split.
The proposed division by the Atlas Copco Board will hatch two companies – Atlas Copco Solution and Atlas Copco Mining and Rock Excavation Technique. According to the Group, the new company Mining and Rock Excavation Technique is dedicated to customers within mining and civil engineering sector. “This mining and civil engineering dedicated company will include 12 000 employees, comprising all divisions within the mining and rock excavation technique business area plus construction tools and related service,” said the company’s announcement on the split. Citing the rationale to split the Group, the board said the move is to ensure that both Atlas Copco and the new company are provided ‘the best growth opportunities in respective market segments’. With a dedicated Board and CEO, the new company Atlas Copco Mining and Rock Excavation Technique is expected to be more agile and respond faster to market requirements. “This is a fantastic opportunity. With the new company solely dedicated to mining and civil engineering we can serve our customers even better than today,” says Helena Hedblom, Business Area President, Mining and Rock Excavation Technique.
22 Zambian Mining Magazine
“From an organisational point of view there will be no changes. We have strong customer centers, professional people, excellent products and superior services. Our customer support will be reinforced as we can run operations more focused from present premises.” The new company will be listed on the Nasdaq Stockholm stock exchange from mid 2018 following approval at the Atlas Copco Annual General Meeting in April 2018. Atlas Copco is one of the world leading provider of sustainable productivity solutions. The Group serves customers with innovative compressors, vacuum solutions and air treatment systems, construction and mining equipment, power tools and assembly systems. In addition, Atlas Copco develops products and service focused on productivity, energy efficiency, safety and ergonomics. Atlas Copco Mining and Rock Excavation Technique provides equipment for drilling and rock excavation, a complete range of related consumables and service through a global network. The business area innovates for sustainable productivity in surface and underground mining, infrastructure, civil works, well drilling and geotechnical applications. Principal product development and manufacturing units are located in Sweden, the United States, Canada, China and India.
www.miningnewszambia.com
JANUARY - FEBRUARY 2017
INDUSTRY INGOTS
SIKO continue to launch new and technology competent machines
I
nstrotech retail SIKO’s new technology supported tools With over 50 years experience in distance and angle measuring technology and solutions worldwide, SIKO continue to launch new and technology competent machines.
Represented in Southern Africa by Instrotech, SIKO now offers the latest ultracompact magnetic sensor MSC500. The sensor includes linear actuators, stop adjustment for saws, and even measurement of the tracking of solar plants. Some of the common applications for SIKO’s latest compact sensor include: Path, angle and rotational speed measurement tasks The sensor measures paths, angles or rotational speeds – contactless and wear-free – in conjunction with the associated magnetic tapes or magnetic rings. And also reads the magnetic code of the magnetic tape or magnetic ring incrementally. In addition, the information is converted into digital square-wave signals and sent to the downstream electronics.
Flexibility in cable lengths and evaluation signals The sensor provides digital square-wave signals with resolutions ranging from 0.1 mm to 0.001 mm, depending on sensor type. The optional cable extension KV1C in different cable lengths from one to
Clever solutions The SIKO magnetic sensor MSC500 constitutes a significant development over previous MagLine magnetic sensors in terms of their performance and integrated technology. The sensor includes a clever, multicoloured status LED that aids in both commissioning and standard operation. The correct distance between the magnetic band or magnetic ring is can be monitored visually. If the reading distance between sensor and magnetic tape / magnetic ring is excessive, it will be indicated by the blue LED. A green LED indicates an intact power supply, while a yellow LED indicates that the encoded path information is being read correctly from the magnetic tape or the magnetic ring.
20 meters allows customers to decide which signals are actually used. The cable extension is available in 4-, 5-, 6-, or 8-wire versions. This enables controls schemes from a simple A+B signal up to the evaluation of inverted signals and the periodic index signal the same sensor. All these signals are already integrated in the standard version. The sensor can even optionally be equipped with fixed or flexible reference point detection. Features of MSC500: • Max. resolution 1 μm • Max. 200000 pulses/revolution in combination with MR500 or • MBR500 (160 poles) • Repeat accuracy ±0.005 mm • Status LED with integrated distance monitoring • Works with magnetic tape MB500/1, MR500, MBR500 • Reading distance ≤2 mm • Sensor connection can be plugged with KV1C cable extension • Output circuit PP, TTL, LD (depending on the operating voltage
Pluggable and ultra-compact Another new feature is the plug connection right on the sensor. The combination of a pluggable version and the status LED along with its unique compact design allows installation even where space is limited. This enables quick and accurate installation of the system and saves installation costs. The new robust and resistant plastic housing can be a drop in replacement for existing designs of MagLine magnetic sensors.
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Zambian Mining Magazine 23
JANUARY - FEBRUARY 2017
INDUSTRY INGOTS
Konecranes launches a new low cost overhead crane for lifting needs in emerging markets
K
onecranes recently launched a new economically priced overhead crane, the CXT UNO. It has been developed to give small and medium-sized SME’s in southern Africa access to Konecranes’ proven technology. The CXT UNO is based on Konecranes’ existing CXT hoist, and delivers many of the industry-leading strengths of the CXT. The CXT UNO combines a strong range of features based on a simpler set of components and technical solutions compared to existing CXT products. This straightforward design, together with easy access to spare parts, means that the CXT UNO will be easy to maintain. The reliable crane is designed for everyday lifting. By focusing on the essential features and core components, such as the CXT hoist, the product can be offered at a very sensible price without compromising on quality.
controller, tagline festooning, and compact single-girder construction, and can operate over spans of up to 20 meters. The design draws on input collected in the field and prioritizes issues such as quality, reliability in both intensive and less-frequent usage, and ease of maintenance. Thanks to its simple, standardized design, the CXT UNO will be available with very competitive delivery times. For expert advice email Leon Strydom at leon.strydom@konecranes. com or phone (+27) 011 – 864 2800/(072) 6037529; or Laetitia van Heerden at : laetitia.vanheerden@konecranes.com (083 380 6939).
The CXT UNO crane has a radio controller and it can lift up to 10 tons and has inverter-based bridge travelling, two-speed for trolley travelling and hoisting movements. The CXT UNO is sold and delivered as a predesigned package with a well-thought-out selection of functions and limited options “The CXT UNO is important for us in today’s market because it expands our product offering into a segment where we haven’t been present before,” says Knut Stewen, Director Africa, and MD of Konecranes South Africa. “The CXT UNO offers customers in this category access to Konecranes’ quality and reliability at a very sensible cost in what we believe is a very attractive and competitive overall package. We are very confident that it will be a very popular crane in Southern Africa.” A new product based on proven solutions Capable of lifting loads up to 10 tons up to 9 meters off the ground, the CXT UNO features a 2-speed hoisting and travelling design with a fixed pendant
24 Zambian Mining Magazine
www.miningnewszambia.com
JANUARY - FEBRUARY 2017
INTERNATIONAL NEWS
L
Kibo’s two projects gets government green light ondon Stock Exchange listed Kibo Mining’s two projects have satisfied two stages of Tanzania National Environmental Management Council (NEMC) standards.
The Council recently accepted and approve Environmental and Social Impact Assessment (ESIA) the second scoping reports for Mbeya Coal Mine and Mbeya power plant. Completion of the second stage now paves way for the final ESIA certification of both projects. "Approval and acceptance of the ESIA scoping reports represents a critical point in the overall ESIA approval process. At this stage the majority of the ESIA work - terms of reference, required specialist studies, as well as consultation have been completed, submitted and accepted by the NEMC as compliant for certification," says Louis Coetzee, Chief Executive Officer of Kibo Mining "We expect Stage 3, certification process, to be completed in a shorter time frame than usual, given the fact that the preparation work for an accelerated conclusion of Stage 3 was done whilst awaiting approval of the scoping reports."
The company has applauded government’s continued support of Mbeya Coal and power project, adding that the recent and still ongoing policy changes and restructuring will have significant long term benefits for projects.
Kibo Mining says broad and productive consultation with various government departments led to swift approval of the scoping reports.
www.miningnewszambia.com
Zambian Mining Magazine 25
JANUARY - FEBRUARY 2017
INTERNATIONAL NEWS
Kipoi Mine’s production hits Tiger Resources target
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ustralia-based mining company with two active copper extraction projects in the Democratic Republic of the Congo, Tiger Resources has achieved production of 23 119 t of copper cathode at Kipoi Mine.
The achieved production level is within the company’s revised 2016 target of 23 000 to 23 600 t of copper. Tiger Resources attributes reaching the target to completed reinforcement of the intermediate leach solution pond, allowing production to be resumed at nameplate operating levels. The company also plans to embark on the construction of an additional pond. In addition, the company delivered the debottlenecking capital works programme to expand the Kipoi plant’s nameplate production capacity to 32 500 tpa.
26 Zambian Mining Magazine
“The coffer dam, a smaller dam contained within the larger dam that comprises the new tailings storage facility, has also been commissioned,” said the company in a statement. According to Tiger Resources the programme provides sufficient capacity to allow full production through the new tank leach facility for the duration of the wet season and laying of the HDPE liner to the larger tailings three dam surface has been deferred until the dry season. “Commissioning of the tank leach facility is underway. Sufficient slimes material, being the copper bearing residues contained in the existing tailings dam 1 have been recovered to support tank leach production through the remainder of the wet season,” says Tiger Resources. Tiger Resources further announced that it continues to work with the DRC government and is hopeful that the timing of future VAT refunds can be resolved.
www.miningnewszambia.com
JANUARY - FEBRUARY 2017
INTERNATIONAL NEWS
Madagascar’s Andapa mine exhibit large flake graphite concentrates
B
On operations, the company said a systematic exploration program will be planned over the three graphitic units, including an auger and pitting program with sampling.
ass Metals has realised a material exploration success in eastern Madagascar.
According to the company, the discovery Andapa is south of operating Antsirabe graphite mine, currently owned and operated by Chinese shipping premium quality, large flake graphite concentrates directly to China.
In addition, Bass Metals plans a potential drilling and sampling program for grade estimation, flake size distribution and metallurgical testing.
The in-situ graphite samples for Andapa project were prepared, split and analysed by Bass Metals’ Graphmada Mine laboratory facility.
Recently the company completed the first phase of a significant drilling program currently being undertaken at the Mahefedok deposit, which is immediately adjacent to the Graphmada mine infrastructure.
Bass Metals says gauging from the exploration success and a material increase, the company is poised to deliver value for shareholders.
“The team is excited at this discovery, especially as it’s directly south along strike of a long operating large flake graphite mine.
Pinning hope on a twin objective blueprint, Bass Metals wants to deliver increased steady state profitable production, while in parallel delivering a material increase in resource inventory.
We obtained this permit as part of the Graphmada transaction but initially did not prioritise any work on the permit given our primary focus of optimising the premium asset of Graphmada,” said Bass Metals Chief Executive Officer, Tim.
“This initial but significant discovery made at Andapa is a pleasing progression while Bass continues to optimise the Graphmada Mine,” the company said.
www.miningnewszambia.com
McManus said the reconnaissance results will aim to demonstrate a very similar asset to Graphmada; a long term low cost mining operation of premium quality large flake graphite.
Zambian Mining Magazine 27
JANUARY - FEBRUARY 2017
INTERNATIONAL NEWS
R
Most up-to-date offerings at Redpath Mining Africa edpath Mining Africa has announced plans to showcase the company’s full-service capability offering for the contract mining industry at the Mining Indaba 2017.
This year’s exhibition slated for 6 to 9 February at the Cape Town International Convention Centre will be held under the banner: ‘Investing in African Mining Indaba 2017’. The company intends to exhibit its latest raiseboring technology, and two recently-completed key projects at the mining jamboree. The projects are the world-first decline sand tunnel for Gem Diamonds’ Ghaghoo mine in Botswana, and the fast-track rehabilitation of the Phakisa #3 Ventilation Shaft for Harmony Gold in South Africa to sustain production output. “These two projects highlight our innovative solutions and expertise in developing custom solutions for our clients’ specific needs,” said Redpath Mining Africa Marketing and Business Infrastructure Manager Davlin Richardson. “We want to reach out to all of the key players and stakeholders who will be present at Mining Indaba 2017, with the message that we can play a
28 Zambian Mining Magazine
critical role in developing cost-effective and safe solutions to help unlock the continent’s mining potential,” Richardson further explained. The Redpath Mining Africa stand will also feature scale models of the Redbore 100 and Redbore 50 raise drill machines. The former is the most powerful, largest-capacity proven raise drilling system ever manufactured by the Canadian parent company. It can bore raises of up to 8 m in diameter and to depths of 1000 m. The Redbore 50 is a mid-capacity drill aimed at replacing bulkier, more costly equipment. It has the same footprint as the Redbore 40, requiring only slightly more back height. Available in an electronic or hydraulic version, the Redbore 50 can be configured to down-ream 724-mm-diameter holes. Nominal capacities range from 2.13 m diameters, with raise lengths of up to 183 m. “Our full-service offering for the African mining industry is based on the fact that we have a proven track record, fully understand local conditions, and operate in various countries throughout Africa. We supplement this unique understanding with the latest technology available, bringing a wealth of international experience,” Richardson said.
www.miningnewszambia.com
JANUARY - FEBRUARY 2017
INTERNATIONAL NEWS
SA firm powers Mozambique’s Balama Mine
S
outh Africa-based utility company Zest Energy, a subsidiary Zest WEG Group has constructed seven generators power plant at Balama graphite project.
In addition, to cool the engines, a horizontal-type radiator system, rated for 50°C ambient temperature, manufactured in South Africa was used at the plant.
ASX-listed Syrah developers of Balama said the plant will start operating in the first quarter of 2017 producing an initial capacity of 12.5 MW with an installation of seven 2 200 kW diesel generators.
The company says each radiator includes 10 WEG 3 kW fan motors positioned in two cooling banks of five fans each.
Located 250 km west of Pemba in northern Mozambique, Balama Mine requires supplementary power to ensure adequate supply though connected to the national grid.
“One of the challenges of the mine environment is the presence of graphite dust, which is highly conductive and must not be allowed to enter the power generation units.
Alastair Gerrard, Zest Energy Managing Director is optimistic the plant will meet Balama Mine expectations.
“For this reason, a filter system was designed that could accommodate the high volumes of moving air required to cool the engines, while also requiring as little maintenance as possible,” said Gerrard .
“We need to ensure 100% availability and have consequently designed the plant with substantial standby capacity to allow for maintenance and repairs without affecting supply,” Gerrard said.
As a result, a local solution was designed in the form of a customengineered, self-cleaning cartridge type ventilation and pressurisation fan unit, comprising four WEG 7.5 kW fan motors.
The 2200kW generators plant is the largest footprint project tackled by Zest Energy yet, to be expanded later to eleven generators, of which two will be standby units.
Zest Energy has also installed a 30 000 litre intermediate fuel tank to draw from the customer’s bulk fuel storage system with a duplex fuel filtration and circulation system.
Gerrard said companies within the Zest WEG Group supplied equipment for the extensive scope project.
“We will also provide various systems for plant auxiliary power requirements and for plant earthing and lightning protection, as well as cabling, terminations, racking and supports to all plant electrical equipment,” Gerrard said.
According Zest Energy the containerised power generators include WEG alternators with automatic voltage regulation systems, as well as motorised louvres, generator auxiliary systems and fuel and lube tanks. www.miningnewszambia.com
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JANUARY - FEBRUARY 2017
INTERNATIONAL NEWS
A
SEW EURODIVE’s exports rise despite stalled operations
nticipated commodities price rise in Southern Africa to buoy Germany equipment manufacture SEW-EURODRIVE’s footprint and growth in the region.
Sicchiero said this helped the company to double export volumes into region over the last three years.
The development supported by the company’s introduction of latest technology such as its IE3-compliant DRN series of asynchronous motors has doubled exports within three years.
“This has been on the back of extremely tough times recently, especially due to the slump in commodity prices, which has had a major impact on the mining industry.”
With a presence in 12 countries on the bloc, the company’s forecast indicates that Angola, Zimbabwe, and Zambia represent the most significant expansion opportunities.
Though most Greenfield mining projects have largely been stalled due to the financial crisis, the company has attracted business from mines that intend to redesign their mineral-processing plants, or introduce added efficiencies.
The company is optimistic that the rout in commodity prices is likely to bottom out. “We are likely to see an increase in the short term, where after prices will level out at a more realistic level, indicating that the market will have returned to normal.” According to Marcio Sicchiero, Head of Exports at SEW-EURODRIVE, the company has divided the continent into different sales regions to retain better control over internal pricing, and to improve customer service and aftermarket support. In addition, SEW-EURODRIVE is offering services in industries such as food and beverage, tobacco, cement, and mining, its data highlights mining accounts for the largest orders and biggest values.
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“This is where SEW-EURODRIVE’s extensive product range plays a major role, as energy efficiency and environmental awareness are key drivers for us,” Sicchiero said. With austerity emphasis being part of most mining companies, SEWEURODRIVE is also offering refurbishment and repair as an alternative to the extensive capital investment in new equipment. “Our customer service and aftermarket support, coupled with the quality of our products, in addition to factors such as our industry-best lead times, gives us a distinct advantage in the export market,” said Sicchiero.
www.miningnewszambia.com
JANUARY - FEBRUARY 2017
Features: Health & safety in Mining
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SA Mines challenged to adhere to PDS equipment requirements
ooyco Electronics has urged miners to vigilantly select proximity detection system (PDS) equipment to avoid falling foul of the law in South Africa.
Anton Lourens, Managing Director of leading PDS supplier Booyco Electronics said the regulator challenges both users and suppliers to ensure that all equipment is fit-for-purpose.
customercare@northwoldinv.com +260-955-893-965 +260-212-210-037
“We’ve seen a strong drive by the Department of Mineral Resources to enforce compliance with the new legislation,” Lourens said. He said mines are obliged to comply with the revised Mine Health and Safety Act (MHSA), despite ‘grudge purchase’ exhibited by most miners. “Some mining companies will opt for the cheapest equipment just so they can tick that box in the requirements, but this does create a risk further down the line – if an accident occurs and equipment is found to be not up to the task.” Lourens further said PDS suppliers are also mandated to deliver reliable solution to the mining customers, pointing out that there are still suppliers in the market who do not fully understand their legal liabilities when selling PDS technology to mines. “In terms of Section 21 of the MHSA, the equipment supplied by original equipment manufacturers (OEMs) must be fit-for-purpose,” he says. “If it is found that equipment does not comply, then the OEM can face both civil and criminal prosecution; as the PDS supplier to the OEM, we also bear responsibility.” Lourens said competent suppliers help educate customers about the importance of the drive towards zero-harm, which requires a commitment and passion rather than a tick-box approach. “My view is that our biggest challenge when dealing with the mining sector is customer education – getting the end-users to understand what is a fit-for-purpose technology, and what the limitations are with each of the technologies.” Booyco Electronics believes the vital research and development required to advance the capability of PDS offerings should be funded by the suppliers, not the mines. Lourens says financial burden should be shared by all companies active in this space, but that was unavoidable in the light of legislation and suppliers must take on this responsibility with care and commitment. www.miningnewszambia.com
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JANUARY - FEBRUARY 2017
Features: Health & safety in Mining
New stress, fatigue monitoring solution on offer
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ellness programmes are an integral part of every company’s productivity, hence companies are ever searching for sustainable health solution.
According to Instrotech, the Model 178 extensometer provides the solution for non-intrusive level measurements for materials that are subject to uneven buildup, bridging, or sidewall collection.
South Africa’s Instrotech, a manufacturer and distributor of process control instrumentation and specialized systems is now offering a total solution for weighing, level control stress and fatigue monitoring.
In addition, liquids or wetted materials that are not suited for direct contact level measurement are an ideal application for the Model 178 extensometer.
The company is distributing Vishay’s Model 178 extensometer, a load sensor designed for force measurement on any load-bearing structure. “This extensometer provides the total solution for weighing, level control, stress and fatigue monitoring,” Instrotech said. In addition, the design also allows multiple sensors to be permanently mounted for more complex stress profiling and analysis.
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“The design of the Model 178 makes it an excellent solution for retrofitting existing structures without compromise of the integrity of the vessel or structure.” The 178 also has application in tank weighing or level systems, agricultural equipment, rolling mill sensing, moment sensing, structural loading measurements and bridge structures. The Vishay products are best in discrete semiconductors and passive components.
www.miningnewszambia.com
JANUARY - FEBRUARY 2017
Features: Health & safety in Mining
Ultima X5000 sensors win market approval Jacobsz said Ultima X5000 sensors requires less frequent calibration, reducing labour costs and calibration gas. “With MSA's patented excel technology sensors an increased life span is also applicable with catalytic sensors 5 to 7 years life expectancy.” On the other hand, oxygen, carbon monoxide and hydrogen sulfide sensors carry a 3 years warranty and 4 years life expectancy. In addition, MSA Africa says the product’s major benefits are low cost of ownership - no tools required, a first step towards autonomy - freedom from external control or influence; independence – thanks to the use of the pulse check technology.
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Another plus is adaptive environmental compensation (AEC) offered through an electrochemical cell capable of correcting its reading due to environmental effects.
ULL QOUTE: With pocket full benefits, MSA Africa’s new product limits customer’s headaches on concerns around return on investment (ROI).
With pocket full benefits, MSA Africa’s new product limits customer’s headaches on concerns around return on investment (ROI). “We strive to make equipment user friendly, safe, simplistic and easy to use eliminating any ergonomics issues,” Jacobsz said.
INTRO: As safety concerns continue to top mining companies’ blueprints across the globe, MSA has accelerated innovation to ensure first-class wellbeing of workers in the extractive industry.
Ultima X5000 REWARDS The products reduces high false-alarm rates, slow detection and poor reliability are frequent bugbears for on-site operations in terms of gas-leak detection. The new Ultima® X5000 from Senscient uses Bluetooth communication for calibration, reporting, sensor status, event logging and set-up, including span value and alarm threshold. The instrument has a multiple sensor capability, which means that catalytic and electrochemical sensors can be interchanged.
New on the market, MSA’s Ultima X5000 sensors, a game changer and user friendly equipment designed to efficiently eliminate any ergonomics at mining sites has already let loose its charm on companies. And MSA Africa reads a thumps from the market for the product. “Introduction presentations have been held with various customers and we are pleased with their reaction in regards to the new Ultima X5000 sensors,” said Etienne Jacobsz , MSA Africa FGFD Sales Engineer.
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JANUARY - FEBRUARY 2017
Bupa, answer to health and safety unease
A
s safety and health issues continue to concern many mining companies, custom-made solutions are now available.
International medical insurance Bupa Global has designed a plan specifically tailored for the needs of the mining and energy industry. According to the company, their schemes safeguard employees, adding that: ‘a health employee makes sound commercial sense’. “You need to know they (employees) are fully covered when working. Should an employee of your company fall ill, it’s natural to want the very best health cover available - not only for their sake, but also for the smooth running of your business.” Bupa Global’s Mining and Energy Forum Health Insurance Plan offers a choice of six benefit levels, all of which include evacuation to the nearest centre of medical excellence anywhere in the
world. The benefits include: open 24 hours a day, 365 days a year, medical advice and information, second opinion service, find local medical facilities, medical referrals, authorise evacuation and interpreter referral service In addition, Bupa Global seeks to give the best quality of medical care. “Not every hospital has the medical facilities we consider necessary for our members. Should one of your workforce become seriously ill or injured and require in-patient treatment, you need to know they have access to the best medical attention available.” In Africa Bupa Global is already catering for mines in Zambia and the Democratic Republic of Congo.
34 Zambian Mining Magazine
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JANUARY - FEBRUARY 2017
Logistics Leaders in Our Part of the World Efficient, Reliable Transport throughout Southern Africa
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Zambian Mining Magazine 35
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