TOGETHER ISSUE Quarter 3, 2019
AN FQM ZAMBIA QUARTERLY PUBLICATION
BOLDER • SMARTER • DRIVEN •TOGETHER
TOGETHER NEWS
DIALOGUE AND TRANSPARENCY ARE THE KEY TO UNLOCKING NEW HIDDEN TREASURES
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pen dialogue and transparency between government and the private sector is needed to improve and safeguard Zambia’s investment climate, says First Quantum Minerals (FQM). The mining firm believes that a natural equilibrium must also be sought that sees Zambian people share the benefits of the country’s natural resources while also making investments a true business proposition for the private sector. Speaking at this week’s Expo North West Zambia 2019, FQM Country Manager General Kingsley Chinkuli said that to stimulate an influx of new investors in various sectors in NorthWestern Province there was need for a better understanding of investors and investment requirements. The Expo, of which FQM is the major sponsor, is being held under the theme ‘Unveiling the Hidden Treasures’. “The province’s copper and gold resources have been unveiled by our
FQM’s Country Manager General Kinsley Chinkuli.
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company and others, creating a new and modern ‘Copperbelt’. To unveil that which is still hidden in the ground requires a positive policy on exploration. This province needs the next mine to come online in the near future, and it needs extension of the lives of existing mines,” said Gen. Chinkuli. However, he explained that despite the challenges of mining low-grade copper deposits of just 0.51 percent, First Quantum’s success was founded on three pillars that have enabled the investment to be unlocked: the nation’s natural resources; significant amounts of capital raised from international markets; and cutting edge skills and expertise drawn from across the globe to ensure the ore is mined profitably. “The ‘glue’ that bids those three ingredients together is a strong partnership between government and the private sector in the form of genuine constant dialogue to deal with challenges and achieve our common goal of ensuring Zambia is a competitive environment in which to do business,” he added. First Quantum Minerals remains committed to that transparent partnership, along with the sustainability, environmental responsibility and governance that form the bedrock of its approach to business, he said, adding that investment in people would attract further business to the area, confident there is an educated, skilled and eager workforce available, and that in turn will ensure the market will continue to grow, creating new employment for people who themselves become a market for yet more businesses. “We firmly believe that the solutions lie in North-Western Province’s other ‘hidden treasures’. First Quantum believes that forestry is a great treasure worth protecting for an economic and orderly exploitation for the benefit of this land. This province has empty game reserves. These should be stocked with game for investment in tourism. We are taking a lead in this area. “Our direct involvement in agriculture at community level through our Trident Foundation keeps growing every year, clearly demonstrating this region’s hidden treasure in its soils and weather. The production coming off our community farms through conservation farming should encourage any investor to take up investment in this area,” said Gen Chinkuli. Speaking at the same event, Republican President Edgar Chagwa Lungu said that the Expo demonstrated government’s long-standing commitment to improve the use of resources, to promote diversification, industrialisation, job creation and poverty reduction. “My government is committed to accelerating economic
FQM’s management holds periodic consultative meetings with government agencies on various community development programmes.
development by supporting such events, which are aimed at attracting both local and foreign investors. This is for us to exploit and unlock the investment potential that North-Western Province has in various sectors,” he said. He added that government believed the private sector was a catalyst to supporting its quest to improve the livelihoods of its people through wealth and employment creation in line with the country’s Vision 2030.
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FQM BACKS CHAMBER OF MINES CALL FOR TAX RETHINK Zambia’s largest miner and the country’s biggest taxpayer, First Quantum Minerals (FQM), has backed calls by the Zambia Chamber of Mines for the withdrawal of proposals for a sales tax to replace the current value-added tax (VAT) system. The company has leant its weight to a hard-hitting report by the chamber that urges government to re-commit to the existing VAT system, in line with expert
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opinion that such a regime is better for business and economies in developing countries. The report, A Tax Too Far: The Economic Impact of Zambia’s Proposed Sales Tax, urges government to withdraw the proposed ‘hybrid’ sales tax in its current form, which will make Zambia’s mining industry less competitive compared with the international mining industry.
“Implementing a sales tax leaves our mining industry at a point where it is uncompetitive. It costs significantly more to mine a tonne of ore or metal under a sales tax regime than it does under a VAT regime,” said Zambia Chamber of Mines president Goodwell Mateyo. Speaking at an information sharing meeting on the findings of the report, Mr Mateyo explained that increasing
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This phenomenon of tax rate increases resulting in declining tax receipts and lower economic activity is well understood by economists based on the Laffer Curve model.
First Quantum’s investments are large and involve significant amounts of upfront capital.
taxes would not result in increased government revenue, adding that the under the 2018 mineral royalty and corporate income tax regime government collected US$525 million, compared to the projected US$445 million it would collect in 2019 under the current tax regime. “The cascading effects of sales tax will result in huge price increments, and we have seen that in some typical examples, and those examples where drawn from actual potential transactions in a mining setup or in a mining value chain. “What this will do is that long supplying chains will be worse off, and to mitigate against this impact industries such as mining and manufacturing will obviously reduce the value chains by cutting out local suppliers, local distributors and importing directly. The effect of this will be a reduction of jobs, and an incentivisation of direct importation at the expense of local intermediaries and local agents who create employment and pay taxes locally,” he added. The aim of increasing overall tax receipts by introducing the proposed sales tax, as well as doing away with a system of VAT refunds that has proved difficult for the Zambia Revenue Authority to administer, would not materialise, said the chamber. Instead, the tax burden on any given transaction will increase, but as prices go up, the number of transactions would go down as goods and services become unaffordable.
However, if the VAT system is retained, it will require addressing of the debilitating problem of the non-payment of VAT refunds that has wreaked havoc in recent years with the cashflow of Zambian businesses, great and small, said the chamber. The chamber also called on government to bring the country’s mining tax regime into line with international best practice, where mineral royalty tax is deductible before computing corporate income tax. “We have asked that the government consider reverting to the 2018 mining fiscal regime. In the event that they are not inclined to go back to that regime, we have asked for some changes in the current regime, for instance, the mineral royalty rates be capped at 7.5 percent,” said Mr Mateyo. “Our ultimate conclusion following from the commissioning of this report and study, is that we need to remain with the VAT tax regime that we have in place and avoid effecting the sales tax altogether,” he added.
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TOGETHER NEWS
Minister of Housing and Infrastructure Development Hon. Vincent Mwale with First Quantum Minerals (FQM). country manager General Kingsley Chinkuli, government relations specialist Dr Godwin Beene and officials engineering association representatives
FQM CALLS FOR ‘ENGINEERS WITHOUT BORDERS’ The importance of engineers to economic and social development is so great that they should be granted special status, with professionals being able to work and travel freely a cross the world, says First Quantum Minerals (FQM). This would ensure knowledge and skills transfer and enable Zambia to remain a competitive investment destination for mining and other industries, said FQM government relations specialist Dr Godwin Beene, speaking during the 6th Africa Engineering Week and 4th Africa Engineering Conference in Livingstone, hosted by the Engineering Institution of Zambia in collaboration with the United Nations Educational, Scientific and Cultural Organisation (UNESCO), the World Federation of Engineering Organisations and the Federation of African Engineering Organisations. In outlining how engineers had helped turn the vision and capital of FQM investors into the reality of the country’s largest copper producer, Dr Beene explained how those skills had also impacted society and the economy of the country. “It’s what you learn from the person next to you that takes you forward. In industry we need mentors, and we are providing this in our company. When you entrust engineers and put money in 6│ TOGETHER · Q3, 2019
their hands you end up creating development. “This conference is addressing sustainable development goals through sustainable engineering. This will not happen without investing in people. We are talking about education right from toddlers to people at universities, so we offer education at primary and secondary level; and we have colleges. “Sustainable development is linked to education and skills, and when you have a skilled workforce it becomes marketable, and we manage to create something that it sustainable. Then we are talking about engineers without borders. Speaking on behalf of HE President Edgar Chagwa Lungu, Minister of Housing and Infrastructure Development Hon. Vincent Mwale praised FQM for its support of the conference and said: “We can’t build the future we want and achieve the sustainable development goals without the full participation of the professions, and to this end the Zambian government stands ready to work closely with all engineering professionals towards achieving the sustainable development goals. “We treasure FQM and we thank you for supporting engineering. You pay a lot of taxes and as government we are grateful. Thank you FQM very much for supporting this cause.”
TOGETHER NEWS
FQM REASSERTS ITS COMMITMENT TO GOOD CORPORATE GOVERNANCE
FQM country manager General kingsley Chinkuli inspecting road works in Solwezi
First Quantum Minerals has underscored the vital role good corporate governance plays in promoting ethical behaviour and business transparency among key sector players in Zambia’s economy. The mining firm believes that transparency, especially in the mining sector should be one of the key elements of good corporate governance, and this is possible through the company’s human resource department developing and implementing fair and equitable practices towards its employees. “The company should always make sure that it does not favour higher profits at the expense of the livelihoods of people affected by is operations; but it must also ensure that it operates within applicable laws and regulations, and to the highest ethical and moral standards,” said Rudi Badenhorst, Director of Operations at First Quantum Minerals. Mr Badenhorst said that it is for this reason that the company has redoubled its efforts to engage with civil society organisations (CSOs) to keep them abreast of its sustainability programmes and community engagement projects in the areas around its Kansanshi Mine in Solwezi and Sentinel Mine in Kalumbila. “Well-managed and well-governed businesses are the engine of our economy, thus good corporate governance must be more than just a
catch phrase or a fad. It’s an imperative – especially with multinational companies. Management relies on shareholders and other stakeholders, such as government, traditional leaders, civil society and the community to help it make formal decisions and to manage the company,” he said. First Quantum Minerals is committed to making positive steps towards sustainable development through economically viable investments, technically appropriate operations, environmentally sound practices and socially responsible actions. Its Code of Conduct sets out or approach to this, providing guidelines for everyone from directors and senior managers to workforce and contractors, explained Mr Badenhorst. “Our global code aligns with local laws and international best practice. It is clear, for example, that under no circumstances should a payment or gift be made or offered to a public official with a view to obtaining business, benefit or outcome. “First Quantum has a commitment not to engage in or tolerate fraud or bribery in any form. Employees, directors, officers, and contractors must always ensure that company assets are used only for legitimate business purposes and that all contracts for goods and services are made at a rate that reflects reasonable
market conditions. “By following this code, we ensure a balance of expectations that defines our path to sustainability. We do this by pursuing future goals while managing present realities,” he said. He added that for a company to continue maintaining its competitiveness and remain profitable, it needed to make sure that shareholders could participate at general meetings and have their voices heard. “Good corporate governance is the cornerstone of any business. It incorporates priorities and objectives, practices and policies that management sets out by aligning them with those of the Board and the shareholders the company represents,” Mr Badenhorst explained. He further said that it is important for a company to build trust with the stakeholders and interest groups through ongoing dialogue and information sharing with government and civil society, as well as holding regular meetings with community representatives. First Quantum continues to implement sound corporate governance practices such as distinct and separate environmental, health and safety, human resources, community development and security systems, which share synergies where they exist. TOGETHER ·Q3, 2019 │7
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COMMENT
MESSAGE FROM THE COUNTRY MANAGER must always ensure that company assets are used only for legitimate business purposes and that all contracts for goods and services are made at a rate that reflects reasonable market conditions” Other stories featured in this edition include two major events at which the company played a major role as a sponsor. At the first ever EXPO in the NW Province, First Quantum seized the opportunity to implore government to embrace positive policy on exploration because the province needs a new mine to come online in the near future, and it needs extension of the lives of existing mines. The occasion afforded an opportunity for FQML to communicate to a wider audience its active social investment through the Trident Foundation in the Province.
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n this publication of the Together Magazine, we feature many stories that tell of what has been happening in our Zambian Group. Our lead article is a message from our Director of Operations on good corporate governance which we must all understand is the cornerstone of our business. Management relies on its Board of Directors, shareholders and other stakeholders, such as government, traditional leaders, civil society and the community to help it make formal decisions which lead to a well-managed and well-governed operation. Our company has a structure which enables each one of us to identify our duties and responsibilities towards the Board, Shareholders and other stakeholders. The message from Rudi to all of us is : “In the mining sector it is vital that a company always acts with integrity in its relationships with stakeholders to fulfil promises and obligations to both shareholders and non-shareholders. Being a multinational corporation, First Quantum Minerals is committed to making positive steps towards sustainable development through economically viable investments, technically appropriate operations, environmentally sound practices and socially responsible actions. Our Code of Conduct provides guidelines for everyone from directors and senior managers to the workforce and contractors. Our global code aligns with local laws and international best practice. It is clear, for example, that under no circumstances should a payment or gift be made or offered to a public official with a view to obtaining business, benefit or outcome. First Quantum has a commitment not to engage in or tolerate fraud or bribery in any form. Employees, directors, officers, and contractors 10│ TOGETHER · Q3, 2019
The importance of engineers to Economic and Social Development was underscored at the 6th Africa Engineering Week and 4th Africa Engineering Conference in Livingstone, hosted by the Engineering Institution of Zambia (EIZ) in collaboration with the United Nations Educational, Scientific and Cultural Organisation (UNESCO), the World Federation of Engineering Organisations and the Federation of African Engineering Organisations. It was an opportune time to urge governments to consider granting special status to engineers to travel and work freely across the world to bridge the knowledge and skills gap. The importance government attaches to engineering was echoed by the acknowledgement that Zambia (and the world at large) cannot build the future it wants and achieve the sustainable development goals without the full participation of the professions. To this end the Zambian government stands ready to work closely with all engineering professionals towards achieving the sustainable development goals and thanked FQM in particular for supporting engineering. FQM continues to implement sound corporate governance practices such as implementing distinct and separate environmental, health and safety, human resources, community development and security systems and promotion of education. This edition carries heart-warming stories to reflect this. Keep making news and keep the stories flowing. Good reading. Kind regards, General Kinsley Chinkuli FQM Country Manager
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TOGETHER
FEATURE
VISION, VIEWS AND VERIFICATION: THE IMPORTANCE OF MEASURING MINING SECTOR IMPACT PROPERLY By John Gladston
In February 2009, along with its counterparts in the African Union (AU), Zambia adopted the “African Mining Vision”. That vision called for the “transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socio-economic development”. The document, backed by the United Nations Economic Commission for Africa (UNECA), set out a framework suggesting how mining tax revenues might be optimised and the income spent wisely. It described how mining might contribute more to development by making sure workers and communities realised tangible benefits from large-scale mining, whilst protecting the environment. As UNECA put it: “the African Mining Vision is first and foremost a developmental mining approach that insists that the royal road to growth is through building economic and social linkages that benefit Africa itself”. This vision is wholeheartedly supported by First Quantum Minerals (FQM). FQM, through the Sentinel Mine in Kalumbila and the Kansanshi Mine in Solwezi, is Zambia’s largest miner – and also its largest taxpayer. But FQM is also acutely aware of its responsibility to the communities in which it operates, and to the citizens of the country in which it has made such a significant economic and social investment. This responsibility comes with a high-level of accountability to stakeholders: community leaders, traditional leaders, national and local government and civil society; as well as FQM’s employees, suppliers and shareholders. But of course, one can’t manage what one can’t measure. Consequently, central to the work of the management at both 12│ TOGETHER · Q3, 2019
mines and FQM’s Trident Foundation, is the need to understand the impact of its operations and how they change over time. Only then can one implement improvements and measure progress in a meaningful way. This measurement must be evidence-based and centred on quantitative measurement. Qualitative approaches using participatory research, interviews and case-studies have a role, but they can’t replace rigorous quantitative research and analysis. What is needed is scientific analysis. This includes stratified sampling, careful and meaningful use of questionnaires and interviews; and above all, thoughtful data analysis based on science rather than conjecture. Opinion-based research inevitably results in a “bell curve” of sentiment. Researchers will always find the outliers: often they are the most vocal and most willing to appeal to pressuregroups, often with a pre-determined agenda and ever-eager to draw the wrong conclusions. Of course, there need to be checks and balances, and it is right and proper that mining companies – along with other private business – are held accountable for their actions. Indeed, there are mechanisms in place to achieve this through engagement with traditional leadership, elected officials at local and national level, and with those regulators charged with ensuring compliance with a raft of licences, permits, standards and levies. These issues are brought into particularly sharp focus by the emotive subject of the resettlement of people around mine sites. Through its Trident Foundation, FQM relocated 579 households when it developed Sentinel Mine in Kalumbila in 2013. The
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FEATURE
John Gladston is Head of Government Affairs at First Quantum Minerals
programme, which followed international best practice, is recognised as setting a new benchmark in what can be a difficult and sensitive area for the industry. Indeed, despite the challenges which will inevitably arise with any programme on this scale, the resettlement work at Kalumbila is a model for other companies undertaking similar community work across the world. The Trident Foundation spent US$16.9 million on resettling the 579 households from 3,201 hectares of land on the mine site. Some 4,525 hectares of replacement land was provided, along with US$14.6 million of compensation. The resettlement action plan was approved by the Zambia Environmental Management Agency (ZEMA) in 2013. Support for resettled communities remains a central part of the Trident Foundation’s commitment, which also encompasses development programmes in health, education, farming and livelihoods. The resettlement was carried out through a consultative approach based on the International Corporate Finance (IFC) sustainability performance standards, as Zambia lacks a clear organic legal framework for resettlement and compensation. Implementation of the resettlement action plan was independently audited in 2015. That audit concluded that the resettlement largely exceeded best practice for resettlement. The technical report made particular reference to an increase in house size, livelihood support programmes including conservation farming to enhance yields, and facilitation of title deeds to all resettled households. Some 509 households are now due to receive title deeds, having been allocated land and “invitations to treat” by the Ministry of Lands and Natural Resources. The Foundation committed to providing administrative support, including payment of statutory lease fees on behalf of the resettled farmers, in whose name the land will be registered. Of course, there were also lessons learned in the resettlement process. In line with FQM’s drive to perform beyond mere compliance, six years on, FQM is now finalising
a third-party social performance audit, in which 900 households are surveyed. This audit will enable the Foundation to compare progress against with 2011 and 2015 studies to show social and economic changes. One of the keys aspects of this audit is that the process is participatory, with many concessions made to entitlements based on consultation with projectaffected people. To date some 23,271 individual consultations have taken place and a further 1,000 strategic-level consultative meetings have been held over the 10-year period. But that impact is the tip of the iceberg; US$11 million was spent in 2018 alone on sustainability projects: farming, health, education and other projects. Moreover, as of the end of 2018 more than 5,884 people have been directly employed by FQM’s Zambian mines, in addition to 10,161 contractors – more than 16,000 people in total. Clearly, for projects of this size there are also huge economic multiplier effects for surrounding business and suppliers. And finally, as a yard-stick to be measure the benefits of FQM to Zambia at the national level, FQM paid in excess of US$533 million (K5.6 billion) in taxes to the Zambian government in 2018. When unlocking the mineral wealth of a country, mining must balance the needs of the host nation and its people with those of the investors. This is the real test of the impact of mining on the people of Zambia. The African Mining Vision and other regional and global standards, policies and guidelines, including the United Nations Sustainability Goals, help frame the mining sector’s impact on a nation. First Quantum Minerals is determined to make a positive difference to the people of Zambia by ensuring the transparent and equitable sharing of the benefits of the nation’s natural resources for the long term. TOGETHER ·Q3, 2019 │13
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JOB OPPORTUNITIES Job title
Contract type
Location
Electrical Coordinator / Trolley Assist
On-going
Zambia
Key Responsibilities: Adhere to safe working procedures for all work areas and keep a good safety culture. Provide leadership and mentoring for your subordinated, including on- going training and development, performance management. Ensure your team’s work is of the highest quality with minimal to no re- work, all work areas are free from hazards and maintained to a high standard. Ensure maximum equipment availabilities. Diagnostic fault finding on mechanical, electrical and instrumentation systems. Carry out routine maintenance and repairs to the trucks, while training subordinate employees. Repairing equipment, identifying and scheduling future planned repairs. Work closely with Planners and contribute to preventative maintenance and continuous improvement going forward. Ability to use Root- cause analysis tools in investigating breakdowns and sub- standard performance of equipment. Perform inspections on completed jobs. Maintain a high standard of housekeeping at all times.
Auto Electrical - Technical Advisor
On-going
Zambia Kalumbila (140km west of Solwezi)
Key Responsibilities: Adhere to safe working procedures for all work areas and keep a good safety culture. Provide leadership and mentoring for your subordinates, including on-going training and development. Ensure your teams work is of the highest quality with minimal to no re-work, all work areas are free from hazards and maintained to a high standard. Ensure maximum equipment availability Diagnostic fault finding on mechanical, electrical and instrumentation systems Carry out routine maintenance and repairs to the mining fleet, while training subordinate employees Repairing equipment, identifying and scheduling future planned repairs. Work closely with planners and contribute to preventative maintenance and continuous improvement going forward Ability to use robot-cause analysis tools in investigating breakdowns and sub-standard performance of equipment. Perform inspections on completed jobs Maintain a high standard of housekeeping at all times
Technical Advisors / Trainer
On-going
Zambia Kalumbila (140km west of Solwezi)
Key responsibilities: Ensure maximum equipment availabilities. Diagnostic fault finding on mechanical systems. Repairing equipment, identifying and scheduling future planned repairs. Adhere to safe working procedures for all work areas. Maintain a high standard of housekeeping at all times. Providing training to National Staff as needed to promote skills within the work force. Ability to use Root- cause analysis tools in investigating breakdowns and sub-standard performance of equipment. Perform inspections on completed jobs. Ability to mentor subordinates. Very good problem solving skills.
Public Warning: Do not to pay for job opportunities on bogus social media sites. Please go to the official FQM Careers page for updates on job listings... http://careers.first-quantum.com/cw/en/listing/
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TOGETHER PEOPLE
MAXIMILLIAN KATANGA: FROM SCHOOL TEACHER TO CONSERVATION FARMING TRAINER First Quantum Minerals’ Trident Foundation supervisor Maximillian Katanga training farmers in conservation farming.
MAXIMILLIAN “If I were asked when I was young what I want to be when I grow up, without any hesitation I would have said a soldier ,” says Maximillian Katanga, First Quantum Minerals’ Trident Foundation supervisor in charge of training farmers and field operations in conservation farming. But growing up as a young boy in Solwezi District of NorthWestern Province, Mr Katanga - now 47-years-old - would not have believed he would one day play a leading role in FQM’s mission to improve the food security of the province. “I grew up in a family that was doing agriculture, and we always went to the farm. And when dad died, we moved to stay on a farm with my mother and my grandparents from my mother’s side. It was very exciting because everything, especially during school holidays we shifted to the farm. So, we went to the farm and helped our parents. “When I went into boarding school at Mwinilunga secondary school, I joined in the agriculture section after being appointed as a production unit captain. It was not long before I became hooked in agriculture, and little did I know that was the foundation of my journey into agriculture,” he narrated. However, after completing his secondary education, he worked for private companies, as well as the Tanzania Zambia Railway Authority (TAZARA). After that Mr Katanga chose a different career path and went to study teaching at Malcolm Moffat Teacher Training College in Serenje, later working as a teacher in Southern, Central and North-Western provinces. While at college he took an interest in agriculture science. During his time as a teacher, Mr Katanga always worked in the production unit of each school he taught at. The turning point came when he studied for a diploma in South Africa, then later returned to pursue a Bachelor’s degree in education, majoring in religious studies. After undergoing training in Conservation Farming in Zimbabwe, he decided to follow his passion for agriculture. Mr Katanga also holds a Master of Science degree in project management ( MScPM) from Cavendish University. In 2011 he joined First Quantum as a volunteer, training farmers on FQM’s Conservation Farming scheme, leading a group of field officers and demonstration workers. And then he joined Kansanshi full-time in January 2013 as a trainer. Using the experience and knowledge he acquired from his time as a teacher, Mr Katanga now leads the training and operations
for FQM’s conservation farming project in communities surrounding its Kansanshi Mine in Solwezi. “The best part about my job is seeing people who struggled to have food, have food. At some point people in Solwezi struggled to buy mealie meal, and people would go as early as 04:00 hours to buy one 25kg bag at 15:00 hours. Others slept on the lines. But today that is gone, and this makes me happy,” he said. He further said that most farmers the mining firm started working with were traditional farmers; only farming on a small scale for their households. “But now, these farmer have the ability to produce more food, not just for their families, but also for sale to the local markets. And with the favourable rain patterns in this part of the country, working together with our local farmers we have been able to increase our contribution to the country’s food basket,” he added. “The foundation teaches four principles in conservation farming: The first is that everything we do, we do it on time; the second principle is that whatever we want to do, we need to have high standards. “The third is that everything we do, should be without wastage; and lastly when we have harvested, we don’t have to burn the crop residue, because when it rots it gives us fertiliser. So, we have to move from the wasteful mentality which is in that traditional farming methods to a way were we preserve and use wisely whatever we have in the field,” he continued. Mr Katanga explained that food production plays a vital role in the productivity of a country, adding that it is important to ensure that farmers are equipped with the right knowledge and skills if the country is to achieve food security. He however said that the work that he and his team are doing does not come without challenges, and that farmers did not always adopt conservation farming easily because it contradicted their traditional way of farming. “When we asked farmers not to burn the crop residue after harvesting, they thought that was madness. And when we told them that they don’t need to plough, but instead open places where they are supposed to plant the seed, they thought that was not workable. So, we went ahead, and did a lot of demonstrations for them. Today the results have shown them this is the best way of doing farming,” he explained. Along with his team, his job is to make sure that farmers who do not have jobs at the mine, produce enough food and extra to sell, and do it without destroying the environment. “Food only comes from a farmer. Without a farmer, there will be no food, no food, no work well done; the future is destroyed. “So, we see ourselves as people in the background creating a strong foundation for other work in the society, in the communities where Kansanshi is operating,” said Mr Katanga. Away from the mine, he is a married man with eight children, and a strong Sunday school teacher. “Everywhere I go, whatever I do, I always think about teaching children, whether in church or on the street. And in the next ten years, I see myself as a successful farmers’ trainer,” he added. -EndsTOGETHER ·Q3, 2019 │15
TOGETHER
FEATURE
WHY GOOD CORPORATE GOVERNANCE IS THE CORNERSTONE OF ANY BUSINESS By Rudi Badenhorst
G
ood corporate governance is the cornerstone of any business. It incorporates priorities and objectives, practices and policies that management sets out by aligning them with those of the Board and the shareholders the company represents. Well-managed and well-governed businesses are the engine of our economy, thus good corporate governance must be more than just a catch phrase or a fad. It’s an imperative – especially when it comes to multinational companies. Management relies on shareholders and other stakeholders, such as government, traditional leaders, civil society and the community to help it make formal decisions and to manage the company. However, it must be borne in mind that whenever one speaks about good corporate governance, you have to understand that organisations have duties and responsibilities towards their shareholders and other stakeholders and hence they must be governed in accordance with the law, while keeping
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Rudi Badenhorst is Director of Operations at First Quantum Minerals
in mind the interests of the stakeholders and shareholders. Shareholder recognition To ensure its continued ability to maintain competitiveness and remain profitable, a company needs to make sure that shareholders can participate at general meetings and have their voices heard. It is also good corporate governance for management to recognise the interests all stakeholders. In particular, focusing on building open and transparent relationships with non-shareholder stakeholders, which can help a company establish a positive relationship with its host community. In the mining sector where extraction is practised both industrially and in an artisanal way, it is vital that a company always act with integrity in its relationships with stakeholders to fulfil promises and obligations to both shareholders and non-shareholders. Being a multinational corporation, First Quantum Minerals is committed to making positive steps towards
sustainable development through economically viable investments, technically appropriate operations, environmentally sound practices and socially responsible actions. Our Code of Conduct sets out or approach to this, providing guidelines for everyone from directors and senior managers to workforce and contractors. Our global code aligns with local laws and international best practice. It is clear, for example, that under no circumstances should a payment or gift be made or offered to a public official with a view to obtaining business, benefit or outcome. First Quantum has a commitment not to engage in or tolerate fraud or bribery in any form. Employees, directors, officers, and contractors must always ensure that company assets are used only for legitimate business purposes and that all contracts for goods and services are made at a rate that reflects reasonable market conditions. By following this code, we ensure a balance of expectations that defines our
TOGETHER
FEATURE
FQM continues to implement sound corporate governance practices such as implementing distinct and separate environmental, health and safety, human resources, community development and security systems, which share synergies where synergies exist.
path to sustainability. We do this by pursuing future goals while managing present realities. Ethical behaviour The company should always make sure that it does not favour higher profits at the expense of the livelihoods of people affected by is operations; but it must also ensure that it operates within applicable laws and regulations, and to the highest ethical and moral standards. Management must make sure that it puts in place a sustainability strategy, which should encompass a code of conduct, corporate ethics as well as a sound environment policy that will guide the board in making decisions and the management in implementing those decisions. And if it is a company in the extractive sector, it is of the utmost importance that part of a company’s corporate social responsibility, it drives the growth of local communities, and at the same time fosters conservation, while providing support to local businesses, encouraging them to be self-sufficiency. First Quantum continues to implement sound corporate governance practices such as implementing distinct and separate environmental, health and safety, human resources, community development and security systems, which share synergies where synergies exist. Working with the local traditional leadership, government and civil society organisations, the company has prevented and reduce health-related impacts by managing environmental risks at source, for example.
Business transparency Transparency, especially in the mining sector should be one of the key elements of good corporate governance, and this is possible through the company’s human resource department developing and implementing fair and equitable practices towards its employees. It is important for a company to build trust with the stakeholders and interest groups through ongoing dialogue and information sharing with government and civil society, as well as holding regular meetings with community representatives. There is need for management to ensure that its staff - both local and foreign - respect local customs and cultural diversity during all communications and consultations. FQM has put in place a sound sustainability strategy, which compels it to provide information on situations and activities where communities may be negatively affected. The company has also aligned its community initiatives with every one of the United Nation’s Sustainable Development Goals (SDGs) in a move that puts it at the forefront of best practice in private sector social investment locally and globally. Through our Trident Foundation, we have stepped our campaign to end poverty, fight inequality, and tackle climate change, while ensuring that no one is left behind in the communities where it operates. Rudi Badenhorst is Director of Operations at First Quantum Minerals
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Representatives of First Quantum Minerals’ Trident Foundation, the Ministry of General Education and other stakeholders following the signing of a memorandum of understanding on provision of quality education.
FQM STRENGTHENS ACCESS TO QUALITY EDUCATION First Quantum Minerals’ Trident Foundation has signed a memorandum of understanding with the Ministry of General Education aimed at strengthening access to quality education through the provision of technical assistance and targeted resource support to 50 schools in Solwezi and Kalumbila Districts of North-Western Province. Under the MOU, the mining firm’s community support arm will collaborate with government to achieve effective, efficient and increased access to quality education as a human right, in line with the Zambia Seventh National Development Plan and the Education and Strategic Skills Plan. The MOU provides for an innovative approach under which government and the private sector work hand-in-hand to not only provide resource support, but jointly monitor the target schools against an agreed set of key performance indicators and targets, as well as facilitate improved management of existing resources and accountability required to maximise the effectiveness of the schools in the immediate vicinity of mining operations in North-Western Province. FQM’s efforts to improve education standards and advance literacy levels are framed by a broader vision of how corporate support can have the most impact. Under its School
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Improvement Programme, the company is also supporting a Continuous Professional Development (CPD) programme, under which teachers are provided with training on modern teaching methods, including action plans to implement. The programme is being implemented in 50 government and community schools in the two districts around its Kansanshi and Sentinel mines. “While FQM continues to build classroom blocks and donate text books and school desks, the company also believes that its education support runs much deeper than that. Continuous Professional Development for teachers, donation of school desks and an extra 75,000 textbooks have improved literacy and numeracy levels in schools supported by the mining firm,” said Trident Foundation head of education Dr Onward Mandevu. Dr Mandebvu further explained that the foundation’s continued technical and resource support had reached the stage where further improvements required closer work with the Ministry of Education on issues of management and accountability. This MOU positions First Quantum, and the Trident Foundation that it funds, as a development partner at high level, he explained.
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First Quantum Minerals Country Manager General Kingsley Chinkuli shakes hands with Ministry of General Education Permanent Secretary for Administration Ministry of Health permanent Secretary Dr Jabbin Mulwanda, watched by Minister of General Education Hon. David Mabumba.
Speaking as the Trident Foundation signed the MOU with the Ministry of General Education, Dr Mandevu said the company was also spending US$45,000 a month on providing nutritious meal supplements every school day for 6,000 children in North-Western Province. He explained that the dramatic improvement in standards came on the back of an investment of US$70 million in education in North-Western Province by the country’s largest mine since 2005 under its School Improvement Programme, with 260 teachers trained at improving teaching methods. Speaking on behalf of FQM, Country Manager General Kingsley Chinkuli said: “Our desire as an international mining company is that our communities should continue to thrive economically long after our operations have ceased. The company limits its social responsibility programs to its sphere of direct influence and strictly adheres to the belief that there is a definite separation between the legal mandate of the company and the
government. Notwithstanding the current turbulence in the business environment locally and internationally, the company’s long term commitment to Zambia remains resolute. Speaking at the same event, Minister of General Education Hon. David Mabumba said: “This memorandum of understanding is important to us because we want to ensure that the private sector is a key strategic partner in the provision of education. Trident have done so much work in the North-Western Province - in Kalumbila and in Solwezi - in terms supporting us with the provision of teaching and learning materials, providing of school furniture as well as supporting the quality of our education system. “Now the Trident Foundation and the Ministry of Education have a regulated working relationship as provided in the document that has been signed today, which is going to provide for our relationship in terms of what is expected of Trident Foundation and what is expected of the Ministry of General
Education, as we create this partnership together,” he added. FQM’s education package extends from early childhood education programmes, through all levels of schooling to its Kwambula Training at the Solwezi Trades Training Institute (SOTTI). The mining firm has aligned its community initiatives with every one of the United Nation’s Sustainable Development Goals (SDGs) in a move that puts the mining giant at the forefront of best practice in private sector social investment locally and globally. SDG 4 aims to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all – encompasses FQM’s extensive education programmes at both mines, including the Kansanshi Quality Education Improvement Programme (KanEQuIP), support for Early Childhood Education, Solwezi Trades Training programmes and numerous school projects.
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LOWER ZAMBEZI WILDLIFE GETS LIFELINE Zebra in the Lower Zambezi feeding on hay supplied by First Quantum Minerals (FQM) and the Royal Zambezi Lodge
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lephants, buffalo, zebra and other wildlife in the Lower Zambezi have received vital supplementary fodder to help them survive this year’s exceptional dry season in a move that will also bolster the nation’s tourism industry. The nature conservation work by First Quantum Minerals (FQM) and the Royal Zambezi Lodge will ensure the sector continues to contribute revenue to the economy and sustain local jobs. Last season’s drought and low water levels in the Zambezi River have wreaked havoc with animal populations in the game management area around the Lower Zambezi National Park. News of the crisis spurred Zambia’s largest overseas investor, First Quantum Minerals, into providing 1,200 bales of hay and salt licks for the animals that usually graze near the watering hole next to the Royal Zambezi Lodge. “Environmental conservation is an important part of First Quantum’s sustainability programme,” explained FQM Country Manager Kingsley Chinkuli. “The rational is two-fold:
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obviously it is vital that Zambia maintains its world-renown wildlife population and its associated ecosystems for future generations. Equally important are the livelihoods of many thousands of people who depend – directly and indirectly – on the tourism revenue generated as a result of our amazing natural resources.” Environmental conservation is one component of sustainability work by the FQM-funded Trident Foundation, which spent more than US$11 million last year on programmes encompassing education, health, livelihoods, farming and forestry. Earlier this year the Ministry of Tourism and Arts, through the Department of National Parks and Wildlife (DNPW), reinforced its partnership with the foundations under a publicprivate-community partnership to support the restoration and management of the West Lunga Management Area in NorthWestern Province. “Zambia is rapidly becoming one of Africa’s more successful
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Elephants in the Lower Zambezi feeding on hay supplied by First Quantum Minerals (FQM) and the Royal Zambezi Lodge
and valuable tourist destinations in terms of pristine wilderness and diversity of species,” said Royal Zambezi Lodge Managing Director Jody Whittall. “The sector as an employer ranks highly after mining and agriculture, so FQM’s timely intervention in the Lower Zambezi is more than appropriate.” Royal Zambezi Lodge has also invested in a six-kilometre pipeline to take water from the Zambezi River to the interior of the area when smaller rivers dry up. This project has reduced game populations on the riverbank where erosion can be exacerbated through over-grazing. The lodge team have many years of experience in the local area of how the ecosystem responds to natural catastrophes. Disease often follows weight loss, and this is particularly so when grazing is scarce. They firmly believe that the wildlife and vegetation that provides their employment should be carefully managed with minimal interference as and when necessary.
“Life is too short to procrastinate and with wildlife numbers dwindling throughout the continent, time is not on our side. Our thanks, therefore, go to First Quantum for encouraging and helping to support this initiative in such a positive way,” added Mr Whittall. Royal Zambezi Lodge will be distributing hay and salt licks to ensure a sustainable dispersal of grazers. This project will also help to reduce pressure on the indigenous vegetation and the smaller species that depend on it. With the distribution of the additional wildlife sustenance underway, the lodge encourages travellers to visit Zambia, and in particular the Lower Zambezi. In doing so, guests naturally become part of the solution in supporting the preservation of the wildlife in the area and are offered a platform enabling further conservation and community engagement and, more important, education.
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FQM VEGETABLE PROJECT BOOSTS HOUSEHOLD INCOME FOR FARMERS
Trident Foundation agriculture livelihoods coordination Christopher Chenga and Kalumbila farmer Alister Mutuma examine an eggplant crop.
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vegetable project being coordinated by First Quantum Minerals in Kalumbila District is helping over 70 local farmers achieve food security and improve nutrition while boosting their household income. Agriculture is the main occupation and way of life for many families in Kalumbila, and the vegetable project has become not only an additional source of nutrition, but also an empowerment enterprise with farmers making between K5,000 to K7,000 every month. “The Trident Foundation has taught us how to price our produce so that we can get a good profit from our sales. We have also been taught on how to keep records of everything we are using to grow our vegetables,” said Tracy Zulu Kazika, a farmer from Shinengene area. The mother-of-five explained that apart from providing the farmers with the knowledge they need to improve their vegetable production, the mining firm through its Trident Foundation - is helping farmers with market linkages. “Even though my husband works, the money I am making from the vegetable gardens is helping us to deal with the extra expenses such as school shoes and uniforms for our children,” she said. And Alister Mutuma a farmer from Musele Central said: “As a learning tool, we have been taught to start small, and then later expand. I started with a 13 by 13 garden, but now I have half a lima from which I am able to supply ATS through the Trident Foundation. And depending on the type of vegetables I am growing that particular month, I am able to make between K5,000 to K7,000,” said Mr Mutuma. Through its Trident Foundation, the mining firm advocates that true economic growth is reflected in the state of health, education, agriculture and quality of life that its citizens live, which includes capacity-building of local farmers by providing them with market linkages “The programme has been running for over five years now, and turning to vegetable production for income
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generation has changed the lives of many local farmers,” said Trident Foundation agriculture livelihoods coordination Christopher Chenga. Local business development and procurement have long been a priority for FQM, and the mining firm believes there is a lot of potential for local vegetable farmers in not only supplying Kalumbila, but also the whole of North-Western Province. “These are lead famers from communities around Kalumbila mine, and we gathered them for in-depth training on how they should produce high-quality vegetables meant for sale. We have realised that we have a potential to inject about K500,000 every month in the community through vegetable sales to the mines. “For those who have already been trained in vegetable production, the quality of their vegetables has improved and can be sold on any market. We want to scale up those farmers to help them improve the quality of their vegetables so that they won’t find any difficulties selling their produce to ATS, the company that supplies vegetables to the mine, or any other market out there,” said Mr Chenga. The foundation also helped set up a broiler chicken project, which supports 42 farmers with chicken coops, day-old chicks, vaccines, feed and vitamins as well as training, mentorship and monitoring. Meanwhile, First Quantum’s support for self-financing community banks is a natural complement to the company’s conservation farming programme, as farmers who adopt sustainable techniques to grow more produce also seek microcredit to finance their inputs or the cost of getting goods to market. The mining firm through its conservation farming project has continued to assist local farmers with training, monitoring and mentorship for maize, soya and groundnut production. The Trident Foundation also runs a Local Business Development Programme to help remove barriers to small and medium enterprise growth, and link local businesses to economic opportunities in the Sentinel Mine, Kalumbila Town and beyond.
Kalumbila vegetable farmers learn new techniques from a Trident Foundation field officer.
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GOVT COMMENDS FQM FOR CHAMPIONING FIGHT AGAINST GBV AND EARLY MARRIAGES
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overnment has commended First Quantum Minerals for its role in promoting gender equality and empowering women and girls through its gender-based violence prevention programmes and campaigns to end child marriage. North-Western Province Deputy Permanent Secretary Douglas Ngimbu said the mining firm community programmes put it at the forefront of best practice in private sector social investment. Speaking on the sidelines of FQM’s single-gear cycling challenge, Mr Ngimbu said FQM’s community initiatives were not just aimed at enhancing the socio-economic development of local people, but also gave them a sense of ‘ownership’ in the mine. The event, which brought together over 170 riders between the ages of 16 and 65, was aimed at raising awareness on the dangers of early child marriages, GBV and malnutrition. Among the prizes were new bicycles and solar lamps. “This has been a very important function, because you are sensitising the community on the need to fight negative vices like GBV and early marriages, and that is very important. And the message is very clear: from now on, everyone who is here, they have become you ambassadors to take this good message
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FQM single-gear cycling challenge participant 61-year-old Daisy Kakasila receiving an honoury prize from North-Western Province Deputy Permanent Secretary Douglas Ngimbu.
out there, to say we should not marry off our young children at a tender age. “GBV is very bad, and wherever is shows its face, let’s ensure that we report to the police, so that these culprits are brought to book. Because there is no room for GBV in Zambia; we don’t want that,” he said. And FQM corporate social responsibility coordinator Victor Nsana explained that through its Trident Foundation, the company had stepped up its campaign to end poverty, fight inequality, and tackle climate change, while ensuring that no one is left behind in the communities where it operates. “We had a similar event last year, were we brought cyclists from the communities. And this year we thought of repeating the same issue, only that we had put a different angle to it by introducing a theme. So, as we bring in cyclists from the community, we
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Championing the fight against GBV and early marriages: North-Western Province Deputy Permanent Secretary Douglas Ngimbu and winners of FQM’s single gear cycling challenge.
are also raising awareness on the dangers of gender-based violence, early child marriages and malnutrition. There is also the issue that has not been talked about for a long time, and that is the issue of non-communicable diseases. And these are rampant, because people don’t exercise. So, by encouraging people to do a lot of cycling, whether in organised groups like teams or in non-organised groups or on their own, we are encouraging healthy living,” he said. The mining firm has spent over US$100 million on its sustainability and community development programmes by aligning the Trident Foundation’s programmes to the United
Nations Sustainable Development Goals. The overall objective of FQM’s socio-economic development programmes is to improve the quality of life for its employees, their families and their immediate communities FQM believes that true economic growth of a country is reflected in the state of health, education, agriculture and quality of life that its citizens live. And the company remains committed to ending poverty, fight inequality, and tackle climate change, while ensuring that no one is left behind in the communities where it operates.
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FQM EMPOWERS GIRLS WITH ENTREP
Over 100 girls from 37 schools in Kalumbila and Solwezi Districts graduate with entrepreneurship skills and mentoring from First Quantum Minerals’ annual Girl Child Mentorship Camp.
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ver 100 girls from 37 schools in Kalumbila and Solwezi Districts of North-Western Province have been empowered with entrepreneurship skills and mentored on sexual reproductive health and the dangers early pregnancies and marriages. The girls between the ages of 12 and 18 recently attended First Quantum Minerals’ annual Girl Child Mentorship Camp, which was also aimed at providing a uniform platform through which all targeted schools can have similar tools for implementation of girl child empowerment programmes. “First Quantum Minerals has been implementing this programme within our host communities as part of our sustainability programmes since 2013 to support the girls as they grow mature, to discourage teenage pregnancies and early marriage, so as to prepare them to face real life situations,” said FQM country manager General Kingsley Chinkuli. Gen. Chinkuli was speaking at the seventh graduation ceremony for the FQM Girl Child Mentorship Camp at Trident College in Solwezi.
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He explained the programme focusses on training girls in sexual reproductive health so that they can make informed decisions and delay sexual debut to avoid teen pregnancies, early marriage and sexually transmitted infections including HIV. Other skills taught are assertiveveness, communication , negotiating and study skills with emphasis on education for sustainable personal and community development. Since 2013, when the programme started, 691 girls have graduated. This year’s number at 107 is the largest. This year alone, more than 10,500 pupils – both boys and girls - have been sensitised with information on sexual reproductive health in the participating schools. And training has been given to 60 teachers on sexual reproductive health for sustainable information dissemination within the schools. Speaking at the same event, North-Western Province Minister Nathaniel Mubukwanu said: “Zambia continues to face high rates of teenage pregnancies, early marriages and dropout rates, and North-Western Province unfortunately has not been spared. It is for this reason that your government encourages and
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appreciates such initiatives of private organisations such as First Quantum Minerals that seek to empower our girls in the various communities.” Hon. Mubukwanu added that government has adequate legislation to protect the welfare of the children, and that every stakeholder must take full personal responsibility as an active player to protect and safeguard the future of children. “Poverty is not an excuse for marrying off a girl at a tender age. For us it is not only criminal, but it is also inhuman, and should not be accepted by our society. We want to appeal to the church, traditional leaders, all the parents, and civil society leaders to rally their energies in ensuring that we reduce and probably eradicate this evil practice in our societies. We can only break our poverty cycle if we invest the little that we have in educating the girl child,” he continued. And FQM’s projects and programmes advisor Gertrude Musunka said: “This camp is very different in the sense that we have had this camp after the launch of the Books Before Boys and Books before Girls clubs within the schools that are represented here.
This is simply the icing on the cake.” She added that FQM has programmes throughout the year within the 37 schools, raising awareness among schoolgirls and boys on sexual reproductive health, as well as engaging parents and the traditional leadership. “We also have the women - our mothers - who were being trained on the side-lines of the mentorship camp because we are trying to answer some of the challenges that are presented to us as we do these mentorship camps,” said Ms Musunka. The 2019 FQM Girls mentorship camp participants also undertook a tour of FQM’s Kansanshi Mine to raise awareness among the girls of the different career opportunities for girls and women. Female employees working in different positions ranging from engineers to operators spoke to the girls. The girls also had an opportunity to welcome His Excellency President Edgar Chagwa Lungu at Solwezi Airport when he visited the province to officiate at the Expo North West Zambia 2019. -Ends-
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TOGETHER SPORT
KANSANSHI CYCLING MORNS ADMINISTRATOR ANTHONY MALAMBO
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ansanshI Cycling Club on Friday 6th September put to rest its cyclist and administrator Anthony Malambo, who died in a road traffic accident on Tuesday, September 3rd, 2019. Mr Malambo 37, joined Kansanshi Mining Plc in April 2008 as a procurement officer in the commercial department at Kansanshi Mine Plc, then later became a fully-fledged member of the Kansanshi Cycling Club and have competed in major international cycling competitions in South Africa, Namibia, Zambia and Rwanda. In addition to his valuable contribution to Kansanshi Mining Plc’s commercial team was passionate about cycling and took part in many Mountain Bike competitions and Road races around Zambia, which include the internationally acclaimed Kansanshi Mine2Mine, Kansanshi MTB Race and the famous FQM 1Zambia MTB annual race in Lilayi, whose title sponsor is First Quantum Minerals. As the main person who coordinated logistics for major cycling competitions sponsored by Kansanshi Mining Plc, Mr Malambo’s services will be greatly missed by the company and the Kansanshi Cycling Club. May His Soul Rest In Peace.
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Anthony Malambo (left) pictured with former world athletics champion, Samuel Matete during the Kansanshi Mountain Bike event two years ago.
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Editors Godfrey Msiska Mirriam Harmon Editorial, design and layout: Langmead & Baker Ltd
Address Trident Foundation Kalumbila North-Western Province Zambia
Contact Info Phone- 021 2658000 EMail- info@fqml.com
web Info www.first-quantum.com Facebook- www.facebook.com/ FQMZambia/