TOGETHER ISSUE Quarter 1, 2021
AN FQM ZAMBIA QUARTERLY PUBLICATION
S S E N I S U B L A C O L G N I T R O P P SU
What’s inside: • FQM SPENDS US$1.65 BILLION IN ZAMBIA IN 2020 • ANTHONY MUKUTUMA: THE MINING GLOBETROTTER • FQM’S CONSERVATION FARMING PROJECT WINS KUDOS FROM CHIEF MUMENA • UNIONISED WORKERS IN PAY AND CONDITIONS BOOST
BOLDER • SMARTER • DRIVEN •TOGETHER
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■ HOW WE MADE IT ■
FQM PRODUCTION FIGURES HIGHLIGHT INVESTMENT DECISIONS
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EFFICIENT LOGISTICS AND FREIGHT MOVEMENT IS KEY TO THE GROWTH OF ZAMBIA’S MINING SECTOR
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■ HOW WE SHARED IT ■
UNIONISED WORKERS IN PAY AND CONDITIONS BOOST
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FQM BOOSTS BUSINESS OPPORTUNITIES FOR LOCAL TRANSPORTER
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ANTHONY MUKUTUMA: THE MINING GLOBETROTTER AT THE HEART OF FQM
TRIDENT FOUNDATION CONTINUES TO MAKE INROADS IN EDUCATION
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PRIDE KASANDA SHOWS HOW HARD WORK AND APPLICATION PAYS OFF
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FQM’S CONSERVATION FARMING PROJECT WINS KUDOS FROM CHIEF MUMENA
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HAUL ROAD INVESTMENT SAVES $5M IN TYRE WEAR
KANSANSHI MINERS SAVE LIFE OF SNAKEBITE VICTIM
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FIRST QUANTUM MINERALS LIMITED STATEMENT ON REMEDIATION OF CLOSED BWANA MKUBWA MINE SITE
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irst Quantum Minerals Limited (“FQM”), the ultimate holding company of Kansanshi Mine Plc, Kalumbila Minerals Limited and First Quantum Minerals Operations Limited wishes to inform the public that it has ceased mining operations at Bwana Mkubwa Mine in Ndola (“Bwana Mkubwa Mine”) and commenced remediation and repurposing of the site. Bwana Mkubwa Mine was the first new mining project in Zambia for FQM and the first licence to be issued by the Government of the Republic of Zambia since the enactment of the 1995 Mining and Minerals Act. FQM remains the certificate of title holder of a 99-year lease in respect of lots F/416a/A and DF/416a/S where the Bwana Mkubwa Mine is located together with the surrounding areas (the “Land”). These certificates of title entitle FQM to surface rights over the Land in line with the provisions of the Mines and Minerals Development Act and property rights as per the provisions of the Constitution of the Republic of Zambia. As part of its corporate social responsibility, FQM resolved and donated the former open pit area of the mine to Kafubu Water and Sanitation Company for purposes of water abstraction to supply surrounding industrial and residential developments. This area shall be formally sub-divided and handed over to the water utility company upon certification
that the area is safe for use by the Mine Safety Department. The plant and Tailing storage facility have been transferred to another operator and FQM no longer holds any interests Part of the surface rights area remains under the control of Non-FQM small-scale Mining Licence holders of which two actively continue to undertake material recovery and mining on the Land pursuant to their respective mining rights with the specific consent of FQM for access. FQM wishes to reiterate that as the bona fide title holder of the Land, it will continue to secure its interest in line with the company’s policy. The public is, therefore, hereby notified that FQM has not appointed any agent to parcel out the Land or any portion of it and the public is advised to send all queries to FQM using the contact details set out below for any clarifications.
Contact: Limited
First Quantum Mining and Operations Plot 3805, Zambia Way, Industrial Area P. O. Box 230022, Ndola. Email: Michael.Kabungo@fqml.com Phone: +260963659543
CONTACT US Editor Mirriam Harmon Editorial, design and layout: Langmead & Baker Ltd
Address Trident Foundation Kalumbila North-Western Province Zambia
Contact info Phone- +260 974113728 EMail- info@langmead.com
Web Info www.first-quantum.com Facebook- www.facebook.com/ FQMZambia/ Info@fqml.com
Q1, 2021
TOGETHER
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NEWS
COUNTRY MANAGER'S MESSAGE
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n this first edition of Together magazine for 2021, we feature articles and stories that show that FQML, Zambia’s most visible mine operator, has all ticks on its score card. Despite the unprecedented challenges of operating and managing a large modern mine presented by the COVID-19 pandemic, production performance in 2020 was excellent. Sentinel mine in Kalumbila came to maturity. Although falling head grade was an additional headache to managers at Kansanshi Mine, it did not deter attainment of good performance, and production was close to the annual target. Both mines operated efficiently. While Sentinel is ramping up its output, Kansanshi mine is reaching a point where additional substantial investment is required now, not just to sustain output levels but to prolong the life of mine to the benefit of the country. The excellent performance in copper production means that First Quantum will, as in the previous years, contribute to the majority of government revenue generated from the extractive sector. People drive our company’s good performance. The good performance we report in this edition of the magazine could never have been achieved without the commitment of employees. These are people that are well trained, committed to FQML and focused. We feature people stories in this edition that give our company another tick in the box; stories that are told in order to motivate employees to aim higher on the job. FQM prepares its people for the job they are employed for in order to ensure that there are no “square pegs” in the workplace, rather people with a common sense of purpose and aligned, keeping the company playing well in the league of big miners. The question that is always asked, and consequently drives public opinion of today’s mine owner is: what benefit is Zambia deriving from the mines? We get another tick in the box here by providing an answer to this question in the stories that speak of the industry’s innate ‘multiplier effect’ on business, employment, and livelihoods, in the case of FQML, how its investment has placed and continues to place host communities in a prime position to keep reaping benefits from their mineral resources long after they are depleted. FQML’s investment is forward looking and perhaps Anthony Mukutuma’s words will enlighten the skeptics: “... to see people grow in their careers and children attending schools built out of the mine’s visionary leadership in my view is what contributing to the economy of Zambia in real terms looks like.” Good reading. Kind regards, General Kingsley Chinkuli FQM Country Manager
NEWS
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FQM PRODUCTION FIGURES HIGHLIGHT INVESTMENT DECISIONS
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irst Quantum Minerals achieved its highestever annual copper production of 779,000 tonnes in 2020, recording an 11 per cent increase from 2019, attributable to recordbreaking production at Sentinel and the resilience of its other operations, particularly Cobre Panama. Sentinel mine in Kalumbila, North-Western Province, achieved record copper production of 251,000 tonnes for the full year, 31,000 tonnes more than 2019 due to continued higher throughput and favourable grades, said the company, when it announced its 2020 Preliminary Production and 2021-2023 Guidance figures. Meanwhile, its Kansanshi mine was 221,000 tonnes in 2020, down 11,000 tonnes from the 232,000 tonnes produced in 2019 due to lower grades and oxide recoveries.
FQM has gradually ramped up production at Sentinel since it began commercial production in November 2016, while the more-established Kansanshi mine is reaching a point where additional substantial investment is now required to sustain output levels. FQM stressed the production figures are preliminary and subject to final adjustment, and that the final production figures will be confirmed in the Company’s financial results for the fourth quarter and year ended December 31, 2020. Global capital spending in 2020 was approximately US$50 million lower than the previously issued guidance of US$675 million and that capital expenditure of $950 million is expected in 2021 and 2022, which includes US$40 million in each year on the smelter expansion at Kansanshi.
FQM has gradually ramped up production at Sentinel since it began commercial production in November 2016
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NEWS
FQM said it would continue to maintain defensive health and sanitary protocols and support the government health authorities in each jurisdiction to combat the spread of COVID-19.
“2021 and 2022 also include a total of approximately $100 million in capital expenditures deferred from 2020,” it added. “In 2023, capital expenditure is expected to be $1,050m and includes $270 million for the proposed S3 expansion at Kansanshi. This project is subject to board approval, and the timing could be accelerated or delayed depending on capital availability, commodity prices, and the Zambian fiscal regime. “Sustaining capital expenditure is on average approximately $250m per year but is expected to be up to US$40 million higher in 2021 with planned maintenance of the Kansanshi smelter,” said the company. The 2021 - 2023 guidance is based on several assumptions and estimates
as of December 31, 2020, including assumptions about metal prices and anticipated costs and expenditures. “The unprecedented challenges presented by COVID-19 pose some additional risk to the accuracy of forward-looking information. Production guidance and cost guidance include current assumptions on the impact of COVID-19 on operations. Guidance involves estimates of known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different,” it added. First Quantum contributed the majority of government revenue generated from the extractive sector in 2019, according to the latest Zambia Extractive Industry Transparency
Initiative (ZEITI) report. According to the report, FQM's two Zambian subsidiaries, Kansanshi Mining Plc (20 per cent owned by the Zambian government through ZCCM-IH) and Kalumbila Minerals Ltd, contributed K5.7 billion and K2.6 billion respectively, representing 31 per cent and 14.4 per cent of total payments in the year. FQM’s total contribution of K9,347 billion – which includes K973.65 million from First Quantum Mining and Operations – represented 51 per cent of the K18.4 billion total revenue generated from the sector and paid to the government in 2019. The payments included VAT, PAYE, Mineral Royalty Tax, Import Tax, and Income Tax, as well as other payment flows.
OPINION
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EFFICIENT LOGISTICS AND FREIGHT MOVEMENT IS KEY TO THE GROWTH OF ZAMBIA’S MINING SECTOR
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Dr. Godwin Beene
ogistical operations and freight movement have continued to play a vital role in the growth of the mining sector in Zambia. Mining, as a business has a delicate value chain that must operate at optimal efficiency at every stage for that value chain to remain viable. An efficient transport sector that connects key industries to global markets, particularly one to facilitate the movement of heavy freight from the source in a timely and costeffective manner, as well as getting metals to ports on time is critical to the smooth function of mines such as First Quantum Minerals’ operating in a landlinked country. A lapse at any stage of the process will negatively affect the remaining stages. An efficient haulage system can have a negative impact on a mine’s productivity in respect of inflows of mine consumables and transportation of capital equipment and outflow of anodes, cathodes, and concentrate. First Quantum Minerals’ Sentinel Mine in Kalumbila and Kansanshi Mine in Solwezi cannot afford interruptions in the production cycle, whether this is due to inflows of reagents, fuels, spares, or movement of its products and people. It may not be that obvious to many, but stockpiling of concentrates and metal due to unavailability or inadequate transport is bad for the mining business as it ties cash to the floor. FQML endeavours to ensure neither of these situations arises. It would create a catastrophe that would immediately be felt not only by the Treasury but by many sectors that rely on the company’s multiplier effect. So, how does FQML ensure stability and continuity in the transportation business associated with it? FQML managers operate and run the mines very productively and efficiently. Cost-effectiveness as an efficiency
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parameter requires that the company engages/partners with transporters who understand FQML’s business, are competitive, and in themselves, efficient. The company supports the development of the local and competitive transport sector to handle its (potentially) ever-growing production output. In its quest to efficiently move its copper to ports, FQML achieved a feat recently by partnering with a
FQML’s copper business once again is dropping kwacha in the Zambian community, albeit quietly. Can there be more that can be done to assist with the transport sector development in Zambia? The mining industry is notorious for availing opportunities where there was hitherto none. The developments that have mushroomed in NW Province following the opening up of largescale mining barely 16 years ago attest to this assertion.
generate volume like FQML’s with long leases, then the rail line project that has been on the cards for this long could be a reality. It would promote healthy competition in the transport sector by challenging road transport’s monopoly on haulage. After all, healthy competition plays a key role in innovation and the overall growth of a sector. Until then, there only remains a tremendous (and open-to-all) opportunity for Zambian truckers to compete for business with
''Nothing gets done by one person or one team alone so the element of teamwork has been a very big success factor for us'' willing local transporter to open a new trade route between North-Western Province and Walvis Bay, which has made accessing the Namibian port much cheaper and faster. This local transporter rehabilitated the 220km road between Kasempa and Kaoma at its own cost under a memorandum of understanding with the Road Development Agency (RDA). Without FQML taking on this initiative, the company would still be suffering transportation charges to cover the 400km run via Chingola to the ports, let alone a two-day delay to catching a cargo ship. The multiplier effect from this initiative is more than employment creation by the transporter, but one ought to think of the commercial developments that are happening along the newly rehabilitated and now busy 220km connector. The impact of an improved road network runs much deeper than mere infrastructure development. It serves as a launchpad for community growth.
If the Sentinel life of mine were able to extend well beyond the next two decades then perhaps this would justify the construction of a rail line to Kalumbila; not just to connect cargo to and from the Copperbelt, but perhaps to reconnect to and revamp the old Bengwela track; especially with improved security in the broader region. But sadly that is just not possible; the Sentinel life of mine simply just doesn’t support this aspiration; it doesn’t make economic sense. FQML has been pushing for the establishment of a Multi-Facility Economic Zone (MFEZ) in Kalumbila. Goods into the MFEZ and products out of the factories in the MFEZ would require transportation to Zambian consumers, the mining Industry of the DRC, and the Angolan Ports. FQML mining investment aside, if there could be a more enabling investment climate to attract opening of new big (low-grade mines) to
FQML’s mines. Safe and efficient transport systems provide real socio-economic opportunities, which, when adequately exploited, resulting in increased investment in the area, in turn creating a wider market for new products and improved employment opportunities. In that RDA worked with a local transport company to develop a new route to ports, GRZ was demonstrating its support for the haulage companies. Providing a conducive operating environment for the transport sector to continue to play a significant role in boosting the economy and reducing the unemployment rate in rural communities across Zambia is a muchneeded action on part of Government. Dr Godwin Beene is the Government Affairs Specialist at First Quantum Minerals Zambia based at the company’s Country Office in Lusaka.
PEOPLE
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ANTHONY MUKUTUMA: THE MINING GLOBETROTTER AT THE HEART OF FQM
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Kansanshi General Manager Anthony Mukutuma
nthony Mukutuma was recently appointed General Manager at First Quantum Mineral’s Kansanshi mine in Solwezi, North-Western Province. He grew up in the mining town of Kabwe in Central Zambia. His upbringing developed his interest and passion for mining at an early age. As a child, Mr Mukutuma was fascinated by the mining process: how miners got the ore out of the ground and turned it into something valuable. Years later, his fascination with the industry turned into a career. “I liked the physical side of mining; underground mining to a child sounds like an adventure. I also loved the science and the business aspect of it all,” recalls Mukutuma. “Even as a 10-year-old child, it was clear that mining as a business was the anchor of Kabwe’s economy and I was keen to be part of such an important industry. In today’s language, I would say I saw getting into mining as my way of becoming an ‘influencer’!” Initially, Mr Mukutuma’s intention was to be a mining engineer. However, he later went into chemical engineering after realising it offered a broader perspective on mining. “I felt the chemical engineer had to decide what to do with the mined material to bring out its value. I found the notion of finding ways to ‘create value’ using science intriguing, and I knew almost immediately that it was something I wanted to do for the rest of my life.” Mr Mukutuma graduated from the University of Birmingham having obtained a degree in Chemical Engineering with a minor in Minerals Engineering in 1995. He also holds an MBA in accounting and finance from the University of Liverpool. Soon after getting his first degree in 1995, he worked as a metallurgist in mineral processing at the Konkola Division of the then Zambia Consolidated Copper Mine (ZCCM). His career took off when he moved to hydrometallurgy, a field in extraction metallurgy that uses aqueous chemistry (chemical solutions) to remove metal from the ore.“ I fell in love with it immediately,” reminisced Mr Mukutuma. It was through his role in hydrometallurgy that he joined the FQM family in 2002 where he worked at the firm’s Bwana Mkubwa Mine processing plant in Ndola. Thanks to his dedication, Mr Mukutuma quickly rose through the ranks, moving from Senior Metallurgist to Plant Manager, and finally to Technical Manager. Mr Mukutuma describes his time with FQM as a journey of constant learning and personal growth. “Each year has been a new experience of learning new things and facing new challenges. It has also been about giving back by taking time to mentor, coach, and help young professionals and operatives to grow and develop their careers,” he said.
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PEOPLE
“... to see people grow in their careers and children attending schools built out of the mine’s visionary leadership in my view is what contributing to the economy of Zambia in real terms looks like.”
His time with FQM has presented him with an opportunity to travel to different parts of the world, including Mauritania and Finland where he served as General Manager on the Guelb Moghrein project and Plant Manager at the start of the Kevitsa Mine project respectively, and most recently to Australia as General Manager of FQM’s Raventhorpe Nickel Operation. “The upside of travel is that by working in different locations I have in my own small way been able to contribute to spreading the word about the importance of working within the underlying culture and influencing from that base.” “This has shaped my career in that I am comfortable in whatever location or setting I find myself working. I always focus on people and their culture and build from there. The downside is that as soon as one is starting to really embed oneself in a particular culture and getting a good handle of how things are done in that jurisdiction, it is time to move again.” People First His travels have also shaped his leadership and management style. “I have always strived to focus on people and the team; to understand others first and then seek to be understood. Every location will have an underlying culture. One must understand and respect that culture, and work within that culture to drive change, drive productivity and run the business for results. One cannot run a business the Zambian way in Australia and vice versa, or manage people the Finnish way in Mauritania. It doesn’t work!”
stressed Mukutuma. On FQM’s investment in people, Mr Mukutuma says this is what he is most proud of. “The company’s growth in terms of metal output, as well as the global spread of operations over the years, has been phenomenal. However, if that was all it was about, the achievement would be hollow.” “But to see people grow in their careers and children attending schools built out of the mine’s visionary leadership in my view is what contributing to the economy of Zambia in real terms looks like.” On returning to Zambia in 2020, Mr Mukutuma took on the coveted role of General Manager at the flagship Kansanshi Mine, one of FQML’s biggest operations globally. However, his time in his new position has been overshadowed by the global pandemic and the ripples it has wrought on communities and businesses the world over. “I have spent the last six months setting up the team with a focus on two key salient points: team and results. Getting everyone to understand that their contribution to the business is important however trivial it may look in their own eyes and that the team that labours together, in tandem, wins together.” Forward-thinking One of the major challenges the mining company faces today is declining ore grades. FQM expected this and has completed a full plan on how to expand the operations at Kansanshi to maintain current production levels and profitability.
The expansion will require additional mobile equipment and workshops on the mining side and a large processing plant to double the current processing plant throughput. “We are confident the expansion as designed will work and produce the intended outcomes. The investment required for this expansion is significant and would require changes to the fiscal regime in Zambia, doing away with the non-deductibility of mineral royalties for example, and providing assurance of a stable and competitive fiscal policy going forward,” he said. For Mr Mukutuma, his new role at Kansanshi is another assignment and another challenge. Like all the other projects he has worked on, he plans to take the operation to the next level. For Kansanshi, this means getting through the transitional years of the transformation from a high-grade to a low-grade mining operation. Operating a low-grade mine is not new for FQM, having designed, constructed, commissioned, and now successfully operating Sentinel Mine in Zambia and Cobre Panama in Panama. Kansanshi was, however, originally set up as a high-grade/low throughput operation. In the future Kansanshi will require not only an investment in large equipment and facilities but to go with that, a change in operating strategy and, for most employees, a change of mindset. Mr Mukutuma cannot wait to see the next phase of Kansanshi Mine and is excited about the future of Zambia’s mining industry.
PEOPLE
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PRIDE KASANDA SHOWS HOW HARD WORK AND APPLICATION PAYS OFF
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ride Kasanda is proud to be one of the people who have seen First Quantum’s Sentinel Mine grow from the early days of its commissioning to the present. Kasanda has seen it all. His journey with the mine has been both interesting and challenging. Born in the small mining town of Kabwe, Kasanda grew up at a time when the mining industry was at its peak in Zambia. Kasanda’s interest in mining was spurred by his hometown’s dependence on the sector when he was growing up. The mining boom in the North-Western province further fuelled his enthusiasm. Simpler times… Kasanda joined the FQM family just when Sentinel mine was starting, as part of the commissioning team. His first role within the mine was in the front-end section, the milling and crushing segment of the mine’s operations, and currently he serves as Plant and Services Coordinator. The plant is designed to neutralise all the low pH water that is pumped out of the mine to ensure that it has normal pH levels. The other function of the plant is to precipitate the heavy metals out of the water to ensure that it is safe for the environment. FQM ensures that this process is conducted to ensure that Zambia’s environmental development is sustained. Environmental protection and sustainability are key areas of FQM’s operations in Zambia.
Plant and Services Coordinator Pride Kasanda.
People at the heart of FQM To deliver on its objectives FQM relies on a capable and engaged workforce. In return, the mine rewards its people and provides opportunities to help them develop and grow. Providing high-quality training is a key attraction and retention tool, and developing professional expertise and leadership capabilities is essential to achieving the mine’s ambitions. The mine’s investment in human resources development at its Kalumbila and Solwezi units is aimed at developing current and potential employees, with a strong focus on women and youth through specific career development interventions, performance management and development, coaching, mentoring, succession planning, high-potential employee identification and fast-tracking. The mine’s employees are at the heart of its business in Zambia, and it has continued to harness the skills of the local communities and the rest of the country to ensure a common sense of purpose while being aligned with how FQM creates value. Kasanda is privileged to have been one of the many of the employees at the mine to have passed through its
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skills training and skills development programmes, which contributed to his rise through the ranks. FQM has a dedicated training department based in Kalumbila. It offers services like basic training of operators to more complex training such as advanced software and machinery, safety and basic operational health. “FQM prepares its employees for the job at hand to ensure we all have a common sense of purpose and are aligned in how we do things together. By so doing, the mine ensures that
it places the right employees in the right roles and empowers its people to realise their full potential,” Kasanda said. “FQM has invested quite a lot in skills training and skills development and has taken me back to school to help me to apply and upgrade myself to understand the mining industry better,” he adds. Kasanda is currently a first-year student at the University of Zambia studying metallurgy in the School of Mines, all thanks to FQM’s training programmes.
PEOPLE
Advice to the young As for advice to young people and students that want to join the mining industry, Kasanda says one needs to be willing to work hard even at an entry level to get to where one wants to be. “At the grassroots or the entry levels of the mining industry, you have to always be willing and have an interest in what you are doing. It is not always easy, there will be challenges on the road ahead, but with interest and a positive attitude to work, you will get there,” advised Kasanda.
“FQM prepares its employees for the job at hand to ensure we all have a common sense of purpose and are aligned in how we do things together. By so doing, the mine ensures that it places the right employees in the right roles and empowers its people to realise their full potential.”
NEWS
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HAUL ROAD INVESTMENT SAVES $5M IN TYRE WEAR
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nvestment in design and management of its haul road network has reduced annual spending on the haul fleet at Kansanshi Mine by US$5 million. Good pit road maintenance has reduced damage to the tyres – worth US$31,000 each – on its fleet of 82 massive US$3.8 million haul trucks that move 10 million tonnes of copper ore and waste rock to crushers, stockpiles and dumps every month. Roads are a critical component to a mine’s productivity as they facilitate movement of waste and ore. A bad road network can lead to frequent breakdowns in the mine’s fleet, negatively affecting operations, for which efficiency is crucial to ensure profitability. Innovation and world-class systems have helped FQM develop road maintenance practices to improve this
aspect of its hauling operation. Since most haul roads both within and outside the pit are unpaved and used by heavy mining equipment, they need special care and maintenance to remain in optimal condition. “Improvements in haul road management techniques have yielded positive results in terms of safety, truck speeds, tyre life, and reduction in trolley faults,” said First Quantum Mining and Operations Project Manager, Colin Du Plessis. Tyre life as a function of road conditions has increased from an average of 6,000 hours in 2018 to 7,500 hours in 2020 – a 25% improvement equivalent to US$5 million a year that the mine can invest in future projects, he explained. And in exceptional circumstances tyres have been known to last 10,000 hours thanks to the attention paid to
the haul roads. To complement the achievements made in road maintenance, First Quantum has prioritised operator training to optimise productivity without compromising safety. The mining firm views skills training as an opportunity to expand the knowledge base of its employees while also helping secure the country’s skilled labour pool for future investments. In 2019, FQM introduced Zambia’s first-ever certification for heavy equipment operators. The certification is aimed at increasing efficiency, productivity, and overall success of the mining sector by standardising operators’ proficiency. So far, over a thousand certificates in the operation of drill rigs, excavators, trucks and various ancillary equipment have been issued to Zambians through this programme.
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NEWS
SENTINEL COPPER PRODUCTION BOLSTERS JOB RETENTION IN 2020
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Despite unprecedented challenges driven by COVID-19, First Quantum Minerals (FQM) achieved the highest ever annual copper production at its Sentinel mine in Kalumbila in 2020, helping to support job retention in the process. The mine in North-Western Province recorded a 14% year-on-year increase in its annual copper production, producing 251,216 tonnes of copper due to a significant increase in annual throughput to 57 million tonnes. First Quantum enjoys continued close dialogue with the Zambian government, and sees this sees this partnership as critical in preserving its partnership with the government, especially in the current challenging times, said the company. FQM Chairman and CEO Philip Pascall said the mine would continue to maintain defensive health and sanitary
protocols while also supporting public health authorities in each jurisdiction as necessary to combat COVID-19. “We continue to prioritise the health and safety of our workforce and extend all efforts to protect our operations from COVID-19 and help mitigate the spread through the communities.” Globally the company recorded a gross profit of US$443 million for the fourth quarter of 2020 and US$1.1 billion for the full year. Total copper production was 203,171 tonnes in the quarter and 778,911 tonnes for the full year with annual production increasing by 14% from 2019. Sentinel mine had performed exceptionally well and was a big contributor to the record production, said Mr Pascall. “We expect our 2021 copper production to grow above 785,000 tonnes. This makes First Quantum one of the top global copper producers
Globally the company recorded a gross profit of US$443 million for the fourth quarter of 2020.
with one of the largest mineral reserve bases,” said Mr Pascall. “Our success in overcoming the various challenges the year presented was directly attributable to the dedication and resilience of our workforce and their adaptability to the new way of working.” He added that First Quantum’s net debt decreased by US$266 million in 2020 with US$136 million of that reduction coming in quarter four. On the cash flow front, the company recorded US$1.6 billion from operating activities – a US$724 million increase from 2019 – with US$533 million of cash flows from operating activities generated in the fourth quarter. Mr Pascall explained that the mining firm’s focus in 2021 would remain on debt reduction to enable it to plan for returns to shareholders and growth.
NEWS
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FQM SETS OUT ITS ‘SHARED VALUE’ APPROACH FOR NORTH-WESTERN DEVELOPMENT
Beyond the obvious positive impact mining has on the general economy, the industry’s innate ‘multiplier effect’ on business, employment, and livelihoods places host communities in prime position to keep reaping benefits from their mineral resources long after they are depleted.
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irst Quantum Minerals (FQM) has set out a vision for its “shared value” approach to community development that it hopes will ensure the prosperity of the province long after the end of its mines have ceased production. Over the years, First Quantum has increasingly applied the shared value approach to promoting community development by applying business strategies that not only deliver commercial and operational benefits but also leave a lasting positive impact outside mining activities in host communities. The multiplier effect FQM’s economic impact is multiplied several times over as new businesses and jobs are created in sectors not directly related to the mine’s activities. “This, in turn, has incentivised us to create initiatives that build local capacity through skills training and enterprise development while also encouraging our existing in-country suppliers and contractors to establish operations in – and draw employees from – our host communities,” explained FQM Country Manager Gen. Kingsley Chinkuli. Gen. Chinkuli noted that the
approach that FQM took in ensuring socio-economic benefits from the mine trickled down to all community members was based on the mine’s commitment to promoting sustainable development through this “shared value” approach. “With this approach, we intend to maintain our social licence to operate in rural communities and demonstrate that it is not just how much you spend on social investment that counts, but the impact you have in terms of creating tangible long-term value in host communities,” he said. Beyond the obvious positive impact mining has on the general economy, the industry’s innate ‘multiplier effect’ on business, employment, and livelihoods places host communities in prime position to keep reaping benefits from their mineral resources long after they are depleted. Since a large-scale mine typically represents the host community’s single biggest investment and employer, the onus to grow a self-reliant economy that can outlast the mine’s lifespan often falls on the mining firm itself – with various stakeholders including Government playing supporting and supervisory roles.
NEWS
Socio-economic benefits for all First Quantum Minerals has aligned its growth pillars with community investment programmes aimed at uplifting living standards in its areas of operation, while also encouraging local people to reduce long-term direct dependence on the mine. FQM’s local spending, which runs in the millions annually, has significantly improved the socio-economic standing of Solwezi and Kalumbila in North-Western Province. Over the years, the mine has had an immense impact on business with US$4.49 billion the total spent in Zambia in the last three years, including electricity, fuel and local agency transactions. This is part of First Quantum’s drive to ensure that supplier spending benefits the communities in which it operates to help stimulate investment in other growth sectors that may carry the area’s economy after mining. At the national level, the mine has significantly contributed to State coffers, with as much as 40 percent of total payments made by the mining industry coming from FQM - making it the nation’s largest taxpayer.
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UNIONISED WORKERS IN PAY AND CONDITIONS BOOST
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alumbila Minerals Limited (KML) has signed a Collective Bargaining Agreement (CBA) with three union bodies – the National Union of Miners and Allied Workers (NUMAW); Mine Workers Union of Zambia (MUZ) and United Mine Workers Union of Zambia (UMUZ). The agreement effective 1 May 2021 was made as an amendment to the existing CBA that expired in April 2022. Unionised employees will receive a K1,000.00 basic salary increment across the board, which translates to a K400 increase on housing allowance, 14.3% upward adjustment to education allowance and other associated allowances, bringing the total increase to K1,500.00 per month. Meanwhile, Kansanshi Mining Plc has concluded negotiations for improved conditions of service for the next two years with five trade unions which collectively represent 2,350 unionised employees. The unions are the Mineworkers’
Union of Zambia (MUZ), National Union of Mining and Allied Workers (NUMAW), United Mineworkers Union of Zambia (UMUZ), Miners and Allied Workers Union (MAWU), and Consolidated Mining and Allied Workers Union of Zambia (CMAWUZ). Conditions of service agreed for the 2021/2022 collective agreement that expires on 31st December 2022 include a salary increment of 15% for 2021 and 11% for 2022; minimum basic salary for the lowest paid employees adjusted to K4,460 per month; educational allowance increased to K2,800 per term for 2021 and to K3,108 per term for 2022; and introduction of a companysponsored private pension scheme for all employees to which the company will contribute 5% of basic pay for each employee. Kansanshi Mine General Manager, Anthony Mukutuma, thanked all the union representatives at branch level and national level, who sat on the Collective Bargaining Unit, for
the commitment they showed in their quest to secure the best terms and conditions for their members and their further commitment towards supporting the productivity improvement efforts of the company. Speaking during the KML signing ceremony, KML General Manager, Sean Egner, said KML is delighted with the partnership the Company enjoys with the Unions. “The agreement we are signing today means a lot to the leadership at Sentinel Mine. The economic challenges our employees and most Zambians are currently facing formed the basis of many candid discussions before, during and after the negotiations”, said Mr Egner. Mr Egner alluded to the fact that Sentinel Mine is equally faced with the same social-economic pressures such as Covid-19, volatilities in the world market, rising cost of business, taxation and interests of shareholders who have made the huge mining investment. He said KML is resolved
The Collective Bargaining Agreement was arrived at during an interim negotiation between the unions and KML management,
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FQM’s approach in the partnership has been about building trust.
to take on these challenges to achieve the set target of 252 000 tons of copper in 2021. “With an engaged staff, we can be sure of our productivity and of the knock-on effects this will have in the short, medium and long term on the national treasury, our community and our employees”, said Mr Egner. Speaking at the same event, General Treasurer for the National Union of
in a record time of one day. “We encourage more communications to avoid conflict between unions and management. Management must be open with information so that the production figures being communicated by the workers to the unions match the ones communicated by the management as this prevents prolonged and heated discussions”, Simujika.
partnerships in sharing the same agenda, same constituency and interests to improve the welfare of employees. “Our approach in this partnership has been about building trust in this relationship, resolving issues on an ongoing basis even when there is no negotiation. This we have demonstrated over the years leading to the mature state of our
"We are constantly resolved that when we confer, we find solutions even in seemingly tough conversations like we had." Miners and Allied Workers (NUMAW), Saul Simujika said the signing ceremony was an indication of successful discussion between the unions and KML management. He commended the effective communication between KML management and the unions and thanked all parties involved in making sure that the negotiations were done
He urged the unionized employees to accept the negotiated amount and put in their best effort in production so that there is more basis for better negotiations in future. Kalumbila Minerals Limited Human Resource Manager, Brighton Mwiinga, said the company has always believed that dealing with unions requires
relationship with our partners. In the last conversation, we approached the issues with boldness, honesty and understood the passion of our partners over our employees’ welfare matters. We are constantly resolved that when we confer, we find solutions even in seemingly tough conversations like we had,” said Mr Mwiinga.
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FQM SPENDS US$1.65 BILLION IN ZAMBIA IN 2020
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ambia’s largest mining company, First Quantum Minerals (FQM), is forging ahead in its quest to engage more local people in its supply chain to strengthen Zambian-owned businesses and boost the local economy.
The company procured US$1.65 billion (K36.3 billion) of goods and services from companies registered in Zambia in 2020, representing 85
per cent of the total spending by its two mines: Kansanshi in Solwezi and Sentinel in Kalumbila. Last year’s figures – which include local procurement of fuel, electricity and equipment from local agents – bring to US$4.49 billion the total spent locally in the last three years, with the proportion disbursed locally growing steadily from 81 per cent in 2018. More
FQM’s commitment to operationalise its local procurement policy is aimed at maximising the mine’s long-term business sustainability goals.
than 2,500 locally registered businesses benefited from mine contracts in 2020 alone. “FQM is committed to supporting local entrepreneurs as they strive to get a foothold in the highly competitive mining value chain,” said FQM Government Affairs Specialist Dr Godwin Beene. “Our vision is sustainable and
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responsible local procurement that positively contributes to a complex supply chain and by extension the economic and social development of the communities in which we operate.” “We have always prioritised local suppliers wherever possible. In
suppliers. No Zambian company currently manufactures heavyduty mining equipment, which makes buying it locally impractical as the local supplier would only act as a middleman and still end up importing the machinery from the manufacturer and sell it to us
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Kalumbila and the country at large. First Quantum’s commitment to operationalise its local procurement policy is aimed at maximising the mine’s long-term business sustainability goals along with creating synergy with other sector players.
“FQM is committed to supporting local entrepreneurs as they strive to get a foothold in the highly competitive mining value chain,” instances where the skills, goods and standards we need are not available locally, we work with local entrepreneurs operating in that sector to develop that capacity. This, in turn, culminates in them being our preferred suppliers over foreignowned companies once standards are sufficiently raised.” “Admittedly there are limits to how far we can build the capacity of local
at a higher price – which is not sustainable. Our capacity-building initiative is therefore focused on services that Zambians can provide without raising our operational costs too much.” The goal of FQM’s pro-Zambian approach is to build capacity and stimulate sustainable growth for local businesses around its Kansanshi Mine in Solwezi and Sentinel Mine in
Studies on procurement policies in the extractive sector have shown that effective local procurement practices can contribute to job creation, skills development, and improve efficiency in the supply chain by lowering costs in logistics, while also facilitating secure access to critical goods and services.
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COMPANY CRACKDOWN ON JOB SCAMS
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irst Quantum Minerals (FQM) has set out a vision for its “shared value” approach to community development that it hopes will ensure the prosperity of the province long after the end of its mines have ceased production. The company, which operates the Kansanshi Mine in Solwezi and Sentinel Mine at Kalumbila, has invested more than US$100 million in community support, in addition to being the economic contributions of being the country’s single largest taxpayer and one of its biggest employers. Over the years, First Quantum has increasingly applied the shared value approach to promoting community development by applying business strategies that not only deliver commercial and operational benefits but also leave a lasting positive impact outside mining activities in host communities. The multiplier effect FQM’s economic impact is multiplied several times over as new businesses and jobs are created in sectors not directly related to the mine’s activities. “This, in turn, has incentivised us to create initiatives that build local capacity through skills training and enterprise development while also encouraging our existing in-country suppliers and contractors to establish operations in – and draw employees
from – our host communities,” explained FQM Country Manager Gen. Kingsley Chinkuli. Gen. Chinkuli noted that the approach that FQM took in ensuring socio-economic benefits from the mine trickled down to all community members was based on the mine’s commitment to promoting sustainable development through this “shared value” approach. “With this approach, we intend to maintain our social licence to operate in rural communities and demonstrate that it is not just how much you spend on social investment that counts, but the impact you have in terms of creating tangible long-term value in host communities,” he said. Beyond the obvious positive impact mining has on the general economy, the industry’s innate ‘multiplier effect’ on business, employment, and livelihoods places host communities in prime position to keep reaping benefits from their mineral resources long after they are depleted. Since a large-scale mine typically represents the host community’s single biggest investment and employer, the onus to grow a self-reliant economy that can outlast the mine’s lifespan often falls on the mining firm itself – with various stakeholders including Government playing supporting and supervisory roles.
Large-scale investments like mining, when executed responsibly, can be a vital tool for sustainable development in neighbouring communities, believes the company. Socio-economic benefits for all First Quantum Minerals has aligned its growth pillars with community investment programmes aimed at uplifting living standards in its areas of operation, while also encouraging local people to reduce long-term direct dependence on the mine. FQM’s local spending, which runs in the millions annually, has significantly improved the socio-economic standing of Solwezi and Kalumbila in North-Western Province. Over the years, the mine has had an immense impact on business with US$4.49 billion the total spent in Zambia in the last three years, including electricity, fuel and local agency transactions. This is part of First Quantum’s drive to ensure that supplier spending benefits the communities in which it operates to help stimulate investment in other growth sectors that may carry the area’s economy after mining. At the national level, the mine has significantly contributed to State coffers, with as much as 40 percent of total payments made by the mining industry coming from FQM - making it the nation’s largest taxpayer.
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NEWS
LOCAL HAULAGE CONTRACTORS BENEFIT FROM SENTINEL MINE GROWTH
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ncreased copper production at First Quantum Minerals’ Sentinel Mine in Kalumbila has boosted business opportunities for local suppliers and created jobs for local people. Local haulage companies have provided a particularly successful demonstration of the company’s policy of encouraging Zambianowned suppliers, employing local people, contributing to the national economy whilst boosting Government tax revenue. The mine, which reached commercial production in 2016, achieved record copper production of 251,000 tonnes last year, 31,000 tonnes more than 2019, meaning a 12 percent increase in business for the local haulage contractors that transport the concentrate for smelting. Efficient and cost-effective haulage is a key element in ensuring the mine remains profitable in the face of lowgrade ore and associated thin margins. Kalumbila Minerals (KML), the First Quantum subsidiary that owns Sentinel Mine, last year re-tendered its haulage contract, once again empowering local companies to participate in this lucrative work,
which is one of the company’s largest procurement contracts. “The tender process aims to promote competition within certain markets, obtain the best pricing available and to afford numerous entities an equal opportunity to supply certain goods or services to KML,” explained First Quantum’s Zambia Country Manager General Kingsley Chinkuli. While the transporters are local companies – Zambian companies owned by Zambian citizens – they also exemplify the contributions brought to Zambia by naturalised settlers who have built sustainable businesses that create local employment, pay tax and boost the economy, he added. The two locally-owned trucking companies re-contracted by the mine – Buks Haulage (BHL) of Solwezi and JC Bousfield (JCB) of Chingola – between them move 90,000 tonnes of concentrate from the mine every month using a fleet of 135 trucks driven by local drivers. BHL, which is 100% Zambian owned, and run by Zambian citizen Buks van Rensburg, operates a fleet of 300 of its own trucks with a further 300 sub-contracted from other Zambian companies. BHL employs 1,000 local
people. JCB is owned by the secondgeneration Zambian Bousfield family of Chingola. All of its 500 employees are Zambian citizens. A third major Zambian haulier successfully serving other parts of the Zambian mining sector is Mining Haulage Ltd (MHL) of Kitwe. MHL, which scoops up a great deal of subcontracting work from the other Zambian hauliers, is owned by Richard Kazala-Laski, whose late father Walter Kazala-Laski started the company, having immigrated to Zambia from Poland. “KML supports and promotes the participation of local businesses for all its tenders. The nationality of the bidders is not the only consideration when awarding contracts. The ability to deliver a quality service at a competitive price is critical, but KML is delighted that the 2020 concentrate haulage tender was awarded to two well-established Zambian citizenowned businesses in accordance with Zambia’s Citizens Economic Empowerment Act No. 9 of 2006,” said General Chinkuli.
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FQM BOOSTS BUSINESS OPPORTUNITIES FOR LOCAL TRANSPORTER
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ambian-owned logistics firm Quattro Company has become the latest local business to benefit from the increase in productivity at First Quantum Minerals’ Sentinel Mine in Kalumbila. The company plays an important role in the mine’s smooth operation, running a fleet of buses to ensure miners arrive safely and on time for their shifts. “One of the most important objectives in every mine
is maximising production which in turn leads to higher revenue. This cannot be achieved if the workforce is crippled by a transportation system that prevents them from getting to their workstations on time,” said Quattro Operations Manager Japhet Kachandi Banda. He added that Quattro’s partnership with FQM had enabled it to expand its operations, creating more employment opportunities for local communities.
Mr. Banda
“Quattro is providing logistical services to FQM’s Kansanshi and Kalumbila mines – two of the biggest mines not just in Zambia, but the African continent, which is a fantastic achievement for a Zambian-owned company.”
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FEATURE
Quattro’s partnership with FQM had enabled it to expand its operations, creating more employment opportunities for local communities.
“Quattro wouldn’t be what it is today without the support of large companies like FQM. We have grown to be one of the largest transporters in the local mining sector thanks to the partnerships we have cultivated with multinationals. As a result, we have been able to grow our fleet and employ more people,” Mr Banda added. FQM Government Affairs Specialist Dr Godwin Beene said the long-term economic growth potential in NorthWestern Province should not be viewed in the context of mining alone, noting that FQM’s presence had led to the emergence of new businesses and expansion of existing ones such as Quattro. “First Quantum’s commitment to operationalise its local procurement policy to maximise the long-term secondary economic development in
its area of operations creates a perfect synergy with other sector players, providing a multitude of opportunities for local businesses,” he said. Dr Beene added: “Quattro is providing logistical services to FQM’s Kansanshi and Kalumbila mines – two of the biggest mines not just in Zambia, but the African continent, which is a fantastic achievement for a Zambian-owned company.” Over the last decade, North-Western Province has grown into the ‘new Copperbelt’, producing nearly 50 per cent of the country’s copper. And by the close of 2020, Zambia, Africa’s second-largest copper producer saw a 9.45 per cent increase in copper output compared with 2019. The Ministry of Mines and Minerals Development attributed this growth to increased overall output from the
country’s mines, driven by rising prices for the red metal. If sustained, this growth could prove a catalyst to the country’s quest to revive a mining industry struggling under the strain of COVID-19 and waning commodity prices before the recent upswing. Anecdotal data shows that eliminating basic operational bottlenecks like sluggish shift changes for miners is critical to maintaining the sector’s positive momentum in increasing mining activities and copper production, especially with declining ore grades. FQM believes that when transport systems are safe and efficient, they create socio-economic opportunities that benefit the value chain through better access to markets, employment and additional investments.
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TRIDENT FOUNDATION CONTINUES TO MAKE INROADS IN EDUCATION
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irst Quantum Minerals’ Trident Foundation in Kalumbila has continued to make progress in providing educational support to children from low-income households. Trident Foundation Manager Joseph Ngwira says Kalumbila Minerals Limited, through its community support programmes, has been collaborating with the Ministry of Education to achieve increased access to quality education as a human right, and as a foundation for sustainable livelihood development. “FQM’s objective is to ensure continuity of education for the best performing students from vulnerable households within the mine’s catchment area by giving them an opportunity to obtain the skills necessary to improve their quality of life,” he said. “Education is an ‘eye opener’ and the value for education is illustrated by how much positive change is recorded at community and individual level; otherwise, academic excellence with no ability to solve society's problems is meaningless.” Mr Ngwira explained that the mine sought to drive sustainable rural development through capacity building of children and youths – believing them to be agents of positive change in society. “Our education support program is designed with a provision for character development through mentorship so that beneficiaries don’t only attain academic excellence but also develop a character that will make them a responsible citizen,” he explained. FQM is currently sponsoring 208 students at different levels of education – from primary school right through to tertiary education. The programme has so far seen 57 students graduate in different fields including Heavy Equipment Repairs, Mechanical Fitting, Metal Fabrication & Welding,
FQM has so far spent over US$100 million on its sustainability and community development programmes.
and Electrical Engineering. In March this year, Trident Foundation handed over 31 laptops to beneficiaries of its education improvement programme at the Northern Technical College (NORTEC) and Ndola nursing school. The donation – valued at over K324,000 – was necessitated by the schools’ decision to blend physical and online classes as a way of combating COVID-19. FQM’s Government Affairs Specialist Dr Godwin Beene said the intervention was aimed at ensuring no programme beneficiary would be left behind due to a lack of utilities, adding that the mine was determined to complement the Government’s efforts in providing quality education. “We remain committed to
supplementing government efforts in providing quality education, in line with Zambia’s 7th National Development Plan and the Education and Strategic Skills Plan. Our education support principles are also aligned with Sustainable Development Goal 4, which seeks to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.” Since 2017, FQM and NORTEC have enjoyed a fruitful partnership that has seen several young people receive specialised training in technical fields. Currently, the college has 38 students in a variety of courses under the mine’s sponsorship. This is in addition to in-house tailored training initiatives created by the two entities. Speaking during the laptop
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presentation ceremony, NORTEC Training Manager Martin Kasonso thanked FQM for making it easier for the institution to conduct blended training that included physical and online classes, especially during the COVID-19 pandemic. He appealed to other organisations with sponsored students at the institution to follow FQM’s lead so that they too could access material from the institution’s learning portals. 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 on local communities. Under its School Improvement Programme, the company is also supporting a Continuous Professional Development (CPD) programme, where teachers are provided with training on modern teaching methods, including action plans on implementation. The mining giant has been working with government to not only provide resource support, but jointly monitor the target schools against an agreed set of key performance indicators while also facilitating improved management of existing resources
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to maximise the effectiveness of the schools in the immediate vicinity of mining operations in North-Western Province. FQM has so far spent over US$100 million on its sustainability and community development programmes.
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 on local communities.
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FQM’S CONSERVATION FARMING PROJECT WINS KUDOS FROM CHIEF MUMENA
Chief Mumena is also one of the champions of FQM’s Kansanshi Foundation Agricultural Livelihoods Project.
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hief Mumena of the Kaonde people of North-Western Province has commended First Quantum Minerals for introducing Conservation Farming in his Chiefdom, which he says is turning North-Western Province into Zambia’s food basket. Chief Mumena, who is also one of the champions of FQM’s Kansanshi Foundation Agricultural Livelihoods Project, said that the Conservation Farming practice that the mining company introduced has improved the livelihood of the people in his Chiefdom. “The support towards the agriculture inputs has brought about notable changes among the people, for instance, our farmers are now able to harvest as much as ten tonnes per hectare from as low as two tonnes
because of this initiative,” said the traditional leader. Through the Foundation the mining company has provided training and technical support to close to 40,000 farmers and early agricultural input delivery to 7,000 farmers, whose yields have grown from an average of six 50kg bags using conventional techniques in 2010, to a maximum of 56 bags and an average of 21 bags in the 2018/2019 farming season. In a letter of thanks addressed to the mine Chief Mumena explained that most of the people in the area were constantly cutting down trees to burn charcoal to sell for a living, but that they are now able to sell crops and vegetables for their daily needs, and this has resulted in the protection of the forests for the next generation. “We no longer have shortages in the
villages like it used to be before First Quantum introduced conservation farming. Our farmers are now able to harvest enough food for the whole year and extra to sell. ” Kansanshi Foundation supervisor in charge of conservation farming training and operations at FQM, Maximillian Katanga, said that under its conservation farming project, the mining firm provides education, close monitoring, and input loans to farmers and that the system revolves around a sustainable permaculture rotation of maize, Solwezi beans, cowpeas, soya beans, and groundnuts with minimum tillage, use of mulch, and training farmers on the importance of early planting. Mr Katanga added that since the project’s inception in the 2010/2011 season close to 40,000 farmers had
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COMMUNITY
“We no longer have shortages in the villages like it used to be before First Quantum introduced conservation farming. Our farmers are now able to harvest enough food for the whole year and extra to sell. ” benefited from the conservation farming programme. As part of the programme, Kansanshi Foundation’s monitoring and evaluation team has mapped all 7,000 farms and is working on an online interactive site that the public can visit.
The success of conservation farming has led to added dimensions of the programme. In 2015 a plan to help farmers around the mine raise poultry prompted building several chicken runs (at a cost of about $50,000 per run), with each to be managed cooperatively by a group
of 50 community members. The Agricultural Livelihoods Project also helps farmers grow vegetables and harvest honey, as well as enjoy access to affordable farming inputs and market linkages.
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FQM IMPROVES SECURITY WITH POLICE STATION IN CHIEF MUSELE’S AREA
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irst Quantum Minerals (FQM) has through its Kalumbila Minerals Limited (KML) subsidiary officially handed over the site for the construction of a police station at Kisasa in Senior Chief Musele Musokantanda’s chiefdom. The two-hectare plot was donated by His Royal Highness and officially handed over to Provident Investments Limited for building work to begin, funded by the mine. FQM is expected to spend ZMW1,500,000 on the project. Over the years, the area has experienced rapid population growth driven by mining activities. Mining’s inherent multiplier effect has continued playing a role in the mushrooming of new businesses, further accelerating Kisasa’s population growth as more people flock to the once sleepy town in search of opportunities. However, with population growth comes an increased risk of criminal activity, thus necessitating the need for a permanent police station to improve security. His Royal Highness Senior Chief Musele Musokantanda thanked FQM for taking a leading role in his Chiefdom’s development through various projects that have benefited his subjects. He said: “The police post will provide security and serve as a deterrent for residents who may have been entertaining lawlessness. “I wish to urge FQM to continue with the spirit of improving the lives of the locals with more projects like the water projects that have given my subjects access to clean water, improved hygiene and sanitation.” FQM’s Trident Foundation Manager Joseph Ngwira said the community had initially requested the mine to provide a shipping container which would then be modified into a police post and a holding cell, but the mine declined on ethical grounds.
FQM is expected to spend ZMW1,500,000 on the project.
“As an entity that values human rights, FQM could not allow people, regardless of the crimes committed, to be kept in unsanitary conditions without running water or proper ventilation,” Mr Ngwira said. “Such a place would not be conducive for human habitation. Therefore, as part of our sustainability initiatives, a decision to construct a proper police station was made.” He added that the police station would enhance both mine and public security, noting that failure to contain criminal activities would not only impede investment but had the potential to damage the town’s moral
fabric. “As the area’s single largest employer, FQM has a duty to preserve the community’s cultural and moral values. Good security helps make development sustainable which then has a positive impact on all areas of the economy including agriculture, education, and health,” he said. Speaking at the same event, Solwezi District Officer Commanding George Zulu said the Police Command was proud to partner with FQM in providing security to Kalumbila District. "The police station is coming at a time when the district is experiencing high investment which has also
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attracted increased crime rate. We are therefore indebted to FQM for their continued support to the Police Command.” Mr Zulu thanked Senior Chief Musele for providing land for the project and urged the community to work with the police in fighting crime and protecting the newly built infrastructure. In a speech read for him by Kalumbila District Administrative
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Officer, Frank Hatwiinda, District Commissioner, Robinson Kalota said that it was gratifying to see corporate investors support government efforts to better the lives of the people. He further called on other investors to partner with FQM on the project by providing other necessary amenities like accommodation for police officers.
“As the area’s single largest employer, FQM has a duty to preserve the community’s cultural and moral values. Good security helps make development sustainable which then has a positive impact on all areas of the economy including agriculture, education, and health.”
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FARMING WORKSHOP SUPPORTS FOOD SECURITY AND LIVELIHOODS
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ubsistence farmers in and The conservation farmingpromoted by FQM. around Kalumbila town are being encouraged to explore conservation farming as a viable business under an initiative championed by First Quantum Minerals (FQM). Through its Trident Foundation community development arm, the company’s Sentinel Mine has organised workshops to teach local farmers basic business tillage, crop rotation, optimal timing principles and their application and spacing of planting, as well as the to high-value crop farming as a need to protect the soil structure. sustainable source of income. “These methods are cost-effective and Speaking during the farming have significant effects on crop yields,” workshop, Trident Foundation explained Mirriam Harmon, Kalumbila Agriculture Support Officer Minerals Public Relations Coordinator. Nchimunya Nachilime explained that Mrs. Harmon said that while families conservation farming had been at that had been relocated by the the heart of First Quantum Minerals’ construction of FQM’s Sentinel mine agriculture support initiative to local had been empowered with farmland, communities for over a decade. there was evidence that suggested The goal of the project is to the families were not exploiting promote food security in the mine’s agriculture’s earning potential to areas of operation while also enabling maintain their livelihoods, hence the local people to become economically mine’s intervention. independent. “The cost-effective nature of “We want you to be economically conservation farming means that independent through farming as you even low-income families can will not only provide nutritious food participate and generate large yields for your families, but you will also be that would bring them considerable able to generate steady income to revenue,” she said. meet your other needs,” Mr Nachilime “The land, market, and interest told programme participants. from local farmers is there; all that is The conservation farming system missing is technical know-how and being promoted by FQM revolves basic business skills to enable them around simple non-destructive independently analyse and make farming methods such as minimal informed decisions on things like the
cost of inputs versus crop market value to maximise income from their yields.” “You need to be able to measure your inputs and yields to calculate your profits. That way, you will know if your work is truly translating into sustainable livelihood, which is where we come in. FQM will also continue helping these farmers have easier access to markets through its market linkages initiative.” Mrs Harmon noted that the mine was aware of several former mining towns in Zambia whose economies collapsed upon closure of the local mine leaving their inhabitants without a means to earn a living. She said FQM was determined to avoid a similar fate befalling its areas of operation. “We are alive to the fact that the mine has a life that will come to an end. FQM is therefore looking to build economic resilience in the local communities to avoid situations where they are left without sustainable means to generate income after the mine leaves.” James Nswanamufinda, a resettled farmer thanked FQM and the Government for their efforts in ensuring living standards in rural townships were improved through community-based projects like FQM’s conservation farming initiative. He further called on the mine to use its market linkage initiative to expand the farmers’ access to more markets.
... even low-income families can participate and generate large yields ...
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COMMUNITY
KANSANSHI MINERS SAVE LIFE OF SNAKEBITE VICTIM
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n the morning of February 3, six-year-old Sikeva Tobongo of Mushitala woke with a burning pain in his fingers. As he climbed out of bed, he discovered the cause: a puff adder, a deadly snake, lay under his blanket. It had bitten his hand. More than 30,000 people die from snakebites on the African continent each year, and the puff adder causes more of these deaths than any other snake. Sikeva’s situation was serious. With every passing minute, the venom spread through his hand. In many cases, tissue killed by the venom becomes infected, leading to death or permanent disfigurement of the patient. Sikeva’s family set off on foot towards Mushitala clinic. At this point, the chances that Sikeva would lose his hand, or even his life, were very high. Max Katanga of Kansanshi Mine’s corporate social responsibility department happened to drive past the family as they walked along Kansanshi Mine fence. They waved him down and asked for a lift, but when he learned of the snakebite, he sprang into action. He took Sikeva and his mother to Mushitala clinic in his car. Though willing to help, the clinic lacked the antivenom needed to save the boy’s life. “As soon as I heard it was a snakebite I knew I had to do whatever I could,” said Katanga. “Someone in my family has permanent damage to his hand from a similar bite, so I know what
Snakebite survivor Sikeva Tobongo with his mother.
a puff adder bite means. I started making calls immediately to get help for the boy.” Katanga quickly secured permission for Sikeva to be treated at Mary Begg clinic, which kept a stock of the antivenom. The antivenom was administered immediately and the cost was covered by Kansanshi Mine. “A child with a snake bite is always very serious,” said Mary Begg Clinic Manager Kylie Van der Merwe. “It could have been very bad. The fact they were able to respond quickly was key to the positive outcome.” This was the first step in saving the boy’s life, but more had to be done. The dead tissue in his hand needed to be surgically removed before infection set in, and this could only be done
in Ndola, and once again, Kansanshi Mine came forward with support. A Mary Begg ambulance took him and his mother to Ndola for the surgery. On February 8, he was admitted to Mary Begg’s Ndola hospital. When the dead tissue stopped expanding, doctors operated to remove it. Because Sikeva and his mother had no time to pack for the trip to Ndola, they were left with only the clothes they were wearing. Kansanshi Mine helped by purchasing additional clothes for both of them for their stay in Ndola. Two days later, Sikeva and his mother returned home. It had been a weeklong ordeal, but he was alive and well, thanks to the efforts of all involved.
With every passing minute, the venom spread through his hand.
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JOSEPH'S JOURNEY OF SACRIFICE TO HEALTH AND FITNESS
Today Joseph is 10kg lighter than he was when he started, but that is not the whole story.
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HEALTH
“Every meal I eat now, the plate must be one-half vegetables, one-quarter carbohydrate, and onequarter meat. For the carbohydrate, we no longer use breakfast meals. Roller meal is higher in fibre, which is healthier. Pumpkin is even better.”
I
n 2017, Joseph Silungwe’s doctor told him he had to lose weight. At 164kg, his weight put him at risk of developing heart disease, type two diabetes, and a number of other dangerous ailments. He breathed heavily while walking, and felt uncomfortable in his body. He, too, knew that something had to change, but never knew where to start. Working as a forklift driver at Kansanshi Mine’s main warehouse, Joseph’s shifts run from 7:00 to 17:00, and he often spends long hours either sitting at the controls of the forklift or waiting for trucks to arrive for offloading. Before his doctor’s advice, he often drank sugary drinks and ate meals filled with meat, oil, and carbohydrates. It used to feel as though someone was pressing down on my chest,” said Joseph. “I felt like something was not right. I would walk a short distance, just across the warehouse, and I would be panting by the time I got to the other side. It was a problem.” While an increase in body weight is a way to advertise one’s wealth in some communities, the negative impacts obesity has on the body make it one of the leading causes of death worldwide. The lifestyle that leads to obesity also causes an increase in blood pressure and cholesterol and often leads to the development of type two diabetes and heart disease. Joseph was referred to FQM’s Health and Wellness department, where he received guidance on diet and exercise, as well as regular gym sessions with a qualified fitness coach. “In the initial phase, my predecessor Farah had to get his body used to exercise,” said Health & Wellness coach Rachel Johnstone. “Our bodies don’t like change, whether that change is to our diets or our exercise routines.
Even if it’s a change for the better: for the first month or two, or even three, it won’t feel good. In this initial period, we were not looking for weight loss. Rather, we were just getting him used to the process.” With time, exercise became an established part of Joseph’s routine, and he started to feel better. Nutritionist Sally Bell-Cross took the sugary drinks out of Joseph’s diet and prescribed healthier portions of vegetables. “It is simple portioning,” said Joseph. “Every meal I eat now, the plate must be one-half vegetables, one-quarter carbohydrate, and onequarter meat. For the carbohydrate, we no longer use breakfast meals. Roller meal is higher in fibre, which is healthier. Pumpkin is even better.” Working ten hours per day, Joseph would have struggled to follow his newly prescribed diet if it was not for the support of his family. His wife changed her diet too so that the couple could eat the same meals each night. Most evenings she joins Joseph for his long walks up and down the road. “Doing it alone would be so much harder,” said Joseph. “When you try to exercise alone, people are always shouting comments. Very quickly you get tired of it and decide to go home. When we’re together, though, the kilometres tick by very quickly. Her support has been enormously helpful.” Today Joseph is 10kg lighter than he was when he started, but that is not the whole story. He is fitter and healthier. His coaches can see muscle tone where before there was none. He is visibly energetic, and no longer has trouble walking across the warehouse. His journey has involved sacrifice, but the rewards have been greater. “I would never go back,” he concludes. “I have to keep going forwards. I feel better every day.”
www.first-quantum.com
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HEALTH CHAMPION – PATRICIA MWENDA CHANGING PEOPLES' LIVES
Going back to traditional foods is one of the best things anyone can do.
F
irst Patricia Mwenda’s job can be very awkward. She is a Health & Wellness specialist in Kansanshi Mine’s human resources department, and it is her job to talk to employees about their health. “Health is a very sensitive topic,” she says. “When it comes to obesity, it’s such a hard thing to talk openly about. It’s a hurdle we must overcome, though. Once you bring a person around to the idea that they can
improve their health, their life begins to change for the better, and it’s always so encouraging.” When she talks to employees about health, Patricia draws on her enthusiasm about her own healthy lifestyle. “Everyone knows that exercise is hard,” she says. “Not everyone is aware of all the positives that can come from it. If they’re not exercising regularly, they won’t realise how good it feels to
do so. “Working in this fast-paced corporate environment, you’re in a pressure cooker,” she continues. “I had to find my own way to cope with it, and so I started to walk. I walk 12 kilometres every weekend, and my stress just evaporates. I feel so good afterwards, and that’s always something that I share with people. At first, it will be hard, but soon you’ll start to look forward to it.”
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Breaking through the stigma and fear that surrounds obesity and exercise is only the first in a long series of challenges facing Patricia and her team. In recent years, reports by top UK psychologists have shown that stress and trauma are often linked to weight gain and that putting pressure on people to lose weight may end up having the opposite effect. The wellness team, therefore, works to create a supportive, enabling environment, and to help move hurdles out of the way. Patricia says: “The first thing everyone thinks is that a healthy diet will be expensive. They expect us to talk about those high-end, imported foods that they can’t afford, but it’s exactly the opposite. Going back to traditional foods is one of the best things anyone can do. I tell them to plant kalembula
and chibwabwa: to grow and eat the nutritional superfoods that their own grandmothers used to cook for them. A healthy diet is not expensive: certainly not in Zambia.” The next challenge that comes up is access to facilities. “Gym membership is another cost that people worry about. You’ve convinced someone to make a significant change to their life, and now they’re seeing these roadblocks ahead. Again, the solutions are simple. So many people have achieved success with walking, boot camps—which the Health & Wellness department put on—and simple bodyweight exercises.” Many of us know how difficult and intimidating it can be to make a significant change in our lives: whether that means changing our diet, studying for a new qualification, or taking on a more demanding job
HEALTH
role. When the novelty wears off and the daily challenge of the new lifestyle sets in, it is often the support of those around us that keeps us going. For employees at First Quantum’s Zambian mines, Patricia and the Health & Wellness department are here for just that purpose. How to Talk About Health – Patricia’s Tip Focus on the positives: “Everyone wants to feel better in their bodies, and there is always something to work towards. Many ladies love to talk about fashion, and so we tell them, ‘You can fit into that outfit.’ There are always positives outcomes from a healthy lifestyle, and it’s much better to advertise those than to stress someone out about the consequences of poor health.”
“Health is a very sensitive topic,”
SPORT
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OLOKANI BRINGS HOME NAMIBIAN NATIONAL MOUNTAIN BIKE CUP
Kansanshi Cycling Team's Michael Olokani in action.
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Z
ambian professional mountain biker Michael Olokani has claimed victory in the first round of the Namibian national mountain bike cup, which also formed part of the UCI (International Cycling Union) junior world cup series. Olokani, of Kansanshi Cycling Team, endured a start-to-finish battle with three-time mountain bike olympian Mannie Heymans, and Windhoek based rider and coach Hans Du Toit. The hot, dry desert conditions presented a challenge to the Solwezi based Kansanshi Cycling Team, who have spent the past six months training in the abundant rains of North-Western Zambia and have been unable to race internationally since the COVID pandemic struck. The strong
results, however, indicate that with more exposure Zambia can expect continued improvement from its growing crop of talented cyclists. “This was my second international cross-country race,” said Olokani after the race. “Last time, I learned a lot. This time, I used that knowledge to win the race.” An experienced rider, now aged 31 and having competed in cycling for over 11 years, Olokani started the race conservatively and held fourth position at the end of lap one. On the second lap, he used his strength on the steep, rocky climbs to overtake third place and catch up to the leading pair. From this point, the top three riders were never more than 20 seconds apart. Positions changed frequently, as
PROFILE
Du Toit used his technical skills to gain time on the downhills and Olokani gained it back on the uphill. In the end, it was Olokani who took the victory in the sub-veteran men’s category. Fellow Kansanshi riders Ernest Mazabuka and Andrew Pyele finished in eighth and ninth places respectively in the elite men’s category, while Levy Pyele finished eighth in junior men, and reigning under 23 African champion Anita Yama finished fifth in the elite women’s category. “It is absolutely wonderful to have the Zambian riders at our events,” said Namibian Cycling Federation President, Axel Theissen. “We are very thankful to them for travelling all this way, and we will always welcome them in the future,”
“This was my second international cross-country race,” said Olokani after the race. “Last time, I learned a lot. This time, I used that knowledge to win the race.”
NEWS
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