Zambian Mining News Magazine - July/August 2013

Zambian Mining Magazine • July/August 2013

VOLUME 8 / ISSUE 49

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JULY/AUGUST 2013

MINING Z A M B I A N

M A G A Z I N E

T H E

P R E M I U M

S O U R C E

O F

M I N I N G

N E W S

I N

Z A M B I A

LOCAL KR29.95 INTERNATIONAL US$5.30

MORE TRANSPARENCY IN GEMSTONE SECTOR

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THE ZAMBIAN GOVERNMENT CALLS ON MORE TRANSPARENCY IN THE COUNTRY’S GEMSTONE SECTOR

zambia cracks down on miners over tax the zambia china economic coorporation zone maamba collieries buys new plant promising copper growth in offing - arm

ISSN 2308-006X

9 772308 006008

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July/August 2013 • Zambian Mining Magazine

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INSIDE:

Zambian Mining Magazine • July/August 2013

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FEATURES

Fire Protection 48 Tackling the mine safety challenge

Education & Training in Mining

50 Training courses for opencast mining in high demand

Mining Services

52 Control valve sizing program ensures precision of valve used 54 BMG’s bolt locking system used in mining applications

Safety

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56 Afrox receives R70m order for safety products

Pumps

58 Cost effective pumps and spares for Africa 60 Grooved mechanical piping increasingly popular 63 Company releases pump accessory 64 ECOCHEM Pumps establishes Zambian branch 65 Xylem to launch new mine dewatering pump

LOCAL

Special reports

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10 AOG’s upstream division Oryx Petrolium completes IPO 12 Gemfields in talks with Zambia over Singapore gem sale 15 Zambezi Resources sets sights on a $15m raising 18 Zambian government wants transparency in gemstone sector 20 Maamba Collieries buys new plant

Local News

17 Zambia cracks down on miners over tax 22 Outotec signs another contract with Kansanshi Mining Plc 24 Zambia China Economic Cooperation Zone - what the future holds 27 Maamba Collieries seeks $550m for Sinazongwe plant

INTERNATIONAL

28 BME Increases in-house manufacture of mobile mining units 30 What’s South Africa doing to become the mining & finance centre for Africa 32 LOESCHE supplies complete grinding equipment for Dangote’s cement plant in Ethiopia 33 DRC sees copper concentrate ban in full force by August 34 After years of superior returns, mining faces crisis in confidence 36 Engineering company to commission Mozambique equipment installation 40 Newly merged consulting engineering firm finding work across Africa and beyond 42 Ivanplats significantly adds to African projects’ resources 44 Tanzania says Russia’s ARMZ owes $206 in taxes 46 Tiger Resources hunts for new funding sources 47 Vale custs Mozambique coal export target by 30% 66 Asia copper processing fees hit highest in 5 months as india closes top smelter 67 Tenders | Jobs | Notices

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Advertorials

16 D&D Industrial 59 Caltech Pipe Systems (Pty) Ltd 69 Goscor Hi-Reach Publisher MTI Media Editor Chris Mutale (Acting) editor@miningnewszambia.com Editorial Contributors Morelove Mafu, Chis Mutale Sam Phiri, Joe Pwele Advertising Sales sales@miningnewszambia.com

Bruce Kakompe Arnold Chinyemba Mirriam Daka Virginia Simbale Don Chulu Mandla Sibanda Nkosilathi Muduyi Audrick Chigiji Maambo Hamboyi Design and Layout Tawanda S. Hojane tawandash@gmail.com

Address Lusaka Suite 113-114, First Floor, west wing, Compensation House (Cusa), Cairo Rd (Southend).

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July/August 2013 • Zambian Mining Magazine

Editor’s Note

CONSOLIDATING THE COPPER BOOM

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ambia has enjoyed strong economic growth of around 6% since 2006. This can largely be traced back to increase in the price of copper at the London Metal Exchange and the subsequent rise in production of Zambia’s main export commodity. Copper Mining is so central to the Zambian economy that all activities regarding investment in copper, the extraction process, the trading of copper and the profits thereof do not go unnoticed. Foreign Investment in mining copper, the plight of the workers on the mines, and the perceived benefits to the nation are topics of constant debate and analysis both by civil society and government because of its far reaching implications on the Zambian economy.

Zambia has since 2006 enjoyed expansion in mining activities due to a constantly rising price for the commodity. The question that still lingers in our minds is do Zambians really get the benefits of the greatest mineral resource ever to mined out of Zambian.

Despite various efforts in the past to diversify the economy away from huge dependence on copper, the fact on the ground is copper still remains the number one natural resource in the country and no amount of manufacturing, agriculture nor any other economic activity competes with copper mining as an income generator for Zambia. Historically, the mines are important to Zambia and the stability of the socio-economy because of the sheer number of people that they employ. The mines remain a constant source of balance in the politics and economics of the country because they affect so many people. Many families in Zambia depend on the success of mining for livelihood. As a result, the mines are often a bargaining chip for the government in negotiating with the mine owners

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themselves and the people of Zambia themselves. It is no surprise that the recent decision by the Konkola Copper Mines (KCM) to lay off 2000 workers all at once was quickly rescinded after all major stakeholders began to voice out their concerns.

As a nation Zambia has enjoyed economic growth of not less than 6% since 2006 and continues to do so today. Production of copper has risen from 330,000 tons per annum in 2002 to the current production levels of above 700,000 tons per annum. Zambia’s GDP over the same corresponding period has grown from $4 Billion to over $20 Billion.

It is easy to see why IMF and the World Bank have continued to forecast strong economic growth for Zambia. According the World Bank report released April 2013; economic growth in Sub-Saharan Africa is likely to reach more than 5 percent on average in 2013-2015 as a result of high commodity prices worldwide and strong consumer spending on the continent, ensuring that the region remains amongst the fastest growing in the world. The report states that recent discoveries of oil, natural gas, copper, and other strategic minerals, and the expansion of several mines or the building of new ones in Mozambique, Niger, Sierra Leone, and Zambia, together with better political and economic governance, were sustaining solid economic growth across the continent.

Despite Zambia’s current growth and boom in the mining sector, 70% of Zambians still live below the poverty line.

It would further appear that the mines despite soaring world commodity prices and increase in production recorded in the last ten years do not provide job security to the masses of people they employ. The recent hurried decision to lay off 2000 plus workers at KCM, and sudden reversal of

the same decision due to government and civil pressure leaves a sour taste in one’s mouth. It does not register a sustainable, fully functional investor / worker / government relationship where all stakeholders are content. For how long will this unstable, shaky relationship of convenience continue before some other factor propels discontent and unrest among the people involved? Are the benefits of mining going to be felt locally in a sustainable fashion to the extent that it affects other major developments, and contributes greatly to poverty reduction?

It is our considered opinion that in order to protect this volatile relationship the key stakeholders need to be in constant dialogue to discuss and deliberate over all key issues such as the rising cost of production, the price of the commodity which is said to have dropped in the recent past, and the social impact of the mining economy on the nation.

The economics of mining need to be in constant balance as far as all stakeholders are concerned. The stakeholders must not rush to meet when a crisis is at hand.

Strategic plans must be in place and must be constantly reviewed with a view to avert any looming potential crisis as a result of changing economic factors. This is achievable on a table of dialogue on which representatives must sit regularly.

This will ensure benefits for all from the mining BOOM. After all copper is a finite resource, when the mines can no longer extract the resource sustainably, the legacy of wealth created and consolidated from the process must still stand for many generations to come.

- Chris Mutale, Acting Editor

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July/August 2013 • Zambian Mining Magazine

News Briefs

Vedanta’s Zambia unit restarting Nchanga smelter ZAMBIA’S KONKOLA COPPER MINES, owned by Londonlisted Vedanta Resources, is restarting its Nchanga smelter, which halted production in April, the company said on Tuesday.

Production at Nchanga, which produces 311 000 t/y of copper, was suspended on April 19 after a leak through the wall of the furnace.

“The heating up at the Nchanga Smelter has resumed in preparation for full production

by Friday,” Konkola said in a statement.

The Nchanga smelter handles ore from mines including Lumwana, owned by Barrick Gold, and Lubambe, jointly owned by Brazil’s Vale and South Africa’s African Rainbow Minerals.

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DRC - copper concentrate concentrate ban in full force by July, August DEMOCRATIC REPUBLIC OF CONGO (DRC) expects its ban on the export of copper and cobalt concentrates to come into full force by July or August, as it presses mining companies to process and refine the metals within its borders, the Mines Minister said.

Congo, one of Africa’s top copper producers, is not alone among emerging resource-rich nations hoping to discourage exports of concentrates, the intermediate products that feed smelters and refiners.

But the unexpected plan to ban the export of concentrates, announced last month, was questioned by many in the industry, who pointed to acute electricity shortages that already severely hamper processing activities there.

The powerful governor of Congo’s copperproducing Katanga province Moise Katumbi has said he would not enforce the measure.

“I’m confirming the ban on copper concentrate,” Mines Minister Martin Kabwelulu told Reuters on Friday on the sidelines of a conference in Tokyo.

Miners will be given a three-month grace period to allow them to adjust their operations, he said.

“It will be fully enforced by July or August in order to allow mining operators to re-adjust themselves. The government is fully aware that mining operators have electricity problems,” the Minister said.

Kabwelulu said the government would also hold talks with mining companies operating in the country to discuss the issue of power supplies.

The ban is unlikely to affect major producers like Freeport McMoRan and commodities trader Glencore, which already process the bulk of their copper inside the country.

Kazakh miner ENRC, which exports concentrate to be processed across the border in Zambia, is likely to be among the companies hardest hit by the measure. It is commissioning a new mine, Frontier, which will produce 40 000 t of copper in concentrate in 2013.

Other miners currently exporting concentrate include Mawson West and Tiger Resources.

Congo attempted to introduce similar rules in 2007 and again in 2010, but each time the decision was reversed.

Equatorial Resources sees first Congo output by 2014 AUSTRALIA’S EQUATORIAL RESOURCES expects first output from its Mayoko-Moussondji iron-ore project in the Republic of Congo as early as next year, its CEO said on Wednesday.

Africa is seen as the next frontier for the resource, attracting mining companies which see the region as having the same potential as Pilbara, Australia, which produces about half the world’s seaborne iron-ore supply.

“The project has the potential to be in production in early 2014 and that is what we are aiming for,” John Welborn told Reuters on the sidelines of an Africa iron-ore conference in Cape Town.

The plan is to push out 300 000 t/y and then ramp up as quickly as possible to two-million tons in the first two phases. The third phase could see production boosted to between 5-million and 10-million tonnes a year. Global output for seaborne trade is just over onebillion tonnes.

Situated in the south west of the Republic of Congo, MayokoMoussondji is one of two whollyowned projects Equatorial Resources is developing in the country.

The ore body at MayokoMoussondji lies 500 m from an existing bulk commodity railway line that leads directly to the port of Pointe-Noire, said Welborn.

“The iron-ore assets that are actually attracting attention in Africa are the ones that have existing pathways to market,” he said.

Zambian Mining Magazine • July/August 2013

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Labat Africa moves into Namibia Oil and Gas

Vedanta’s KCM halts plan to cut 2,000 jobs in Zambia ZAMBIAN’S KONKOLA COPPER MINES owned

by London-listed Vedanta Resources, has stopped a plan to cut 2 000 jobs after holding talks with the government and

unions on the proposal, the company said on Wednesday.

“The redundancy programme originally proposed by the company has been put-off,” it said in a

statement.

“Significant progress has been made in identifying measures that will mitigate the company’s financial and business challenges

JOHANNESBURG STOCK EXCHANGE LISTED LABAT AFRICA on Monday said it aimed to invest in five oil and gas leases in Namibia.

Labat Africa had executed a letter of intent with Amicitia Holdings to purchase all the issued shares in Palatina Petroleum, thereby acquiring a majority participating interest in five petroleum exploration blocks, offshore Namibia.

Expectations were that the success marked by substantial discoveries in neighbouring Angola over the past decade, would be emulated in Namibia.

“This is an opportunity that was introduced to us by GEM [Global Engineering Markets], one of our shareholders. GEM will be the main funder for the development of the leases acquired by Labat,” Labat Africa CEO Brian van Rooyen stated.

Interest in African exploration was currently at an all-time high, as recent large discoveries in Tanzania, Angola and Ghana, together with the already developed Nigerian fields, have captured the attention of international investors.

It is projected that investments of billions of dollars would be made in exploration and development of the oil and gas industry in Southern Africa in the next decade.

Further, Labat was also considering investing in exploration possibilities in other neighbouring countries.

Scoping study proves up Mansa for Kaboko Mining A SCOPING STUDY for Kaboko Mining’s Mansa manganese project, in Zambia, has confirmed the project’s economics and mine plan.

Kaboko said on Tuesday that the completion of the mine plan was critical to the operating programme and pit design, and enabled the company to maximise efficiency and production at the Mansa project.

The scoping study also confirmed that the budgeted costs for production and logistics were in line with Kaboko’s expectations, with the cost of delivering a cost insurance and freight (CIF) product estimated at between A$190/t and A$210/t from the project.

Kaboko noted that given the recent lift in manganese prices, and the high-grade nature of the project, the scoping results were a timely positive for the company as it moved into production over the coming weeks.

Meanwhile, the scoping study also provided the foundation for a Joint Ore Reserves Committee- (Jorc-) compliant resource statement at the Mansa project, which would be completed following further exploration work, targeting the extension of the existing mineralisation zone, during this quarter.

Kaboko aimed to confirm the indicative high-grade manganese resource identified in the scoping study, as well as increasing the potential resource to establish a Jorc-compliant resource

Gold exploration begins in Zambia TWO TRENCHING TEAMS are already active in the field – Fugro Airborne Surveys has been contracted to undertake a low-altitude, airborne, highresolution magnetic and radiometric survey across an area of 400 km2. This area covers the existing mining licence and the extension along with the newly issued mining licence.

Fugro and Luiri Gold are now seeking permission to fly the survey.

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July/August 2013 • Zambian Mining Magazine

News Briefs

Copper prices remain at lowest COPPER stayed at its lowest in nearly six weeks on Wednesday amidst concerns over slowing demand in top consumer China and the outlook for the United States economic stimulus.

Three-month copper on the London Metal Exchange had risen 0.06 per cent a tonne, to US$7,069 after dropping to its lowest since May 3 earlier in the day.

And according to the London Metal Exchange, copper yesterday opened trading at cash buyer US$7,085.50 while cash seller and settlement was at US$7,086.00.

Three months buying at US$7,120.00 and three months selling at US$7,230.00.

And according to the Zanaco daily update, the kwacha continued to trade on the back foot against the dollar on Wednesday in a volatile trading session.

The local unit opened trading KR0.05 down at KR5.415/5.435 from the previous day’s close of KR5.410/5.430.

The kwacha pared its losses in volatile early morning trading as interbank driven supply as well as corporate pumped US dollars in to the market boosting the domestic currency to a high of KR5.390/5.410.

According to Zanaco market experts, a weak Kwacha is expected in the near term as demand from importers outweighs the supply of the greenback.

“It is likely to remain range bound to trade within the KR5.350 and KR5.450 boundaries. The money market experienced an upswing in liquidity levels,” experts project.

And the Banks Aggregate Current Account balance increased to KR841.4 million from the previous day’s levels of KR814.3 million Wednesday saw increased demand for interbank funds. The volume of funds traded was posted at KR336.0 million from KR265.0 million.

“Despite the increased demand for funds, the weighted average overnight lending rate dropped to 10.0 per cent from 10.3 per cent,” according to yesterdays Zanaco daily brief.

China Jiangxi spends $2.5m on green equipment CHINA Jiangxi Corporation has imported state-of-the-art anti-pollution equipment worth over 2.5 million dollars (KR13.7 million) for its asphalt plant.

The equipment will be critical for the production of asphalt materials for the construction of the world-class roads that had been designed for the Copperbelt.

The asphalt plant, which is under construction at Baluba area in Luanshya was being constructed at the same time with the crusher plant where the company would spend another US $2.5 million.

In an interview in Luanshya after the tour of the two plants under construction yesterday, project manager Long Anliang said the company had pledged to help President Michael Sata’s administration to meet the aspirations of Zambians in infrastructure development especially the construction of world-class roads on the Copperbelt and other parts of the country.

He said the importation of the giant antipollution equipment which was an advanced

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technology for the asphalt plant was an effort by the China Jiangxi Corporation to abide by the standards and the laws of the country on environment and pollution control under the guidelines of the Zambia Environmental Management Agency (ZEMA).

Long said the plant will be producing more than 200 tonnes of asphalt per hour while 250 tonnes of crushed concrete and flux stones would be produced from the crusher per hour.

He said with over US$5 million investment in the two projects, the plants will become the biggest in the country producing about 500 tonnes per hour of road construction materials.

Long said Chinese experts were in the country to design and work on the 64-kilometre stretch, the Ndola-Kitwe dual carriage way that will be modernised into world class standard once approvals are done.

He said the aim of the Copperbelt project that will start with the Kitwe-Ndola dual carriageway was to construct roads of international standards for the benefit of the people.

Lunzua Power Authority begins Kalungwishi hydropower works

LUNZUA Power Authority Limited has commenced preliminary works to develop the Kalungwishi hydropower project in Kawambwa’s Pambashe area following the signing of an implementation agreement with government.

And Kawambwa district commissioner Ivo Mpasa has appealed to the Zambia Environment Management Agency (ZEMA) to consider expediting the process of granting Lunzua a go ahead to commence the actual construction works of the Kalungwishi hydro power plant.

Speaking when he led a delegation of company partners to pay a courtesy call at Mpasa’s office yesterday, Lunzua chief executive officer Elisha Tsindikidzo said his company had commenced preliminary works that would be followed by the actual construction works of two hydro power stations on the Kalungwishi River.

Tsindikidzo said two hydro power stations would be constructed at Kabwelume and Kundabwika waterfalls on the Kalungwishi river in Kawambwa and Mporoskoso districts of Luapula and Northern provinces respectively.

He said the project that would cost US $648 million would be the second largest tier of investment in Zambia outside projects in the mines. “…the actual project itself derives its name from the Kalungwishi river on which we are going to construct the two hydro power stations. The project entails the construction of two power stations at Kabwelume Falls which will generate 96 megawatts and Kundabwika falls which will give 151 megawatts translating into a total of 247 megawatts of power,” Tsindikidzo said.

He said transmission lines covering a total distance of 220 kilometers

Zambian Mining Magazine • July/August 2013

would be put up to Kasama in Northern Province to connect into the national grid.

Tsindikidzo said the two hydropower stations would be 42 Kilometers apart, saying Kabwelume falls was upstream of the Kundabwika Falls.

He explained that the project expected to take three and half years would result into massive social benefits for the local people.

“We expect that this project is going to result into massive social benefits for this area because we are going to employ about 1,200 people during construction. We have also earmarked a budget in the project for the upgrading of the road network, and some schools and clinics in the area. We are very clear about that issue that there is got to be local social benefits apart from employment. That’s why we are focusing on issues relating to schools and clinics,” Tsindikidzo said.

He noted that the project would promote development of industries in both Luapula and Northern provinces, which could currently not be supported due to the transmission losses of power from Southern

Province to the two provinces that are at the tail end of power reception.

Tsindikidzo said the project would benefit Zesco because its implementation would result into significant stabilisation of the national grid once power was conveyed from the new hydro power stations.

He, however, said it had taken his company two and half years to negotiate with the government to sign the implementation agreement.

“It took us about two and half years negotiating with the government to sign the implementation agreement. In the implementation agreement we have dealt with major issues relating to this project like the water rights, land rights… because you need land surface rights to have your transmission power lines pass through certain areas and of course the environmental impact assessment. We are happy that government is going to grant us the necessary rights,” said Tsindikidzo.

And Mpasa described the Kalungwishi hydropower project as “a dream come true” and that he was confident that ZEMA would

KCM, Govt should guarantee security of workers’ jobs - SARW THE Southern Africa Resource Watch says it expects Konkola Copper Mines, the minework- ers unions and the government to work towards guaranteeing security of the jobs of 2,000 employees that were earmarked for a massive layoff.

KCM recently expressed intentions to lay off 2,000 permanent employees, citing high production costs, to which the government objected and the firm u-turned on the plans.

In a statement, SARW country campaign officer Edward Lange commended the three mine workers unions for the mature and responsible manner through which, together with the government line ministries,

they worked to ensure that the planned retrenchment at Konkola Copper Mines does not go on.

“The labour movement must now be extra alert and monitor the behaviour of KCM regarding its relationship with the many subcontractors, whose contracts have not been renewed.

According to a quick mapping exercise undertaken in Chililabombwe and Chingola districts to examine the impact of such, it is clear that indirectly the operators of KCM have gone ahead getting rid of the many subcontractors whose staff in most cases are youthful members of the community,” Lange

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give Lunzua a go ahead to begin actual construction works.

He said there would be no reason for ZEMA to delay in granting Lunzua a goal ahead if the company had complied environmental requirements.

Mpasa who assured Lunzua of a friendly reception by the local people expressed happiness that the Kalungwishi Hydropower Project which was a pipedream had now been fulfilled.

He said the construction of the Kalungwishi hydropower plant had come at a time when a lot of developmental projects were being undertaken in Kawambwa and the Luapula Province.

“What makes me so happy is that we are now going to have enough power especially that we are the last receivers of power that comes from Southern Province. We have a lot of projects that need adequate power to flourish.

The Luena Sugar Farm Block which will be giving us sugar needs enough power to run factories that will be set up,” said Mpasa

stated.

He stated that dialogue could give positive results but certain actions were avoidable.

Lange stated that in as much as it was appreciated that the 2000 permanent workers were now safe, SARW was concerned about the many sub contracted companies’ fate.

“Let KCM look beyond business and include the welfare of the host community in relation to how much wealth has been extracted from their land, just by continuing being a pillar of the local economy in the affected locations,” Lange sated.

He stated that the labour movements should not go to sleep but get to work and ensure that their members see the real benefits of belonging to unions,continuously and effectively communicating with both management and their members adding that in the extractive industries, time was of paramount importance as the country was dealing with extraction of diminishing assets, which could finish anytime and the country could be left referring to history. “As civil society, we have a moral obligation to ensure that the right information reaches the host communities and in good time and as such we shall continue with our dialogue with the government line ministries and with the operators through the chamber of mines, so as to ensure that there is harmony in the manner that business is done in this sector and support the concept of job creation through the exploitation of the available mineral resources for the benefit of the local citizens,” stated Lange.

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July/August 2013 • Zambian Mining Magazine

Special Report

AOG’s upstream division Oryx Petroleum completes IPO

The sister company of Copperbelt-based oil and gas supplier Oryx Energies Zambia, has successfully floated on the Toronto Stock Exchange, raising C$250 million Canadian dollars (equivalent to around ZMW1.3 billion)

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ryx Energies Zambia has a diesel fuel storage depot and a lubricants warehouse in Ndola, as well as a Liquefied Petroleum Gas (LPG) storage and filling plant.

Attached and below is a news release about

the IPO. Come back to me if you need any more information.

Oryx Energies has been in Zambia since 2007, where it has earned a competitive position thanks to sound local knowledge and market expertise, a solid reputation for product and service quality, and a fully-integrated value chain (from supply to storage and distribution).

Oryx Energies has a diesel fuel storage depot and a lubricants warehouse in Ndola, the distribution hub of the Copperbelt Province, servicing the mining and industrial north of the country and a full service depot in Lusaka, which reaches the southern and eastern provinces.

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Oryx Energies supplies fuels and lubricants to construction, manufacturing and mining enterprises as well as to the expanding agricultural and hospitality sectors.

Thanks to its strategically located gasoil and lubricants storage facilities Oryx Energies is well positioned to supply world class, certified lubricants, from its associated ISO 9001-2008 lubricants blending facility in Tanzania, as well as from third party sources.

Oryx Energies opened a Liquefied Petroleum Gas (LPG) storage and filling plant in Ndola in 2012. The operation currently has four service stations in Zambia, located in the capital, Lusaka, Ndola, Petauke. An additional five retail outlets have been identified for rapid branding and will increase the network of outlets, to provide fuel, LPG and quality lubricants to customers across the country, particularly in response to the needs for these services in rural communities, which have lacked access up until now.

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July/August 2013 • Zambian Mining Magazine

Special Report

Gemfields in talks with Zambia over Singapore gem sale Aim-listed Gemfields said on Monday that it was in discussions with the Zambian Mines Ministry over the auctioning of emeralds outside the country.

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he company had to postpone its June emerald auction in Singapore, pending clarification from the Zambian Ministry of Mines, Energy and Water Development regarding proposed restrictions on certain forms of emerald exports.

This related to Zambian Mines, Energy and Water Minister Yamfwa Mukanga’s announcement in April in which he seemingly restrained the auctioning of gems mined in Zambia outside the country.

Gemfields indicated that it was actively corresponding with the Mining Ministry to find solutions supporting the continued growth of its 75%-owned Kagem, as well as the wider Zambian emerald sector, as soon as possible.

Gemfields CEO Ian Harebottle stated that while there presently was no law in Zambia that prohibited the export of emeralds for auction purposes, the firm aimed to ensure that it worked

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collaboratively with the Zambian government, which the balance of Kagem.

He highlighted Kagem’s marked contribution to the country’s economy, quoting figures recently released by the Zambian Revenue Authority that showed that the mine paid about 80% of the gemstone sector’s aggregate royalties and that, last year alone, it paid about 40% of the total cumulative gemstone royalties collected in the seven-and-a-half years since 2006.

“As such, there is a strong incentive for all parties to ensure that the remarkable growth Kagem has enjoyed in recent years – and the benefits that this growth has provided for the wider Zambian gemstone sector – are not impeded,” Harebottle urged.

London-based mining analyst Liberum Capital said in a note to clients that Gemfields was rightly seeking clarity before progressing with its next sale.

“With Kagem representing the majority of Gemfields’ earnings, expect weakness in the shares today. We retain strong conviction in the long-term prospects in the coloured gemstone market. Positive resolution of this issue should serve as an opportunity for new investors to consider buying Gemfields shares as the best exposure in London,” the firm said.

Meanwhile, Investec Securities indicated that while it was disappointing that the Gemfields would not generate revenue in June as it awaited clarification, the company still had the stones to sell at an appropriate opportunity.

“We hope to see the Zambian government clarify and soften its stance on sales and allow the company to sell gems in regions where demand is strongest,” Investec Securities stated.

Gemfields traded 6.74% weaker on the London bourse on Monday morning.

Zambian Mining Magazine • July/August 2013

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July/August 2013 • Zambian Mining Magazine

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Zambian Mining Magazine • July/August 2013

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Zambezi Resources sets sights on a $15m raising ASX-listed junior Zambezi Resources is looking to raise up to A$15.4-million through an entitlement issue to complete the oxide bankable feasibility study (BFS) for its Kangaluwi copper project, in Zambia.

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ambezi said this week that it had reached an agreement with Patersons Securities to raise the capital through a seven-for-one renounceable pro-rata entitlement issue, at 1c a share, plus a one-for-three attaching option, also exercisable at 1c a share.

The entitlement would be partially underwritten to A$10-million.

Zambezi executive chairperson David Vilensky said that the raising would enable the company to eliminate debt and simplify its funding framework as it sought to secure the environmental-impact statement (EIS) for its Kangaluwi copper project.

The company would also look to terminate its current funding facility.

Upon the successful completion of the raising and the receipt of the outstanding EIS, Zambezi would finalise its oxide BFS at Kangaluwi.

Vilensky said that he was confident that the company had addressed all concerns in relation to the EIS, and had been advised of Presidential and government support for the project to move ahead.

“We look forward to receipt of the required EIS approval and finalising the BFS at Kangaluwi. We are focused

on what needs to be done to get this company into production and we are taking the steps required,” he added.

Vilensky noted that the raising, along with the divestment of the company’s noncore assets, would provide Zambezi with the platform from which to move towards its goal of becoming a low-cost copper producer by 2015.

The Kangaluwi project currently hosts an estimated mineral resource of 46-million tons, at 0.67% copper, for 300 000 t of contained copper. A number of geophysical targets are yet to be evaluated, with only 20% of the exploration targets tested to date.

“We look forward to receipt of the required EIS approval and finalising the BFS at Kangaluwi. We are focused on what needs to be done to get this company into production and we are taking the steps required,” - David Vilensky, Zambezi Resources

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outh Africa-based Dowson and Dobson Industrial has developed a reputation for being one of the most trusted suppliers to the African industrial market, following more than a century of industry-leading expertise. This continued success has prompted the company to expand its footprint in Sub-Saharan Africa, and Zambia in particular.

Dowson and Dobson Industrial has been providing a comprehensive range of worldclass products and after-sales service solutions to numerous industries since the company was originally formed in 1906. Today the company employs more than 39 staff members, located at five branches in South Africa, which include; Johannesburg, Cape Town, Durban, Richards Bay and Port Elizabeth.

Dowson and Dobson director John Yorke highlights the fact that the company is one of the few industrial merchants in Sub-Saharan Africa that stocks a comprehensive range of products, ranging from air filter and jointing compounds, to pneumatic components and pipe couplings. "The major products distributed by the company are manufactured in Europe and the USA, and meet the highest international quality standards and specifications."

Dowson and Dobson co-director Terry O’Kelly reveals that Zambia is of particular importance for the company's short-to-medium-term growth goals, as the rapidly developing economy has the potential to generate substantial demand for the majority of the Dowson and Dobson product range.

"Zambia is internationally-recognised as a major producer of copper and cobalt, and is ranked as the world's seventh largest producer of copper, generating 3.3 percent of the western world’s production. Zambia is also the world’s second largest producer of cobalt and, given our experience in the South African mining industry, it is clear to us that Zambia could benefit from Dowson and Dobson’s market offering,” he explains.

O'Kelly points out that the company is also currently in the process of identifying reputable distribution partners in key regions of Zambia, as well as Botswana, Kenya, Angola and Mozambique. "We have an extensive range of products and we are offering all of them based on local demand."

According to Yorke, Dowson and Dobson prides itself on being able to provide unrivalled after-sales care and technical support to its customers on an around-the-clock basis."Dobson and Dowson consistently maintains a stockholding of more than R3,5-million at its warehouses at any given point in time, thereby providing a significant offering to numerous industries that include, mining, manufacturing, engineering and construction."

Industrial products stocked and distributed across Africa by Dowson and Dobson include; • Ridgid professional tools for plumbing and pipe threading applications • Stag jointing compound • Band-It stainless steel clamping systems for electrical installation systems • Wilkerson compressed air preparation equipment for industrial factories • Waircom pneumatic automation products • Deprag screw driving tools and automation assembly technologies • Mighty Seven (M7) pneumatic air tools • Gesipa blind rivet and fastening tools • Nederman air filtration and dust extraction products • Fath Aluminium components such as brackets, nuts and bolts.

Yorke indicates that Dowson and Dobson will be paying particular attention to promoting user-friendly and cost-effective brands to the Zambian market. "The brands that we will be promoting in the region are Band-It and Stag, which both require minimal technical expertise. These products do not have to be imported and resold, thereby providing a price advantage for customers in the region. Despite these advantages, we have to anticipate challenges in terms of communication, although I am confident that by building strong relationships, this can be overcome."

For products of a more technical mature, O'Kelly notes that Dowson and Dobson plans to maintain its high level of service in Sub-Saharan Africa by sending out qualified specialists to the region, should the demand justify it. "These specialists will provide in-depth training in the correct application of the product, in order to ensure that the client receives maximum product value."

With focus on the remainder of 2013 and 2014, Yorke points out that Dowson and Dobson will also be increasing its focus on the African agriculture and construction industries.

"These sectors are drivers of the majority of African economies, and I am confident that we can gain measurable market share through products such as Ridgid, Band-It and Stag moving forward," he concludes.

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Zambian Mining Magazine • July/August 2013

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Local

Zambia cracks down on miners over tax Zambia plans to force companies to repatriate foreign currency earned from exports back to the southern African nation as part of an effort to crack down on tax avoidance, particularly in mining

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he country is Africa’s biggest copper producer.

Miles Sampa, deputy finance minister, told the Financial Times he expected details of the legislation, which will apply to all exports valued at more than $10,000, to be released in the next

few days.

Companies would be given 60 days to deposit the funds in a commercial bank in Zambia and would have to provide evidence to the bank, through supporting documents, of the reasons for transferring funds offshore, such as for dividend payments or for the import of equipment, he said.

Anyone importing goods valued at more than $10,000 would also have to provide documentation to show the goods had arrived.

Mr Sampa said the measures would enable ministers to monitor foreign currency flows and ensure companies were paying their full taxes. The government, which was elected in 2011 on a populist manifesto, has repeatedly complained that mining houses use “transfer pricing” to avoid taxes; it is estimated that the country is missing out on up to $2bn in annual revenue.

International companies with operations in Zambia include Glencore and Vedanta, both listed in London, First Quantum, listed in Toronto, and Vale of Brazil.

Frederick Bantubonse, general manager at Zambia’s Chamber of Mines, said the industry body was waiting to see details of the proposed legislation, which falls under the Bank of Zambia amendment bill, passed this year.

“In the act they are talking of taking measures to monitor the inflows and outflows of foreign exchange but that could mean anything,” Mr Bantubonse said. “Our fear is [that] if they are going to reintroduce foreign exchange control, they are going to cause a lot of harm to the economy.”

Zambia produces 800,000 tonnes of copper annually, and mines being developed could raise that figure to 1.5m

tonnes by 2016.

Mr Bantubonse said any measures to control foreign exchange were unlikely to cause companies to halt those projects, but added: “The operations could be scaled down and definitely the future investment will be affected.”

Mr Sampa said the measures did not amount to foreign currency controls and dismissed suggestions that they risked warding off foreign investors.

“Scare them how?” Mr Sampa said. “All investors that are doing everything above board . . . that are not doing anything illegal have nothing to be scared of – only the bogus investors,” he said. “The bad ones who have been doing bad things, getting Zambia’s copper and not paying tax deliberately due to transfer pricing; those we are not worried if they left.”

The government, led by President Michael Sata, has previously raised royalties on mining, arguing that the country does not benefit sufficiently from its mineral wealth.

Resource nationalism has been a rising trend across mineral-rich countries, which complain that they see little benefit from the extraction of their raw resources while mining companies reap the profits.

Despite abundant copper resources and average annual economic growth of 5.7 per cent in the past decade, six out of 10 Zambians live below the poverty line, according to the World Bank.

Mr Sampa said the mining sector contributed 5 per cent to government revenue, a figure he hopes will rise to 20 per cent as a result of the planned legislation.

“At the moment the situation is win on one side – only the shareholders are winning; the people of Zambia are still in abject poverty,” he said.

Action Aid, a pressure group, released a report in February in which it alleged that Associated British Foods, the London-listed group, had avoided paying millions of dollars in taxes to Zambia on its sugar operations in the country by exploiting loopholes in the tax regime.

The report estimated that Zambia had lost tax revenues of $17.7m since ABF took a majority stake in Illovo Sugar, which owns Zambia Sugar. ABF said: “Illovo denies emphatically that it is engaged in anything illegal, immoral or in any way designed to reduce the tax rightly payable to the Zambian government.”

Mr Sampa said the government was still looking into Action Aid’s allegations.

The legislation could come into force from mid-August, he said.

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July/August 2013 • Zambian Mining Magazine

Special Report

Zambian Government wants transparency in gemstone sector

FINANCE deputy minister Keith Mukata says the government wants to ensure transparency in the gemstone sector is improved.

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peaking during the two-day Zambian Emerald Summit in Lusaka last month, Mukata said transparency was important in developing Zambia’s gemstone sector.

“The gemstone sub-sector in Zambia has for a long time now remained shrouded in mystery and secrecy. This unfortunate scenario has been exacerbated by the wanton propensity not to declare correct volumes of production and sale values by some unscrupulous miners, as well as illegal buying and exporting of gemstones,” he told delegates. “It is our inescapable duty however, to demystify the issues at play in the gemstone sector and I wish to assure this gathering and the nation that the Patriotic

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Front government remains committed to putting in place specific measures aimed at ensuring that Zambia reaps maximum benefits from our gemstone endowment.”

The need for open dialogue between industry and the government, and full disclosure of revenues and profits as well as export quantities and values was a central theme during the two-day Zambian Emerald Summit in Lusaka last week.

Zambia, like other African countries, wants to extract more revenue from their mining industries.

In this view, the government last year brought in guidelines for mineral exports to allow state agencies to verify weight and content to enhance transparency.

Zambian Mining Magazine • July/August 2013

Government estimates showed the country was losing as much as US$1billion each year through tax avoidance.

Sean Gilbertson, executive director of London-listed Gemfields plc, also agreed with Mukata on the need for greater transparency in the gemstone sector in Zambia.

Gilbertson said transparency was the key to developing Zambia’s gemstone sector and ensuring the nation’s industry becomes a leading player on the world’s stage.

Such disclosure would ensure a level playing field for miners, and clamp down on the illegal trade in stolen stones and unlicensed extraction, explained Gilbertson who also called on the government make available the data for everyone to see what was going on in the sector.

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“You cannot manage what you cannot measure. We have to have the information to make the right decisions,” he said.

Gilbertson also called for a stable regulatory environment to enable the sector to offer the market a consistent, reliable and secure supply.

The government this year banned the auction of gemstones outside the country in a move some analysts said would force miners to scale down their investment.

www.miningnewszambia.com

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July/August 2013 • Zambian Mining Magazine

Special Report

Maamba Collieries buys new plant

MAAMBA Collieries Limited has procured a brand new coal handling and processing plant with a capacity to process 2.4 million tonnes of coal per year.

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ccording to company head of corporate affairs Janardhan Lavu, the expected output of 2.4 million tonnes from the new handling and processing plant is more than enough to supply the entire Zambian industries that use coal.

“The CHPP( coal handling and processing plant) discharges zero effluent to the environment. Our strict adherence to environmental requirements culminated into the company winning the 2012 Zambian Environmental Management Agency award,” he said during a briefing in Lusaka last month.

Lavu said the company had also dismantled old power lines that were passing through active mining areas and had erected new ones to promote safety in the process of improving the quality of mining.

He also said Maamba Collieries was currently in the process of recruiting 80 engineers who would become part of the operation and monitoring team to carry out regular operation and maintenance works once the 300MW thermal

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power plant under construction is completed around next year.

“Currently, Maamba Collieries is funding to the tune of US$4 million, for the resettlement of 102 households and shops, which will be relocated to facilitate the construction of power lines and water lines for the thermal power plant.

We are constructing superior quality and permanent houses which will have access to better amenities such as roads, electricity, water which are non-existent in the affected areas presently,” Lavu said.

He said Maamba Collieries would remain closer to the people by providing various services under their corporate social responsibility programmes.

Lavu added that the company had spent over US$829 200 on key projects such as the construction of bridges, funding medical camps, construction of roads, solid waste management, education, recreation facilities and donations to various needy social sectors

Zambian Mining Magazine • July/August 2013

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July/August 2013 • Zambian Mining Magazine

Projects Local

Outotec Signs another contract with Kansanshi Mining Plc

Outotec has signed yet another contract with the Zambia-based mining company Kansanshi Mining plc following last year’s contract for the design and delivery of a gas cleaning system and a sulfuric acid plant.

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he Zambian company operates a large copper mine and selected Outotec to build the world’s largest metallurgical sulfuric acid plant downstream of its new copper smelter. The contract is valued at approximately over EUR 80

million.

The new gas cleaning and sulfuric acid complex will be part of the overall copper smelting facilities located in Solwezi, North-Western Province, Zambia. The acid plant will process off gas from the copper smelter and the acid produced will be used for leaching nearby at Kansanshi Mining’s copper plant.

The scope of Outotec’s delivery includes basic and detail engineering, procurement and the supply of proprietary equipment for the gas cleaning system and acid plant. In addition, Outotec will also provide advisory services for construction and commissioning to the overall project scope. Kansanshi Mining is a subsidiary of First Quantum Minerals Ltd, a rapidly growing mining and metals company currently operating a number of mines and developing several projects worldwide.

Outotec’s track-record as the leading provider of sulfuric acid technology - more than 600 plants have been delivered worldwide - was a major factor in the Zambian company’s decision to select Outotec.

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“This is a very exciting project for us not only due to the size of the acid plant, but also because the client has made it very clear they want a world-class plant design incorporating the highest environmental standards,” stated Outotec’s president and CEO Pertti Korhonen, adding “We take pride in our role as a global leader of sustainable solutions to the industries we serve and winning projects on this scale simply confirms our status. Environmental standards set by the World Bank will serve as the benchmark for the project.”

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July/August 2013 • Zambian Mining Magazine

Local

The Zambia China Economic Cooperation Zone - What does the future hold Words By Chris Mutale

The Zambia China Economic Cooperation (ZCCZ), dubbed China’s first overseas trade cooperation zone has been existence now for 6 years since it was first established in February 2007 by Zambia’s late President Levy Mwanawasa and China’s then President Hu Jintao

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his initiative was engineered to be a close working partnership and a mutually beneficial economic relationship between Zambia – a nation with resources and market potential to be exploited and China – a massively rising world economic power proving its readiness to do BIG business with Africa.

Founded by China’s state owned China Non Ferrous Metal Mining Group Company (CNMC) Ltd, and riding on the legacy of the TAZARA built 40 years ago in the 1970s, the strength of bilateral relations between the two nations cannot be understated, this initiative is an economic milestone for both nations.

The facts of the partnership speak for themselves. Over the last 6 years this venture which makes it Zambia first multi facility economic zone has attracted over 17 Chinese companies’ bring in an unprecedented financial investment amounting up to almost US $1 billion, approximately 12000 jobs have been created, a total of US $4.35 billion in total revenues realised and around US $500 million generated in taxes.

The CNMC driven program has involved the construction and setup of NFC Africa Mining Plc, the Chambeshi Copper

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Smelter, Sino Metals Leach Zambia Ltd, and Sino Acid Products Zambia Ltd among others.

So approximately half a decade after inception of the zone, we ask the question, where to from here for both nations involved? Is this partnership proving to be a mutually beneficial undertaking and are both parties happy with the progress so far?

Financial Investment In terms of foreign investment coming into a nation that is desperate for it, this has been a great success. China’s investment stock in Zambia has grown from approximately

Zambian Mining Magazine • July/August 2013

US $150 million in 2004 to US $1 billion in 2012 making Zambia the third largest country in terms of Chinese investment in Africa after South Africa and Nigeria.

Economic Development The developer is responsible for providing the on-site infrastructure, including roads; telecommunications; electricity and water supply; and facilities for administration, commerce, exhibitions and training. Although designed to attract primarily Chinese private capital, the zone is open to other foreign investors as well as local entrepreneurs. There is, however, an investment threshold of $500,000. All foreign investors are required to be registered within Zambia.

The CNMC, the formal developer having approached the Zambia government as far back as 2004, administers the zone through ZCCZ Development Limited, a subsidiary which was created for that purpose and registered in Zambia. The ZCCZ has head offices in Kitwe and Lusaka, and is in charge of developing the zone (the Chambishi and Lusaka East subsections). Its responsibilities range from general planning and coordinating on-site construction to attracting investors. The ZCCZ is also responsible for liaising with and providing quarterly reports to the Zambia Development Agency (ZDA), which is the Zambian government body responsible for coordinating all economic zones.

The Chambishi ZCCZ occupies an area of 11.58 square kilometres within the mining concession of the NFCA in Kalulushi Municipality in the Copperbelt Province. Set in a mining area, the zone aims to channel investment primarily into non-ferrous metals metallurgy (copper and cobalt) and to process by-products (including electrical wire and cable, mine equipment, construction equipment, chemical products, fertilisers, and pharmaceuticals) and provide supporting services such as storage, transportation and housing. Production is aimed at supplying the local and regional markets.

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The Lusaka East ZCCZ covers an area of 5.7 square kilometers adjacent to Lusaka’s international airport.

Taking advantage of its proximity to the airport facilities, this subsection was designed to work as an international commercial hub. It aims to create a light industry cluster including manufacturing, assembly and packaging of goods as well as other sectors such as garment and foodprocessing, wholesale facilities, logistics and real estate.

TAX Incentives The preferential tax policies to be implemented inside the zone follow closely the incentives stated in the (Multi Facility Economic Zone) MFEZ Act. Investment incentives in the Chambishi and East Lusaka ZCCZs are the same. These are exemption from tax on dividends for five years from the year of first declaration of dividends; 0% corporate tax for five years from the first year profits are made, with 50% of profit to be taxed in years six to eight, increasing to 75% in years nine to ten; 0% import duty rate on raw materials, capital goods and machinery for five years; and deferment of VAT on machinery and equipment imports.

Infrastructure The Chambishi ZCCZ is currently China’s only export trading economic zone in operation in sub-Saharan Africa and, even then, only partially so. The current infrastructure in place includes the main gate, a smelter, the administration building, basic roads, a power supply station and a number of buildings under construction. The on-site infrastructure, phase 1 was completed at the end of 2011. The master plan has been designed to accommodate 50 to 60 companies.

As of July 2011, 14 investors (the majority of which are Chinese) had settled inside the zone with accumulated investment nearing $1 billion. Most of these can be traced back to the CNMC, as a significant number of the investors are subsidiaries of or companies affiliated with the CNMC. Most of the remaining companies are Chinese construction companies carrying out infrastructure projects in the zone.

They have registered inside the zone to enjoy the incentives it provides. According to ZCCZ Development Limited, negotiations are underway with a few more investors, including local entrepreneurs. The biggest showpiece inside the zone is the copper smelter, recruiting nearly half of the employees working inside the zone 1300 of which are Chinese.

Challenges Although six years have passed since its launching, the Chambishi ZCCZ is only partially operational and struggling to produce expected benefits for the domestic economy.

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July/August 2013 • Zambian Mining Magazine

Some sectors of Zambian society have criticised the slow pace of development of the Chambishi ZCCZ, which has been under construction for six years. Many Zambians claim it has failed to stimulate Zambia’s manufacturing sector and job creation, and have accused the CNMC of being mostly interested in minerals extraction.

Almost four years after its launching, the Lusaka East ZCCZ, where 13300 jobs are expected to be created, is still at an early stage of infrastructure construction.

Nonetheless, there are already interested entrepreneurs and the subsection is expected to start receiving meaningful investment very soon with all strategic agreements fully implemented by government and CNMC. The main implementation challenge seems to be the poor condition of infrastructure surrounding the ZCCZ. Although there is a transportation network in place – in the form of a national road and railway – it needs to be rehabilitated and extended. The current state of the railway network seriously compromises not only supply to the zone but also product distribution to national and regional markets.

Another major obstacle is the lack of a strong cohesive roadmap to ensure the necessary domestic spillovers, such as transfer of expertise and technology and integration of the domestic private sector. Local entrepreneurs feel left out because the investment threshold has been set too high.

Local suppliers also fear this will be a missed opportunity.

The loose regulations on local content enable investors to choose their supply sources for various supplies.

There are a number of fundamental differences that have

caused controversies during the implementation phase of the ZCCZ. These include differences in work ethics, business culture and the language barrier. These differences have been particularly problematic when it comes to labour issues. The stipulation of Zambian law that most labour be hired locally has placed a large pool of local workers under Chinese management. This has created serious misunderstandings, mostly owing to a large gap between Chinese labour practices (including longer hours, lower salaries and lower safety standards) and local work ethics, being shaped primarily by western standards.

The Future In conclusion, it is too early to state as to whether the ZCCZ has failed or it is a success. We must continue to observe and see how far this opportunity can go in fulfilling the aspirations of both nations. A lot more information needs to get to the Zambian entrepreneurs on the ground as to how they can participate and exploit this opportunity. Another key aspect to be handled by government and all its stakeholders is the infrastructure around the ZCCZ, specifically the rail network. It has been a topic of much discussion recently in Zambia leaning on the fact that the railway system needs to be revamped and extended. We are still waiting to see concerted efforts in this direction. The economic zone is a great idea that still needs a lot of work with respect to the implementation process; this includes pulling together the necessary resources from both the Zambian as well as the Chinese sides. www.miningnewszambia.com

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Zambian Mining Magazine • July/August 2013

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Maamba Collieries seeks $550m for Sinazongwe plant MAAMBA Collieries Limited is seeking to complete raising US$550 million in debt financing for its coalfired power plant in Sinazongwe by October, a company official said Janardhan Lavu, corporate affairs manager, said the company was in talks with several lenders, including development institutions that have expressed interest in funding Maamba’s power-plant project.

“We are progressing well on raising the US550 million. There are a lot of banks that have shown interest to finance the project but at the moment I cannot disclose details,” he said in an interview.

“But most of the banks that have shown interest are international banks.”

Maamba has already commenced the construction of a 300-megawatt power plant next to the coal mine it owns in Southern Province.

“Construction works are also going on well and we are on schedule. We

have done 30 per cent works in the first phase of the project,” Lavu said.

The plant under the first phase would start producing 150 mega watts of power by October 2014, while the company is expected to embark on the second phase in 2015 and complete it the same year, he added.

The Maamba plant, once operational, would become Zambia’s first coal-fired power plant in 50 years.

Maamba, 65 per cent owned by

Nava Bharat of Singapore and 35 per cent owned by the Zambian government through ZCCM Investments Holdings Plc, will depend on selling electricity to state-owned power utility Zesco Ltd to cushion the power deficit in the country, said Lavu.

Maamba currently sells about 30,0000 tonnes of coal to local cement factories, steel plants, copper mines and fertiliser makers per month. www.miningnewszambia.com

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July/August 2013 • Zambian Mining Magazine

International

BME increases in-house manufacture of mobile mining units Increasing the in-house manufacturing of its mobile mining units (MMUs) is helping explosives supplier BME to further improve its client service levels and market penetration in Africa.

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ME has been custom-building its MMUs using its own facilities and outsourcing its manufacturing needs to keep up with demand.

“Our rapid growth in African markets has given us the opportunity to add more capa- city to manufacture in-house and we have also streamlined our processes so that we can cut lead times dramatically,” says BME senior manager of operations Tinus Strauss.

Although the company has always manufactured most of its MMUs, long lead times from external engineering suppliers were creating a bottleneck for the fast-growing company.

Owing to strategic investments over the last few years, BME can currently produce more than 50 units a year from its factory in Middelburg, Mpumalanga, he notes.

The trucks can deliver any formulation, such as pure emulsion explosives, doped emulsion, heavy ammonium nitrate and fuel oil (ANFO) to mining sites. This provides the logistical backbone to the mine’s supply line of the required explosive blend.

The two truck types – emulsion units and heavy ANFO units – are built to exacting design specifications, as BME is accredited by the South African Bureau of Standards (SABS) as a body builder. The SABS also certifies each unit before it is commissioned.

Using a standard cab-chassis sourced from established truck manufacturers, the company has been refining its MMU design and components to produce a highly efficient on-site solution for opencast mining operations.

“BME’s core business is blasting, so we systematically gather feedback from our teams in the field to constantly improve

what we design and build,” says Strauss.

With more than two decades of experience in engineering these trucks, the company has become an expert in customising each one to suit the particular mining application.

BME’s operations in African countries, which include Namibia, Zambia, Zimbabwe, Botswana, Mali, Mauritania and the Demo- cratic Republic of Congo, are often at remote locations, demanding special attention to logistics and ease of maintenance.

“We have ensured that our MMUs not only deliver quality service to our blasting teams on site but are also robust and as simple as possible to work on. “This helps keep availability high by reducing the chance of downtime,” he adds.

Skills sharing by BME experts also boosts the technical ability of on-site mechanics and ensures the units’ longevity.

“At our mining sites in Africa, we support the local mechanics by providing our own specialised technicians to share expertise and provide training in the maintenance of the MMUs,” Strauss notes.

To ensure that replacement parts are readily available on site, BME has also put its own regular transport channels in place to reach Southern African operations. The high levels of local content in the units make it easier to source service parts and contribute substantially to the health of the local engineering sector.

Prof Chirwa.

Transport and communications permanent secretary Dr Muyenga Atanga, who witnessed the signing ceremony during a familiarization tour of KCM, said the government was clear on ensuring the railway network was revamped to decongest traffic on major trunk roads.

He said it was the government’s plan ensure most of the 98 per cent cargo currently being hauled on roads to and from Dar- EsSalaam was carried by rail.

“We want the nation to know that KCM is a pillar to this economy and we will do everything possible to ensure that this agreement becomes fruitful because it is within the government’s policy,” said Dr Atanga.

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Zambian Mining Magazine • July/August 2013

29

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July/August 2013 • Zambian Mining Magazine

What’s South Africa doing to become the mining & finance centre for Africa?

Local

A

frica’s minerals potential is being commented upon increasingly at the highest of levels.

The Cameroon-Congo-Gabon region is being likened to Australia’s iron-ore-rich Pilbara and the coking coal resources of Mozambique-South Africa-Zimbabwe to Australia’s Bowen Basin.

It is said to be only a matter of time before the Democratic Republic of Congo-Zambia region overtakes Chile as the world’s major producer of copper, with cobalt as a valuable co - product, to boot.

What is South Africa doing to become part of these potential economic developments that are expected to take place on its doorstep?

It is almost three years ago to the day since Xstrata CEO Mick Davis told those who attended his stimulating talk at the Wits Business School that South Africa has an outstanding opportunity to become a centre of mining finance for Africa.

Davis grew the London-listed Xstrata, which may now team up with Glencore, led by fellow South African Ivan Glasenberg, from a $500-million entity into a globally diversified $50-billion contender.

Investec Asset Management strategist Michael Power sees the commodities supercycle – which ran from 2000 to 2008 – as something that is merely “resting between courses”.

While China added an Australia to its economy last year, www.miningnewszambia.com

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Zambian Mining Magazine • July/August 2013

it could, he wrote, be adding a Germany every year by 2020, Power wrote in an article first published in the China Daily and then Business Day. He foresees volume- and cost-focused companies becoming the real winners in the more substantial and subtler main course to come.

Chamber of Mines of South Africa senior executive Roger Baxter says there are significant opportunities for mining inherent in the United Nations population division’s expectation that, by 2050, three-billion more people will urbanise, 800-million of them in Africa, where the population will double to two-billion people, and more than a billion of them in India, China and the rest of Asia.

Investec Securities analysts Hunter Hillcoat and Marc Elliott speculate whether the possible increased but separate involvement of Glencore and Xstrata in ironore in Cameroon-Congo-Gabon could be the start of an assembling of companies, governments, financiers and end-users in a region that could give the iron-ore Top Three of Vale, Rio Tinto and BHP Billiton a run for their money.

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July/August 2013 • Zambian Mining Magazine

International

LOESCHE supplies complete grinding equipment for Dangote’s cement plant in Ethiopia special challenge for the layout of the grinding equipment.

Additionally to the mills and the mill motors, Loesche will deliver metal detectors and mill rotary feeders. The supply is a split-up of Loesche key parts and a Chinese manufactured portion arranged by Sinoma International under supervision of Loesche. Delivery is scheduled at the beginning of 2014.

On behalf of Dangote Industries (Ethiopia) PLC the management of Sinoma International Engineering Co. Ltd (NCDRI) will rely exclusively on Loesche grinding technology.

For the new grinding plant Menagasha in Ethiopia Sinoma International Engineering Co. Ltd (NCDRI) who has for many years been a customer in favour for Loesche Mills has once again decided for Loesche’s vertical roller mills for this project.

Four Loesche Mills will be included in the process: for the raw material grinding plant one Loesche Mill Type LM 69.6 will be installed for the grinding of cement raw material at a product range of 450 t/h (max. 490 t/h) with a fineness of 10 percent R DIN 0,09 mm. The mill motor capacity for the LM 69.6 will be 6.000 kW. One Loesche Mill Type LM 28.3D for the coal grinding plant will be implemented to grind local and imported steam coal. The product range of this vertical roller mill will be 50 t/h with a fineness of 12 percent R DIN 0, 09 mm. The mill motor capacity for the LM 28.3D will be 800 kW. Clinker with components such as gypsum, limestone and pumice will be ground in the two Loesche Mills Type LM 53.3+3C to be erected in the clinker grinding plant.

The product rate of clinker type CEM I A-L 42, 5 will be 155-168 t/h at 3.200 Blaine while the product rate of clinker type CEM II 32, 5 will be 230 t/h at 3.500 Blaine. The mill motor capacity for the LM 53.3+3C will be 4.650 kW. Both, the plant elevation of 2.600 m above sea level as well as the very bad grind ability of the cement raw material were a

www.miningnewszambia.com

About Loesche Loesche is an owner-managed, export-oriented company, which was founded in Berlin in 1906. Today, the company operates from its head office in Düsseldorf and has subsidiaries, representatives and agencies around the world.

In 1928 Loesche built the first spring-loaded air-flow mills, which even today are still known as Loesche mills. Nowadays, Loesche vertical mills form the core of many plants used to dry-grind coal, cement raw materials, granulated slag, industrial minerals and ores.

Thanks to its grinding plants with throughputs of 2 to 300 t/h for the cement industry and self-inert, central coal-grinding plants for hard and brown coal power stations, Loesche is the global market leader for vertical mills and turnkey grinding mills.

Loesche supplies turnkey plants, which are individually planned and built for the required process steps. This includes plants for processing, material storage, transportation and delivery, vertical mills, hot-gas generators, filter and separator systems, complete automation technology, plants for all aspects of construction above and below ground, steel construction and piping systems.

The company has EN ISO 9001 certification and the grinding plants themselves are compliant with national and international safety regulations.

At present, around 330 people are employed at the company's head office in Düsseldorf, with around 600 employed worldwide.

Zambian Mining Magazine • July/August 2013

33

International

DRC sees copper concentrate ban in full force by August

D

emocratic Republic of Congo (DRC) expects its ban on the export of copper and cobalt concentrates to come into full force by end of August, as it presses mining companies to process and refine the metals within its borders, the Mines Minister said.

Congo, one of Africa's top copper producers, is not alone among emerging resource-rich nations hoping to discourage exports of concentrates, the intermediate products that feed smelters and refiners.

But the unexpected plan to ban the export of concentrates, announced last month, was questioned by many in the industry, who pointed to acute electricity shortages that already severely hamper processing activities there.

The powerful governor of Congo's copper-producing Katanga province Moise Katumbi has said he would not enforce the measure.

"I'm confirming the ban on copper concentrate," Mines Minister Martin Kabwelulu told Reuters on Friday on the sidelines of a conference in Tokyo.

Miners will be given a three-month grace period to allow them to adjust their operations, he said.

"It will be fully enforced by July or August in order to allow mining operators to re-adjust themselves. The government is fully aware that mining operators have electricity problems," the Minister said.

Kabwelulu said the government would also hold talks with mining companies operating in the country to discuss the issue of power supplies.

The ban is unlikely to affect major producers like Freeport McMoRan and commodities trader Glencore, which already process the bulk of their copper inside the country.

Kazakh miner ENRC, which exports concentrate to be processed across the border in Zambia, is likely to be among the companies hardest hit by the measure. It is commissioning a new mine, Frontier, which will produce 40 000 t of copper in concentrate in 2013.

Other miners currently exporting concentrate include Mawson West and Tiger Resources.

Congo attempted to introduce similar rules in 2007 and again in 2010, but each time the decision was reversed.

www.miningnewszambia.com

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July/August 2013 • Zambian Mining Magazine

International

After years of superior returns, mining faces crisis in confidence Global mining net profit declined by some 49%, to $68-bilion last year, as lower commodity prices and higher costs hurt the bottom line, PricewaterhouseCoopers (PwC) reported.

I

n its tenth annual review of the global mining trends, PWC noted that the mining industry was facing a crisis in confidence, ending years of outperformance and superior returns.

“The first four months of 2013 have been rougher and tougher than at any time in the past decade, with market values plunging $220-billion, or 18%, for 37 of the world’s Top 40.

“After years of outperformance and superior returns, the industry is now facing a crisis in confidence,” PwC Australia’s mining leader Jock O’Callaghan said.

This crisis in confidence has also translated into board changes, with half of the top ten companies having their CEOs replaced in the last 12 months.

The PwC report stated that the market had, among others, lost confidence that costs could be controlled, that new CEOs could deliver on promises, that commodity prices would not collapse and that resource nationalism would not overwhelm the industry.

The 40 biggest mining companies bumped up production volumes by 6% in 2012, but softer commodity prices meant that revenue of $731-billion was only the second year in a decade that mining revenue did not increase.

Operating costs have grown faster than production, with cost inflation in double digits. Employee numbers rose 2% but average employee costs were up 13%. Higher costs to develop lower-grade assets in increasingly remote locations led to a 10% fall in return on capital to 8%.

The report noted that boards and management had heeded investor calls for greater returns, pushing dividends 9% higher to a record $38-billion on a payout ratio that grew from 25% in 2011 to 60% in 2012. Since 2009, dividends

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have improved more than 150% from $15-billion.

PwC noted that management also started to shift focus, with more attention now placed on managing productivity and improving efficiencies, rather than just increasing production volumes.

“CEOs have told us that now, more than ever, capital expenditure to meet long-term demand will be rebalanced with returns to shareholders. Eight of the top ten have publicly announced that they will maintain or increase current dividend levels,” PwC added.

It was expected that the Top 40’s capital spend would also drop from $140-billion last year to some $110-billion in 2013, as projects were being deferred or scaled back.

On the demand side, the long-term fundamentals were still in place, PwC said, adding that China consumed around 40% of global metal production and would continue to be the industry’s most important customer.

While Chinese growth rates were slowing down, they were coming from a bigger base. This, combined with the continued emergence of large developing economies such as Brazil, India and Indonesia, meant future demand for commodities was healthy.

“But regaining investor confidence depends on how the industry responds to its rising costs, increasingly volatile commodity prices, and other challenges such as resource nationalism.

“Now is the time to show that the industry can deliver in good times and bad. While currently there may be a confidence crisis, we have faith that the long-term fundamentals will ensure mining is a great industry to be in for many years to come,” the advisory firm said.

Zambian Mining Magazine • July/August 2013

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July/August 2013 • Zambian Mining Magazine

International

Engineering company to commission Mozambique equipment installation

Global engineering company FLSmidth is currently expediting new orders for materials handling and minerals processing equipment for a long-term coal client in the Tete region of Mozambique.

T

he minerals processing equipment will see Africa’s largest horizontal filters installation being commissioned in 2014.

Together with six horizontal belt filters supplied

by FLSmidth during the first phase of this operation in 2009, the additional six units, each 4.2 m wide and 29.5 m long, will create a total filter area of 1 488 m2.

Delivery will take place from November 2013 and FLSmidth will provide the design, detailing, fabrication, delivery to site, erection assistance, commissioning, performance testing and training operations.

The minerals processing package includes the supply of four RC3000 reflux classifiers (RCs) and 28 centrifuges.

The RCs, with diameters of 3 m and capacities of between 200 t/h and 250 t/h, are the largest in the range and the first being manufactured. This is also the largest order for RCs that FLSmidth has received to date for an installation in Africa.

Each RC will have a built-in protection screen to prevent oversize material entering the system. Further, to ensure a successful handover to the client and favourable operation, the FLSmidth team will provide operational assistance for six months after commissioning.

The centrifuges on order comprise 16 coarse coal VM1500 centrifuges and 12 fine coal FC1200 centrifuges, which will be supplied in a staggered delivery from early 2014.

The materials handling package involves a conveyor system comprising 33 conveyors, four silos and six feeders, as well as a repeat order for a run-of-mine (RoM) tip.

The conveyors have different belt widths of between 1 200 mm and 2 100 mm, with capacities of between 1 200 t/h and 6 000 t/h. This order also entails design, detailing,

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fabrication, supply, delivery to site, erection supervision, commissioning and assisted operation. The order also includes all mechanical and structural components, such as transfer towers, silo chutes, magnets, belt scales, lubrication system, skirts and supports.

The 4 800 t/h RoM tip comprises a bin; two flight bar feeders; two primary, two secondary and two tertiary sizers; and two sizing screens, including supporting steel structures/stations and ancillaries. The capacity of the sizers is between about 2 000 t/h and 4 000 t/h and there are two sizing stations – one for tip and primary sizing and the other for secondary and tertiary sizing and screening.

All mechanical, structural and electrical work on the conveyor and RoM tip orders will be conducted in-house by FLSmidth Roymec, with FLSmidth providing assistance on the electrical scope of work.

On the RoM tip package, FLSmidth will supply the relevant equipment, including its reliable Abon sizers and Buffalo feeder breakers. In line with FLSmidth’s one-source strategy, full life-cycle support for all equipment supplied will be provided from the FLSmidth service centre in the Tete province of Mozambique.

“The coal industry is one of FLSmidth’s six focus industries and, with the recent acquisition of manufacturing company Ludowici, FLSmidth offers a complete range of equipment for this industry – a decisive factor for this order,” says FLSmidth Group CEO Jørgen Huno Rasmussen.

“Further, this contract demonstrates the continued good relationship between a major global coal and iron-ore producer and FLSmidth, and it is an important step for FLSmidth towards the planned global market leadership in coal.”

Zambian Mining Magazine • July/August 2013

37

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July/August 2013 • Zambian Mining Magazine

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Zambian Mining Magazine • July/August 2013

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July/August 2013 • Zambian Mining Magazine

International

Newly merged consulting engineering firm finding work across Africa and beyond

T

he South Africa-based division of Hatch, the global consulting engineers and project management and implementation group, Hatch Goba (previously Hatch Africa), is targetting opportunities in the mining sector in the rest of Africa and beyond. “We’ve moved a lot of our business out of South Africa [into the rest of Africa], where a lot

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of midtier [mining] companies are active,” reports Hatch Goba MD Rory Kirk. “This situation has resulted in the rightsizing of our metals sector by about 20%.” (Hatch Goba refers to its mining-sector work as its metals business.)

The company now has a permanent presence in Madagascar and is active in Botswana, the Democratic

Zambian Mining Magazine • July/August 2013

Republic of Congo (DRC), Kenya, Mauretania, Mozambique, Namibia, Zambia and Zimbabwe. “We’ve now started a project with Exxaro in West Africa,” he adds.

Most projects are operated out of South Africa, with no permanent staff in most of the other African countries the company is active in. However, it is establishing a legal presence in a number of African countries.

Hatch Goba, which was formed by the merger of Hatch Africa with local company Goba, operates in the mining (‘metals’), infrastructure and, more recently, energy sectors. In the future, the company hopes that 50% of its income will come from mining, 33% from infrastructure and 17% from energy and other activities.

“As resources are discovered and are starting to be exploited [across Africa], you find there’s no infrastructure,” points out Kirk. “Now only about one-third of the investment [is in] the mine and plant, and two-thirds in railways, roads and ports. “In this area, we believe we hold an advantage because we have knowledge of the metals sector and now also of infrastructure.

“Zimbabwe is interesting,” he affirms. “There is some metals work, but it’s mainly energy. “There’s a lot of energy work there – upgrading the power system. Over the past three years, we’ve found we can work there and we get paid. “The Zambian Copperbelt, going into the DRC, is also attracting a lot of investment.”

The Hatch group has a decentralised structure and has divided the world into regions, based mainly on common or adjacent time zones. Thus Hatch Goba covers Africa, Europe, Russia and the Middle East. “We think there’s tremendous potential in Russia,” he highlights. “Our office in Russia could double – there are 80 people there now.

41

“The Middle East has lots of potential projects: they want to reduce their dependence on oil.”

In sharp contrast, in South Africa, at “the moment the metals market is really moribund”. “It’s a tough market out there. Our mining clients are finding it very difficult, are trying to consolidate and use their existing assets very well. There’s not a lot of investment going on.”

Hatch Africa and Goba merged (the deal became effective on April 2) because the two entities both saw themselves as complementary businesses with compatible ethos and structures. Hatch was strong and well known in the mining sector, and had started working in infrastructure, while Goba was strong and well known in the public infrastructure sector.

“We decided to merge with Goba to strengthen and consolidate the infrastructure side [of our business],” explains Kirk.

“We have worked well together. It’s a merger, not an acquisition, because Goba is a huge brand in South Africa. “For Goba’s clients, the merger gives them access to critical mass. For Goba itself, it gives access to global markets and global expertise.

“But there’s more to it than that,” he elucidates. “In today’s environment, for service companies, whether accounting or legal or professional engineers like us, size will be important. “You’ll be big or niche. Midtier consulting firms are finding it difficult to maintain their viability.”

The merger took the form of a share swap. Goba shareholders now hold shares in the global Hatch holding company. Hatch originated in Canada and then expanded to South Africa some 17 years ago, and then to Australia, and later to Chile, Brazil, Russia and China. www.miningnewszambia.com

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42

July/August 2013 • Zambian Mining Magazine

International

Ivanplats significantly adds to African projects’ resources

Africa-focused project developer Ivanplats on Wednesday said it had significantly increased the resources at two of its largest African projects and added that it was moving to finalise its mining-right application at the South African Platreef project this quarter.

T

oronto-based Ivanplats, the brainchild of mining legend Robert Friedland, said a new independent resource estimate more than doubled the highgrade National Instrument 43-101-compliant indicated mineral resource at the Kamoa copper discovery in the Democratic Republic of Congo (DRC).

The January updated mineral resource increased Kamoa’s indicated resources by 115% to 739-million tonnes grading 2.67% copper and containing 43.5-billion pounds of copper. This compared with the September 2011 estimate of 348-million tonnes grading 2.64% copper and containing 20.2-billion pounds of copper. Both estimates used a 1% copper cutoff grade and a minimum vertical mining thickness of 3 m.

Kamoa now ranked as Africa’s largest high-grade copper discovery and the world’s largest undeveloped high-grade copper discovery. Ivanplats said expanding the project’s resources represented a significant advance in Ivanplats’ plans to bring the Kamoa project into production. Ivanplats discovered Kamoa in 2008 in a previously unknown extension, in the DRC, of the Central African Copperbelt.

Further, the new estimate included inferred resources of 227-million tonnes grading 1.96% copper and containing 9.8-billion pounds of copper, also at a 1% copper cutoff grade and a minimum vertical mining thickness of 3 m.

However, at a higher, 2% copper cutoff grade, Kamoa’s

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indicated resources now totalled 550-million tonnes grading 3.04% copper and containing 36.9-billion pounds of copper.

At the 2% cutoff, Kamoa also had 93-million tonnes of inferred resources grading 2.64% copper, which contained an estimated 5.4-billion pounds of copper.

Ivanplats said the current base-case, five-million-tonnea-year mine plan estimated producing an average of 143 000 t/y of copper in the first ten years. Mining rates of up to 20-million tonnes a year were believed to be possible.

Meanwhile, in April, the DRC’s State-owned power company, La Societé Nationale d’Electricité, signed a memorandum of understanding with Ivanplats to upgrade a third hydroelectric power plant, Nzilo 1, to secure an additional supply of sustainable electricity for the company’s Kamoa project.

This upgrade would be in addition to the planned upgrades by Ivanplats of the Mwadingusha and Koni hydroelectric plants. The three plants could produce a combined 200 MW of long-term, clean electricity for the grid, which it is expected would be more than sufficient to launch production at Kamoa.

This month, Ivanplats had also expanded its minebuilding team by appointing Brock Gill as MD of the Kamoa project and VP of DRC operations, effective from June 1.

During the quarter, Ivanplats had also appointed senior mining executive Steve Garcia to lead the company’s mine-

Zambian Mining Magazine • Feb/Mar 2013

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Zambian Mining Magazine • July/August 2013

43

building team in Africa.

Ivanplats had also appointed Andre Zeelie, Gopolang Enoch Makokwe and Jeremy Michaels as executives.

South African Improvement Meanwhile, Ivanplats said it had received a new independent compliant technical report in March for its Flatreef deposit located within its Platreef deposit on the northern limb of South Africa’s Bushveld Igneous Complex.

At a 2 g/t cutoff grade for platinum, palladium, gold and rhodium (4E), the Flatreef deposit contained an estimated indicated resource of 214-million tonnes grading 4.1 g/t 4E, 0.34% nickel and 0.17% copper, containing about 28.5-million ounces of 4E, 1.61-billion pounds of nickel and 794-million pounds of copper.

At the same cutoff, the inferred resource totalled 415-million tonnes grading 3.5 g/t 4E, 0.33% nickel and 0.16% copper, containing about 47.2-million ounces more of 4E, three-billion pounds of nickel and 1.5-billion pounds of copper.

However, at a higher cutoff grade, of 3 g/t 4E, Flatreef was estimated to contain indicated resources totalling 137-million tonnes grading 5.09 g/t 4E, 0.38% nickel and 0.19% copper, containing an estimated 22.4-million ounces of 4E, 1.13-billion pounds of nickel and 558-million pounds of copper.

At the same cutoff, the inferred resources totalled 211-million tonnes grading 4.6 g/t 4E, 0.38% nickel and 0.18% copper, containing about 31.4-million ounces of 4E, 1.76-billion pounds of nickel and 855-million pounds of copper.

The Flatreef deposit averaged 24 m in true thickness at a 2 g/t cutoff grade for 4E and was potentially amenable to large-scale, mechanised underground mining.

The thick Flatreef mineralisation remains open, with about 37.5 km2 of property untested.

Discovered in 2010, Flatreef is a zone of high-grade mineralisation that lies within a flat, to gently dipping, portion of Ivanplats’ 90%-owned Platreef.

Ivanplats was preparing a preliminary economic assessment for the project, which was expected to be released in the third quarter.

It added talks were under way with two potential shaftsinking contractors in anticipation of the approval of the Platreef bulk sample application. A contract had also been signed with DRA Mineral Projects, to conduct the prefeasibility study, planned for completion early in 2014.

Ivanplats also reported its Kipushi historic high-grade zinc/copper mine, also on the Central African Copperbelt, was being dewatered and upgraded to support a future return to production of copper, zinc and other metals following the end of an 18-year care-and-maintenance programme in 2011.

Ivanplats had $216.6-million in cash and cash equivalents and $80-million in short-term deposits at its disposal as at March 31.

Its Toronto-listed shares on Wednesday traded 4.86% lower at C$2.35 apiece, the lowest level since Ivanplats’ initial public offering in October.

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July/August 2013 • Zambian Mining Magazine

International

Tanzania says Russia’s ARMZ owes $206m in taxes

Tanzania is demanding almost $206-million in taxes from Russian state uranium company JSC Atomredmetzoloto (ARMZ), which has won a licence to build the east African country’s first uranium mine, the energy minister said

R

ussia’s ARMZ is the mining arm of Russia’s nuclear regulator, Rosatom, which also built nuclear reactors.

Tanzania’s tax claim related to the Mkuju River project in southern Tanzania, which was operated

by Toronto-listed Uranium One, but owned by ARMZ, the Canadian uranium producer’s majority shareholder.

“The Mkuju project ...was sold in December 2010 to ARMZ of Russia after acquiring shares from the parent company, Mantra Resources of Australia,” Energy and Minerals Minister Sospeter Muhongo said in a newspaper advertisement of his ministry’s 2013/14 budget proposals, which were tabled in parliament on Wednesday.

“Following this deal ... the Tanzania Revenue Authority is claiming $205.80-million, of which $196-million was supposed to have been paid as capital gains tax and $9.8-million as stamp duty.”

Muhongo said the company had disputed the tax claim and the matter was now awaiting a court ruling.

Gaudiosus Ishengoma, a lawyer at FB Attorneys which was representing ARMZ in the tax dispute, said the Russian company had successfully challenged the government’s tax demands in court. He said the case was now before the Tax Appeals Tribunal of Tanzania.

Uranium One in 2011 revised upwards its mineral resource estimate for the Mkuju project to about 45 900 tonnes of uranium.

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The project was granted a mining licence by the Tanzanian government in April.

The minister also said the government planned to conclude a deal to buy a 50% stake in the Tanzanian unit of London-listed Richland Resources by July 30.

The Aim-listed miner, which held the licence to the largest of four mining blocks in the world’s only tanzanite-producing area near Mount Kilimanjaro, returned to profitability in 2010 after two years of losses.

Tanzania’s Mining Act of 2010 stipulated that Tanzanians retain at least 50% control or shareholding in all gemstone mining operations.

TanzaniteOne said a State-run mining company, STAMICO, was not expected to pay cash but instead use part of the future dividends from mining operations to pay for the acquisition.

“The value of the 50% stake to be acquired by STAMICO shall be determined by a valuation that would be determined by an independent valuer,” TanzaniteOne Chairman Ami Mpungwe told Reuters.

Muhongo said Tanzania’s mineral exports surged 16.3% t in 2012 to $2.3-billion, buoyed by higher gold prices. Gold accounted for 94% of that, he said.

The minister also said the government would enter into a joint venture with Australian firm Manjaro Resources to revive an old gold mine in northwestern Tanzania, which had tailings worth an estimated $70-million.

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DRC Copper concentrate ban won’t affect Kipoi project Australian Stock Exchange -listed copper miner Tiger Resources has refuted speculation that the Democratic Republic of Congo’s (DRC’s) decision to ban copper and cobalt concentrate exports would affect its Kipoi project.

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he ban on copper and cobalt exports were expected to come into effect during July or August this year, with the country pressing mining companies to process and refine the metals within the country’s borders.

In response to a media report over the weekend, Tiger noted that it currently sold more than 80% of its concentrate to smelters within the DRC, adding that there was strong domestic demand for the company’s product.

The remainder of the Kipoi project’s product was sold to a smelter in Zambia, with the full support of the DRC government.

Tiger pointed out that once its stage two solvent extraction and electrowinning (SX/EW) plant, which was currently under construction, came online, the company would produce a high value-added copper cathode product.

This operation was also supported by the government, with the construction of the SX/EW plant being funded by the heavy media separation operations.

Tiger, in May, announced that it was on the hunt for new capital to partly fund the development of the SX/EW plant, after Nedbank Capital decided not to participate in an

$80-million debt financing facility.

FirstRand Bank, through its Rand Merchant Bank division, has already received credit approval to provide a A$15million bridging facility, once standard financing conditions were finalised.

Additionally, Rawbank and BCDC have also offered to extend standby credit lines totalling some A$20-million.

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July/August 2013 • Zambian Mining Magazine

International

Tiger resources hunts for new funding sources Copper developer Tiger Resources was on the hunt for new capital after Nedbank Capital decided not to participate in an $80-million debt financing facility to partly fund the development of the Stage 2 solvent extraction and electro winning plant at the Kipoi project, in the Democratic Republic of Congo

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iger announce last month that it was in discussions with international financial institutions to replace Nedbank, with the new participant expected to join FirstRand Bank as the coarranger of the term facility.

FirstRand Bank, through its Rand Merchant Bank division, has already received credit approval to provide a A$15million bridging facility, once standard financing conditions were finalised.

Additionally, Rawbank and BCDC have also offered to extend standby credit lines totalling some A$20-million. “We are fortunate that in undertaking the original financing tender process, we received competitive offers from a number of major financial institutions who maintained a

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continued interest in financing the Stage 2 development at Kopoi,� said Tiger MD Brad Marwood.

He noted that this enabled Tiger to replace Nedbank Capital with little or no disruption to the funding timetable.

The Stage 1 heavy media separation plant was in production and expected to process 2.7-million tons of ore grading about 7% copper to produce a total of 113 000 t of copper in concentrate over its 39-month life.

A Stage 2 solvent extraction and electrowinning plant is targeted to come on stream in 2014. It is envisaged that ore from Kipoi Central, Kipoi North, Kilebi and other deposits within the Kipoi project, as well as the nearby Lupoto project, will be processed during the Stage 2 phase.

Zambian Mining Magazine • July/August 2013

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Vale cuts Mozambique coal export target by 30%

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razil’s Vale has cut the 2013 export target for its Mozambique coal mine by nearly a third, a company official announced last month after heavy floods temporarily shut a railway line.

Vale now sees exports at 3.4-million tonnes, down from its previous estimate of 4.9-million tonnes, AltibertoBrandao, Vale Mozambique's director of coal operations, told reporters on a visit to the Moatize mine in north-central Tete province.

The Sena railway line that connects coal-rich Tete to the coast was shut for two weeks in February forcing Vale to declare force majeure on a number of coal shipment contracts.

"The line was completely paralysed," Brandao said.

The shutdown was a further blow to Vale, which is already battling infrastructure bottlenecks in the former

Portuguese colony, home to vast reserves of steel-making coking coal.

It began exporting coal from Moatize in 2011, but was forced to almost half its production and export targets last year due to infrastructure constraints.

Brandao also said coal production from Moatize is forecast at 6.4-million tonnes next year, rising to 9.2-million a year after.

Vale is investing to expand the mine's annual capacity to 11-million tonnes and plans to double that by 2018, Brandao said.

The expansion to 22-million tonnes is contingent on Vale's $4.4-billion rehabilitation of the northern Nacala corridor, which includes repairs to a railway line through Malawi to the Nacala deep-water port

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July/August 2013 • Zambian Mining Magazine

Feature: Fire Protection

Tackling the mine fire safety challenge Fire represents one of the greatest threats to mine productivity and to those working either above or below ground in a mining environment. It takes little for a minor outbreak to escalate in minutes into a major conflagration, so stopping a fire in its tracks has to be the top priority. Ben Hughes explains.

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ine fires are more common than is sometimes realised. While the main working areas below ground have, over the years, undergone any number of health and safety improvements, the same cannot always be claimed for some of the equipment used in mines – above and below ground – that has the very real potential to catch fire, with the potential to trigger a major blaze.

Statistics for Zambian mine fires, indeed in many African countries, are difficult to come by. However, if the figures from the United States Department of Labour’s Mine Safety and Health Administration are anything to go by, mining remains an inherently high risk environment where the impact of a fire can have far-reaching consequences.

According to the National Institute for Occupational Safety and Health (NIOSH), electrical shorts and equipment malfunctions are among the leading causes of US mine

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fires. From 1990 to 2007, there was an average of 89 mine fires every year. So, the fact that mine fires are occurring with such regularity reinforces the importance of recognising and eliminating the potential fire hazards.

Fire Risks – Above & Below Ground.

Much of the equipment used in mines is housed in cabinets or what are, in effect, “micro enclosures”. This includes electrical control equipment, emergency lighting installations, pumps, essential-power cabling installations, generators, batteries and UPS equipment, conveyors, lifts, control equipment, sub-stations and fuel stores.

Above ground, the main fire safety challenge is to be found in among the heavy plant and machinery engine compartments and breaking systems where evidence shows that, here too, mechanical and electrical failures or malfunctions account for the majority of fires. One of the

Zambian Mining Magazine • July/August 2013

most common locations for the outbreak of a fire is in or around the equipment’s engine compartment.

Logically then, these are the areas where investment in fire safety measures is most likely to have the greatest impact and payback; where effective fire detection and suppression will stop a small fire that, if left unattended – often for even a short space of time – may develop into a more serious incident.

Dedicated Protection.

The only truly effective solution is to provide each of these cabinets, enclosures and “micro- environments” above and below ground with dedicated, intrinsically-safe, risk-specific fire detection and suppression. This calls for the use of tried-and-tested technology that is automatic and completely self-contained, requires no external power source, is not affected by vibration or the heavily dustladen underground environment, debris and airflow, and can withstand the punishing working environment.

The chosen solution needs to provide 100 percent response reliability and the proven ability to stop a fire precisely where it breaks out, before it has any opportunity to take hold and spread. It must also provide around-the-clock, unsupervised protection.

The Firetrace® Solution.

While a number of technologies have been put forward as being suitable for mine equipment fire protection, only one meets all of these demanding technical and performance requirements. Firetrace is a self-contained, automatic tube-based fire detection and suppression system comprising an extinguishing agent cylinder that is attached to proprietary Firetrace Detection Tubing.

This purpose-developed leak-resistant tubing is routed throughout the cabinet or enclosure being protected.

Heat or flame will immediately cause this tube to rupture and the suppression agent is automatically released, extinguishing the fire precisely where it starts and before it can take hold.

There are two Firetrace systems: the Firetrace Direct System and the Firetrace Indirect System. In the Direct System, the detection tubing is both the detection device and the Firetrace suppressant delivery system. In the Indirect System the tubing is used as a detection and system activation device, but not for the agent discharge.

The rupturing of the chemical-resistant tube results in a drop of pressure that causes the system’s indirect valve to activate. This diverts flow from the detection tube, and the agent is discharged from the cylinder through diffuser nozzles, flooding the entire enclosure and suppressing the fire in less than ten seconds.

An important consideration for mine managements is that Firetrace can only ever be activated by a real fire, so there is no prospect of false alarms or unnecessary agent discharge that might otherwise curtail mining operations.

In fact, despite there now being in excess of 150,000 Firetrace installations around the world there has never been a single report of a properly installed and maintained system either failing to react to a genuine fire or false alarming.

ISO 9001:2008-certified Firetrace International offers

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a number of suppression agent for its Firetrace system.

These including ABC dry chemical powder and 3M Novec1230 Fire Protection Fluid, together with DuPont’s FM-200 and foam. The chosen agent is selected based on the nature of the particular fire risk being protected.

Today, UL (Underwriters Laboratories) listed, FM (Factory Mutual) approved and CE (Conformité Européene or European Conformity) marked Firetrace systems are in operation above and below ground in open-cast and underground mines in Bulgaria, Ghana, Jordan, Peru, South Africa and Turkey.

Kusasalethu Gold Mine.

The latest fire safety challenge at Harmony Gold’s Kusasalethu mine on the Gauteng province / north-west border of South Africa was to provide around-the-clock fire protection for a large transformer.

The mine’s management opted for a Firetrace automatic fire detection and suppression system, bringing the number of Firetrace systems installed in the past year or so at the Kusasalethu mine and the Evander mine, on the Kimberley Reef in the Evander Basin, to more than 50.

They have been installed to protect MCCs (Motor Control Centres) and essential electrical and machinery control enclosures in the sites’ substations. Çayeli Copper & Zinc Mine.

Similar Firetrace systems have been installed to safeguard underground mud pumps and electrical cabinets at the Inmet Mining Corporation’s Çayeli copper and zinc mine in Rize on the Black Sea coast of northeastern Turkey. Eleven systems have been installed in the mine –which mills 3,000 tonnes of ore a day – each providing dedicated, around-the-clock protection to vital equipment on which the mine’s operations depend.

Assarel-Medet JSC Copper Mine.

The challenge for Assarel-Medet JSC, Bulgaria’s largest open-pit copper mining and processing company, was to protect its heavy ore-moving crawler equipment at its mine in the Sashtinska Sredna Gora mountains. The mine produces around 200 thousand tons of natural copper concentrate every year and processes in the region of 13 million tonnes of copper – more than half of the country’s copper output.

Once again Firetrace was chosen. This time, high on the mine management’s list of essential criteria was the need for the chosen solution to have the ability to contend with wide temperature variations, the requirement that it would not jeopardise the operation or maintenance of the equipment it is protecting, or demand excessive space for suppressant storage.

Further information is available by email at info@ firetrace.com, from the Firetrace EMEA head office in the UK on +44 (0) 1293 780390, or from Firetrace International’s global headquarters in Scottsdale, Arizona USA on +1 480 607 1218. The company’s recently redesigned website is at www.firetrace.com. *Ben Hughes is Regional Business Manager for Africa and Indian at Firetrace International.

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July/August 2013 • Zambian Mining Magazine

Education & Training in Mining

Training courses for opencast mining in high demand Skills training for surface-mine qualifications remains popular among those seeking to gain basic and advanced knowledge and the ability to apply this safely and effectively in the industry, says training company Xtract Training Services

“

Every course we have offered this year has been completely booked and the demand for quality training is still high, as more companies understand this need and the benefit of having well-trained, competent people in their organisations,” Xtract Training Services director Lynne Montgomery tells Mining News.

“There is also considerable demand from people wanting employment in the industry; however, because of the practical/experiential training requirement, work experience and on-the-job experience, it is difficult for people to enter the industry through this route,” she says.

Montgomery explains that the rock-breaking surface excavations courses at level-three are presented on a regular basis and are often fully booked before the registration closing dates.

She adds that Xtract Training Services also offers an

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Zambian Mining Magazine • July/August 2013

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explosives handlers short course for people not directly involved in setting up the blast, such as stemming assistants and general workers, who work under the supervision of the qualified blast assistant and/or blaster.

The Skills Development Act currently governs the delivery of training in South Africa; however, a shift towards the implementation of the Quality Council for Trades and Occupations (QCTO) requirements is under way, which will move the delivery of training from the current outcomesbased system to occupational training.

“The ability to work safely, even in areas of significant risk, should be included in all training courses, while a bigger emphasis should be placed on the practical skills coaching and work experience, which should form 60% to 75% of the skills development interventions,” says Montgomery.

She notes that more dependence on line management – to mentor people and pass on experience, will also be required.

Training Demographic “We are also providing level-four mining operations qualifications for several mining houses,” states Montgomery.

Most of the company’s training is done in South Africa and the majority of learners are South African citizens, although the company does have several learners from other countries who are residing in South Africa.

The number of students depends on the courses delivered, but is generally between 15 to 25 learners.

“We also have learners from outside the country attending our courses and the company presents training courses in other countries – some training has been done as far a field as Tanzania and St Helena Island,” she says.

Although the Xtract Training Services trainers are mainly South African, many can speak several languages.

“We are proud of our highly qualified and exceptionally experienced facilitators. The criteria for our facilitators, assessors and moderators, who in addition to having the required qualifications and experience, must also be able to communicate and present effectively, stimulate discussion, contribute to problem solving and handle anything that the multifaceted area of skills development will produce,” states Montgomery.

She admits that it is sometimes challenging to find trainers who meet the company’s specific criteria; however, through the company’s contacts in industry – particularly the surface industry – it can employ people who have the required skills to be highly effective trainers.

The company is one the few accredited training providers offering open courses to enable individuals working in the industry to develop their skills and obtain the relevant qualifications.

“In-house courses for the mines are also provided, as and when required,” she states.

“Xtract Training Services runs courses in accordance to Mining Qualifications Authority (MQA) requirements using MQA standards as a base to work from. It also partners with well-respected companies in the industry to provide the highest level of skills development.

“We take great pride in knowing that our learning materials are of a high standard,” concludes Montgomery

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Zambian Mining Magazine • July/August 2013

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Complete Hydraulic, Lifting, Pneumatic Solutions Excellence Through Performance Kilshaw Blue Investments CC trade as KBI Hydraulic and Mining Supplies. Although we are a new company we are rated as BEE Level 4. We have 6 years experience in our fields of expertise.

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July/August 2013 • Zambian Mining Magazine

Feature: Mining Services

Control valve sizing programme ensures precision of valve used Valve designer and manufacturer PSV Mitech reports that a computerised control valve sizing programme, one of the products in its stock, allows users to choose between control-valve sizing and actuator sizing to specify the correct type of valve used in a specific application.

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he actuator-sizing programme caters for PSV Mitech’s rotary and linear pneumatic actuators.

In both cases, the correct actuator model is selected from the complete range, based on certain input information.

The choice is limited to globe, sweep angle, butterfly or disc valves. Gauge and absolute valves are also available with measuring units in kilopascals and bars. If gauge units are selected, a window appears in which the atmospheric pressure must be entered. Upstream and downstream pressures must then be entered for a choice of units.

Temperature can be entered in degrees Celsius, Kelvin, Fahrenheit or Rankine, while, the choice of flow rates is even greater since both mass and volume flow rates are catered for. The most common are cubic metres per hour and tons per hour, but for those who work more comfortably with litres per second, the choice is available.

A useful feature is a check-box, known as convert units, that, when checked, newly selected units − whether for pressure, temperature or flow − cause the entered values to be converted from the old units to the new ones. If unchecked, the values remain the same. Besides the choice

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of valve types, there are a wide choice of trims available for globe valves.

For liquid applications, one can select from standard, cavitation control, energy dissipating, double Z or energy dissipating (ED) disc stack. For gases, the choice is standard, low noise with one, two or three stages, and ED disc stack.

All input data and calcu-lated results are printed out along with a graph showing the control position at all the specified conditions, of which there are a maximum of nine.

For the actuator selection, the operator has to specify whether the actuator should be double-acting, spring-toopen or spring-to-close. The operator must input the air supply pressure. The programme then selects the smallest actuator that satisfies the conditions and draws force graphs for both the opening and closing positions in both directions.

The programme is available free to all PSV Mitech’s existing and potential customers; however, the company recommends that all users attend their intermediate control valve training course

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July/August 2013 • Zambian Mining Magazine

Feature - Mining Services

BMG’s bolt locking system used in mining applications

Industrial consumables and engineering firm Bearing Man Group’s (BMG’s) Nord-Lock bolt securing system is used extensively in pumps and pumping equipment in the mining industry to enhance operation and reliability.

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ivisional manager of BMG’s fasteners division Darryl Campbell states that the Nord-Lock bolt securing system uses tension instead of friction to ensure that joints holding sub- assemblies together remain secure.

“Bolts on pumps need to be easily removable during maintenance procedures, but must resist the loosening effects of vibrations and dynamic loads. Bolts that are locked conventionally by friction in the thread tend to lose most of their preload through vibrations, while those locked by the tension of this system present a minor loss of preload, which is caused mainly by settlement in the thread.

Even after moderate tightening, the bolt is safely locked when using Nord-Lock,” he says.

Campbell adds that it is increasingly important to have good control of the torque-clamp load relationship when

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tightening a joint. To enhance the design of the joint and use as much of the capacity of each dimension as possible, it is

Zambian Mining Magazine • July/August 2013

important to know the required tightening torque.

“Nord-Lock washers, which are installed in pairs – cam face to cam face – have cams on one side, with a greater rise than the pitch of the bolt. When the bolt or nut is tightened, the radial teeth on the opposite side grip and seat the mating surfaces. The teeth also lock the washers in place, allowing movement only across the face of the cams.

The resulting tension makes the bolt self-locking.

“These washers can be used on standard-grade as well as high-grade bolts, and there is no need for adhesives to lock the stud bolt. “This system is designed for use in tapped- and counterbored holes and for larger holes or on soft materials, while a flange nut or bolt should be used in combination with Nord-Lock washers with a larger outer diameter,” notes Campbell.

He further adds that the advantages of this reusable system include vastly improved safety when locking E:\!BMG\#Jobs\Adverts\2013\052013\BMG-MAT10052013-ZMN.cdr 10 May 2013 10:48:02 AM Color profile: Disabled

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fasteners, easy assembly and disassembly, positive locking at low or high preload levels and minimum surface marring or scratching.

“This system, which has the same temperature characteristics as a standard bolt or nut, resists loosening caused by vibration and dynamic loads. “The locking function is not lost by lubrication.

“The bolted joints are subjected to a Junker-vibration test, where the preload bolt tension is measured by a load cell and vibrating motions are generated radially through the bolt. This method tests the bolts for security.

“BMG is able to provide almost any fastener required, within 24 hours, anywhere in the country. The fasteners division also offers a technical advisory and support service through BMG’s national network of over 100 branches,” he states

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Composite Default screen

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July/August 2013 • Zambian Mining Magazine

Feature: Safety

Afrox receives R70m order for safety products Gases and welding products manufacturer Afrox Self-Rescue Division has secured an order to deliver 26 500 units of AfroxPac 35i self-contained selfrescuers and accessories in a deal valued at R70-million, which will be supplied over the next five months.

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frox manager Peter Rowlands tells Mining Weekly that the order from a leading local platinum producer, goes well beyond producing and delivering the 26 500 units. The mine also requires individual storage racks for each unit and is obliged to train all users in their proper handling and use.

“Afrox has provided 140 multirack storage frames and training and simulation equipment and is currently training the mine’s trainers and lamp-room personnel. Afrox is

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also represented on the mine’s implementation project committee that meets weekly to oversee the deployment and roll-out of the self-rescuers,” says Rowlands.

He states that Afrox secured the tender in August and finalised the order in November last year. “Despite a very tight deadline, the first 6 000 units, capable of providing life-saving oxygen to underground personnel in the event of an underground fire or exposure to toxic gases, were delivered in December.

“AfroxPac is one of the few mining-equipment items that

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is expected to be carried daily, while attached to the body, for use in the most severe conditions, for up to ten years.

However, it must still have the life-saving function of a new unit. Because the oxygen is generated from a chemical reaction, there is no need to carry cylinders of compressed air, making the devices relatively compact and light,” says Rowlands.

He mentions that an AfroxPac can be carried for 15 000 hours to 20 000 hours during its life span and that current stock are cumulatively used underground for well over a million worker hours every day.

“AfroxPacs comprise more than 70% of the South African self-rescuer market and are represented in significant quantities across virtually all the hard-rock underground mining groups, such as Lonmin, Impala Platinum, AngloGold Ashanti, Gold Fields, Anglo Platinum, Northam, Samancor, Xstrata, Aquarius and Petra. The devices are widely used in underground coal operations and in many mines in Zimbabwe, Botswana and Zambia,” Rowlands points out.

The AfroxPac 35i is an upgraded model of the AfroxPac 35. The average breathing duration of the AfroxPac 35 has been shown in independent testing by the Council for Scientific and Industrial Research over ten years of deployment to comfortably exceed the rated duration. This gives customers confidence when considering a significant capital and safety investment.

The AfroxPac 35i body-worn self-contained selfrescuer is the latest-generation unit, representing three years of development and testing, which culminated in achieving SANS 1737:2008 compliance. The selfrescuer has been developed in close association with the South African mining industry and is 100% locally manufactured and supported, having been tested under some of the toughest mining conditions in the world, states Afrox.

“In moving to smaller and lighter battery packs, our customers would appreciate a smaller and lighter selfrescuer and the challenge is to develop such a device without sacrificing its breathing duration capacity. However, the AfroxPac 35i remains one of the most compact of the currently approved units.

“South African regulations require that any self-contained self-rescuer must be compliant with SANS 1737:2008. Other countries have their own standards, most of which are based quite strongly on the European EN 13794:2002 standard, but with added requirements for local conditions. In the development of the SANS 1737:2008 test protocol, the typical South African low hardrock environment was taken into consideration, where the constricted space leads to inevitable bumping and grinding of body-worn equipment such as a self-rescuers,” he explains.

Further consideration was also given to the effect of subjecting the units to

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the constant vibration of underground vehicles such as loadhaul-dump vehicles. As a result, very stringent conditions were added to the tests under the standard, where several test units were exposed to thousands of sequentialvibration, drop, tumbling, abrasion and crushing events.

These events were all designed to pulverise the oxygengenerating chemical before the units were subjected to the breathing simulator and in-person tests.

“This is an exceptionally rigorous standard and achieving compliance with the latest-amendment SANS 1737:2008 is a significant milestone for the AfroxPac 35i,” states Rowlands.

Basic use and care of the AfroxPac 35i are simple, but critical for a life-saving device. The Afrox Self-Rescue Division provides on-site instruction to the mine trainers so that they can incorporate the skills into the mine’s training programme.

“We also provide training in the care and maintenance of the units for the lamp-room staff who are responsible for storing and issuing the units. Typically, the training takes two to three hours, followed by a written and practical assessment, as well as a yearly reassessment,” he says.

Afrox concludes that currently, its research and development team is developing a long-duration breathing device, which will undergo testing in Europe against the Euro- pean safety standards. Other areas of development include alternative materials to further improve durability and longevity, and adaptations to enter the markets that have specific local self-rescuer requirements.

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July/August 2013 • Zambian Mining Magazine

Feature: Pumps

Cost effective pumps and spares for Africa African designed and manufactured pumps and replacement components are gaining ground in the mining areas of Sub Saharan Africa and beyond.

“

We believe that this is due to the Eco helical rotor positive displacement pumps and its industry compatible spares proving to be highly cost effective,” says Sales and Marketing director, Peet Hartman, Unique Engineering.“Our Wilfo double diaphragm range is known as the ‘work horse of the industry’, so it really speaks for itself.”

The company’s order book from the South African mining sectors in dosing and gland service water applications, as well as the explosives industry, has shown good results over the past five years.

According to Hartman, they have supplied spares for grout, gunnite and void filling in mining and construction, as well as dosing pumps used for shear sensitive products such as polymers, flocculants and depressants.

A new addition to the Eco range is set to pump volumes from 1,8m3/hr to 21m3/hr reaching heads of up to 450 m.

This series will be highly beneficial in mine dewatering as

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well as for surface applications in the agricultural industry.

A further feature is its capability to operate under arduous abrasive conditions in mining applications. This is achieved by the pump’s progressive cavity design. They are selfpriming with high suction capabilities, the uniform, nonpulsating flow is reversible and it is abrasion resistant with low shear characteristics.

The DD 25 and 50 Wilflo double diaphragm pumps have enjoyed great success for more than 25 years. The newly designed ‘lube free’ units do not operate on oil, making it environmentally friendly and non-hazardous.

Numerous applications can be performed by this robust, hard wearing, cost effective range for example abrasive sludge, slurry, water and sewage.

“We would welcome applications from agents who have substantial experience in the mining industry within the African countries, for both ranges,” said Hartman.

Prospective agents can email peet.h@uniqueeng.co.za.

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July/August 2013 • Zambian Mining Magazine

Feature – Pumps

Grooved mechanical piping increasingly popular The use of grooved mechanical piping has become the generally accepted method for joining pipe in the mining industry, particularly in underground mines.

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his, says developer and producer of mechanical pipe joining systems Victaulic regional manager Barry van Jaarsveld would be the reason why bright-orange V-couplings, adorning piping systems, are a common sight in underground mines in South

Africa.

He notes that grooved mechanical piping, the pipe-joining system that makes use of these couplings, is the preferred method for joining underground and plant piping systems in the mining industry owing to the ease and speed of installation and maintenance.

“There are many applications for such systems, but they have traditionally excluded high-pressure systems. Most couplings have moderate working-pressure limitations, so high-pressure systems require the use of alternative joining methods, typically heavy-duty flanges.

“However, the introduction of Victaulic high-pressure couplings which go up to 275 bar, has made the grooved joining method viable, and even preferable, for backfill, deepmine chilled water and dewatering lines, and other highpressure piping applications,” he says.

Grooved Mechanical Piping Basics “By saving time during installation and maintenance and offering system flexibility, simplifying system alteration and pipe and fitting replacement, while improving safety, grooved piping helps owners reduce risk and ultimately save money.”

The mechanical joint comprises four elements; groovedend pipe, a gasket, coupling housings, and nuts and bolts.

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The gasket is wrapped around two abutted pipe ends and enclosed in coupling housings.

“The key sections of the coupling housings engage the grooves, and the bolts and nuts are tightened to hold the housings together. In the installed state, the coupling housings encase the gasket and engage the groove around the circumference of the pipe to create a triple seal unified joint that is enhanced when the system is pressurised,” he says.

Van Jaarsveld adds that the primary benefit of grooved mechanical piping is that the systems are three to five times faster to install than other common methods of pipe joining.

“Assembly of the grooved pipe joint, placing the gasket and securing the coupling housings, can take anywhere from several minutes for a 50 mm joint to about half an hour for a 200 mm which is up to three times faster than assembling flanged pipe joints.

“Victaulic installation-ready couplings further reduce installation time to about half that of standard couplings.

This type of coupling does not require disassembly prior to installation as it can be pushed onto the pipe ends and secured using standard tools. Factoring in materials and labour, grooved piping systems can result in total-installed cost savings of up to 30%,” he says.

He continues that with a union at every joint, piping system maintenance such as replacement of fittings in abrasive services and valve maintenance is also expedited.

“With a coupling on each end of a fitting, only four bolts – two on each coupling – need to be loosened to remove the couplings and drop the fitting out. A typical flanged

Zambian Mining Magazine • July/August 2013

connection would require the removal of 16 bolts. By allowing these maintenance tasks to be completed quicker and easier, couplings reduce downtime and costs.

They can also reduce the labour needed to complete maintenance tasks.

“Another benefit of grooved piping is ease in rerouting and expanding piping systems. As work progresses underground, piping systems need to be repositioned and reach greater depths. With the ability to quickly and easily disassemble and reassemble piping components, system retrofits and expansions can be completed twice as fast as other joining methods.

“Grooved piping is also a safer joining method. No open flame or joint compounds are required to join pipe with couplings, and unlike flanged joints, the gasket does not need to be scraped off during maintenance. Victaulic installation-ready couplings further reduce risk of injury because the couplings remain assembled, eliminating loose parts that can be dropped,” notes Van Jaarsveld.

He states that deflection capabilities of flexible couplings allow the pipe to be deployed over uneven surfaces while maintaining the integrity of the system.

“The pipe joint can also accommodate thermal expansion and contraction, as well as seismic movement.

Flanges require expansion joints to provide this type of flexibility.

“These benefits combine to make grooved piping the ideal method for moderate pressure piping services such as air and water supply in mines,” he says.

High-Pressure Piping Applications Van Jaarsveld says the most common high-pressure piping applications in a mine are backfill, deep underground chilled water and dewatering lines.

“Piping paste and sand backfill solids requires very high pressures because the system is transporting a mixture of solid materials into the mine. In fact, backfill is one of the highest pressure piping applications within a mine.

“Chilled water lines in deep mines face a similar challenge. The deeper the mine, the more difficult ventilation and air-cooling become. Chilled water lines are used to overcome the natural heat of the rock, allowing personnel to comfortably work at depth. However, there is a lot of head pressure when pumping water to such depths, and as a result, the piping system must be capable of handling the significant pressure produced in such an installation,” he states.

He continues that almost every underground mine deals with the challenge of transporting mine water to the surface.

“High-pressure pumps have given mines the ability to pump water from very deep levels directly to the surface.

These pumps are capable of reaching incredibly high pressures and the piping system must be able to handle the load.

“One of the traditional methods for joining these highpressure piping systems is the use of heavy-duty flanges.

However, flanges are not advantageous in these situations because they have high costs, are inefficient in installation and maintenance, and are not flexible.

“In terms of installation and maintenance, flanges are inefficient. They require more time to install and assembly involves aligning the faces, inserting the gasket, inserting eight or more bolts and tightening in sequence, and ensuring proper torque requirements are met. They are also more difficult to work with in pipe maintenance and

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alteration. Backfill lines, for example, can get clogged and require replacement of the pipe,” he states.

He adds that in addition, once the pipe wall thickness wears to a certain point, the system must be replaced. In both of these circumstances, flanges cannot be reused so replacement costs are higher. Dropping out the section of pipe to be replaced is also more time consuming.

The nature of backfill systems also requires that they be rerouted as work progresses. Flanges can slow this process.

“Flanges are not a flexible pipe joint. When using flanges to join a system in which flexibility is required, such as chilled water lines, expansion joints must be used, which increases material costs,” he states.

Grooved Piping in High-Pressure Applications In response to the difficulties associated with flanged pipe joints, mines are increasingly specifying high-pressure mechanical coup- lings for use on applications such as backfill, chilled water and dewatering lines.

“These couplings provide greater efficiencies in terms of labour and maintenance, flexibility to accommodate expansion and contraction, and have a lower total-installed cost than flanges,” he says.

He continues that with the ability to withstand working pressures of up to 275 bar, high-pressure couplings provide many of the benefits of standard couplings used on air and water lines. The design and specifications of the couplings, however, differ from standard couplings. There are two types of high-pressure couplings currently utilised in mines, EndSeal couplings and double-groove couplings.

EndSeal Couplings EndSeal couplings, such as the HP-70ES from Victaulic, are available in two to 12 inch sizes. EndSeal describes the gasket that is used within the coupling. Rather than a standard C-shaped gasket, the gasket features a centre lip that positions between the pipe ends when the coupling is engaged. This provides a smoother flow path that reduces wear on the pipe ends.

The heavy-duty housings in combination with the EndSeal gasket allow EndSeal coup- lings to meet pressures of up to 172 bar.

“The groove profile for the EndSeal coupling also differs from that of standard couplings. Compared to a standard cut groove, the EndSeal groove has a shorter A-dimension, which is the length from the pipe end to the beginning of

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July/August 2013 • Zambian Mining Magazine

the groove, and is deeper and narrower.

“EndSeal couplings must be used on schedule 40 or heavier pipe, and for high-pressure applications, the pipe should be cut grooved,” states Van Jaarsveld.

Double-Groove Couplings Double-groove couplings, such as the Style 808 from Victaulic, are available in 168.3 mm to 323.9 mm sizes and withstand pressures of up to 275 bar, the highest pressure rating available for any grooved mechanical pipe joining system.

“As the name implies, double-groove technology features two grooves on each pipe-end that engage key sections on the coupling housings. This double-groove engagement of mating coupling keys provides superior joint integrity at high pressures by distributing pipe end-loads.

“The housing design provides increased strength at points of high stress for high- pressure security. Double bolting on each side of the coupling reinforces the doublegroove positioning for positive high-pressure reliability,” he says.

Double-groove couplings contain a standard C-shaped gasket. “The groove profile is the same as that of a standard cut groove, with the exception that there are two grooves on each pipe-end instead of one. Double-groove couplings must be used on cut-grooved schedule 80 or heavier pipe. These couplings do not require special weldon nipples or collars, eliminating additional fabrication needs.

“Further, these couplings have an extremely high endload rating. In fact, it is the only mechanical joint that accommodates pressures of up to 275 bar as well as endloads in excess of 300 000 lbs.” www.miningnewszambia.com

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This means that, although the flexibility of the doublegrooved joint allows the coupling to move within the groove to accommodate expansion, contraction and deflection, the joint will not pull apart if the end load is within specifications. The restrained joints create a system that does not require additional pipe supports.

Van Jaarsveld adds that Victaulic EndSeal and doublegroove couplings are specified for backfill, chilled water and dewatering lines, depending on the pressure of the system.

“For systems with working pressures below 172 bar, EndSeal couplings are recommended. For systems with working pressures between 172 bar and 275 bar, doublegroove couplings are used.

“When installed properly, testing proves that these couplings and their gaskets withstand the published working pressure for the life of the system. Like standard couplings, Victaulic high-pressure couplings have built-in safeguards to ensure correct assembly, metal-to-metal bolt pad contact provides visual confirmation of proper assembly,” he says.

He states that properly installed mecha- nical couplings are able to withstand the extreme pressures of backfill, chilled water and dewatering applications, and provide additional benefits that flanged systems cannot match.

“All of the benefits of standard couplings apply to high-pressure couplings. Decreased downtime owing to faster and easier installation and maintenance, lower total-installed costs, no need for specially skilled labour, ease in altering, rerouting and replacing piping, deflection capabilities that aid in routing the pipe over uneven surfaces and improved safety,” he concludes.

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Feature - Pumps

Company releases pump accessory Emis Sales 2002 has released a new range of ProLoc protection and control relays. The company is the design, manufacture, repair and mining equipment servicing subsidiary of diversified services provider Becker Mining.

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he company, which supplies a wide range of electrical equipment for use in hazardous and nonhazardous areas in the mining, petrochemicals and surface industry sectors, reports that the ProLoc series is suitable for thermal overload protection of conveyors, compressors, crushers, and fan and pump motors, as well as shuttle cars and flitting panels.

Emis Sales 2002 MD Frikkie Quirk explains that the standalone Emis ProLoc electronic protection and control relay system, which has been designed for the efficient protection of motor and feeder circuits connected to outlet sockets, has a choice of six user-selectable protection features to meet exact requirements.

He adds that an important advantage of this system is a door-mounted infrared link that enables a laptop – with ProLoc software – to manage all settings and downloads without having to open the panel door and expose personnel to dangerous live equipment, which is an important requirement in the Occupational Health and Safety Act. “Features of this system include thermal overload protection, earth insulation lockout, frozen contact or vacuum contact failure, earth leakage protection, short circuit protection, frequency and power factor measurement.

“ProLoc relays have a 40-last-faults-recording realtime clock-time stamped facility, as well as an on-board simulator of protection and logic,” says Quirk.

He adds that the advantages of this system include a reliable record of problem areas, earth leakage that is programmable from 30 mA to 3 A and the prevention of pump motors burning as a result of dry runs.

“ProLoc has the ability to monitor motor loads from 0.5 A with 100% accuracy. The system is easy to set up using the ProLoc MMI 420 display man-to-machine interface, or by using a laptop with ProLoc software,” says Quirk.

He adds that apart from the design and manu- facture of a wide range of electrical products for hazardous and nonhazardous applications, Emis also offers a repair and maintenance service to ensure total reliability of equipment in harsh operating environments.

“Emis is committed to providing reliable products that meet stringent quality and safety specifications.

The company has obtained product, and safety, health, environment and quality management systems certification body Certex certification, which represents excellence as an approved manufacturer and repairer, as well as South African Bureau of Standards certification for electrical apparatus for explosive gas atmospheres and for flameproof enclosures,” he concludes.

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July/August 2013 • Zambian Mining Magazine

Feature - Pumps

ECOCHEM Pumps establishes Zambian branch Dosing and transfer pump company Ecochem Pumps has signed an agreement that will see the company’s products and services being sold and supported in Zambia through newly registered company Aqua Africa.

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n investment licence is being finalised with the Zambian Government, after which stock will be transferred to Aqua Africa’s base in Kitwe, Zambia’s second largest city and the Copperbelt’s commercial hub.

The company has already received orders.

Co-shareholder with Ecochem Pumps in the Zambian venture is Aqua 24, an established South African company supplying borehole pumps, motors and equipment to mining and agriculture, and submersible pumps into water and wastewater applications.

The two companies have a history of co-operation dating back several years.

Aqua Africa’s main target markets will be Copperbelt mines in Zambia and the Democratic Republic of the Congo. Gold and emerald mines, and the growing agricultural market, will also be pursued.

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Alf Jacobsen, managing director of Aqua Africa, explained the driving force behind the decision to open in Zambia: “Zambia has for some years ranked among the fastest growing economies in Africa,” he said.

“There are major expansions taking place in the mining and agricultural sectors, making it an attractive place to open a business. Zambia also provides a springboard into surrounding territories.”

Prior to the establishment of Aqua Africa, Ecochem Pumps made use of agents to channel its products into Zambia.

These will now become redundant.

“Customers will buy product from what is to all intents and purposes an Ecochem branch, with the added advantage of receiving on-site service from qualified personnel,” Jacobsen said.

Aqua Africa will stock a wide range of products.

From the Ecochem stable will come Milton Roy dosing

Zambian Mining Magazine • July/August 2013

pumps and accessories, dosing instrumentation and mixers and agitators, and Ecochem slurry pumps and spares.

Although not stocked, the company will also make available the SomĂŠflu plastic and stainless steel chemical transfer pump ranges, and JMI submersible axial flow pumps.

From Aqua 24 will come Vansan submersible borehole pumps and motors, and Vansan vertical turbine pumps.

Electric motors of the Regal (CMG) brand and a full range of submersible dewatering pumps in various voltages will also be stocked.

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All these products are manufactured in accordance with DIN EN ISO 9001:2000 specifications, with certificates available on request.

Aqua Africa’s Kitwe facility incorporates a substantially equipped service centre and warehouse space to ensure sufficient stock holdings.

A test bay currently under construction will soon provide customers with test certificates for guaranteed repairs.

There are plans to incorporate a full rewind facility for electric motor repairs later in 2013. www.miningnewszambia.com

Contractors and Mining Pumps

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Every pump duty requirement, be it or is handled by one of our technical staff on an individual basis.

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July/August 2013 • Zambian Mining Magazine

Feature - Pumps

Xylem to launch new mine dewatering pump Xylem Water Solutions South Africa is developing a new mine dewatering pump that is due for release this year.

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ylem Water Solutions acting sales director Bennie Thiart notes that the mine dewatering pump, currently in its final development and testing phase, is based on customers’ needs.

“The pump is based on many hours of research and development (R&D) and listening to the voice of the customer. The new pump is being developed and built on the reputation of quality and longevity evident in our previous ranges and is being adjusted to suit customers’ requirements more,” says Thiart.

He adds that the company is supplying slurry pump units for applications in various process parts of mines and that it has a submersible slurry range which is an improved alternative to conventional and outdated vertical shaft pumps.

“The benefits of our pumps are that they are readily available and have a low life-cycle cost. Our pumps are also known for their quality and efficiency. “The feedback of our customers is impor- tant to us and recent customer surveys suggest that customers in the mining indus- try rely on our pumps for most of their slurry and dewatering needs.

“All our pumps, which are developed and manufactured

by Xylem’s R&D facilities in Europe, are constantly being improved upon so that we can ensure efficiency and reliability. The benefit of this is that it cuts down on labour and process time if a mine shaft gets flooded,” he says.

Thiart adds that another benefit is the on-site and aftercare support the company offers.

“We have resources and backup systems throughout South Africa and sub- Saharan Africa, as well as a large team of technicians that is in the process of expansion,” he says.

Management Meanwhile, the company’s South African branch appointed Vincent Chirouze MD in September last year and he is aligning the company’s approach strategy with the requirements of the mining industry.

“Listening to our customers and giving them what they want is a major focus point for our team. We are also focusing more on the mining industry in sub-Saharan Africa,

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where we see significant potential for growth,” he says.

Chirouze adds that the state of the industry varies from area to area and that the company is experiencing reasonable growth in South Africa.

“The economy in South Africa is steadily growing at 2.5%.

In the rest of Africa, there is a growth rate of between 8% and 10%, which is reflected in our business market and where we see opportunities, with the biggest potential for growth in the Democratic Republic of Congo, Zambia and countries in West and Central Africa.

“We have received quite a few orders for pumps for mining applications in that region and are working on various mining projects there. We expect more opportunities to emerge from the continent,” he says.

However, he notes that the industry is not without challenges. “The most significant challenges the company is facing are logistics and infrastructure issues throughout Africa and how to meet the needs of customers from a logistical and equipment-servicing point of view.”

Cheap and unreliable imports and pirated products are also a challenge. “In South Africa, we are competing with several international companies that are trying to break into the mining sector; it is a highly competitive market,” he says.

Total Care Chirouze states that the company is establishing itself as a full-maintenance service provider and has started to expand into a broader scope of services.

“Xylem has one of the biggest rental fleets in South Africa and key players in the mining industry are our largest market.

We have 700 pumps available for mining applications, ranging from submersible pumps to slurry pumps. We see this as a major opportunity to reach out to the mining industry throughout sub-Saharan Africa,” he concludes.

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International

Asia copper processing fees hit highest in 5 months as India closes top smelter Smelters across Asia are charging the highest fees in five months to process copper concentrate, cashing in on regional oversupply after India closed its top smelter over environmental concerns.

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ising fees are likely to encourage some smelters in Asia to boost refined metal production, potentially swelling London Metal Exchange stocks which are already perched near decade highs.

But they should only have a limited impact on China’s total output as many smelters there are already running close to capacity.

The hike in fees foreshadows a copper market surplus expected in the second half, swinging away from several years of deficit as top global mines such as Chile’s Escondida boost output.

Treatment and refining charges (TC/RCs) for spot raw material copper concentrates have climbed to $75 per tonne and 7.5 cents per pound in Asia for clean, standard concentrate, above the benchmark $70 and 7 cents in Asia for 2013 shipments, and up a quarter from March, industry sources said.

Shigeru Oi, senior executive officer at Pan Pacific Copper , Japan’s top copper smelter, said rising fees are unusual in the spot market at this time of year.

Chinese buyers usually step up spot purchases in the first and second quarters, tightening the supply/demand balance and putting downward pressure on spot TC/RCs, but this year is different partly due to the supply glut, he added.

“The toxic issue at Tuticorin in India and a halt at the Nchanga smelter in Zambia have added to concerns over the supply surplus,” he said.

India ordered Sterlite Industries to shut its smelter in Tuticorin over allegations of a gas leak. A fast-track environmental court will again consider a request to reopen the plant on April 29.

Zambia’s Konkola Copper Mines, owned by Londonlisted Vedanta Resources, said on Tuesday its Nchanga smelter would remain shut for a month after a small leak in the wall of a furnace.

Concentrate sellers pay TC/RC to smelters to convert concentrate into refined metal, with the charges deducted from the sale price, based on LME copper prices .

The charges, seen as a barometer for profit margins at smelters, usually rise when supply increases.

stretch on for months, have opted to resell their material before more supply hits the market, traders and China smelter sources said.

Chinese smelters have so far bought most of the surplus concentrate, snapping up at least four shipments of 10,000-25,000 tonnes each so far this month, according to sources.

Several sources said they expect TC/RCs to rise further.

“China is now are asking $80-$85 and 8-8.5 cents,” said a trader at a global trading house, whose firm had sold shipments to China at $75 and 7.5 cents.

He declined to be identified because of the sensitivity of the matter.

“Our next target deal is $80 and 8 cents as two Chinese smelters already got $75 and 7.5,” a trader at a mediumsized Chinese smelter said, adding that overseas sellers had been offering to China aggressively after the Indian smelter closed.

Still, other sources questioned the sustainability of higher processing fees in China.

“One of the Chinese smelters says they figure clean grades are around $75/7.5, but we figure that is a little bit aspirational,” said another trader at a global trading house.

“Certainly we’ve seen high 60s being done. You tend to see things moving to a more aspirational level before they settle down to reality in China,” he said.

The trader added that processing fees had climbed sooner than expected because of a weaker demand environment and because the Sterlite shutdown had increased the supply of available ore.

“The question is whether or not it will be sustained. I don’t think you’ll see a lot of fall off between (prices) now and where they’ll end up in the second half of the year,” he said.

Processing fees elsewhere in Asia have also begun to climb.

LS-Nikko Copper was mulling buying spot concentrate to take advantage of high TC/RCs, said a source at the top smelter in South Korea.

The source declined to be identified because of the sensitivity of the matter and did not provide the tonnage the firm was looking to buy

PROTRACTED SHUTDOWN? Rising fees also reflect jitters on the part of the Tuticorin smelter’s suppliers, who, worried the shutdown could

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July/August 2013 • Zambian Mining Magazine

tenders / jobs / notifications KAGEM Mining ltd - a gemfields group company

INVESTMENT OPPORTUNITY Schamin Investments Limited is looking for a partner to set up a Quarry and Aggregate production plant on it’s property in Lusaka East in Chongwe.

FOR ALE : UNCUT BERYL

The property has high quality mineral deposit of Limestone and Talc for the production of Aggregate 20mm, 10mm, and quarry dust.

Up to 2,000kg available Minimum Sale Quantity : 50kg 3000 Kwacha(rebased) per kg excl. VAT

This facility has high potential of being converted into a cement production facility as well as agriculture lime.

For further details on this opportunity, Kindly contact the details below;

Viewing by appointment only. Interested parties should contact: Sheetal Tambi on 0963 473 912 or Kagemberyl@gemfields.co.uk

Nelson Sichivula 0977779745

INVESTMENT OPPORTUNITY THE COMPANY Metal Fabricors of Zambia Plc (ZAMEFA) is a wire and cable manufacturing company for the domestic and foreign markets. Its major operations are in Luanshya on the Copper belt Province and it bis a unit of Phelps Dodge International Corporation, a General Cable Company.

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Receives and evaluates purchases requisitions from stock controller and other departments in order to ensure that the correct items are purchased

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Zamefa wishes to invite applications from suitably qualified persons to fill the following position:

Prepares realistic purchase budgets in conjunction with other departments in order to maintain consistence.

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Co-ordinates and administers materials procurement from inception of orders, receipts of materials.

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Annually reviews and updates suppliers listing

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Ensures compliance of ISO 9001 and 14001

PURCHASING MANAGER •

DUTIES responsible for the implementation, understanding and compliance of the safety rules of his/her area and proper housekeeping. As supervisor, is accountable for the safety related issues of his/ her area and recognise effective implementation of the environmental policy in evaluating employees performance

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Obtains materials from reliable sources in the right quantities and qualities at economic prices in order to deliver to the right user departments.

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Obtains materials and services necessary to sustain production in order to invest in inventory at the lowest optimum cost consistent with the economic order quantities and marked conditions. Using the most specs provided by technical.

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Advises management on market situation with regard to prices of trends import material substitution alternative sources of supply in order to make correct decision

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Promotes , maintains and upholds professional standards relating to supplies and associated services in the organisation in order to endure that the required standard, (Organisational, Health, Safety & Environmental)

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Promotes good public relations with supplies in order to maintain community in the supplies if raw material.

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QUALIFICATION: • • • • •

Grade 12 Degree in purchasing & supply/social sciences/CIPS Graduate Diploma Job holder should be able to write comprehensive reports to the Financial Controller 5years Pre-job Experience.

Must be conversant with integrated management system ISO 9001, ISO 14001, and OSHAS 18001 Applications together with copies of relevant certificates and detailed Curriculum Vitae should reach the undersigned no later than August 18, 2013 The Manager – Human Resources Metal Fabrications of Zambia P.O Box 90295 Plot # 1400 H. Figov road LUANSHYA Email: Stephen_Sikombe@pdic.com Note: Only short listed candidates will be contacted

Zambian Mining Magazine • July/August 2013

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tenders / jobs / notifications

KagemA Gemfiel Mining Limited company •

Investigate disciplinary cases and arrange case hearings and ensure that proper procedures are followed.

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Update HR data into the SmartHR software package so that users are able to efficiently and effectively use the system in the administration of HR functions

Purpose: Manage the purchasing and supply functions to ensure that the company procures goods and services of the right quality at favourable terms and right prices in accordance with laid down procuring policies and procedures.

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Process and administer staff welfare issues relating to medical and funeral grants etc.

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Liaise with the Union officials on issues affecting unionised employees

Major accountabilities

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Organise induction/orientation for new employees

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Ensure that procurement of supplies is done in strict conformity with established policies and procedures

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Monitor employee attendance and maintain all HR related records

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Negotiate with suppliers for favourable terms for procurement goods/services and where possible, for credit facilities

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Any other duties as many assigned from time

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Ensure the timely preparations of appropriate and valid documentation to facilitate payment to suppliers and attend to any discrepancy that may arise

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Liaise with suppliers to ensure timely delivery of goods/services.

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Any other duties as may be assigned from time to time

Kagem Mining Limited (“Kagem’) is approximately 60km from Kitwe in Lufwanyama District. Kagem is the largest emeralds mine in the World. Kagem is owned 75% by GemfieldsPic (UK) and 25 % by the Government of the Republic of Zambia.

1. SENIOR BUYERS (Reporting to Manager-Material Management)

QUALIFICATIONS a) Graduate in Purchasing and Supply b) At least 10years’ experience in Mining environment c) Member of ZIPS and CIPS d) ERP/SAP/Navision package, working knowledge

QAULIFICATIONS a) Degree/Diploma in HRM b) At least 5years’ experience in a busy mining environment and ability to work under pressure c) Experience in SmartHR software application or any such similar HR package d) Current member of the ZIHRM JOB LOCATION: Kagem Mining Limited, Mine site, Lufwanyama SALARY: Attractive packages are on offer.

Send only your CV and covering latter, indicating job being applied for day time contract phone number to: kagem@gemfields.co.uk, not later than 15th August 2013 Only short listed candidates will be contacted.

2. SENIOR HUMAN RESOURCES OFFICER (Report to Head Resources) Purpose: To provide and maintain stable and sound Industrial Relations Major accountabilities •

Monitor Industrial Relations climate and provide advice to management and employees on

company policy matters

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Provide guidance in the interpretation of conditions of service to maintain consistency in interpretation www.miningnewszambia.com

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July/August 2013 • Zambian Mining Magazine

Advertorial

Hi-Reach cracks Zimbabwe Left: Tobacco manufacturer and distributor Zimbabwe Leaf Tobacco Company recently purchased a bi-energy Genie Z-45/25J from Goscor Hi-Reach for use in their production facility in Harare.

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obacco manufacturer and distributor Zimbabwe Leaf Tobacco Company (ZLT) recently purchased a bi-energy Genie Z-45/25J from Goscor Hi-Reach, part of Imperial’s Goscor group, for use in their production facility in Harare.

The Genie Z-45/25J Bi-Energy articulated boom lift is a 48V DC machine with diesel powered generator, which also acts as a 100 amp battery charger, making it ideal for indoor and outdoor applications.

ZLT’s Stuart Chalmers says they chose the bi-energy machine because of the large size of their complex. “Having the ability to maintain charge while en route to a job is a necessity,” he says. “Also, as the machine is used indoors as well, its electrical function cuts out noise and harmful emissions making the area safer and more pleasant to work in.”

Chalmers says that the multi-function Genie Z-45/25J has significantly increased the efficiency of many tasks especially electrical maintenance work. ”It is used largely by electricians who work at height repairing and installing warehouse and factory lighting. In the past this work could only be done with very high scaffolding and only when the floor area was clear. The safety risk was high, it took long to complete the task and a large number of personnel was required to carry out the repairs.”

“Now, with this machine, the personnel required for the same task and the time taken are drastically reduced and it is completely safe. Also, being able to articulate, the machine enables technicians to carry out repairs regardless of what is stored at floor level.”

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“In the short time we have had it the Genie Z-45/25J has been in high demand.

Other technicians use it for gutter repairs on large warehouses and office buildings and we have even had IT technicians install wireless network points using the lift,” Chalmers says.

Carl van Dyk, Goscor Hi-Reach sales executive, says that the major advantages of Genie machines are their versatility, reliability and their innovative technology.

“Genie’s range of bi-Energy machines continues this trend.

Apart from their quiet, emission-free operation in the most sensitive work environments, the bi-Energy machines, like the Genie Z-45/25J that ZLT has acquired, has an impressive 15.87m working height and 7.62m horizontal reach. The self-leveling platform features 180° powered horizontal rotation for precise positioning and easy operation. Its compact 1,79m width means it can access hard-to-reach areas,” van Dyk says.

Other features include: • 2WD and travels at 4.8 km/h with 30% gradeability • Large 1.83 m all-steel platform lifts up to 227 kg • Ascent and descent along a vertical plane with or without boom retraction or extension • Automatic hill braking and ramp braking for extra safety Accompanying the handover of the Genie Z-45/25J was Goscor’s standard training package. “Considering that ZLT’s operators had never operated a machine like this before, they were very quick to pick up on what was required,” van Dyk says.

Chalmers says he is very pleased with Goscor’s service with the handover training being a good example.

“Altogether the performance of the machine and the Goscor team has exceeded our expectations,” he said.

ZLT is the first Zimbabwean company with which Goscor Hi-Reach has done business and Goscor Hi-Reach MD George Landsberg describes it as a “positive move”. “We see potential amidst the obvious difficulties and challenges in that country. However we firmly believe that this is a positive sign for us for doing business there in the future,” he concluded.

Operating from its headquarters in Alrode, Johannesburg, Goscor Hi-Reach supplies mobile elevated work platform machines, equipment, spares, ongoing maintenance and repairs as well as full refurbishment of machines for its customers across southern Africa. The company is part of Imperial’s Goscor Group.

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