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Mining

Barrick Gold Lumwana Mine has reported a 12% increase in the annual 2022 copper production beating the 2021 production.

The 2022 annual copper production at the North Western’s Lumwana Copper Mine stood at 121, 113 metric tons representing a 12% increase in production.

According to mineral production figures obtained from the Ministry of Mines and Minerals Development, obtained by the Zambian Business Times –ZBT – the 2022 annual Copper production at Lumwana stood at 121, 113 metric tons from the 108, 790 metric tons recorded in 2021.

The North Western Province based Lumwana mine is a large copper mine located in north-west Zambia in North-Western Province.

Lumwana is owned by Barrick Gold and represents one of the largest copper reserves in Zambia and in the world having estimated 5.014 billion pounds of proven and probable copper reserves of ore grading 0.68% copper.

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Barrick Gold Lumwana Mine has reported a

Mining

Zambia is set to start commercial Uranium production in 2027. GoviEx Uranium, the company with mining rights has exclusively confirmed that the company is expected to secure the project financing and start construction at Muntanga Uranium Mine once the bankable feasibility study is completed.

GoviEx Uranium Head of Investor Relations and Corporate Communications Isabel Vilela disclosed that the Company aims to deliver a bankable Feasibility Study for the much expanded Muntanga Uranium project by next year in 2024. The mine is located in Siavonga district of Southern Province.

Vilela explained that the Muntanga project was permitted in 2010, just before uranium prices collapsed to $16/lb, below the industry cost of production following the Fukushima nuclear incident in Japan in 2011, adding that they only acquired the project at the end of 2016, when uranium prices were still below the industry cost of production.

She told the Zambian Business Times – ZBT that that the original 2010 mining permit was based on a 20Mlb U3O8 mineral resource which has now been expanded to 60 Mlbs. Vilela said this highlights the fact that the Company focused on expanding the project and optimizing it to improve its potential economics and hence accelerated its development timeline during the period of low uranium prices.

“As you may understand, this is a complex process that involves multiple factors working in tandem. Typically, a mining project commences construction a few years after the completion of a Feasibility Study, subject to the duration required to secure financing.” She said.

She added that GoviEX is also updating the Environmental and Social Impact Assessment – ESIA to an International Financial Corporation (IFC) standard, in line with current international best practices.   Vilela stated that this total process usually takes approximately 3-4 years to complete with the first uranium production targeted for 2027/2028. Uranium production can add to resolving the energy deficit Zambia continues to grapple with whenever water levels drop on the back of hydro power over-dependence.

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Zambia is set to start commercial Uranium

Politics

The Evangelical Fellowship of Zambia – EFZ has questioned the role that the police played during and after the recently held ‘gay and lesbian’ parade stating it is the prayer of the Nation that the alleged summoning of the Organisers of the gay parade seen in Lusaka over the weekend, is not a desperate attempt to soften the hearts of the Zambian people while pretending to be doing something about it.

Speaking in an interview with the Zambian Business Times – ZBT – EFZ Executive Director, Bishop Andrew Mwenda, said the Nation is left with a bitter aftertaste of the pro-gay march and further wondered if the organisers are less informed about gay rights in Zambia, the stance of the Church and the position of the President on Homosexuality.

Bishop Mwenda said the act is disgusting especially when Zambia is a Christian nation and its Governance is anchored on the Word of God which cannot be altered by man and the rule of law.

He said these acts are clearly a violation of the Biblical teachings and an arbitrary disrespect of the rule of law among others.

He said it is disheartening to note a clear disregard for the season which is aimed highlighting women as key partners in development, a month which is meant to advocate for women’s and children’s rights.

“Am suspicious of the police when they says that the police were cheated but the fact is how do they summon them when they gave them officers to escort them and the officers read and heard what the guys where saying that it was a LTQB thing and still permitted them to proceed with the protest.” He questioned.  

“So we really do not understand how the police worked so we call up on the police command especially Mr Lemmy Kajoba himself to up their game in this issue as it is against the law. It happened in August 2022 and the police just let it like that as we have not heard anything from them since then and this is yet another incidence and we are trusting that the police will not just let go but apply the law to its fullest.”

“I also want to appeal to our youths that money is not everything and they shouldn’t be bought and given to such messed issues as life goes beyond today and you can’t sell your life for money. We know poverty is there but youths should resist from being used from such as the thing is irreparable.” He warned.  

He told ZBT that, “We are working with the police and if the law does not get applied to the full EFZ will take the issue upon themselves to make sure that the law becomes stronger thereby appealing to parliament and the court to ensure that the law is applied to the fullest.”

He said the freedom of expression people long to enjoy should not be used to corrupt the moral fabric of this country and challenged the Zambia Police to quickly arrest the organisers who deliberately disregarded the law.

Bishop Mwenda has also encouraged youths in the country to uphold and respect the Zambian Cultural and national values as Africans and as a Christian Nation

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The Evangelical Fellowship of Zambia - EFZ

Uncategorized

African governments and Zambia’s new dawn government in particular may have a lesson to learn from Central American negotiation skills after the confirmation that the Panama government has secured a minimum of $375 million per annum from First Quantum Minerals – FQM.

In a note shared with the Zambian Business Times – ZBT, has announced that its Panamanian subsidiary, Minera Panamá, S.A. (“MPSA”), has agreed and finalized the draft of a concession contract (the “Proposed Concession Contract”) with the Government of Panamá (the “Government”) for the Cobre Panamá mine.

The Proposed Concession Contract entails payment by FQMs MPSA of $375 million plus an additional $20 million to cover taxes and royalties up to the year end 2022 as well as payment by MPSA starting in 2023 of an annual minimum contribution of $375 million in Government income, comprised of corporate taxes, withholding taxes and a profit-based mineral royalty of 12 to 16 percent, with downside protections

And in respect to safeguarding public interest and respect for non state actors and national stakeholders and unlike the situation in Zambia were public deals are negotiated in secrete, the proposed Panama – FQM Concession Contract is subject to a 30-day public consultation process and approvals by the Panamanian Cabinet, Comptroller General of the Republic and the National Assembly. 

Tristan Pascall, Chief Executive Officer, said, “After a lengthy and arduous negotiation process, the finalized Proposed Concession Contract outlines the basis for the future of Cobre Panamá for all stakeholders, including the Government, our investors and the country of Panamá.

In Zambia, government instead of negotiating for getting maximum benefits, Minister of Finance Dr. Situmbeko Musokotwane opted to make mineral royalty tax – MRT tax deductible resulting in an annual revenue loss of between $150 million to $200 million per annum adding up to about $1 billion in five years.

With $375m minimum annual revenues, Panama will recoup about $2 billion in five years. The Zambian government should also consider adopting wider public consultation when handling huge public deals especially if their impact goes beyond a five year time horizon.

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African governments and Zambia’s new dawn government

Tech

The Itezhi Tezhi Power Corporation – ITPC, a joint venture company between ZESCO and Tata Africa has revealed that they are now capable of supplying 120MW of power generated to ZESCO, the Company is now able to produce at almost full capacity following improved water levels following a good spell Of rainfall and in some cases flush floods.

ITPC had earlier disclosed that the company was only generating 80MW out of 120 MW installed capacity due to low water levels, a situation which had contributed to recent experienced load shedding that slowed down the economy losing about one month in nationals production and socio-economic disruption.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, ITPC Chief Executive Officer Moses Mbuta said the Company is now able to produce about 110 megawatts and it expects to start generating at full capacity (120MW) before end of February 2023.

Mbuta said the current produced 110MW of power is being supplied to ZESCO but declined to reveal the tariff or price at which power is supplied per megawatt to ZESCO, a state owned Power utility. Calls to list even 5% of ZESCO shares on Lusaka Securities Exchange – LuSE have arisen due to concerns over abuse by successive politicians, poor Corporates governance practices and lack of timely financials and operational reports, which would become mandatory if listed.

Mbuta said because of the variable of low water levels in reservoirs, the company was in the last few months unable to produce at full capacity and be able to challenge the rising demand of power.

According to electricity producers, there was low water levels in major rivers on which dams have been constructed to generate electricity a situation which had resulted in less power generation in the country and a one month return to crippling load shedding.

Mbuta said the company is however trying by all means to ensure that generation is at full capacity and support the State owned power Utility Company ZESCO and the country at large.

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The Itezhi Tezhi Power Corporation - ITPC, a

Mining

Zambia’s annual Copper production has dropped by 5% to about 760,000 tons. This trend goes against the New Dawn Administrations target to rump up Copper production to over 3 million tons in 10 years.

The drop has been expected after continued delays in resolving production challenges and sourcing for short term funding at both Mopani Copper Mines – MCM and Konkola Copper Mines – KCM to hold down optimum production levels. The 763,287 metric tons of the total copper produced in Zambia in 2022 is a drop from 800,696 tons which was produced in the preceding year 2021.

According to a consolidated copper production report obtained by the Zambian Business Times –ZBT and verified by the Chamber of mines, the 2022 copper production has decreased by a whooping 37,409 tonnes in the year 2022. At average international copper prices of $9,000, this is an export opportunity revenue gap or loss of about $340 million in 2022.

This drop is however against the government target of increasing copper production to 1.3 million metric tons for the 2022 fiscal year, a build up target needed as a step towards achieving the target of 3 million tons of copper within the next 9 years. Minister of finance and mines continue to insist that this 3 million copper production target is attainable despite top mining and exploration experts disputing and stating that the target is unattainable and the target may have not been based on exploration and mine developments on the ground.

Mining experts spoken to have attributed the 5% decrease to the continued declining of production at Mopani and unresolved Konkola Copper mine issues that are deteriorating on the ground, stating that they have largely contributed to the 2022 decreased copper production. If even resolving gold mining at Kasenseli mine has delayed to this long, how about large scale copper minimum?.

Former president of Mining Suppliers Augustine Mubanga told ZBT that the country is anticipating to see that the mining sector begins to contribute to the economic agenda of this country, because if left in the current state, it is dangerous on the national economy and specifically the Copperbelt’s regional economy, and also the negative impact on the lives of the people that directly depend on the smooth operations of the mines.

Mubanga said the negative contribution of Mopani and Konkola Copper Mine to the total production of 2022 will further have a significant impact on the revenues that will be received from the Mining Sector. Towns and cities like Kitwe, Ndola, Chingola, Mufulira and even Chililabombwe are under economic pressure.

He added that government should form a technical group of various stakeholders with historical and strong knowledge in the mining sector to advice government on issues surrounding the mining sector especially where two giant mines like Mopani and KCM are concerned.  

For so long Calls for urgent attention have continued on both the court cases at Konkola Copper Mines and unprofitability of the Glenore deal at Mopani Copper Mines as they have left local businesses limping and have paralyzed the Copperbelt and the country at large.

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Zambia’s annual Copper production has dropped by

Agribusiness

Onion prices have collapsed by over 30% following excessive seasonal supply. And the Zambia National Farmers Union – ZNFU has attributed the current low prices of onion on the market to the overwhelming availability of the commodity as most farmers are currently harvesting their crop.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, ZNFU Public Relations Manager Calvin Kaleyi attributed the collapse in prices on the market to over supply, with onions and the stocks being sold to have exceeded demand.

Kaleyi explained that, “If the market is saturated and is over supplied, basically the prices will come down. The market is now saturated and it has plenty onion supplies and the stocks are exceeding demand, so automatically the situation dictates that there should be slow down in prices, so this is what is happening.”

He said the prices are however expected to again rise towards May and June when there is likely to be low supply. Most farmers pen traders do not have industrial driers to add shelf life to onions, so they are forced to offload. The other option is to grow onions as a winter crop so that harvesting and marketing is during period of low supply.

Onion prices as measured by the Jesuit Centre for Theological Reflection (JCTR) Basic Needs and Nutrition Basket (BNNB) for the month of January 2023 have declined by K37.78 from the month of December. A 4kg onion pouch went down by K37.78 from K117.69 (K29.42/1 kg) to K79.91 (K19.98/1kg), a drop of 32%.

Onion can also be exported but lack of investments, aggregation and follow through continues to hinder local onion farmers growth and development. However, commercial farmers are able to grow high quality onions, have purpose built driers and export excess to retain profitability.

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Onion prices have collapsed by over 30%

Tech

The Railways Workers Union of Zambia – RWUZ says it is unfair for the railway sector to continue paying fuel levy which do not even go into the rehabilitation of the rail line and a steep employee representatives, they are calling for the sector to be exempted from paying this levy so that benefits can be passed on to passengers.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, RWUZ Secretary General Simon Ngambi said the railway sector purchases fuel in large quantities and yet they are subjected to pay fuel levy which has no benefit on the sector.

According to the Energy Regulatory Board – ERB, the Fuel Levy is paid by every consumer of Petrol and Diesel. ERB Public Relations Manager Namukolo Kasumpa said the current fuel levy is K1.01 per litre for Petrol and K0.32 per litre for Diesel which is used by the Government for road construction and maintenance.

But RWUZ Secretary General Simon Ngambi has argued that it does not make sense for the railway sector to continue paying for the particular component when they do not use the road and government does not use the funds to improve the track. Rail is a much cheaper mode of transport than road but lack of investment and upgrade continue to hinder the sector from taking its rightful place.

Ngambi said Government should come in and see how best it can help the rail sector stating that the fuel which they buy does not go towards the maintenance of the rail but to the maintenance of the road.

“We are asking Government to exempt the railway sector from paying the (fuel levy) that particular component so that the company can mitigate some of the challenges the company is facing.” He said. 

Ngambi said, “This is our concern because the fuel we buy and the fuel levy we pay does not go to rehabilitate the rail line but the component goes to the rehabilitation of the road.”

He said Zambia railways contribute to the maintenance of the road through fuel levy which they do not even use.

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The Railways Workers Union of Zambia -

Tech

ZESCO Limited, Zambia’s energy giant has disclosed that the waiting list of people who have paid for connection of electricity from has been cut from about 67,000 to about 11,000. This is expected to improve national household and commercial entities connections to the national grid which experts say at country level, is only at about 30 to 40%.

The state-owned power company (ZESCO) reported that it had accumulated a connection backlog of over 67,000 customers as of December 2021 which built up from 2014 to 2021. The backlog was initially blamed on lack of wooden poles locally, to justify importation of wooden poles, a claim that was refuted by ZAFFICO – a publicly listed producer of wooden poles and a local wooden poles trader Copperbelt Forestry Company.

Speaking during a media briefing in Lusaka Monitored by the Zambian Business Times – ZBT, ZESCO Managing Director Victor Mapani said the backlog is currently sitting at 11, 000 with all standard connections completed and the only ones remaining are non-standards.

He said ZESCO set out to clear the backlog within a year and by the end of the 1st quarter 2022 and quarter 2 of 2022, the backlog was sitting at 37, 000 and 25, 000 respectively.

Mapani said this process was derailed when the Zambia Public Procurement Authority (ZPPA) was petitioned over the importation of the poles which were not readily available in Zambia.

He also said the power utility firm also had debt owed to independent power producers which had now been reduced by $500 million.

Mapani said ZESCO’s huge debt encumbrance which has hindered the corporation from functioning optimally has been reduced from $3.5 billion as of December 2022 to now about $3 billion.It Ian however not clear if the $3 billion debt also includes the $2 billion invested into the construction of the 750MW Kafue Gorge Lower.

He said the debt reduction has mostly been driven by the renegotiating of existing contracts and improving the corporation’s financial discipline which has resulted in ZESCO meeting obligations as and when they fall due. ZESCO has since ended a month long load shedding which had blighted and tarnished the image of the energy company.

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ZESCO Limited, Zambia’s energy giant has disclosed

Mining

Mufumbwe District Council Chairperson has disclosed that Euro Africa Kalengwa Mines Limited has moved on site and has commenced construction of the processing plant after it was granted a mining license to take up operations at Mufumbwe’s Kalengwa copper mine.  

Council Chairpesron Lemmy Namukuka said following a long legal battle for kalengwa mine between Kalengwa Processing Zone Limited and Euro Africa Kalengwa Mines Limited the license has finally been granted to Euro Africa Kalengwa Mines Limited.

The mine is expected to have an initial annual Copper production of 15,000 tons, which would add about $135 million to Zambia’s forex earnings if proceeds are banked locally. The mine site has one of Zambia’s highest Copper content ore and annual production would easily be doubled with the right expertise and technology being deployed.

Kalengwa Processing Zone Limited had taken Government to Court over the cancelation of its large scale exploration licence, describing it as unlawful. It is however not clear if more legal drama and fight backs will not follow and further delay this mine development and operations.

According to media reports seen by the Zambian Business Times – ZBT, some years back, Kalengwa Processing Zone Limited who were holding the mining license had applied for leave to commence judicial review of the decision by the mining licencing committee to terminate its large-scale exploration licence no. 24401-HQ-LEL.

The firm was seeking a declaration that the decision of the committee to terminate its licence and reinstate Euro Africa Kalengwa Mine Limited’s licence no. 8584-HQ-LEL is illegal and procedurally improper. The Council chairperson could however not give details regarding this matter.

Namukuka however told ZBT that he was briefed by Euro Africa Kalengwa Limited Country Managing Director that they are almost through with the ZEMA in terms of the environmental impact assessment report and go ahead.

He said the construction of the processing plant is expected to be completed within three months and after that they expect to commence productions.

He said once operational they expect a boom in terms of business activities in the sense that there will be an influx of many people that will get employment at the mine and open up a number of business within the district.

“We as the council are also expecting that we will have an increase in terms of the revenue from the property tax and land rates that will be collected from the mine which will in turn help to carter for our environmental and social economic activities.” He said.

He further remarked that, “We are so excited because this is a natural resource for the people of Mufumbwe as the people of Mufumbwe will have to benefit through employment and we also expect development in terms of infrastructure, support industries and sectors such as housing, shopping and commercial centers which will contribute to the development of the District.”

Kalengwa mine is located in the North-western province of Zambia 800 km north-west of Lusaka and 400 km south-west of Kitwe. The Copper Mine is believed to have been one of the highest-grade copper mines in Zambia.

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Mufumbwe District Council Chairperson has disclosed that