ZIMEC 2017 is the perfect opportunity for operators in the mining and energy sectors in Zambia, both established and new to understand the political environment, challenges and successes and investment opportunities by attending the conference sessions, as well as meeting the Zambia’s main political, economic and institutional decision makers. Leading mining and energy houses, government representatives, investors and other complementary businesses will be participating to discuss current and upcoming projects and gain useful insights into current trends of the mining and energy sectors.
“The exposure to the Mining environment has been extremely opportunistic since we were exposed to the ZIMEC platform. We identified our challenges and possibilities to improve our goals and objectives and met with most of the big mining operational companies to discuss our strategic planning for 2018. The stage has been set and now we have to play our role.”- Naeem Fortune | CEO, Africa Union Cargo (Silver Sponsor, ZIMEC 2017)
For the past 7 years, ZIMEC has been instrumental in attracting foreign direct investment into Zambia’s mining and energy industries. The growing Zambian mining sector has witnessed an influx in investment and forecasts are exceedingly positive due to the rising copper prices and increase in demand for Cobalt. This will further incentivise more foreign miners leading to increasing mining projects. Favourable mining legislations and taxation policies have also boosted the growth in the mining sector. Diversification from copper have also been consolidated due to the emphasis on gemstones.
Zambia is also at the forefront in attracting investment for a sustainable energy sector fostering economic development and mitigating the country’s power deficit. Mining accounts for the greatest electricity consumption in Zambia and significant steps are being taken towards renewable power. The country expects to triple its power output to 6,000 megawatts (MW) in 2 years through expansion of solar energy. This has led to FDI coming into the country.
Zambia is at a crossroads, in order to meet the ambitions of Vision 2030, the government is diversifying both the mining and energy industries in achieve sustainable development. Building on the theme for 2018: ‘Invest in Zambia- Generating Value, Diversity and growth through Collaboration’, the conference aims to turn these plans to actions.
The conference will have two focal points: Mining in Zambia and Power in Zambia. Both streams will consist of two days of dedicated conference sessions, exhibition, industry related workshops and robust panel discussions delving into the critical factors prevalent in the industries. ZIMEC will focus on a range of essential topics addressing the future of the mining and energy sectors and prespoctive investing opportunities.
Key Topics include:
31st January, 2018
Issued by: Zambia Chamber of Mines
The Zambia Chamber of Mines has noted with concern the signing of a Statutory Instrument, cited as the Railways (Transportation of Heavy Goods) Regulations, 2018, to compel 30 percent of bulky and heavy cargo to be transported by rail.
The Chamber is currently evaluating the full impact of this new legislation on the operations and cost structure of mining companies, which are likely to be the largest sector affected.
Though, we acknowledge that consultation with the Mines by the Ministry of Transport and Communications did occur, the Mining Industry position has been ignored; all rather unsatisfactory.
Despite sector representation, the legislation has seemingly been forced-through. The Copperbelt rail infrastructure in existence is in poor repair, lacks capacity, lacks adequate security provision; and certainly lacks resilience. Moreover, it’s not a minor detail that the North Western Province mines have no access to a serviceable railhead closer than Chingola.
The Industry views this SI as potentially retrogressive to commerce, trade and industry in Zambia. Insufficient infrastructure exists to make this piece of legislation workable without imposing punitive costs onto Zambia’s principal means of generating revenue. It is economically inappropriate and unworkable.
In order to maximize the value to a macro-economy the decision-making process for how to freight goods should be driven by the following parameters:
In the interest of a free-market where competition is allowed to flourish and so promote efficiency, the Mining Industry feels that rail freight should compete on a level playing-field with road transport without the unfair advantage of enforced quotas. To compensate for a lack of flexibility, rail transport must offer increased reliability and better economics over road.
In Zambia, in the current operating environment, there is no evidence that the economics of rail will be better than road – sample rates are not provided. Indeed, on first-look it seems most likely that rail freight will be a costlier option that road freight. Furthermore, currently there is no evidence to suggest that rail reliability will be superior to road transport reliability.
Impact of a Rail Quota on the Transportation of Copper Anodes and Cathodes in areas without Rail Infrastructure
This will result in copper having to be road hauled to the nearest siding where it is transferred to rail, which in turn will result in additional costs for the road haul; double handling of material; increased risks for theft of cargo; hence an impact on insurance premiums. The transit time for rail in Zambia is also very challenging.
This SI is punitive in nature and focused on imposing sanctions, including custodial sentence on non-compliant companies despite the concerns raised by stakeholders on the state of Railway infrastructure in Zambia. Rather, the SI should be business friendly and provide incentives to encourage compliance and collaboration among stakeholders.
For this reason, the Chamber calls for a review of this SI and allow for more considered analysis of the effect on business and the national economy.
The mining sector would of course wholeheartedly support re-development of the Zambian railways by Government. But this SI contributes nothing to that development and is decisively investment-negative.
In sum, this SI is not symptomatic of a Nation whose economic pillar is largely dependent on mining. It must be revoked or redrafted with substantial changes.
Deputy Chief Executive Officer
Zambia Chamber of Mines
They do not stand up to scrutiny, and are not supported by the facts
Allegations by UPND mining spokesman Percy Chanda that the mining industry operates in secrecy through private Development Agreements with the government are a whole decade out of date, Chamber of Mines President Nathan Chishimba said today.
He was responding to an article in the Daily Nation [11 December 2017] in which UPND Chairperson for Mines, Percy Chanda, accused the mining industry of having “secret” agreements with the government.
“Statements about the mining industry should be rooted in fact, and not populist emotion,” said Chishimba. “This is critical given the industry’s pivotal role in generating foreign earnings, employment and economic growth.” Chishimba proceeded to refute each of Chanda’s allegations point by point:
Chishimba said the mining industry and government departments had made significant and important improvements over the past decade in information sharing and transparency, and it is important that this be acknowledged.
“We look forward to the day when politicians find it useful to praise and support the industry, instead of ritually condemning it for short-term political gain.” END
Government has commended the Zambia Chamber of Mines for not only promoting excellence, but also recognizing outstanding performances in various disciplines of the mining industry.
Republican Vice President, Mrs Inonge Mutukwa Wina said in a speech read for her by Finance Minister, Mr Felix Mutati at the Zambia Chamber of Mines 2017 Annual Mining Awards Gala held at Protea Hotel in Ndola.
She said that government is looking forward to growing the country’s Copper production to 1 million tonnes in 2018. Mrs Wina reiterated that government expects mining companies to play a significant role in attaining this target.
Speaking at the same event, Zambia Chamber of Mines President, Mr Nathan Chishimba stated that it is the Chambers desire to work closely with government in identifying appropriate strategies and initiatives that will unlock Zambia’s capacity to develop and mine other minerals apart from Copper.
He said, the Chamber is keen on working closely with the government in identifying appropriate strategies and initiatives that will unlock the capacity to develop and mine other minerals apart from copper.
Mr Chishimba also stressed on governments need to organize and streamline Artisanal Mining.
“Presently, this area of the industry is largely disorganized and run by individuals without appropriate consideration of environmental consequences and more importantly the consequences of the safety of the people working on these premises,” he said.
The Chamber President added that government does not seem to be benefiting from the proceeds of these activities and the opportunity to widen the tax base seems to have been lost.
“We have evidence of some very proactive strategies that some countries have employed to mutually benefit these individuals, government and the surrounding communities.”Mr Chishimba added.
The Awards Gala is an annual event to recognize and promote service and excellence. This year’s mining awards held on 3rd November were won by the following companies and individuals.
2015 Intercompany Mining First Aid Competition Award Kansanshi Mining
2016 Intercompany Mining First Aid Competition Award KCM Konkola
2017 Intercompany Mining First Aid Competition Award Chibuluma mine
2015 Mine Rescue Services Final Competition Award Chibuluma Mine
2016 Mine Rescue Services Final Competition Award Konkola Copper Mine(Nchanga)
2017 Mine Rescue Services Final Competition Award Mopani Copper Mines(Mufulira)
Category 1 Mining Woman of the year (Mirriam Mapyapya)
Mopani Copper Mines
Category 2 Mining Personality of the year (Jacob B. Banda)
Mopani Copper Mines
Category 3 Best Performer in the Local content Mopani Copper Mines
Category 4 Best Mining Employer of the year Barrick Lumwana Mine
Category 5 Best performer in Social Investment Barrick Lumwana Mine
Category 6 Best Performer in innovation Chibuluma Mines
Category 7 Best Performer in Environmental Management Kalumbila Minerals
Category 8 Best performer in occupational Health & Safety Chibuluma Mines
Mining Company of the Year Mopani Copper Mines
The Chamber of Mines President’s award was presented to Former Zambia Consolidated Copper Mines Ltd Chairman Mr Francis Kaunda, in recognition of his lifetime contribution to the mining sector.
In 2012, the mining gala awards were introduced to provide a forum for recognizing service and excellence of individuals and member companies in the mining industry, whose efforts remained unnoticed previously.
Acting Chief Executive Officer
Zambia Chamber of Mines
The Zambia Chamber of Mines is pleased to announce that it will be holding its 3rd National Conference on Occupational Safety, Health and Environment (OSH-E) on Thursday, 2nd and Friday,3rd November, 2017, at Protea Hotel-Marriot, Ndola.
The National Conference, introduced in 2014, provides a forum for promoting professional discourse and sharing of best practices in OSH-E in the mining sector through researched presentations and networking activities; complemented by an array of exhibitions on the sideline, by providers of OSH-E products and services. The Chamber considers promotion of sound occupational Safety, Health and Environment practices as one of the key pillars for achieving sustainable and responsible mining, in line with its mission.
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The notion that Zambia’s mines are being subsidised by domestic consumers is “wholly untrue and completely at odds with the facts”, Chamber of Mines president, Nathan Chishimba, said today.
Chishimba was reacting to a spate of recent articles in the Zambian media suggesting that the government and domestic electricity users are subsidising the power consumption needs of the mining industry, and that these subsidies are to blame for ZESCO’s long-term failure to invest in power infrastructure and additional generation capacity.
“This argument is demonstrably false, at odds with the facts and very easy to refute,” said Chishimba.
“According to figures by ZESCO presented at the June 2017 ZIMEC conference in Lusaka, the mining industry accounts for 80% of the company’s revenues; the balance comes from households, government and services, general industry and agriculture. How is it possible for these far smaller revenue contributors to be subsidising the major contributor? It makes no sense.”
In fact, the mining industry’s contribution to Zesco’s revenues (80%) is proportionately much larger than its consumption (55%) of national energy production, Chishimba said. “This is certainly not indicative of an industry that is being subsidised – indeed the opposite would seem to be true.”
Chishimba said it is misleading to compare tariffs for residential consumers to those of industrial users like mines, because the cost of supplying power to each is not the same.
“It is vastly cheaper to supply power to heavy industrial users like mines, because they consume it in bulk and at high voltage. Residential customers, on the other hand, consume low-voltage electricity that requires an extensive – and expensive – network of distribution lines, substations and transformers.”
This is a global phenomenon that anyone can verify from available statistics, Chishimba said. In the European Union, for example, average industrial power tariffs are 44% lower than household tariffs; in the United States, they are 43% lower.
Chishimba concluded: “Claims that the mines are being subsidised have the unfortunate effect of portraying the mining industry as being responsible for Zambia’s power deficit and ZESCO’s precarious financial situation. This is simplistic: the power deficit in Zambia goes beyond the sole issue of tariffs, and also includes other factors such as regulation, competition and the operational efficiency of ZESCO.”
Acting Chief Executive Officer
Zambia Chamber of Mines
Critics challenged to produce the evidence!
Chamber of Mines president Nathan Chishimba has dismissed as malicious nonsense allegations that “Zambia loses about US$3 billion annually through illicit financial flows (IFF) mainly perpetrated in the minerals sub-sector”.
The allegations were made in an article in the Daily Mail (24 July 2017), featuring Centre for Trade Policy and Development (CTPD) director Isaac Mwaipopo. The article purports to be based on the findings of the latest Financial Intelligence Centre (FIC) report.
“Even a cursory reading of the 2016 report will show that there is no substance to the allegations,” said Chishimba.
Chishimba proceeded to dismiss the allegations, point by point:
“The portrayal of the mining industry as robbing Zambia of billions of dollars is dramatically at odds with the actual findings of the report,” said Chishimba. “CTPD, and civil society generally, have a key role to play in highlighting corruption, so it is a real pity that they have not got to grips with the actual contents of this report, which indicates large-scale corruption in public procurement.”
Chishimba said the alleged theft of $3 billion of refined copper stretches the bounds of credibility because of the sheer volume of metal involved.
Assuming an average price of $5 000 a tonne for 2016, it equates to some 600 000 tonnes of refined copper annually. To put that in perspective, all Zambia’s copper mines together produced around 750 000 tonnes in 2016. These figures therefore suggest that nearly 50% of Zambia’s annual copper production is unaccounted for. Firstly, it would require two massive ‘ghost’ smelters, each the size of the one at Kansanshi, to secretly process this additional quantity of copper; secondly, to transport it out of the country would require between 50 and 200 trucks leaving the country unnoticed every single day of the year.
“These allegations are so implausible, that even a hardened conspiracy theorist would think twice before believing them,” said Chishimba. “I challenge the CTPD, or anyone else, to produce the evidence.”
He added that the Chamber of Mines was not the only organisation in Zambia to question these constantly recurring allegations that the mining industry was stealing $3 billion in mineral production every year that doesn’t show up in official statistics.
In an interview with the online mining publication Mining for Zambia earlier this year, the allegations were roundly dismissed both by Mooya Lumamba, Director of Mines at the Ministry of Mines and Mineral Resources, and Ron Smit, chief consultant on the Mineral Production Monitoring Support Project, a four-year programme funded by the European Union.
“These allegations are wholly untrue, and come from a position of ignorance – not just about how copper is mined and produced, but how our mineral monitoring systems work,” said Lumamba in the interview. “It’s alarmism.”
Smit agreed. “We have noticed that this particular allegation has been recycled in the media for several years now, but no one ever offers any proof.”
Zambia’s major mines are not exporting copper concentrate, Chamber of Mines Chief Nathan Chishimba said today, reacting to a call by the Mineworkers Union of Zambia that such exports should be banned.
MUZ General Secretary Joseph Chewe was quoted in a news report last week saying that government should ban the export of copper concentrate by mining companies, because refining it into finished cathode copper is “giving jobs to other countries”.
Chishimba said: “This call for a ban suggests there are massive exports of copper concentrate that need to be stopped. We don’t quite know where this is coming from, as the facts paint a very different picture.”
None of the large mines are exporting copper concentrate, he said. It makes no economic sense anyway, because Zambia’s smelters are currently not running at full capacity, and are struggling to find enough concentrate to process. Concentrate is even being imported from the Democratic Republic of Congo to keep certain smelters operating efficiently.
If there is any exporting of copper concentrate by Zambian mines, it is probably being done “at the margins” by very small-scale producers who are unable to have their copper concentrate processed locally for reasons related to their quality.
“Smelters are complex pieces of infrastructure designed to handle copper concentrate only of a certain kind and quality,” said Chishimba. “If anyone is exporting concentrate, incurring all the additional taxes and expense of doing so, one can only assume the concentrate cannot be processed locally.”
In any event, Chishimba said, the answer to job creation in Zambia is not to ban legitimate business activity, but to grow the economy and make it more competitive. “We cannot ban our way to prosperity and employment,” he said.
As for the MUZ leader’s statement that all copper concentrate produced in Zambia should be refined into finished copper cathode locally, Chishimba said Zambia does not have the refining capacity to do this.
Converting anode copper (95% pure) into cathode copper (99.95% pure) is done in a refinery through a process known as electrorefining. Zambia only has two refineries, and their capacity is not sufficient to handle all the copper anode produced by the Zambian mining industry.
“In any event, it is a relatively low value-add process, and it is also extremely power-intensive – an important consideration given Zambia’s current power deficit.”
Chishimba said it would be more helpful if stakeholders addressed their concerns directly with the industry in a spirit of dialogue and engagement, rather than making statements to the media without full knowledge of the facts.
Acting Chief Executive Officer
Zambia Chamber of Mines
The global mining industry is experiencing its most serious skills shortage in decades, and this is having major ramifications on mining countries around the world – including Zambia.
That’s according to a report released today by the Chamber of Mines, entitled Searching for Talent – Skills and Employment in the Global Mining Industry. It is based on interviews conducted with a cross-section of management and employees at mines in Zambia, South Africa and Mauritania.
The immediate effect is that mines in Zambia and other countries are finding it increasingly difficult not just to attract skilled, experienced people, but also to retain them.
“There was a time when you could easily find four or five people to fill a high-level position,” says Johan Jansen, CEO of Mopani Copper Mines, quoted in the report. “Now you battle to find just one.”
Human Resources managers from Mopani, Barrick Lumwana Mine and First Quantum Minerals’ Kansanshi Mine all have stories to tell of the “untimely departure” of promising Zambian mining graduates with several years of experience, often under the mentorship of a seasoned expatriate.
“Just as they are ripe and ready to assume a senior position with more responsibility, they are lured away with a more interesting or lucrative offer,” the report says.
The skills most in demand across the global mining industry as a result of the talent shortage are those that are critical to the daily operation of the mines. They are largely technical, and are the domain of people like engineers, geologists, metallurgists, technicians, mechanics and artisans.
The report cites three major reasons for the global shortage of high-level mining skills. One: the massive rise in global mineral production over the past 20 years – mainly to meet rising demand in China – has drained much of the world’s mining talent pool.
Two: the global mining industry is experiencing its biggest retirement wave in many decades, with up to half of the people in key skill categories nearing retirement. In Canada, one of the world’s largest mining countries, some 49 000 people will be needed in the next decade to replace retiring workers, according to the country’s Mining Industry Human Resources Council.
Three: harsh working conditions, remote locations and long working hours mean mining is no longer as attractive a career option as it once was. “The truth is there are more attractive industries out there for mining graduates, with better work-life balance,” says Sam Ash, General Manager at Barrick Lumwana mine, quoted in the report.
The shortage has made skilled, experienced people particularly valuable and mobile. The report shows how these people – or expats, as they are often referred to – can be found working in mines all over the world. They also include many Zambians: the report profiles Zambian expats who have worked in mining companies in Australia, South Africa, Finland, Mali, Sudan and Mauritania.
The urgency of the skills shortage has seen a renewed emphasis on training in the world’s mining companies, the report says. It takes the form of scholarships, coaching, mentoring, exposure to international mines and formal skills-transfer programmes with expatriates.
The skills shortage has also highlighted the importance for countries to facilitate and simplify the entry of skilled international experts.
“The ease of hiring skilled expatriates is one of the factors which are taken into consideration in the location decision of multinationals,” says a 2013 World Bank study, quoted in the report. It cites research showing that a less restrictive skilled immigration regime helps to attract foreign investment.
Chamber of Mines president, Nathan Chishimba, says in the report that the skills crisis is both a risk and an opportunity – and the opportunity is that it provides a strong impetus for countries to boost their output of mining graduates.
“There is no reason why, with the correct policies and incentives in place, Zambia cannot become a centre of excellence in mining skills and an exporter of talent to the rest of the world,” he says.
The Government of the Republic of Zambia has received financing from the World Bank toward the cost of the Zambia Extractive Industries Transparency Initiative (ZEITI) Project, and intends to apply part of the grant towards payments for the contract for Consultancy Services for ZEITI Independent Administrator to produce the ninth (2016) ZEITI Report covering the period January 2016 to December 2016.
The consulting services (“the Services”) include but not limited to the following;
The Zambia Extractive Industries Transparency Initiative (ZEITI) Secretariat now invites eligible consulting firms to indicate their interest in providing the services indicated above. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services. The following information and documentation will be required to be provided for a firm to be shortlisted:
The attention of interested Consultants is drawn to paragraph 1.9 of the World Bank’s Guidelines: Selection and Employment of Consultants [under IBRD Loans and IDA Credits & Grants] by World Bank Borrowers January 2011, revised July 2014 (“Consultant Guidelines”), setting forth the World Bank’s policy on conflict of interest.
International firms should demonstrate willingness to have local representation by partnering with local firms or individual consultants to encourage transfer of knowledge.
Further information can be obtained at the address below during office hours 08:30hrs to 16:00hrs.
Expressions of interest must be clearly marked on the outer envelope and deposited in the Tender Box at the physical address provided below by 5th May, 2017 at 14:30 hours ”Consultancy Services for ZEITI Independent Administrator” MMMD/ZEITI/C/001/17”.
The Permanent Secretary
Attention: HEAD – PROCUREMENT UNIT,
Ministry of Mines and Minerals Development
New Government Complex, 14th floor,
Independence Avenue, Kamwala
P.O Box 31969, Lusaka,
Phone: +260 211 250120/3
Email: email@example.com or visit www.zambiaeiti.org
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