Mines and Money London 2011

This post concludes the archives of my Global Mining and Financing Issues Blog that I was running 2009-2011. At this time the Blog was visited daily - I got over 300,000 pageviews from all over the world. The Mines & Money 2011 show was my last effort with Earthstone Holdings, after that - I moved to other businesses in Indonesia (one other Blog in Indonesia, though not a big one, was Oil and Gas Issues in Asia (2013) where I covered some topical issues). I do hope that this archive may be of a use for scholars and professional, since some information presented is more or less actual. I witness the interest now with daily hits on my archive pages.

THIS POST WAS ORIGINALLY PUBLISHED AUGUST 01, 2011

Mines and Money London 2011

December 6-7, 2011, Earthstone sponsored Mines and Money London 2011 Conference at Business Design Centre, Islington, London.

It is well known that London is one of the financial centers of the world, and this event served its purpose for the global mining industry to cultivate long term partnerships with its mining stakeholders and investors. Despite negative economic news from the Eurozone and the ongoing banking crisis, a lot of investors were present at the Conference. That shows that miners appear to offer good investment potential in a market where other sectors are suffering.

Earthstone opened the Plenary Session with the corporate presentation

- this report planted the seeds in minds of many investors and industry professionals that followed up with their visits to Earthstone’ Meeting Room

As a Special Guest for Earthstone, the delegation of Mali Ministry of Mines, headed by Honorable Amadou Cisse, was attending the show. Corporate top management and officials from Mali were engaged in a number of fruitful negotiations and discussions with investors and mining professionals on development of mining projects in West Africa

Zambia: Update on Mining Operations - Part IV

THIS POST WAS ORIGINALLY PUBLISHED JULY 03, 2010

Zambia: Update on Mining Operations - Part IV

In this part of our series I try to focus on Chinese involvement with Zambia’s mining. This is a big story itself, in the light of China’s plans in Africa. In its latest issue the TIME magazine mentions: “China is not the only nation that has noticed the opportunities in Africa, but it is the one that has taken them most seriously, in ways that may change not just the region's economic landscape but its political one too.” I highly recommend to read this TIME article – it has a good analysis of Chinese intentions in Africa.

These are some news items that are worth to mention:

• The Post Newspapers Zambia on 02 June reports that that Chinese investments in Zambia have reached about US $2 billion. These all went into mining sector and in Multi – facility Economic Zones (MFEZ). Part of the $2 billion – about $300 million – has gone into the development of the Mulianshi Mine
• The Steel Guru reported that on May 12 the China Development Bank Corporation announced that it will provide $5 billion USD of loans to companies involved in Zambia’s mining sector as part of the agreements signed between the two countries since 2007.
• In May Lusaka Times reported that  China Non-Ferrous Metal Company’s Luanshya Copper Mines is going to recruit 1,000 employees for the beginning of production at the Muliashi open pit mine, taking the total number of workers to more than 3,000. CLM also plans to make an additional investment of more than US$150 million to rehabilitate infrastructure at Luanshya Copper Mine this year. Luanshya is planned initially to produce annually 11,000 tons of ore. The second open pit mine – Muliashi -  is expected to have production capacity of 500,000 tons of copper ore per year.

Within the limits of my Blog, I want to trace China’s activities in Zambian mining industry. These activities are very prominent when you travel from Johannesburg to Lusaka – about half of each flight is filled with Chinese, many of them barely speaking English.

The biggest  Chinese company that operates in Zambia is China Nonferrous Metal Mining (Group) Co., Ltd. (CNMC) that is under the management of the State-owned Assets Supervision and Administration Commission of the State Council. This is a pioneer among Chinese enterprises to implement the “going abroad” strategy and to carry out international investment and cooperation in nonferrous metal mineral resources. Among other projects, we have to mention the following Zambian ones.

Operational:

• Chambishi Copper Mine,
• Chambishi 150,000-ton copper smelter
• Chambishi Leach Plant
• Chambishi Sulfuric Acid Plant
• Luanshya Copper Mines (started copper production on March 26, 2010 with investment of $ 300M USD)

The projects under construction and development include:

• Zambia-China Economic & Trade Cooperation Zone,
• Western ore body of Chambishi Copper Mine

Here is how the TIME magazine illustrates China’s involvement in Zambian mining:

Chambishi Copper Mine was obtained by CNMC through an international bid in 1998, at which time CNMC also obtained the use right to 41 sq. kms of land on the surface of the mine for a term of 99 years. The mine, with resources including 5 million tons of copper and 120,000 tons of cobalt, and involving a total investment of $ 160M USD, is the first and, to date, the largest nonferrous metal mine overseas approved by Chinese government for development and construction. Construction began in July 2000 and the mine opened for production on schedule in July 2003.

Chambishi Copper Smelter whose designed annual capacity is 150,000 tons of blister copper bears total investment exceeding $310 M USD. The smelter started construction in November 2006 and commenced production by the end of 2008. This project will further improve industrial chain of Chambishi Copper Mine, create nearly 1000 jobs and increase the local export volume by $450M USD. In general, CNMC’s investment in Zambia has exceeded US$ 400 million. This is how the smelter looks.

Sino-Metal Leach Zambia Limited and Sino-Acid Products Zambia Limited -- In order to utilize the resources and infrastructure of Chambishi Copper Mine, Sino-Metal and Sino- Acid with total investment of $25M USD was built as an extension of nonferrous metal industrial chain. Sino-Metal and Sino-Acid commenced production on Sept. 8th, 2006, with 300 personnel.

In April it was reported that the Zambian Government has signed a $600M USD agreement with China Non-Ferrous Metals Limited (CNMC) for the extraction of copper from the Mufulira Tailings dams to breathe economic life into the liability that was left over during the privatization of the Zambia Consolidated Copper Mines-Investment Holdings (ZCCM-IH) assets. This agreement covers tailings dams 8 and 10 reprocessed. Sino-Metal Leach Zambia Limited will run the Mufulira Tailings project but this will be dependent on the results of the feasibility studies to be conducted at a cost of $5 million.

 

 Another Chinese company that in January 2010 acquired a substantial part of Albidon Ltd. is the largest nickel producer in Asia – Jinchuan Group.

Albidon is an Australian exploration company with its activities is focused on the Munali Nickel project in Zambia, that has the Enterprise deposit and a number of other nickel prospects in the Munali Intrusion, the most advanced of which is the Voyager prospect along strike to the north of Enterprise. Albidon’s license holdings in southern and eastern Zambia also have potential for substantial uranium deposits. Albidon’s investor presentation from 2008 is located here. It has good pictures of Munali project like this one:

 

 

In April 2010 Jinchuan arranged a $20M USD working capital loan facility for Albidon – which resulted in resuming of Munali mine operations and the increase of operational output.

Zambia: Update on Mining Operations - Part III

THIS POST WAS ORIGINALLY PUBLISHED JUNE 28, 2010

Zambia: Update on Mining Operations - Part III

We are continuing with the review of mining companies that operate in Zambia.

Glencore International AG is a privately held commodity trader, headquartered in Baar, Switzerland.
Mopani Copper Mine is an integrated copper and cobalt producer located in the Copperbelt of Zambia.
This JV shareholders are:

• Glencore International AG - 73%
• First Quantum Minerals Ltd - 16.9%
• ZCCM Investments Holdings Plc - 10%

This June it was reported that Mopani Copper Mines has invested more than USD 1 billion in its operations. Investments in operations in Kitwe and Mufulira mines in the past 10 years has exceeded investment by privatized mines in Zambia.

Mopani's operations consist of four underground mines, a concentrator and a cobalt plant in the town of Kitwe and an underground mine, concentrator, smelter and refinery in the town of Mufulira. The capacity of the Mufulira Copper Smelter is being expanded in a phased approach to 870,000 tons of concentrate by the end of 2010. The current capacity with the new Isa smelt furnace is 650,000 tons of concentrate.
Also, the company has four SXEW plants (Solvent Extraction and Electrowinning), two at Mufulira and two at Nkana. The feed is sourced from both in-situ leaching, vat leaching and heap leaching. Glencore's initial interest was acquired through a subsidiary in 2000
Production capacity

• 255,000MT Copper metal
• 2,200MT Cobalt

Number of employees 7,800
A very interesting essay on Mufulira Mine can be viewed here. It has this map

Also for social network fans – here is a link to Mufulira Facebook page
Zambezi Resources Limited (Zambezi) is exploring for and developing copper and gold projects in Southern Zambia. Zambezi has identified seven major project areas, which it is actively exploring. The projects have been identified as Iron Oxide Copper Gold (IOCG) type deposits and also shear-hosted gold deposits. These projects are contained within eight prospecting licenses covering an area of over 16,000km². Zambezi currently retains 100% ownership of its projects, although Zambia's abundant mineral endowment has lead Zambezi to seek joint venture partners to assist with funding exploration on some of its projects.
Zambezi listed on the London Stock Exchange’s AIM in July 2004, raising £2.5 million.  Since then Zambezi has raised an additional £14 million on AIM through subsequent placements, including a strategic placement to Glencore.  In July 2007, Zambezi successfully listed on the ASX through an IPO, raising an additional A$15 million.
An outdated (2008) Corporate brochure  maybe downloaded here
Zambezi’s relatively mature exploration portfolio and the removal of the retention license option in Zambia in early 2008 severely constrained Zambezi’s strategic options. ZRL voluntarily suspended trading on the ASX on 30th October 2008 and on AIM on 3rd November 2008 in order to secure the finances of the Company. The Company’s story and current status can be viewed at this delisted Web-site.
More coming soon…

UPDATE:
I would like to pinpoint to today's long piece in the Zambian Watchdog: What is happening to Konkola Copper Mines? This has a very detailed critique of the Zambian mining industry and concludes with the following:

"Government should immediately review the entire regime governing the mining sector and to avert the boiling social crisis and despondency that has engulfed the Copperbelt. This will also allow realistic financial benefits to accrue to the country and its citizens. The country should be allowed to collect a credible share of revenue from this wealth. Government has a duty to protect the rights of workers, to provide social service to local communities, and to be an effective regulator in order to protect the environment."