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special report: zambia energy & Resources
6 NWCCI
Encouraging economic empowerment
6
President of the North Western Chamber of Commerce and Industry (NWCCI), Mathias Mutupa discusses the development of Zambia’s North-Western Province, home to some of today’s most exciting mining operations.
12 executive insight
Randy Findlay
Randy Findlay, Sentinel Project Manager, discusses his involvement with the Trident project’s flagship Sentinel mine development.
12
20 at a glance
the vital statistics
Some key facts and figures about the energy and resource operations in Zambia.
24 First Quantum Minerals – Trident overview A quantum leap for Zambia
John Gladston, Trident Resource Optimisation Manager, discusses the history and growth of the Trident project, the largest single investment project that Zambia has ever witnessed.
24 4|
Special Report
contents
54 First Quantum Minerals – Trident CSR Building a brighter future
First Quantum Minerals has gained an impressive reputation for its corporate social responsibility efforts. The incredible work it is undertaking as part of its Trident project is testament to this.
54
84 standard bank
setting the standard
How Standard Bank plays a key role within Africa’s emerging markets and its ongoing commitment to the continent
94 Sino Grinding
Grinding out results
84
Pieter Theunissen, Marketing Manager for Africa, and Mark Addison, General Manager of Sino Grinding (Americas) Inc, explain how Sino Grinding became the next global leader in grinding media and how it intends to remain as such.
102 zesco
Powering Zambia
Zesco, Zambia’s national power provider, has been beset by problems, many of them a legacy of under investment and piecemeal growth: but these are now being addressed head on and state of the art technology is the order of the day.
94 Special Report
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Encour economic em
President of the North Western Chambe Mathias Mutupa discusses the developme home to some of today’s mos
Wil Research by Richard Half Words by
6|
Special Report
Interview
raging mpowerment
er of Commerce and Industry (NWCCI), ent of Zambia’s North-Western Province, st exciting mining operations
ll Daynes hide & Vincent Kielty Special Report
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Interview
H
istorically the most sparsely populated province in Zambia, the North-Western Province is in the midst of something of a social and economic revolution, one that has been propelled forward by the activities of some of the biggest mining ventures in the country. These include Barrick Gold’s Lumwana Mining Company, First Quantum Minerals’ (FQM) Kansanshi Mine and now the latter’s Trident development. One person who has witnessed this revolution up close, and who understands what this means for the region as a whole, is Mathias Mutupa, President of the North Western Chamber of Commerce and Industry (NWCCI). Under his leadership, and in the last four years alone, the NWCCI has seen its membership swell by some 400 percent to close to 300 affiliated companies, something that has not been lost on him or indeed on the rest of the nation. “We are immensely proud of the close working relationships we have cultivated with the likes of FQM,” he states. “In the last four years in particular these relationships have resulted in the NWCCI becoming the largest business organisation associated with the Zambia Chamber of Commerce and Industry, and more importantly has been the catalyst for an unpredicted rise in business opportunities for small and medium sized enterprises (SME’s) in the region.”
One doesn’t simply have to take Mutupa’s word for this growth as the economic figures are there for all to see as well. In the first six months of 2013 the Kansanshi Mine alone created $40 million worth of business for the NWCCI’s members in the form of various transactions including tendering for construction works and the supply of services and consumables. What makes this colossal figure all the more impressive is that it is from just one source. The true total is much higher considering the many other developments occurring throughout the Province. “In addition to the obvious achievements it is making in the field of mining,” Mutupa continues, “FQM is doing great work in providing business opportunities to our member companies and in the process it is contributing significantly to the growth of the North-Western Province. This has caused the rest of the country to sit up and take notice and SMEs from the length and breadth of Zambia wanting to come and get involved with what is happening here. Through the collaborative efforts of ourselves and the mining companies we are working non-stop to build up the private sector in this part of the world, while at the same time create a strong local supply chain for products and services, and ultimately creating a wealth of employment opportunities for Zambians.” It is the positive social and economic
“In the last four years alone, the NWCCI has seen its membership swell by some 400 percent to close to 300 affiliated companies” Special Report
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Interview
development of local Zambians that is at the heart of the vast majority of things that Mutupa and the NWCCI are trying to achieve. It is for that reason that the Chamber takes great encouragement from the number of corporate social responsibility (CSR) programmes that FQM and other miners have enacted. “The concept of CSR of has taken on a greater deal of significance than ever before in recent times and I myself have always been a firm believer in the principles behind it and the benefits that it brings,” Mutupa enthuses. “All of us here at the NWCCI are highly tuned into what makes a responsible mining operation and how the continuing commitment of businesses to behave ethically helps to contribute towards economic development and the bettering of the lives of local communities and society at large. We know that in today’s environment such values cannot be marginalised and therefore it pleases us greatly to see so many examples of how companies based in the North-Western Province are rising to the challenge and helping to make a positive difference.”
Given the status of NWCCI’s relationship with the mining companies in the region it should be pretty obvious why Mutupa is confident that it can only go from strength to strength in the years ahead. “The foundation that we have all helped lay is very strong and built on top of it is a collective desire to see the private sector in the North-Western Province continue to develop. The work occurring here today is creating new growth opportunities for our members and thus greater employment opportunities for local Zambians. We are seeing the growth of communities take place right before our eyes and this gives us great confidence that the future of this region is in very good hands. The development of the Trident project as well only adds further to our confidence in the future growth and prosperity of this part of the world, both socially and economically.”
Contact us For more information about North Western Chamber of Commerce and Industry (NWCCI) chesterfieldsmining@gmail.com
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Executive Insight
Randy Findlay Randy Findlay, Sentinel Project Manager, discusses his involvement with the Trident project’s flagship Sentinel mine development, his proudest achievements and what others can learn from the success of Trident Words by
Will Daynes
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CML Zambia is fully licensed by the ZRA and offers a full range of clearing/forwarding/bonding/warehousing and distribution facilities, with a total of 14 offices located throughout Zambia.
CONTACT Ndola (Northern Region) Tel. Intl +260 21 2650486 / 2650885 2650886 / 96 6999221 Fax. Intl +260 21 2650880 Email. ethan@cmlzambia.co.zm
Lusaka (Southern Region) Tel. Intl +260 21 1272352 / 1272339 96 6999219 Fax. Intl +260 21 1272301 Email. john@cmlzambia.co.zm
www.cml-ltd.co.uk
Executive Insight
Career wise, how did you come to be a part of First Quantum Minerals? After ending a five year retention based contract with Fluor I had a keen desire to find a company that could offer a better place in which to achieve my long term goals. With three other offers on the table from Kazakmys, Newmont and Fluor, I was contacted by First Quantum Minerals Limited (FQML), upon which I began researching the FQM execution philosophy. What I found was that FQM was unique in that it managed the engineering, construction execution and commissioning phases, before then turning things over to its operations team. It was this that convinced me to join. These dynamics are extremely rare in this industry and what they do is allow me, as a Project Manager, to drive the entire process optimally. Who has been your inspiration professionally? There have been a number of people, each for different reasons, but the two that stand out to me are Bob Ellis, Capital Vice President of Duke Energy and Martin Lacey, who is Vice President of Camaco Mining.
What do you consider to be your major achievement (in life or business)? That would be the development of a target approach towards contracting methodolog y. This incentiv ised approach to contracts puts the mine owner and contractors on the same side of the field, with time and costs acting as the opponent. When did you first become involved with the Trident project and what were your first impressions of its scope and aims? I consider myself the initial developer of the Sentinel project construction team execution plan. The key to this plan was the development of a strong schedule, team mentoring and development, providing competent job descriptions and site management behaviours in order to reduce construction time and costs. The overall goal was to develop Sentinel to add revenue stream to the company much earlier than was originally envisaged. The entire package with town development, housing and commercial areas, schools, banking, shops and power reticulation, meanwhile, is a key
“I consider myself the initial developer of the Sentinel project construction team execution plan. The key to this plan was the development of a strong schedule, team mentoring and development� Special Report
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t e c h n o l o g y
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Special Report
The recent completion of a premium boardroom solution for Konkola Copper Mines demonstrates 4ward’s project expertise. Konkola Copper Mines (KCM) is Zambia’s largest private sector employer and a subsidiary of Vedanta Resources Plc, a London-listed diversified FTSE 100 metals and mining group. The mining giant required a boardroom solution for their Lusaka Head Office, which would integrate and control its various aspects (HD video conferencing, light control, motorised projector and blinds, DSTV) via a Creston control system. The results were so successful that an additional custom solution was installed in the Chililabombwe office. “KCM has acknowledged the harmony and simplicity in their technology experience with the boardroom solution,” adds 4ward co-founder, Darryl Katz. While system requirements and specifications may differ in sector and scope, 4ward-design’s focus is always on user experience. This means that solutions integrate intelligent technology with smart designs, resulting in intuitive, beautifully simple systems with sophisticated capabilities. www.4ward-design.com
Executive Insight
“Aside from pulling the construction schedule for completion ahead by three months we are also incredibly proud of reaching seven million man-hours without a lost time accident� deliverable to retain labour long term with minimal cost to operations and, most importantly, create a positive effect on the development of Zambia’s Northwestern region. What do you consider to be some of the bigger milestones reached on the project? Aside from pulling the construction schedule for completion ahead by three months we are also incredibly proud of reaching seven million man-hours without a lost time accident and, of course, developing a team that has proven to be able to provide excellent bench strength for projects. What lessons do you think other mine operators can learn from the Trident project? That schedule and resource development, with frequent, positive and purposeful interaction, provides the best foundation for project execution. What do you personally hope will be the long-lasting legacy of the project? I hope that people on the team feel they have accomplished the best project of
their careers and were part of a team that consistently worked together to achieve excellence. Which one piece of wisdom would you pass on to your successor? Always think about what else you can do to gain progress and maintain quality, treat people fairly and spend the time needed to develop and support your team.
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the vital statistics Area 752,618 km2 Population 14,309,466
Capital Lusaka
official language English
currency Zambian kwacha (ZMW)
Copper output in Tons 1,000,000 600 800,000 500 600,000 DKK millions
400
400,000
300 200
200,000 100 0 2009
20 | special report
2010
2011
zambia at a glance
Did you know? Copperbelt region
65%
Of all the copper mined in Africa comes from Zambia
Main export partners
China
Export goods • copper/cobalt 64% • Cobalt • electricity • tobacco • flowers • cotton • copper cables • Maize • Sugar
42.2%
South Africa 7.2% DR Congo 7.2% South Korea 5.3% India 4.5% Egypt 4.5% UAE 4.4% others 24.7
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John Gladston, Trident Resource Optimisatio of the Trident project, the largest single inves
written by: Will Daynes | re
24 | special report
FQM - Trident project overview
on Manager, discusses the history and growth stment project that Zambia has ever witnessed
esearch by: Richard Halfhide
special report | 25
Mill area under construction
FQM - Trident overview
T
rident represents the biggest single project investment in Zambia that has ever occurred, totalling some $2 billion,� states John Gladston, Trident Resource Optimisation Manager. “As is typical of First Quantum, the project is going great guns and is progressing on-time and to budget.� The initial two mines at Trident are the Sentinel low grade copper mine and the Enterprise nickel mine. The Sentinel processing facility of the former will have a target throughput rate of approximately 55 million per annum of ore at an average grade of 0.5 percent copper. It is estimated that the mine will ultimately provide an annual production rate ranging between 280,000 and 300,000 tonnes of copper. The Sentinel plant itself will comprise three in-pit crushers delivering to a crushed ore stockpile providing a live capacity of 80,000 tonnes. Two milling trains, each comprising a 40 foot (28MW) SAG mill and a 28 foot (22MW) ball mill, will produce a final grind of 80 percent passing 212 micron for flotation. Four banks of rougher-scavenger flotation cells, each utilising seven cells of 300 cubic metres capacity followed by three stages of cleaning will provide a recovery of over 90 percent, into a concentrate of about 24-26 percent copper. Tailings will then be thickened in three metre by 50 metre diameter thickeners prior to discharge to the tailings storage facility. A secondary crushing circuit is being installed to maintain the mill throughput to offset a harder ore in the deeper areas of the pit. This circuit will initially comprise two
special report | 27
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- Your One-Stop-Shop for Conveyor Belting, ials Handling, Consultancy and Advice MES conveyor belts are designed and manufactured to cover a wide range of materials handling applications. Our conveyor belts are quality products with an extremely high degree of reliability. We supply Fabric, Steel Cord and Steel Reinforced conveyor belts in widths up to 2800mm in a variety of cover grades and thicknesses. Our fully trained and experienced vulcanisers can assist with all aspects of vulcanising and conveyor maintenance, including on the job training for site staff. Whatever your site requirements, MES can help and will be there every step of the way with you. MES International UK. Tel: +44 116 247 8342 MES International Zambia. Cell: +260 977 778 487 MES International Zimbabwe. Cell: +263 775 540 977 MES International South Africa. Cell: +27 83 956 5671 E. info@mesint.com | www.mesinternational.co.uk
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FIRST QUANTUM MINERALS - TRIDENT PROJECT
MES INTERNATIONAL LTD A “Can do” company MES International Ltd is a long established supplier of products and services to the mining, quarrying and recycling industries. With over four decades of experience, we have built our reputation as a “can do” supplier, available 24/7 to respond to breakdowns and urgent requirements with the highest level of service. MES truly is a “one stop shop” for your operating needs. Our high quality impact and abrasion resistant Fabric, Steel Cord and Steel Reinforced conveyor belting is available in a range of widths and in a variety of cover grades and thicknesses to meet your requirements. With a 24 hour breakdown response, we are always here when you need us most. With our own teams of highly qualified and experienced vulcanisers, we can undertake all hot, cold and mechanical joints, provide conveyor maintenance contracts and on-site splicer training. To complement our conveyor belt services, we supply a durable range of vulcanising presses, electric or diesel belt winders and belt stands, along with splice kits and all tools and equipment for in-house vulcanising teams. We also manufacture Material Handling Systems including design, installation & commissioning, from overland conveyors to waterside loading systems. Our experience is offered in the re-design of existing conveyor layouts, and the supply of conveyor struture and radial stacker systems, along with drums, rollers and take-up units. As well as conveyor belting we supply the highest quality precision engineered crusher
spares for Primary, Secondary and Tertiary machines including Symons Nordberg, HP and MP series, Svedala, Omnicone, Telsmith, Sandvik, Allis Chalmers, Terex Cedarapids and Parkers. Vast stocks are held of common replacement parts that we can ship direct to site anywhere in the world. Through our Engineering Services, we can also provide strip down and re-build services for crushers on scheduled shutdowns or assist with emergency breakdowns. Our Consultancy & Advisory Service can assist with planning a new mine or extending an existing site, our skilled engineers can provide you with advice on any aspect of your project. Our involvement in the First Quantum Minerals projects at Kansanshi Mine and Kalumbila Minerals supplying conveyor belting and technical assistance has only added to our experience. Whatever your site requirements are, you can rest assured that MES International has the knowledge and experience to be your first choice preferred supplier for your conveyor belting and crusher needs. MES International UK. Tel: +44 116 247 8342 MES International Zambia. Cell: +260 977 778 487 MES International Zimbabwe. Cell: +263 775 540 977 MES International South Africa. Cell: +27 83 956 5671 www.mesinternational.co.uk
BE WEEKLY | 1
FQM - Trident overview
Process plant construction team
large cone crushers with the ability to add circuit was approved by First Quantum in more crushers at a later date. The crushers December 2012 and first concrete is expected will treat a portion of the ore feeding the to be poured shortly. Elsewhere, First Quantum is also stockpile, crushing the top size to below 40 millimetres. A pebble crusher will also constructing a new $630 million copper be installed to crush pebbles smelter in Solwezi. This ejected from the SG mills down facility will accommodate the to below ten millimetres, to copper concentrate output minimise critical size build from both the Kansanshi mine and Trident. up in the milling circuit. “ To d a y,” Gladston By June 2013 over 50,000 cubic metres of concrete had continues, “we are employing Local Zambians currently been poured and well over approximately 2,000 people employed to work 700 tonnes of steel installed. across the project, 1,700 of on the project whom are local Zambians. The Enterprise processing
1,750
special report | 31
amalgamated
“PROTECTING ZAMBIANS SINCE 1976”
With almost 40 years of experience serving the mining industry, amalgamated dress is known and recognised as a leading manufacturer and supplier of workwear and PPE. Our quality products ensure that our client’s employees are adequately protected, and this in turn protects our client’s investments. We believe that our success is built on understanding the markets in which we operate and not compromising on safety standards and regulations. Our manufacturing base has grown incredibly through our flagship brand ProSafe and coupled together with our manufacturing partners, we are well positioned to be a powerhouse in the SADC region. www.amalgamated-dress.com
FIRST QUANTUM MINERALS - TRIDENT PROJECT FQM - Trident overview WeFirst prefer Quantum not to useMinerals foreign consectetur adipisicing elit, contractors, - Trident Projectbuttextrather to go sed do eiusmod tempor here......lorem ipsum dolor sit incididunt ut labore et dolore to employ directly and amet, consectetur adipisicing magna aliqua. Ut enim ad train our people on the construction elit, sed do eiusmod job for tempor future minim veniam, quis nostrud operations. incididunt ut labore This is et dolore again exercitation ullamco laboris something magna aliqua. that is Utindicative enim ad nisi ut aliquip ex ea commodo minim quisIf nostrud consequat. Duis aute irure of Firstveniam, Quantum. we can employ exercitation a local ullamco individual laboris dolor in reprehenderit in nisido ut aliquip to a job ex oreaifcommodo we can voluptate velit esse cillum consequat. Duis aute irure dolore eu fugiat nulla pariatur. purchase equipment or sint occaecat plant area dolor in locally reprehenderit in This is a caption this is a caption Excepteur Sentinel material then we will. Whilevelit clearly can cupidatat non proident, sunt voluptate esseyou cillum required during such a largemollit project, sometimes only do this pariatur. to a certain extent, in culpa qui officia deserunt animthis id dolore eu fugiat nulla Excepteur particularly it comes to the sort of fact est laborum. by no means Lorem detaches ipsumusdolor fromsit ouramet, core sint occaecatwhen cupidatat non proident, sunt highly in culpatechnical qui officia equipment deserunt mollit or vehicles anim id aspirations consectetur for adipisicing Trident elit, and sed thatdois eiusmod to keep est laborum. Lorem ipsum dolor sit amet, tempor incididunt ut labore et dolore magna
amalgamated With its head office located in the heart of Copperbelt Province, Amalgamated Dress is strategically positioned to serve the needs of the mining industries across Zambia and is one of the leading manufacturing companies of workwear and PPE in Zambia. Established in 1976, it secured a running contract with ZCCM to manufacture overalls at its local manufacturing plant in Ndola. To this day, the factory still runs successfully, providing high quality specialised workwear to the mining, drilling and construction industries. All products comply with international standards and specifications. Over the years, the company has taken leaps in expanding its products lines to supply the full range of PPE through its manufacturing partners essentially becoming one of the only one-stop solutions for PPE in the country. It has now expanded its own
manufacturing base to include protective gear such as gloves, earplugs, safety glasses and respirators under its flagship brand, ProSafe. Amalgamated Dress continues to be a major supplier to First Quantum Minerals (FQM) in Zambia and has had the privilege of holding the contract for workwear at Kansanshi Mine since operations began. The company has a long-standing relationship with FQM due to its excellent service, impeccable quality and competitive pricing. At present, Amalgamated Dress is actively involved with the Trident and Sentinel projects and aim to be the leading supplier of choice when it comes to workwear solutions and PPE. E. sales@amalgamated-dress.com www.amalgamated-dress.com
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Proud to be associated with Trident
MINING HAULAGE COMPANY LTD. Tipper trucks | Lowbeds | Front End Loaders | Excavators | Graders | Dump trucks
Mining Haulage Company Limited, established in 1973, is a leader in the transport industry. It specializes in transport services and hiring of earth moving equipment. Contact us today, we are here to serve you.
Plot 657 Zimbabwe Road, Industrial area | P O Box 10365 | Chingola, Zambia Tel: +260 212 314058 / 311483 | Fax: +260 212 311484 | Email: richard@mininghaulage.co.zm
GIANTS IN COPPER MOVEMENTS
FIRST QUANTUM MINERALS - TRIDENT PROJECT FQM - Trident overview it aFirst Zambian Quantum project Minerals for Zambian - Trident people Project as eatureastext to go here. Lorem ipsum dolor much possible.” sitAtamet, theconsectetur same time adipisicing as it has elit, sed been do eiusmod tempor ut labore et dolore concentrating a incididunt large amount of effort on magna aliqua. Ut enim ad minim veniam, the above facilities and developments, the company has also commencedullamco with thelaboris initial quis nostrud exercitation clearing operations for commodo the Sentinel open pit nisi ut aliquip ex ea consequat. mine in-pit box cuts Duis itself aute and irurethe dolor in crusher reprehenderit in that voluptate go with velit it. Once esse cillum operational dolore theeumining fugiat nulla pariatur. Excepteur operation will require the use sint of a occaecat state-ofthe-art fleet, comprising Komatsu 860E cupidatat non proident, 15 sunt in culpa qui and officia 21 Komatsu deserunt 960E mollithaul animtrucks, id est to laborum. be fed by Lorem threeipsum Caterpillar/Bucyrus dolor sit amet, 1350t consectetur rope
adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim Flotationveniam, area assembly quis
MINING HAULAGE COMPANY LTD Mining Haulage is a Private Limited Company wholly incorporated in the Republic of Zambia, established in 1973. It is a transport service and equipment hire company with a current maximum fleet of 60 Freightliner, 30 Ton Tipper Trucks, 5 wheeled Front End Loaders – CAT972H, 140H Graders and 330 LME Excavator. • Mining Haulage Company Limited has vast experience of operating in the transport industry and it competes favourably in the market as a reliable giant in copper movement. Our pricing is consistent and within the reach of our clients economic power. • The Company is strategically located to access potential clients in the market operating within the Copperbelt Province of Zambia. • The movement of trucks and heavy equipment hired out are monitored on a Live Satellite Tracking System 24 hours a day/365 days a year, to locate breakdowns, and monitor safety and security in a timely manner.
• We acquire and sustain a dependable fleet of trucks, through our Parts Service Department, which stocks all kinds of spares for the maintenance of our fleet. • The security of our clients’ products is insured and monitored in transit by security service companies. • Our market strategy is aggressive and customer friendly. • We hold ISO 14001 (Environmental Management System) accreditation. • We are able to deliver services in a more timely fashion due to the effective alliances that we have formed with reputable suppliers and courier companies abroad. We are committed to delivering quality service and comply strictly to Zambian legislation and IFC/World Bank standards. Email. trucks@mininghaulage.co.zm
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FLOWCRETE As the world’s leading specialist flooring company with manufacturing plants across Europe, the Americas, Asia and Africa, a global commercial and sales support team and the backing of a major multinational manufacturing group, we are well placed to provide the same high standard of product and service across the globe. Our research and development laboratories are constantly innovating new products and improving existing ones to ensure that our clients benefit from the best in modern flooring technology. Our commitment is to pioneer greener flooring products that adhere to our
policy of environmental protection as well as introducing automated installation methods that keep us at the forefront of our industry. Our international client base is spread across a diverse range of market sectors and includes blue-chip brands such as NASA, Lufthansa Technik, BAA, NestlĂŠ, Kraft, Coca-Cola, AstraZeneca, GlaxoSmithKline, Jaguar, Bentley, BP, LG and Sony as well as Wembley Stadium, O2 Arena and Dubai, Kuala Lumpur and Hong Kong International Airports. E. southafrica@flowcrete.com www.flowcretesa.co.za
FQM - Trident overview
50m diameter tails thickeners
shovels and three Komatsu we placed these individuals PC5500 shovels. Each of the on an intensive simulator 960E trucks will carry in training course, which the region of 360 tonnes and required them to complete 40 hours of training before even cost around $6 million each getting into the vehicle itself. to manufacture. “Obviously we need It is an incredibly thorough people to operate these programme, but one that Cost of the new copper smelter being means we end up with highly vehicles and these have to built in Solwezi skilled, and most importantly be individuals who display the aptitude to operate such Z a m bi a n , op e r at o r s hugely expensive pieces of working in the mine.” engineering,” Gladston explains. “What we To assist in the work being undertaking have done to address this need is to embark during the construction phase of the project on a very intense screening process to attract the company also recruited a small number people with the right aptitude. Once selected of experienced Filipino and Indonesian
$630 million
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Harsh conditions deserve rugged solutions Efficient and reliable ZM oil-free multistage centrifugal blowers (pressure and vacuum) • Custom-engineered for your specific applications - Thanks to the innovative design and flexible configuration options, the ZM multistage blowers offer you increased efficieny in a wide range of mining applications • Technology you can rely on - A rugged design which has proven itself in mining applications for many years. • Ease of maintenance - easy accessible maintenance points and basic repairs conducted in a minimim of time Find out more on www.efficiencyblowers.com.
Atlas Copco Zambia Ltd, Kitwe Office - Compressors, P.O. Cox 28091, Off Nyerere Road, Light Industrial Area, Kitwe, Zambia Email: atlas.zm@atlascopco.com
CONTEMPO LTD Contempo LTD is a private limited company situated in the heart of the ‘friendly city’ known as Ndola, in central Zambia. Over the years Contempo LTD has established itself as a leading supplier to the locally based mines in Zambia and extending to Congo DRC. Our strengths lie in; 100% reliability on genuine products and prompt deliveries - leading to formidable trust and loyalty with buyers. Our product range includes: • Executive office furniture • Electrical items • Hardware items • Plumbing items • Stationery • Camping equipment • Catering equipment • Home furniture • Mining consumables 82 Matelo Road, Ndola, Zambia Tel +260 212 612417 | Cell +260 966 808575 Email contempo.ltd@zamtel.zm or contempo.ndola@gmail.com
FQM - Trident overview const r uc t ion workers. Atlas Copco Zambia “These individuals come Atlas Copco’s Zambia Compressor Technique division is equipped with skills sets that very proud to be associated with the Trident project and the we were not able to source First Quantum Group. in Zambia,” Gladston says, The air compressors and associated equipment that Atlas before going on to highlight Copco provides for the Sentinel project supply both plant the real benefit of bringing and instrument air around the entire plant. This includes for the operation of pneumatic process valves and gates these workers in to the up to 550mm in diameter, air tools and various process project. “What we are doing instruments and gauges around the site. is ensuring that there is a The equipment supplied includes the well-known GA rotary complete transfer of skills screw design, three units of model GA 355 compressors, to our Zambian employees. heatless desiccant dryers, allied filters, water separators This extends to a whole and air receivers. ES 6 lead lag controllers are all supplied range of areas and trades, in order to manage the plant’s energy consumption. Similar Atlas Copco compressed air equipment including be it a boilermaker, highseveral centrifugal air compressors is being supplied to end electrician or steel and First Quantum Minerals Kansanshi Mine Smelter project concrete worker. Each and www.efficiencyblowers.com every day we are witnessing this transfer of skills and watching as young men and women gain talents that they will possess for the rest of their working lives. Again, we prefer not to use foreign contractors: this way the skill transfers stay in Zambia.” During the construction phase at Trident, First Quantum anticipates that local unskilled employees will be able to learn further employment skills, and this will help prepare them for selection processes when the mine comes in to production. In preparation for the Trident project, First Quantum signed a multi-million dollar partnership agreement with the Ministry of Science, Technology and Vocational Training to build a new Technical Training Facility. With the project underway exceptional Zambian employees at Trident have the Crusher construction
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JAIDS Since its creation in 2000, Jaid’s has grown steadily with the town of Solwezi. Jaid’s is now a one-stop-centre for all your household, stationery, hardware, electrical, automotive and construction needs. We represent major brands in most of these departments. With a current stock count of over 6000 product lines in-store, we are able to supply or source products for our customers in a timely and efficient manner. We have seen the needs of our customers change as Solwezi town continues to grow, while the demand for our reliability and customer service remains. As a result, Jaid’s has diversified into construction and plant hire, having since secured and completed projects for clients including governmental organisations, Kansanshi
Mining PLC and FQMO. We also own two ready-mix batching plants to cater for all your concreting needs. As a well established and reputable company, we are aware of our social responsibility to the people of Solwezi. Jaids has helped with fundraising and donation of goods for numerous events in the region including funding to revamp the local cricket field. We are proud to be associated with First Quatum Minerals and wish them every success in the future. Jaid’s shares a cordial and longstanding relationship with FQMO and we would like to offer our services every step of the way forward. E. jaids@zamnet.zm www.jaidsgroup.com
• Hardware and tools • Safety gear • Motor vehicle oils and lubricants • Automotive spares and tyres • Construction machinery and equipment
Jaids wholesalers has been in existence since 2000 and has since become the leading supplier of all the following products within Solwezi: • Household goods • Office and home furniture • Beddings • Domestic and consumer electronics and electrical goods • Stationery and office equipment • Computers (software and hardware)
Our vast experience of trading in the region has helped us remain at the forefront of wholesaling and retail trading in the Solwezi area. With core values based on quality, reliability, customer service, Jaid’s has a list of satisfied customers, which include the three main major mines within the Province, regional Chiefs, NGO’s and the local trade. Jaid’s wholesaling and retail trading limited. Tel: +260218821371 E-mail: jaids@zamnet.zm www.jaidsgroup.com
W H E R E Q UA LI T Y M AT T E R S …
FQM - Trident overview
Mill area progress - second shell section being lifted into position
“What we are doing is ensuring that there is a complete transfer of skills to our Zambian employees” opportunity to be enrolled on First Quantum’s Accelerated Development Programme. In addition First Quantum provides scholarships for exceptional Zambian school leavers. Currently, 17 Zambian students receive scholarships to the University of Zambia and the University of Cape Town at a cost of $10,000 per year.
First Quantum is fully aware that what it is undertaking with Trident is ground breaking for Zambia and thus it has always anticipated that it would encounter legislative gaps and that is something that it has had to navigate around. “Such navigation requires patience,” Gladston highlights, “and we have that in abundance. Nevertheless, when it
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CRAFTOR TRUCK CENTRE LTD IS AN AUTHORISED DEALER OF IVECO SOUTH AFRICA AND ALSO A FULLY FLEDGED ASTRA HEAVY DUTY TRUCK DEALERSHIP We are Suppliers of the following state of the art technology and design in passenger transport: • IVECO and ASTRA medium commercial vehicles • IVECO and ASTRA heavy commercial Vehicles • IVECO and ASTRA extra heavy commercial vehicles. • Fleet requirements of all commercial, transport, construction, mining, or logistic companies. • Our Workshop and Breakdown Facility is well equipped with a 5 ton overhead crane and “Easy Diagnostic Equipment “.
• Tooling for IVECO Cursor engines • Countrywide 24 hour emergency breakdown facility • Fully equipped standby vehicles • Trailer Maintenance and Repair • Spare Parts Facilities • Day servicing on a pre-booking system • Wheel Alignment for horses, trailers, cars and buses Contact us on telephone number: +26 0212 650 676 Email: Robert.truckcentre@gmail.com or kay.truckcentre@gmail.com
FQM - Trident overview comes to getting things done we always look to move As the exclusive distributor for Komatsu, Sandvik, Bomag, quickly when the time is right Cummins and Tecnogen in Benelux and in West and Central and we do so decisively.” Africa, BIA is the right solution for mining, quarrying, In order for this approach forestry and public works projects. to be as successful as possible On the strength of its long experience, BIA is proud to be First Quantum ensures the only distributor of premium brands which is able to give its clients a complete solution to guarantee the best that it actively engages productivity at low operating cost. Because each client is with all relevant parties, unique and each project is specific, BIA offers to its clients from local communities to a tailor-made approach. government ministers and BIA experienced engineers are there to guide the customer agencies to forge strong from the earliest stages. By planning, organizing and relationships and allow them controlling specific resources, BIA gives its clients to see and understand the confidence to make their project real and efficient. www.biagroup.com positives that this project can and will bring to the region. “I strongly believe that the government of Zambia understands that the employment and investment opportunities that we are presenting with the Trident project are and will be hugely beneficial for the country as a whole,” Gladston says. “By the time we are fully operational it is possible that, on top of the 2000 jobs we already provide, and depending on the multiplier effect to the local community, there could be as many as 8,000 spin off in direct employment opportunities.” Of course, as Gladston highlights, there is
BIA
$10 thousand Cost per year provided to the University of Cape Town for scholarships. Checking core samples
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DESIGNED BY INDUSTRY EXPERTS FOR INDUSTRY EXPERTS Copper mining has its own unique hazards; that’s why we have re-engineered the Neoflex to suit the operations of First Quantum Mining and other similar companies. You see, we always work on the understanding that wearing the wrong type of safety footwear can be as dangerous as wearing no footwear at all. We thoroughly examine work environments to engineer products specifically to provide the best protection in those conditions. Our specialist approach has resulted in a range of over 60 varieties of safety footwear. Designed in conjunction with Mining Industry experts, the redesigned Neoflex is a specialist boot for the unique challenges facing workers in the Copperbelt region. Featuring a PU/Rubber sole with heat
resistance up to 300 degrees Celsius, the Neoflex is also highly resistant to acids and chemicals. A built-in Kevlar midsole meanwhile shields feet against sharp objects. Whatever way you look at it, this feature-packed boot offers all-round protection for Copper Mining professionals. It’s a dangerous world, make it safe with Beier Safety Footwear. For detailed product specs and to order, contact: CG Zambia, Shop no 24, Copperhill Shopping Centre, Kitwe E.
cgilbert@microlink.zm jgilbert@microlink.zm Tel: 096 677 8345 | 096 655 3600
FQM - Trident overview
The project management team
much more to Trident’s contributions to Zambia than just employment. “By the time we are operational we will be contributing revenue to the country in the form of royalty and profit taxes, the proceeds of which will go directly to the Zambian exchequer providing a much needed boost to the economy.”
In addition, First Quantum is developing a properly planned and fully serviced town for the habitation of its workforce at Trident. The town will lie outside the mining lease and be open to investment for Zambian and other third parties. “It is difficult to attract Zambian talent to North Western
“I strongly believe that the government of Zambia understands the employment and investment opportunities that we are presenting with the Trident project” special report | 45
UFFE supply and install Extinguishers, Hose Reels, Hydrants and Foam/Sprinkler Systems as well as Fire Alarms, Detection, CO2, FM200 and Inergin Gas Suppression Systems, not forgetting the famous Mantech 90 map Powder and Foam System. Lusaka Branch: Moobola Road Chinika Indst Area LUSAKA Tel/Fax +260 211 286356
Copperbelt Branch: No. 1 Harrison St Nkana West KITWE Tel/Fax +260 212 230796
e-mail: uffe@iconnect.zm / unifire@iconnect.zm
FQM - Trident overview Province, because housing Universal Fire Fighting Equipment Ltd and schooling are limited,” Universal Fire Fighting Equipment Ltd is a pathfinder in fire Gladston states, “so we are engineering and safety in Zambia. Since establishment constructing new and better in 1986 we have maintained the fire safety standard as facilities. We have no desire to can be seen by our presence in the Mining Power Houses. become property developers, Our involvement with Kansanshi dates back to 2006, rather we believe that our when we first introduced our Heavy machine on board fire suppression system, Zambian workers should Since then there has been no reports of failure on our systems. own their family home, as U.F.F.E. Have supplied and maintain over 100 automatic this will provide them the detection and fire suppression systems in F.Q.M. alone. collateral and the opportunity We operate a 24/7 back up service for F.Q.M. and many to save and create wealth.” other mines and companies in the Copper belt. First Quantum is also We proudly boast that 43 of our 45 staff are Zambian, who applying for a Multi Facility have been trained by experts from overseas or have gone outside of Zambia for the special extra training required. Economic Zone at Trident We can openly state that U.F.F.E are not only the largest but to attract retail, commercial the most professional fire company in Zambia. and light industrial unifire@iconnect.zm companies to invest in the town. “It is part of effort in developing local business and local procurement that we are encouraging businesses to establish at Trident, and we believe development of such secondary and tertiary industries will leave behind a truly sustainable town and region,” says Gladston.
“development of secondary and tertiary industries will leave behind a sustainable region”
Re-settlement school
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www.genesis-group.biz Genesis Office Systems is a Zambian registered company and was introduced as a distributor of computer networking equipments. We supply award winning brands of computer hardware and software, fibre optic cables, broad band and wireless technologies, Vsat installations, networking accessories for both LAN and WAN working environments.
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“THE STATIONERS WHO SERVE YOU BETTER”
Contact us today and put your company in the spotlight!
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FQM - Trident overview
Sentinel project office
Further to its investment at Sentinel, First Associated investment in roads, airports Quantum’s Trident project and Solwezi smelter and other infrastructure is expected to will catalyse further infrastructure development provide further development opportunities. in North Western Province. First Quantum Trident itself is located some 150 kilometres is partnering with ZESCO Limited, the state by road from Solwezi on the main T5 power utility, to build 600 kilometres of 330kV road to Mwinilunga. In order to improve transmissions through the access to the project a new Western Corridor of Zambia. 30 kilometre all-weather The Kalumbila transmission road is to be developed to the mine and town. line project is of enormous strategic benefit to Zambia as a In future years an access whole, further opening up the road will also be constructed Estimated yeild to be western provinces of Zambia to link to the Enterprise mine, produced in tonnes of to rural electrification and which will subsequently be copper per year improving power security. used to haul ore back to the
300,000
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Kameela Kameela Furnishers P.O.Box 70289, Ndola, Zambia. | C18 Vitanda St, Ndola, Zambia Tel/Fax: 260 2 613731 | E-mail: kameela@kitwe.microlink.zm
Kameela Furnishers is a small 100% Zambian company involved in making solid wood furniture. Our products are made in pine, saligna and teak so that it caters all budgets. Currently, the mines are purchasing our furniture for their offices and homes.
Furnishers We have a fully equipped sawmill, carpentry workshop, display showroom. This enables us to cut a standing tree and process it into a finished furniture product. We have established import connections and import some of our input requirements and a selected range of office chairs.
We won the best furniture award at the Zambia International Trade Fair (98). We have a good reputation and many of our products have been indirectly exported worldwide by customers.
Our customers are: International organizations and reputable local companies. First Quantum Mining Group. WHBO, Indeni Petroleum, Afrox, Zampost, SGS Inspection Services, SDV, Boart Longyear. etc.
Durable Quality, Easily Available Furniture for Offices and Homes
FQM - Trident overview
Stockpile pylon concrete placement
“Our success to date is rooted in the talents and commitment of our employees, particularly our local Zambian workforce� Sentinel plant to ensure all services can be effectively shared. The project also provides a platform for further road (and possibly rail) infrastructure development in Zambia. It is First Quantum’s belief that implementation of Trident will create a trigger point for better transport connections overland to Namibia, Botswana and Angola.
The decision to go ahead with the Trident project, initially at the Sentinel mine, is recognised by the international community as a very positive endorsement of the continuing emergence of Zambia as a destination for capital investment. For its part First Quantum has a long-term commitment to the Government and people of Zambia. First
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View from the top of the flotation gantry crane
FQM - Trident overview Quantum anticipates that the development of the project will be a major contributor to the continuation of Zambia’s strong economic growth record over the past few years, providing development, employment, increased government revenues, growth of diversified industries and enhancements to the sustainability of local communities. “There is no doubt in my mind,” Gladston enthuses, “that within five to ten years from now Trident will be rightfully recognised as a flagship mining project, not just in Zambia, but in Africa as a whole. We are going to be producing up to 300,000 tonnes of copper in concentrate form per year and by then we hope that after Sentinel comes Enterprise which will produce a nickel concentrate. So we see the whole of the Trident project as being a great success. Similarly, I have no doubt that there are other mining majors looking with great interest at how we are proceeding with the project and that we are going to be able to demonstrate to them in due course that Trident represents a great and long-lasting success story.” As Gladston goes on to conclude, the success of Trident has come as a result of a number of factors. “Our success to date is rooted in the talents and commitment of our employees, particularly our local Zambian workforce. With all that in mind we are very much looking forward to a successful commissioning of the full project during 2014.” For more information about First Quantum Minerals - Trident project visit: www.first-quantum.com
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Building a brighter future 54 | special report
FQM - Trident project CSR
How First Quantum Minerals has gained an impressive reputation for its corporate social responsibility efforts
written by: Will Daynes research by: Richard Halfhide special report | 55
FQM - Trident csr
W
herever its employees or assets are present, perhaps the most i mpor t a nt a spec t linking all of First Quantum’s operations and undertakings is the company’s commitment to achieving sustainable development t hrough economically viable investments, technically appropriate operations, environmentally sound practices and socially responsible actions. Naturally this approach extends to its work in Zambia and the Trident project. First Quantum is aware, after all, that its mines themselves can only employ and sustain the livelihoods of a limited number of people. It is with this in mind that the development of the Trident project will include substantial investments in a new town, airport, commercial and industrial areas, and social amenities. In addition to all of this, First Quantum is planning to apply to the Government for some of these new areas to be recognised as multi-facility economic zones. “It is First Quantum’s sincere hope,” John Gladston, Trident Resource Optimisation Manager explains, “that this investment in the mine-surrounds will foster local business and further employment for socio-economic upliftment”. The first procurement contract with a local supplier from the immediate project area was signed in early 2012. Trident will also include substantial investment towards schools, clinics and airport facilities plus an affordable home ownership scheme for employees, which it is hoped will foster their
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The Siemens Gearless Mill Drives are setting a new standard for productivity in the mining industry: • with the highest availability in the market • with highest efficiency and intelligent use of energy in weak grids • with proven design keeping an enterprise ahead of competition • by answering the challenging demands of the mining industry
www.siemens.com/mining
FQM - Trident csr economic empowerment and financial independence. First Quantum has committed ZMW 128 million to CSR and entitlements over the next two years to support local communities. In 2012, some 150 farmers were enrolled in First Quantum’s conservation fa r ming prog ra m at Trident, and an additional 130 growers received cassava cultivation support. An extensive community healthcare programme is underway, while a hugely important compensation and resettlement action plan has been in front of Government
Supporting local farming communities
since September 2011 and an extensive consultation programme is underway in surrounding communities. “The fact that we are actually going to the
SIEMENS At the first glance it looks like a contradiction, that First Quantum Minerals (FQM) defines low CAPEX and low OPEX as their project goals and buying the biggest grinding equipment available on the market. At the second glance it turns out to be a milestone of thinking. Getting the maximum out of the assets, FQM exchanges redundancy with reliability and availability in their process design. We are proud, that our Gearless Mill Drive (GMD) is the equipment of choice to fulfil FQM’s high requirements for the Trident/Sentinel Project. With GMDs of 28MW for the 40ft SAG Mills and 22MW for the 28ft Ball Mills we are delivering some of the biggest mill motors of today. The GMD concept avoids any contact and wear between rotating mill and motor. This enables a continuous workflow
without maintenance on mill gears and pinions. What used to be downtime is now production time. The extremely high availability of our GMD is the result of a unique knowledge in manufacturing special motors and drives combined with a mature technology. Cyclo-Converters e.g. are one of the reasons why our solutions excel. They are high efficient variable speed drives, they are fuse less and short circuit proof, they bridge short power dips without interrupting mill operation. We deliver mill drives for First Quantum Minerals with the highest efficiency and the highest availability. With the Gearless Mill Drives SIEMENS is setting a benchmark for productivity in the mining industry. www.siemens.com/mining
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Tata Zambia Limited
is a part of Tata Africa holdings (SA) (pty) ltd and a subsidiary of Tata international limited. In the 70’s, when ‘Globalisation’ was not the buzz word, TATA’s decided to venture in Africa where many of the countries were newly emerging independent entities. Owing to the strong belief that TATA’s forays into foreign markets should not be a ‘one off’ effort, TATA’s took the bold initiative of setting up subsidiary companies in Africa, with Tata Zambia being the Tata groups first and foremost venture within Africa, beginning in 1977. Under the leadership of our Executive Director, Mr. Pankaj Khanna, some of the major and established business interests of the group are: • Tata motor vehicles – Sales & Services • Jaguar Land Rover – Sales & Services • Infrastructure and Construction Equipment • Vehicle body building plant and Fabrication • ICT- Domestic taxes system being developed for ZRA • General Trading Division: Steel/Bicycles/ Motorcycles/Tannery • Health care • Hospitality – Taj Pamodzi Hotel Tel: +260 211 612042 | +260 212 610377 Email: tata.copperbelt@tatazambia.co.zm
FQM - Trident csr effort of building what will effectively be a completely new and open town in Zambia is what makes the Trident project so unique,” Gladston enthuses. “We are building resettlement houses for those that we have had to displace from the mine site itself. We are taking our corporate social responsibility (CSR) commitments extremely seriously and it is for no reason other than the fact we wholeheartedly feel this is the right thing to do.” As Gladston goes on to say, where First Quantum are displacing farmers and their
Farmers are taught conservation farming
families it is building larger replacement houses out of modern and improved materials. “In addition to this we are working to teach these farmers conservation farming techniques and creating a market from which
TATA ZAMBIA LTD Tata Zambia Limited, being the first venture of the Tata Group within Africa is a well established organization in distributing products under the Tata banner. Our major product range includes vehicles manufactured under Tata Motors Limited.We also distribute Tata buses ranging from the 28-40 seat Marcopolo body based buses, to the 60-61 seat Cummins engine based heavy duty buses. Apart from this, we provide after sales services to our clientele with a well equipped workshop and spares department at our Ndola and Lusaka offices. We have recently ventured into increasing our distributor network within the Southern Province (Livingstone), and have future plans of initiating distribution over a wider network within Zambia. Mining being
the mainstay of the Zambian economy, we at Tata Zambia strive to provide a wide variety of logistics solutions to various mining companies catering to their logistics requirements. With FQM investing in the mining sector, our relationship with them has been a fruitful one, with Tata providing them with a wide range of vehicles for their daily mining and logistics duties. We have supported them regularly by providing FQM projects adequate service and support, and we consider their requirements to be of utmost priority to us. We look forward to their continuous growth within the country, and hope that our business relationship with them grows hand in hand. E. tata.copperbelt@tatazambia.co.zm
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ROYAL TRAVEL AND TOURS LIMITED
Based in Ndola, Zambia and located at the gateway to the Copperbelt, the province that opens into the heart of Zambia’s major mining and production activities. Serviced by the only international airport in the province the company’s location gives
its strategic advantage in handling various industry personnel travel arrangements, in and out to all regions of the world. Furthermore, with our network of international travel industry alliances, we can offer a broad range of services specifically tailored to meet client’s requirements. With e-commerce facilities the company is able to communicate with potential and existing customers in the most remote locations, such as Trident, without requiring physical presence and arranging for travel so as to achieve efficient and timely movement of personnel. www.royaltravel.com
Local based company with a well trained and efficient staff, with decades of experience in the travel industry and members of TAAZ (local industry association), UFTAA and IATA. • As part of our expanding services, we can arrange for air travelling out from Johannesburg, Nairobi, Addis Ababa and Harare, with packages including Mauritius, Australia, Far East, Europe, Americas and other growing destinations. • We arrange Local Tours and Air Charters. • The agency can arrange for Fishing Camps and Game Camp Packages inside Zambia. • We provide International Car Hire in South Africa paid for in Zambia. • Able to provide Local Car Hire within Zambia. • Can provide for Hotel Accomodation virtually anywhere in South Africa. • Can arrange for issuance of e-tickets to any part of the world with internet connectivity for Outward Bound and/or Inward Bound Travel (Corporate Clients).
Tel: 260-212-612412 / 612429 Email: hemi.royaltravel@yahoo.com
T H E I N P E O P L E T O T R AV E L W I T H
FQM - Trident csr
Approach to landing at site
they can sell their produce on a sustainable basis. These are just a few examples of how we have ensured that the CSR element of the Trident project remains front and centre.� The compensation and resettlement practices being carried out as part of the Trident project are in full compliance with Zambian Law and international best practice. In addition to requirements under the Law and in accordance with
requests from the Zambia Environmental Management Agency, a Resettlement Action Plan for the Trident project was submitted to the Zambian government in September 2011 and a final submission was provided on 15 August 2012. A Resettlement and Compensation Working Group (RCWG) comprising senior regional government representatives, nongovernmental organisations, traditional
“The development of the Trident project will include substantial investments in a new town, airport, commercial and industrial areas, and social amenities� special report | 63
FQM - Trident csr leadership representatives and communit y representatives has been appointed to guide the resettlement process at Trident. The RCWG has agreed nine overarching principles to guide the process. These principles include that resettlement must be avoided, or minimised where unavoidable, that genuine consultation and participation must take place, that a pre-resettlement data baseline must be
Trust school foundations laid
established, that a fair and equitable set of compensation options must be negotiated and be demonstrated to be at replacement
METSO Metso through various acquisitions has been committed to the Southern African mining industry for over 100 years. Over time it has established an enormous installed base of quality equipment throughout the continent. Products and services and specialist areas are crushers, screens, grinding mills, flotation equipment, slurry pumps, bulk materials handling, pyrometallurgical equipment including spares and wear parts. In addition, it provides outstanding support for its equipment with a huge inventory of OEM spares backed up with comprehensive maintenance and service contracts. The vast majority of Metso OEM spares are manufactured by its foundries in South Africa. The company has recently taken one of the biggest pump orders ever received in Southern Africa for one of the worlds leading mining companies. The order is destined
for a new coal mine in Mozambique, which represents a real breakthrough for the company in this area. It is currently launching new mobile crushers in Ghana. The company employs 1400 people in South Africa and is wholly owned by the Metso Group. Its new BBBEE Company, Metso Mining and Construction South Africa is 25% black owned, which makes it fully compliant with the country’s Mining Charter. Metso has established excellent working relationships with many international project houses and mines. This has led to its large export base of South African manufactured products including pumps, manganese and bronze wear parts, which are supplied to customers world wide. E. mmsa.info.za@metso.com www.Metso.com
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MEI MEI LIMITED Mei Mei Limited is recognised as being the largest block supplier in all of Zambia, producing four inch, six inch and eight inch cement blocks as well as 12 different types of paving brick, all of which have been used in the construction of some of the country’s
most important infrastructure projects. Mei Mei Limited currently operates four different factories across the country. Two of these factories can be found in Lusaka and each boast a capacity of 20,000pics for six inch blocks and 10,000pics of paving brick in eight hours. The company’s factory in Ndola has a capacity of 30,000pics for six inch blocks and 20,000pics of paving brick in eight hours, while its Solwezi factory possesses a capacity of 15,000pics for six inch blocks and 10,000pics of paving brick in eight hours. E. meimeizambia@yahoo.com
We are experts in cement block and paving brick making.
T 0026 0965 666 989 | E meimeizambia@yahoo.com
FQM - Trident csr
The site is covered in Miombo woodland
“It is First Quantum’s sincere hope that investment in the mine-surrounds will foster local business and further employment” value and that resettlement must take place in accordance with legal requirements. Furthermore, vulnerable social groups must be specifically provided for, resettlement must be seen as an “upfront” project cost, an independent monitoring procedure must be in place, and a grievance procedure must also be in place. As part of Trident’s crop compensation procedure a number of Exclusion Zones were
declared over mining areas, phased to suit consultations with the community and the development schedule of the project. Prior to any decisions being made all fixed assets, including crops, were surveyed within the aforementioned zones. In addition to receiving full compensation for all crops at the time of the survey, farmers were allowed to harvest their existing crops. To date, crop compensation is 75 percent complete across
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Quattro Company Ltd was formed as a partnership and was incorporated in 1993. Our product lines ranged from “Union”, “Yale” & “Solid” Locks, the “Alcolin” range, “FRAM” Filters, Assorted Hardware items, Domestic Refrigeration spares, AC’s and, to a greater degree, Motor Vehicle Spares & Accessories. Our goal is to have the most up-to-date Personnel Transport Fleet in the mining industry. We strive for problem free service to our contractors and fully believe in our motto... T: +260 212 210442 | F: +260 212 211145 | E: quattro@iwayafrica.com
...“Let us do the work”
FQM - Trident csr the Trident area (98 percent complete in the immediate Sentinel area). The average payment is over ZMW 4,000 per hectare. It was in the 2010 growing season that First Quantum launched its conservation farming pilot project across five plots. Results from this pilot reported an average 250 percent improvement in maize yields, with this figure increasing to nearly 500 percent at certain farms. This news resulted in 96 farmers participating in the 2011 season and as
many as 242 enrolling for the 2012 season. Away from the farmland, First Quantum has a strong interest in assisting staff associated
QUATTRO Quattro Company Ltd was formed as a partnership and incorporated in 1993. The primary order of business was to take advantage of our experience and expertise in the procurement, transportation, clearing and wholesaling of a wide variety of goods to retailers on the Copperbelt and Lusaka. In 1998 we were approached to transport personnel for Chambishi Metals on a small scale. In time the scope of work increased so we began purchasing bigger and newer buses until, in November 2001, we assumed the complete running of the personnel transport for Chambeshi Metals Plc. We commenced personnel transport with Mopani Copper Mines in 2002 and also have a branch in Solwezi where we have been servicing Kansanshi Mine with personnel transportation and waste
management services since April 2005. We commenced services to Barrick Mining in March, 2006; our current activities include the transport of Barrick employees as well as refuse and sewerage services. In April 2011 we began transporting explosives for AEL across the country and to the Democratic Republic of Congo with 16 specialized explosive vehicles. Quattro has also diversified its business over the years, recently branching into local and international trucking. We have set up a trucking depot in Kitwe off the Chingola Road Highway. Here we have a fleet of Horses,TriAxle Trailers and Interlinks, as well as Skeleton trailers for carrying containers. Our current international route is South Africa and locally we are transporting all across the country. E. quattro@iwayafrica.com
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TRUCKMEC ZAMBIA LIMITED
SPECIALISTS IN MECHANICAL WORK, HEAVY HAULAGE, EARTH MOVING EQUIPMENT AND CRANES
Office Manager: Partho Mazumdar 0968-265427 | Operations Director: Jay Mahavir 0966-991235 Managing Director : Neil Mahavir 0966-990060 | Telephone: +260 212 217290/ 92 Fax: +260 212 217285 | Email: truckmec@iconnect.zm | truckmec-zambia@iconnect.zm
FQM - Trident csr with the Trident project Truckmec Zambia Ltd to attain home ownership, Truckmec Zambia Ltd is based in Kitwe, Zambia. We what the company dubs a provide a wide range of transport services and earth cornerstone of economic moving equipment for hire. Our machines range from empowerment, through mining machines to road construction equipment. All our an affordable housing equipment is maintained in house by our fully skilled staff scheme. For employees, the to the highest standard. All parts used are only genuine parts. Our trucks and equipment mainly consist of Volvo as affordable housing scheme we strive to maintain the highest possible standard in our will provide certainty on fleet, both for a high quality of work and safety.. accommodation costs and truckmec@iconnect.zm unlock wealth creation and financial security through ownership of their home. There are of course benefits here for First Quantum as well, as high levels of home ownership will likely assist with attracting and retaining high quality employees. Rather than using a high proportion of migrant labour, sourced from regional centres such as Solwezi, First Quantum expects that the majority of workers will be housed close to the mine site at a sustainable town to be built at Trident. The initial town planning scheme will allow for up to 10,000 future homes, but the initial phases of building will be scaled and staged as appropriate to the economic capacity of the project. Of course it is not just homes that make up the infrastructure that is essential to
10,000 Number of homes the initial town planning scheme will allow for Forest surrounding site
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Leading Steel Distributors in Africa www.bsisteel.com
FQM - Trident csr the growth of a new town. Other vital components include school and education ser v ices, clinics and health ser v ices, and transportation gateways. For its part First Quantum has begun to examine building new school and health facilities at the Trident project, to complement the existing All timber is utilised on site; offcuts are made into pallets or furniture government infrastructure. While the development and construction spray programmes and the CHAMP HIV of these facilities continues the company mobile health programme. To date more will carry on delivering health services in than 4,000 people have been voluntarily the area around the project in the form sensitised and over 2,000 tested for HIV, of interactive health road shows, malaria more than 5,000 households have formed
BSI STEEL LTD
BSI Steel has a branch in Lusaka which is perfectly positioned to service your steel requirements whether large or small. Our range of steel stocks, are the largest and most diverse in Zambia and we carry stocks in excess of 4,000 tonnes at any given time.
In addition our knowledgeable and professional staff are on hand to assist you with technical support as and when you require it. To ensure that we are able to handle your orders we run sophisticated order processing systems that are linked via VSAT to all our operations that will ensure we offer the shortest possible lead times. Our fleet of delivery vehicles, ranging from 30 tonne horse and trailers to arrow financial cash advance 1 tonne bakkies, are geared to handle bulk orders as well as your just in time requirements. E. rodney.rae@bsisteel.com www.bsisteel.com
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Look no further than Bisonite, the ultimate choice for building, construction and furniture industry. Our products • Plain Particleboard • Surface Upgraded Particleboard • Sawn Timber (Wet-off-Saw) • Sawn Timber (Kiln-Dried) • Mouldings • Cornice • Coverstrip • Skirting • T&G Telephone: +260 212 651 063/4 Email: sales@bisonite.co.zm
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FQM - Trident csr part of the company’s indoor residual spray programme Bisonite Zambia is a wholly owned Zambian private and approximately 60,000 company and is one of the leading plain and surface mosquito nets have been upgraded (Melamine) particleboard, as well as softwood distributed to people timber and value added timber products producers in living in the Trident area. Zambia. Having been in existence since 2004 we have In recognition of its hard been supplying our family of products to most areas of Zambia and regional markets such as, Zimbabwe, Malawi, work, First Quantum was Democratic Republic of Congo, Namibia, Botswana the proud recipient of the Tanzania and Mozambique. Our plant has the capacity to “Business Leader in Zambia” supply the whole country and the regional markets.. award on 7 December 2012 sales@bisonite.co.zm in tribute to its malaria campaign work. One other notable development involves the company’s plans to construct an airport, complete with a new 2,700 metre runway. In addition to the recently completed upgrades at Solwezi airport by First Quantum, this is expected to reinvigorate air travel into the western provinces of Zambia, something that is seen as vital to the future economic growth of the region. Another interesting and unique aspect of the Trident project is the Forestry programme that First Quantum has developed. “The mine pit itself, at its largest, will measure eight kilometres by three kilometres,” Gladston points out, “and there is some beautiful timber that currently
Bisonite Zambia
2,700 Length of the new airport runway in metres
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turbo agencies
TURBO AGENCIES Turbo Agencies was established in 1986 in Gaborone, Botswana by its founder and still Managing Director Mr Keith Parry. The business was then expanded into Zambia (Kitwe) and the Congo in 2004. Due to exceptional growth in Zambia a new branch was opened in Lusaka in 2011 with the possibility of opening up branches in other African markets. Although we are based in Southern Africa, we have equipped heavy plant workshops in Burkino Faso ,Liberia and Sierra Leone. In 2011 Turbo Agencies was acquired by PSV Holdings, making it a public listed company. As part of our quality service we have an in house logistics team providing transportation of our products
through out Botswana, Zambia and Congo. Our transport fleet includes 1 * 32 ton trucks, 2 * 28 ton truck, 2 * 8 ton trucks, 1 * 5 ton truck and 8 * 2 ton vehicles. All our goods are consolidated in Botswana and transported on from there. All vehicles are fully equipped with tracking devices for added safety and to ensure our customers get the right products at the right time. For our clients in North Africa we outsource our transportation which we have good relationships with (SDV, Rholig and others) enabling us to get the best possible service to our clients. www.turbo-agencies.com
turbo agencies
MANUFACTURERS REPRESENTATIVE AND DISTRIBUTERS
At turbo agencies our mission is to purvey to our customers a guarantee of quality, integrity and professionalism in both our products we supply and the way we conduct business. We share with our customers the 26 years experience we have in supplying and servicing the mining industry in central africa.
email: phillip@turboagencies.co.zm telephone: +260212219082 www.turbo-agencies.com
Where Quality Counts!
FQM - Trident csr
Buidings are built around the forest
sits on top of that area. To make the most of this what we have done is build a sawmill which will provide material to a furniture factory that we are building. Here we will be training local people to make furniture from the timber that we will have to fell. A carpentry workshop and training centre will be established in due course. The Forestry programme will employ 200 Zambians. Gladston is quick to stress as well that
wherever First Quantum is able to plant a tree in an open space then it will do so. “On the main road into the plant site there is a huge roundabout, roughly the size of a football field, and on that roundabout we have covered the land with new trees. These trees are in addition to the 4,000-plus timber trees that we have planted on cleared land. It is hoped that the trees planted in the next few years will provide the feed-stock for the
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NEW PRECIOUS RESOURCE DISCOVERED
Click here to visit our dedicated homepage for the mining community www.bus-ex.com/mining BEST PRACTICE IN MINING
FQM - Trident csr sawmill in eight-ten years’ Spencer Ogden time.” Experience, flexibility and innovation: just three reasons Meanwhile First why Spencer Ogden is changing the face of global energy Quantum is also looking recruitment - and winning awards. Our specialist Mining to secure a conservation division follows suit, placing the industry’s finest candidates area that it will use for the in key roles the world over. restocking and conservation With offices in London, Scotland, Singapore, Houston, Hong Kong, Dubai and Cape Town, we connect globally of indigenous flora and and support locally, ensuring professional, efficient fauna. Furthermore the and seamless results for delivery on project teams and company aims to facilitate individual roles, contract and permanent. community based natural From live project tracking to proactive headhunting, our resource ma nagement end-to-end recruitment solutions do the job better, allowing programs and new Joint us to find the expertise our clients need in a market. Forestry Management areas www.spencer-ogden.com at the adjoining Bushingwe and Lualaba Forest. The project has received broad support amongst traditional leaders and local communities, and is now awaiting Department of Forestry approval. “I think our constant engagement with the local and central Government of Zambia, tribal chiefs and the population of the country has really benefited this project and remains at the forefront of everything we are trying to achieve,” Gladston states. “It is in partnership with the Government and the Zambian Development Agency (ZDA)
zmW 128m First Quantum’s commitment to CSR over the next two years to support local communities
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BREZA Engineering LTD
BREZA Engineering ltd By adopting a European approach to its works, BREZA Engineering, in existence since 1998, is unmatched by its competitors within the Zambian market in the fields of structural steelwork, mechanical manufacturing, piping and supplementary civil/ electrical works. Our clients mostly belong to the mining, general construction, transport and agricultural products processing industries.Our owner-operator led business strategy, supported by our horizontal system of management, helps us remain flexible, yet just as efficient in handling special side-line tasks in instances where our large scale production based clients are not mobilized sufficiently.In addition to tapping into the local learning
BREZA Engineering LTD At BREZA Engineering our continental professional training and expertise in mechanical/structural steel aspects of the building trade blended with the skills of 100 Zambian employees allow us to deliver customized engineering solutions to our clients.
PO Box 39 0041 Lusaka, Zambia Phone: 00261 240301/ 246138 E-mail: breza@zamtel.zm E-mail: breza@coppernet.zm
institutions such as the University of Zambia and the Northern Technical College, we also do our bit for the socially challenged by employing graduates from the SOS village in Lusaka. We also ensure that professional, experienced engineers from abroad are physically involved in the skills transfer process that is so badly needed in Africa.We are proud and appreciate our involvement in the Trident mine projects.We strive to free the hands of the main contractors by taking on problems as and when they arise enabling them to concentrate on the main aspects of the new mine construction. E. breza@zamtel.zm
FQM - Trident csr
Local events are carried out by FQM employees
“Ultimately all of our efforts are about creating a long-lasting legacy for the people of Zambia” that we are constructing our proposal for a multi-function economic zone, into which we hope to attract significant inwards and international investment in the years ahead.” One of the agreements the company hopes to get from the government is for international companies to receive tax breaks in return for establishing operations in the Trident area. By attracting business into the area First
Quantum believes it will create what will eventually be a self-sustaining town. “What we want to see from the getgo,” Gladston says, “is an organised township complete with all the appropriate educational and health care infrastructure in place. Our efforts are also focused on getting some of the larger multi-national hotel chain and supermarket brands to
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FQM - Trident csr
4,000+ Number of trees planted on the cleared land
come in and provide the initial support to what will be, for the first few decades at least, a mining town.” Ultimately all of these efforts are about creating a long-lasting legacy for the people of Zambia and help to address one of the fundamental questions that arose right back at the start of the Trident project and that was, what will become of the region after the mine ceases to exist? “It is for this reason that we have been so very keen to work with the ZDA to create that economic zone,” Gladston concludes, “to get the hotels and supermarkets set up, get the schools running, get water and electricity running so that when the mine does expire there will be a myriad of other things going on to sustain it. One of the things we are most conscious of however is for none of these developments to be flash in the pan such that when the mine finishes we have a ghost town on our hands. There is absolutely no reason why that needs to happen here.” For more information about First Quantum Minerals - Trident project visit: www.first-quantum.com
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standard bank
the Setting
standard How Standard Bank plays a key role within Africa’s emerging markets and its ongoing commitment to the continent
edited by: will daynes research by: richard Halfhide
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A gold wagon outside an early Johannesburg branch of the bank in 1895
Standard Bank
T
he First Quantum Minerals (FQM) story began in the late 90s and spans humble beginnings from a tailings retreatment process at Bwana Mkubwa in Zambia, to its present day achievable aspiration to be one of the world’s leading copper producers. The financing and development of Kansanshi marked the transition of the company to a fully fledged miner and the beginning of a spectacular growth story for the company over the last decade. Following the Kansanshi success, FQM expanded their footprint through the African Copper belt, the African continent and then on an international scale as the company diversified into Nickel and acquired Kevitsa and Ravensthorpe. Acquisitions continued with the Antares, Haquira Project in Peru and the most recent widely publicised Inmet acquisition, including the large scale Cobre Panama Project. FQM growth story and Standard Bank support Standard Bank has partnered with the company throughout this story with a relationship dating back to the initial financing of the company’s flagship Kansanshi Project – Africa’s largest copper mine and the world’s eighth largest copper mine today. In December 2003 Standard Bank, as a Co-Lead Arranger and Underwriter, signed a $120 million export credit and commercial debt facility for the development of Kansanshi. Vaughan Wickins an Executive in the bank’s Mining and Metals teams comments, “the Kansanshi financing was a landmark transaction as it was the first
mine financing in Zambia done on a project finance basis. Standard Bank was confident to underwrite the senior loan which included the Export Credit Insurance Corporation of South Africa. The financing structure also incorporated an asset finance, overrun and power line cost element, however the senior loan facility was ultimately awarded the Project Finance Magazine Mining Deal of 2003 – Africa”. In addition to the senior loan support, Standard Bank signed a $6 million short term facility to finance the company’s capital contribution to ZESCO (the Zambian power utility), providing for the construction and installation of a transmission line and new substation to connect Kansanshi to the ZESCO power grid. In October 2006, Standard Bank was a lender to the $400 million corporate facility that enabled the refinancing of the Kansanshi facility and financing for the company’s additional projects and general corporate purposes. By the end of 2006, FQM had four African assets including Kansanshi, Bwana Mkuba/Lonshi, Frontier Copper in the DRC and Guelb Moghrein in Mauritania. 2008 was a busy year for FQM. The company acquired Scandinavian Minerals and the Kevitsa nickel-copper-PGE project in Finland - one of the world’s largest undeveloped, sulphide nickel deposits at the time - and later in the year announced the acquisition of BHP Billiton’s Ravensthorpe nickel operation in Western Australia. FQM was advancing its plans to become one of the world’s leading nickel producers. Following a decision to commence development of the Kevitsa Project, Standard Bank was again
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mandated as a lead arranger on a $250 million debt facility to fund development. Standard Bank Growth Story Standard Bank is the largest bank in Africa with over 150 years of operating history on the continent and employs more than 50,000 people worldwide. The bank operates in 18 countries in sub-Saharan Africa and is building Africa’s leading financial services organisation. Africa is expected to benefit from sustained economic growth in the decade to 2020. Standard Bank with its on-the-ground presence and unmatched knowledge of Africa’s economies, resources, clients and communities, is uniquely positioned to ride the wave of the African growth story. Standard Bank operates around 550 retail branch outlets outside of South Africa and
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plans ongoing investment in its operations across the rest of Africa. Including South Africa the bank currently operates around 8,500 ATMs across the continent. The strategic partnership with its 20 percent shareholder, the Industrial and Commercial Bank of China, has proved rewarding. In 2008 the $5.5 billion investment was the largest foreign investment into South Africa and largest foreign investment by a Chinese bank internationally. The transaction marries China’s appetite for commodities with Africa’s vast resources and Standard Bank’s expertise on the continent. Standard Bank’s achievements have been acknowledged across the industry, with the bank recently being named as Best Investment Bank in Africa by Euromoney. The award adds to Standard Bank Group’s list of accolades received in 2013, including winning eleven
Standard Bank ‘EMEA Finance Achievement’ awards; the ‘African Deal of the Year’ award for Konkola Copper Mines financing in the 2013 Project Finance Deal of the Year Awards; ‘Commercial Deal of the Year’ in the 2013 Trade & Forfaiting Review; and being named ‘Best Trade Finance Bank in Africa’ by Global Finance. Mr David Munro, Chief Executive of Standard Bank Corporate and Investment Banking said, “Our clients are at the heart of everything we do. We have a unique footprint and physical presence across Africa, global connectivity to serve Africa, unique sector expertise with a specialisation in natural resources and a talented team, all of which reinforce our position as the leading financial services organisation on the continent.” Standard Bank’s mining and metals expertise Standard Bank’s focus on resources is supported by the vast potential of the African continent. It is an institution steeped in mining history with its head office situated in the South African gold region of the Witwatersrand in the Gauteng Province. There are not many institutions that can have their employees look out of the head office windows and see mining headframes in the distance.
Commenting on the bank’s support for First Quantum and its mining pedigree, Mr Wickins says “FQM’s experience and track record in successfully developing and operating complex projects has set them apart from other miners. It remains a key aspect that has underpinned Standard Bank’s ongoing support for the company. It is a similar focus on technical expertise along with our track record that has seen Standard Bank finance the majority of new copper mine developments in Africa over the last decade, this includes financing for FQM, KCM, Equinox, Discovery Metals and Metorex. “ The mining and metals sector is high risk with the challenges only exacerbated in the current climate of falling commodity prices. At times like these it’s important for companies to partner with banks that have
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a long term commitment to the sector and the continent. Mining and metals remains a core business for Standard Bank and its comprehensive service offering includes providing innovative and flexible financing, advisory, trading, ECM and treasury solutions to clients. The bank’s mining and metals team includes extensive technical expertise with individuals ranging from the various disciplines of mine engineering, geology, metallurgy and process engineering. We are able to leverage this in-house technical expertise and track record of successfully executed transactions to assist clients achieve their development objectives. The Bank’s network of offices in all the major mining regions of the world enables it to provide analyses of global commodity trends and to stay abreast of local developments.
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As part of the bank’s expertise in supporting the mining sector, Standard Bank is currently the leading ECM platform in Africa, closing twelve transactions in 2012 with a deal value in excess of $2 billion and being awarded Euromoney’s 2013 award for Best Equity House in Africa. Additional product support to FQM While the funding support Standard Bank has provided to FQM has been an important aspect in assisting the company’s growth plans, the bank has also been a long standing provider of day to day banking support in Zambia, including provision of new ATMs and branches as well as situating bank staff on the client’s premises. The Bank’s FX trading teams situated in Lusaka, Johannesburg, NY and London offer real time market views and
Standard Bank
“Standard Bank is currently the leading ECM platform in Africa, closing twelve transactions in 2012 with a deal value in excess of $2 billion” trading solutions to mitigate currency risks and ensure efficient operational management. In addition to transactional and FX support, the bank has an established capability in commodity trading, notably in the African copperbelt. Steve Reece Head of Base Metals Trading at Standard Bank commented on the physical trading environment in the region: “Standard Bank has actively supported mining companies in the region and established an impressive physical commodity capability over the last ten years. Our support to miners includes the ability to act as an offtaker and take physical Cu metal in a variety of forms including everything from concentrate through to LME grade copper cathode. In addition we have provided short term working capital support linked to physical offtake solutions. In the case of FQM and various other miners, providing short dated QP hedging lines has assisted the miners in managing their near term commodity price exposure, whilst the provision by Standard Bank to many miners of longer dated lines has helped those miners provide their debtholders and shareholders with price security in extremely volatile times” FQM has a good understanding of commodity sales and marketing, following the acquisition of the trading company,
Republic House in 2010. The marketing and sale of the company’s copper production is handled by Metal Corp Trading, the separate entity it established following the acquisition. Standard Bank’s strength in global commodity trading is supported by 24 hour coverage of spot, forward, options and other derivative instruments in precious and base metals as well as capability in iron ore and other metals. Standard Bank in Zambia In Zambia, Standard Bank trades as Stanbic Bank and was established in 1992 offering Personal and Business Banking, Corporate and Investment Banking and Wealth Management. The Bank has 22 branches spread across the country, including the Copperbelt and North Western Province, with 48 ATMs all equipped with VISA facilities. The bank has invested significantly in growing its capacity in Zambia across both these provinces. Standard Bank’s Corporate and Investment Banking business in Zambia serves a wide range of client requirements across banking, finance, trade, risk management and advisory services. The division has built a deep understanding of the market dynamics in Zambia and maintains a specific focus on industry sectors that are
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“The work done in Zambia, South Africa and the UK has added significant value to the client and increased the strength of the relationship” most relevant to Zambia and have a strong local value proposition, including mining and metals, telecommunications, power and infrastructure, agribusiness and financial institutions. The local team is able to provide clients with relevant experience and deep insight into the local commercial and regulatory environments. For both FQM and Standard Bank, Zambia remains an important country of focus. Standard Bank’s strong presence in Zambia means the bank is well positioned to continue supporting FQM’s Zambian growth strategy. FQM’s current assets in-country include a strategic investment in Mopani Copper Mines (whose assets include the Mufulira mine, smelter and refinery and the Nkana mine, concentrator and cobalt plant), the expanding Kansanshi Project, construction of a copper smelter at the mine, and the Trident Project incorporating Sentinel (Copper), Enterprise (Nickel) and Intrepid (Uranium). In terms of location, the flagship Kansanshi mine and Project Trident are situated in the North Western Province of Zambia some 15 kilometres and 150 kilometres west of Solwezi, respectively. Solwezi has quickly grown into a major mining centre serving the aforementioned projects as well as Barrick Gold’s Lumwana mine. The area is
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capable of producing well in excess of 1 M tonnes per year of copper as well as other by-product metals including gold. The region has become an increasingly important province for the country. The Trident Project will be built around a new urban development, Kalumbila, in the North Western Province and the Bank has been at the forefront of providing financial services and support to FQM, notwithstanding the relative infancy of this particular initiative. We are providing a temporary drop-down ATM solution whilst the town and mine are being constructed. Once operations begin in earnest, the Bank shall open a full-service branch at the mine to ensure access by the company to the best commercial banking services possible and minimal disruption to operations at the mine. Over the last two years, Zambia has introduced significant and far-reaching regulatory changes. Several of these have presented challenges to businesses including FQM, as one of Zambia’s largest tax payers. Statutory Instrument 55 (Monitoring of Balance of Payments), introduced in July 2013, has required significant operational planning and adjustments. Standard Bank set about understanding the implications of the new regulations and in collaboration with
Standard Bank
FQM and the regulator, formulating solutions and human capital support to guide the client through the process. The work done by the Bank in Zambia, South Africa and the UK has added significant value to the client and increased the strength of the relationship. Particularly noteworthy, underlying the unique relationship that exists between the two businesses is the decision to commit part of the Bank’s headcount solely to FQM at Kansanshi as a result of SI55. Stanbic Zambia continues to service a number of the other major miners in-country, including Barrick Gold and Vedanta Resources. More recently the Standard Bank Group won Project Finance magazine’s 2012 African Mining Deal of the Year for the $700 million project funding for Konkola’s development of the Konkola Deep Mining Project. Paul Richards, Head of Corporate and Investment Banking at Stanbic in Zambia said, “We are African in ethos and culture. I personally take much pride and comfort from
one of our more recent strap lines, which I think describes in two short sentences the essence of our Bank. “They call it Africa. We call it home”. We aim to build the leading African financial services organisation using all our competitive advantages to the full. We will focus on delivering superior sustainable shareholder value by serving the needs of our customers through first-class, on-the-ground operations in chosen countries in Africa. We will also connect other selected emerging markets to Africa and to each other, applying our sector expertise, particularly in natural resources, globally” It is a testament to the Zambian Government’s commitment to supporting the mining sector that FQM has had the confidence to commit to its large scale development plans in the country. Following commissioning of Sentinel and further Kansanshi expansions, FQM will initially be targeting annual copper production in Zambia of approximately 700,000 tonnes per annum. Planned capital expenditure in-country will be in the order of $3.4 billion. Africa is a key focal point for growth within the emerging markets and Standard Bank plays an important role in continuing to support development, leveraging its people, expertise and track record. Standard Bank’s commitment to the continent and the sector is evident - “They call it Africa. We call it home”. For more information about Standard Bank visit: www.standardbank.com
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Sino Grinding
Grinding out results Pieter Theunissen, Marketing Manager for Africa, and Mark Addison, General Manager of Sino Grinding (Americas) Inc, explain how Sino Grinding became the next global leader in grinding media and how it intends to remain as such
written by: Will Daynes research by: Gareth Hardy
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SAG mill in action
Sino Grinding
I
t was more than a decade ago now that Paul Peng, at the time working for another company designing his own unique grinding media, decided it was time to go it alone and set up his own business. It was this calculated determination that led the creation of Sino Grinding. “In the early days of the business,” explains Pieter Theunissen, Marketing Manager for Africa, “it specialised in the design of grinding media for use in SAG mills. It was this somewhat niche market that Paul identified as being one that was often missed entirely by the larger grinding ball manufacturers. What he subsequently did was design SAG mill grinding balls that could withstand high levels of impact and possessed good abrasion resistance. Upon testing these balls were found to be highly successful and it was from here that the business would go from strength to strength in the years that followed.” Today the Sino Grinding Group of companies promotes its grinding media on a global level, providing its clients with regular on-site technical support, while proactively carrying out advanced research and development in order to bring new products to market to deal with specific problems. The group itself is made up of several companies, subsidiaries and representatives including, Sino Grinding Industries, Sino Grinding International, Beijing Sino Grinding International and Sino Grinding (Americas) Inc. Since its formation Sino Grinding’s aims, when it comes to the work it does for its clients, have centred on four main focus areas, those being the said clients’ steel
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consumption levels, the costs expended per quantity of ore milled, achieving grind by particle distribution improvements and increasing throughput levels. “From day one,” states Mark Addison, General Manager of Sino Grinding (Americas) Inc, “we work continuously and tirelessly with our clients until we know that we have the right solutions to meet their requirements. We are not milling specialists who provide a general purpose product to the whole industry, rather we are specialist designers and as such we work to the targets and specifications set by our customers.” What makes such a unique approach possible is Sino Grinding’s impressive range of seven different types and grades of forged SAG grinding media. This far outnumbers the industry average which tends to see commercial grinding ball manufacturers producing no more than two types of media. Sino Grinding’s grinding media range in size from 0.5” (13mm) up to 6.5” (165mm) and cover all different kinds of mill type. “What our range of products allows us to do is match the environment that a customer is milling in to a particular solution,” Addison continues. “Further to this we provide technical services that including modelling the milling operations of our customers to
improve the whole process, choosing the correct grinding ball sizes and carrying out the initial ball charge calculation for the commissioning of new mills.” One recent, and particularly impressive, example of how Sino Grinding is able to improve the grinding activities of its
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Sino Grinding
Paul Peng listening for ball on shell impact
customers can be found in the world, where the said Zambia at First Quantum industry figures have a Minerals’ Kansanshi Mine. first-hand opportunity to Here the company has compare the products they currently use with those of assisted in halving the The size range of Sino Grinding’s grinding media Sino Grinding. operation’s consumption “During these tests,” rates of mining media in Addison highlights, “one of kilograms per tonne, thus helping it to make considerable cost savings the first things we work towards is being over an extended period of time. able to provide a recommendation of what With such successful examples already the best size of grinding ball product would visible within the marketplace Sino Grinding be for a particular potential customer, then is currently working to build upon this the selection of the Sino wide range of by conducting tests with a wide range of media grades begins. This is our starting companies and mining operators throughout point from which we can begin to modify
0.5”-6.5”
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125mm Sino-4 grinding balls in a 6.5m SAG mill
“Our wide product range, unique customer focused approach and dedication to quality has put us ahead of the game and that is where we intend to stay” said recommendation throughout the course of discussions with the customer. Time and again we have found this to be the best way of achieving the targets and aims that we are set.” One of the other unique qualities that Sino Grinding boasts is the fact that it uses
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a specially designed multi-hammer forging process. Much as has been the case with the chemical composition of the company’s grinding ball range, attempts have been made by competitors to replicate this process however no one has yet managed to get all the components right. “We take huge pride in
Sino Grinding
Grinding balls after use
the fact that we are not copiers, rather we are innovative designers,” Theunissen enthuses. “Because of this we have managed to stay ahead of the curve and we estimate that we are still some years ahead of our nearest rivals when it comes to research and development.” While Sino Grinding has always been committed to developing new products and solutions the same can’t necessarily be said about the vast majority of its competitors and this has resulted in an industry sector that, overall, has seen very little in the way of change for the last two decades. This however is something that the company expects to change in the not-too-distant future.
Examination of grinding balls
“Eventually the market as a whole will have to lift its quality levels,” Addison concludes. “This will happen slowly and while it does it is our own aim to be recognised as the go-to-guys when it comes to SAG milling and grinding ball solutions. Our wide product range, unique customer focused approach and dedication to quality has put us ahead of the game and that is where we intend to stay.” For more information about Sino Grinding visit: www.sinogrinding.com
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zesco
Powering Zambia Zesco, Zambia’s national power provider, has been beset by problems, many of them a legacy of under investment and piecemeal growth: but these are now being addressed head on and state of the art technology is the order of the day
written by: John O’Hanlon research by: Robert Hodgson
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Cyprian Chitundu, Managing Director
zesco
T
he first mains electricity that Zambia Electricity Supply Corporation flowed in Zambia came from a Limited (ZESCO) is Zambia’s state-owned small coal fired station in the power company, a business that operates capital Livingstone, but even more like an independent company than a that did not cover the entire city. government department: adopting the model Zambia had to wait till 1938 to get its first commonly followed in Africa it is known as hydro-electric power from that mighty power a parastatal. So it is governed by a board of source, the Victoria Falls. Of course the copper directors that is appointed by the government, mines needed power, but up to the middle of with wider consultation with stakeholders, the last century they had to provide their own and with the participation of the private generation facilities. This meant that a number sector. It is Zambia’s largest power company of local authorities distributed electricity in producing about 95 percent of the electricity their own districts obtaining their supplies in consumed in the country. the main from existing power stations. For To act as a big corporation in a nearinstance, Livingstone local authorities bought monopolistic industry is a difficult task, admits power from the Victoria Zesco’s Managing Director Falls Electricity Board while Cyprian Chitundu. The only Kabwe and the Copperbelt time the customer really authorities purchased power notices their power supplier is from the mining companies when there’s a problem, and Zambia’s peak which they were often able Zambians are given plenty power demand of opportunity to notice that to sell local municipalities. there are frequent power But real consolidation did not take place until the early 1950s when outages. This, he says, is because the system at least four stations with a combined 120 is under stress. There is an under-capacity MW capacity were connected to a central within the country, and rationing has been switching station at Kitwe. necessary to ensure that every Zambian who With the construction of the Kariba is connected to the grid has a fair share of Dam and power station in 1962, and the the available power. To illustrate the situation, subsequent development of the 990 MW national demand for power, at peak times, is Kafue Gorge power station the copper mines more than 1,780 MW: Zesco’s total capacity finally had a source of hydroelectric power is 1,700 MW, leaving a deficit of around that was sufficient to supply Zambia’s major 165 MW, allowing for a safety margin. population centres as well. A power supply But that is no substitute for a reliable and network began to extend across the country continuous supply, he would be the first to and today this carries electric power to all acknowledge. “It is with this in mind that we but the most remote and inaccessible parts have adopted an action oriented strategy that of the country. will ensure that three years from now the
1,780 mw
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zesco Zambian people will be well catered for and absolutely Two Rabbits Ltd is a proudly Zambia owned and operational free of power rationing.” Branding company. We specialize in all types of branding With the government backing and works are down in-house. Embroidery, screen printing, it by facilitating external Embossing, engraving, large format printing. investment partners, this Our Clients see us as an important resource and integral will, he hopes, get a number part of achieving their goals. Understanding our client specific goals is our top priority. We are extremely of projects moving that have committed and focused on this concept and continue to been stalled for up to ten tailor the way we do business in order to help you achieve years. After all, he points exceptional results. out, the very demand for With Two Rabbits Embroidery as your Branding partner, you electricity that is causing can be confident that you are building a solid affiliation with supply problems has only an organization you can trust and count on. come about through Zambia’s www.tworabbitsgifts.com economic boom. 2012 was a good year for Zambia’s economy. Growth was driven by expansion in agriculture, construction, manufacturing, transport and finance. Economic prospects for the future look positive so long as growth can be sustained and broadened to accelerate job creation and poverty reduction. After a slump in output, copper mining is expected to rebound in 2013, and is projected to reach 1.5 million tonnes by 2015. This is largely due to investment in new mines and the expansion of capacity at existing plants. Robust international copper prices will provide additional stimulus to mining. But that expansion very much depends on the availability of a robust power infrastructure, and that is Zesco’s challenge. Chitundu has identified eight key factors that need to be addressed as part of the action plan and number one on the list is to put an end to loadshedding, a polite name for sharing out blackouts as a way of keeping the lights on for most of the customers. Among Minister of Finance touring the KNBE project
TWO RABBITS EMBROIDERY LTD
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the remaining objectives are to increase working capital, control costs and increase the customer base. But fairness to the customers is a thread running right through the policy, and one of the key perceived inequitable factors is the non-availability of power in some rural and remote parts of the country. To address this Zesco is working with the government of Zambia, the United Nations Industrial Development Organisation
(UNIDO) and the Global Environment Facility (GEF), and has embarked on a project to develop isolated mini-hydro power stations to mitigate the power deficit in rural areas. One such project is the one-megawatt Shiwang’andu mini-hydro power project which was commissioned in December 2012. An important objective of the project was to promote renewable energy based on mini grids for rural electrification in the country.
“The investment in the Fibrecom network is a great achievement by ZESCO with immense social, technological and economic benefits�
Work in progress at KNBE
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The Shiwang’andu project is not connected to the national grid – it is purely a local facility, so the buy-in from the people who will benefit is considerable. The project has created employment opportunities for 70 local general workers. The isolated mini grid will connect to the schools, clinics, lodges and farms which will bring economic development to Shiwang’andu area. While Zesco is implementing its large scale improvement programme, it is not all about fighting fires. The company recently launched the second phase of its fibre optic network after completing the installation of 5,300 kilometres of optic fibre cable on its high voltage lines. Phase one brought high capacity ICT to 46 towns in every one of Zambia’s ten provinces. “The investment in the Fibrecom
network is a great achievement by Zesco with immense social, technological and economic benefits,” said Cyprian Chitundu. Phase 2 extends coverage by a further 4,300 kilometres, with international connections to Tanzania and Namibia. The network is also being equipped with real-time remote surveillance systems, with access control at key installations on the Fibrecom (Zesco’s own brand) network. This, says Chitundu, will address the bane of vandalism, which is responsible for many of the outages that the customers currently blame on Zesco. For more information about Zesco visit: www.zesco.co.zm
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