LUBAMBE COPPER MINE
POTENTIAL IN THE COPPER BELT
Nick Bowen, CEO, Lubambe Copper Mine Project.
LUBAMBE COPPER MINE PROJECT
WE LEARN ABOUT THE VAST POTENTIAL OF THE LUBAMBE COPPER MINE AND THE ADVANTAGES OF WORKING IN ZAMBIA’S COPPERBELT.
POTENTIAL IN THE
COPPER BELT PROJECT MANAGED BY: JOHN HOLLIMAN
As the technological revolution rolls along, copper is becoming an increasingly important material. It’s essential for electronics and the growing trend towards electrification in power generation and transport. That rising demand is something the copper mining industry will have to work hard to meet.
“I
f there was an orebody like this that was easy to mine it would already have been exploited!” CEO Nick Bowen says of the Lubambe Copper Mine Project. “Nowadays copper’s turning up either in places where nobody wants mining to occur, or where there are technical challenges to extracting it.” While Lubambe is a project that faces challenges, local opinion is not one of them. “Neighbouring communities in Zambia’s copper belt love & want mining,” Bowen says. “It’s not like places where mining companies are struggling to get approval. We’re welcome to be there.”
BUSINESSFOCUSMAGAZINE.COM
Lubambe is one of the newer mines in the Copperbelt. It was constructed in 2010 and came into production in 2012. “Unlike a lot of other Copperbelt mines which have been around for 50, 60 or 70 years it’s a new operation,” Bowen says. “Until 2017 it was owned by Vale International and African Rainbow Minerals. In 2017 the foreign partners decided to sell out and that’s when EMR Capital became the 80% shareholder, a specialised mining private equity firm that operates around the world, focusing on existing operations with potential for improvement and expansion.”
Lubambe’s an underground mining operation with a 2.5 million ton per-annum concentrator, capable producing 40,000 tons a year of copper equivalent. “We produce a 45% grade concentrate which we then take to various local smelters to smelt into copper,” Bowen says.
DELIVERING POTENTIAL
The quality of the concentrate that can be processed at Lubambe is only one of the reasons it was such an appealing prospect for EMR Capital. “I think probably the attractiveness of Lubambe to EMR Capital was in the fact that the mine has never delivered its full potential,” Bowen reflects. “It has underperformed since it was constructed, for a number of operational and technical reasons. The appeal for EMR Capital was to overcome those issues and increase production.”
BUSINESS FOCUS MAGAZINE | 3
Iron Cove Global is an international executive search and recruitment consulting firm, focused on the source and selection of industry leaders and technical professionals into global mining and resource projects. Our mission is to provide high calibre talent attraction and recruitment support, partnering with hiring organisations to unlock access to the industry’s most sought after professionals, ultimately providing a competitive edge in the industry. We aim to service the mining and resources sector using our trusted links to the sectors leading mining organisations and high performing industry professionals. Our business focus lies solely within the mining & resources industry, spanning the below-listed disciplines:
• • • • • • • • • •
General & Executive Management Production & Operations Mining Engineering Processing & Metallurgy Geology & Survey Maintenance Engineering Commercial & Financial Health, Safety, Environment Project Development & Construction Non-Executive
Overtime, ICG has provided services to mine operators, developers and explorers active across Africa, Asia, Australia, Europe, North America & South America.
“For numerous years, we have enjoyed assisting businesses who are developing and operating mining projects in Africa. We see the continent as a critical pillar of global resources supply both now and for countless decades ahead. As a result, we look forward to continuing to support mining organisations in their pursuits of turning new production online safely and sustainably, whilst giving back to the communities in which they operate.”
Our Services
Dan McComb, Director – Iron Cove Global
Standard Permanent Placement Standard source and selection of professionals for permanent positions, ranging from technical engineering to middle or senior management levels, either on contingent or retained basis. Executive Search Retained executive search solutions, involving research, mapping, identification, source and selection for industry leaders in specified executive and non-executive positions. Short Term Contract Execution of hiring services for shorter term roles, normally ranging from 3-12 months. Candidate Representation Partnering with job seekers in the industry, facilitating introductions to suitable employers in the global market.
Iron Cove Global Pty Ltd Sydney, Australia
www.ironcoveglobal.com
Phone: +61 2 8005 7377 Email: info@ironcoveglobal.com
Manufacturers of Grinding Media, Casting products and Industrial Oxygen & Acetylene ABOUT SCAW LIMITED SCAW Limited is one of the largest provider of high quality grinding media and Iron & Steel castings in Zambia, as well as in the Central and Southern African market region. The company was founded in 1960 and has a work force of over 700+ employees. SCAW Limited’s Quality policy and Objectives are anchored by an effective and maintained Quality Management System (ISO 9001:2015) certified by BSI since 2018. The Quality Management System has been a tool used to support continual Improvement to meet and exceed our customers’ needs and expectations. SCAW has a production capacity in excess of 36,000 tons of grinding media per annum and 1,800 tons of castings per annum. The company vaunts of the following product portfolio: • Hammer forged & High Chrome Grinding Media. • Plain Carbon, Low, High Alloy Steel & Iron Castings. • Machining and Fabrication Services. • Industrial Gases: Oxygen and Acetylene PREMIUM PRODUCTS 1. HAMMER FORGED & HIGH CHROME GRINDING MEDIA SCAW produces 125mm hammer forged mill balls. These are mainly used in SAG mills during the grinding of ore. We also produce high chrome grinding media with 11% to 27% Cr in 35mm to 100mm diameter, which are used for grinding ore. All our products are manufactured under strict quality control procedures, which include optical emission metal analysis for achieving the desired chemical composition, hardness, and microstructure tests or analysis. The 125mm hammer forged and high chrome mill balls are hardened, (oil / water quenched) and tempered so as to achieve the best microstructure within the metal, which makes it tough and wear resistant. Our stringent quality control procedures and processes ensure minimum defects in our products, which meet international standards. To attain the above quality objectives, SCAW has installed state of the art quality control facilities such as; • Optical Emission Spectrometer Metal Analyser. • Brinell and Rockwell testing machines. • Metallurgical Microscope. • 400 kN Universal Testing Machine (tensile testing & bend testing). • Dye Penetrant and Magnetic Particle Inspection non-destructive test methods, etc. 2. STEEL, ALLOY AND FERROUS ALLOY CASTINGS SCAW also produces various grades of castings, which meet international standards. The company has in excess of 20,000 each patterns built over the last 50 years for almost all parts of the plant used by the mining and other mine related industries with production capacity of 150 metric tonnes of castings per month. We also produce castings in low and high alloy steels including austenitic manganese steel, white CI (cast iron), and grey CI and other low and high alloy CI up to 3.5MT single piece weight. Some of the fast-moving castings are rod and ball mill liners, primary and secondary jaw crusher liners, crane wheels, trunnion liners, bend pipes, base plates, stack base liners etc. 3. INDUSTRIAL GASES-OXYGEN AND ACETYLENE SCAW also produces 10,000 oxygen gas cylinders per month holding 10.69kg at a filling pressure of 150 bars and purity of 99.5%. 900 acetylene gas cylinders per month holding 6.689 kg and a filling pressure of 22 bars at 99.7% purity.
SCAW LIMITED 1316 Dr. Agrey Avenue Heavy Industrial Area PO Box 20418 KITWE, ZAMBIA
Tel: +260 212 213933 / 213541 Fax: +260 212 215432 Email: info@scawzltd.com scaw@scawzltd.com
www.scawzltd.com
LUBAMBE COPPER MINE PROJECT
The project boasts a very large mining lease of 228 square km, which includes Lubambe’s existing mine and its 70 million tons of 2% copper ore. But this is only the tip of the iceberg for EMR Capital with the mine recently completing an advanced concept study on its world-class Extension project. “The Lubambe Extension Project focuses on a resource with 250 million tons of ore at 3.65% copper, 0.5% cobalt, and that resource is open in two directions,” Bowen says excitedly. “We’ve only explored 30% of the mining lease. So, it fits EMR’s objectives in that there is an existing mine that can be improved and potential for new development to bring a new mine online. It is the largest high-grade undeveloped copper orebody in the world.” The project’s updated resource statement estimates it holds 9 million tonnes of copper, making it world-class. The new ore body is situated roughly 6km south of Lubambe’s
6 | BUSINESS FOCUS MAGAZINE
existing mine, at depths of over 1,000m but contained within Lubambe’s existing 228 sq. km mining license. The new Extension is ambitious, involving the sinking of new shafts and conveyor declines, and the development of a new underground mine that will have initial production of 90,000 ton per annum of copper (in concentrate) which will then expand to 160,000 tons (in concentrate). This mine has an initial estimated lifeof-mine of 30 years with the potential for further exploration to yield many more years of life, extending the life of the Lubambe project as a whole beyond 2050.
WORLD-CLASS METHODS
But as Bowen rightly pointed out, if it was easy, everyone would do it, and this project comes with its own challenges. Firstly, Bowen is keen to leverage the expertise he has gathered working on mining projects around the world.
BUSINESSFOCUSMAGAZINE.COM
LUBAMBE COPPER MINE PROJECT
“NEIGHBOURING COMMUNITIES IN ZAMBIA’S COPPER BELT LOVE AND WANT MINING. IT’S NOT LIKE PLACES WHERE MINING COMPANIES ARE STRUGGLING TO GET APPROVAL. WE’RE WELCOME TO BE THERE.”
BUSINESSFOCUSMAGAZINE.COM
BUSINESS FOCUS MAGAZINE | 7
Focused. Inspired. Motivated.
ENGINEERING, MINING, CIVIL & CONSTRUCTION WORKS
Micas Investments Limited offers a comprehensive service package to the mining and construction industries. With much experience and diverse service provision range, Micas Investments limited is able to provide solutions that fulfil related service, to suit the requirements of its customers irrespective of distance and location by using a well coordinated network of employee expertise and equipment to serve its customers efficiently and effectively. These services range as follows: • Plant & heavy duty equipment hire • Rehabilitation of road works • Construction of drainage systems, bridges & dams • Earthworks and haulage
A thorough review system ensures that every service meets the following for utmost customer satisfaction: • Increased Uptime • Optimized Performance • Lower Costs • Environmental Protection
Our focus is to lower our customer’s total operating costs to increase the value added benefits of using our services.
8 | BUSINESS FOCUS MAGAZINE
Micas Investments Limited 531 David Kaund Rd, Light Industrial Area Chingola, Zambia Tel: +260977800700 / +260955800600 Email: micas@zamtel.zm www.micas.co.zm
BUSINESSFOCUSMAGAZINE.COM
Timaja Ent Ltd is specialised in Diamond Drilling Services. The Company Acknowledges the that Safety, Health and Environment and Quality is our responsibility and an integral component of our Business. As such, the Company monitor the appropriate IMS (Integrated Management System) and discard the obsolete Safe Working Procedures and replace with the updated ones to suit the international Standards. Head Office: Sabina Junction, Off Mufurila road Sub E/S1/S5/Lot 542/M, Kalulushi P.O.Box 22910 Kitwe, Zambia Tel: +260 965 311 291 or +260 965 511 654 Email: timajaenterprise@yahoo.com
www.timajadrilling.com
GMS was formed with the purpose of providing full “turn key solutions” to our clients, this includes maintenance and full product support. After sales support is high on our list. Our product portfolio includes top quality brands: • ABC Venitlation Systems • ABC “ToughVent” surface & underground fans • AMS Haden Instrumentation &. Mining Services • CDC Dust Filtration & Extraction Systems
Contact No. +260 965 900551 Email: sales@goramining.com
BUSINESSFOCUSMAGAZINE.COM
SOUTH AFRICA
With our dedication and rich industrial experience, MAISHA CATERING SERVICES offer various services in the domain of: • Industrial Catering • Remote Site Catering • Institutional Catering • Outdoor & Event Catering • Camp Management • Food Stuff Trading • Customized Allied Services Industry Sectors: • Mining Supply & Machining • Power Generation • Civil Works & Construction • Agricultural & Environmental Consultancy • Education & Health MAISHA ZAMBIA TRADING LTD. 3754 Kariba Rd, Kitwe ZAMBIA Contact No: +260 964748623 Office No: +260 212212054 Email: sales@maishazambiatrading.com
www.maishazambiatrading.com
BUSINESS FOCUS MAGAZINE | 9
LUBAMBE COPPER MINE PROJECT
10 | BUSINESS FOCUS MAGAZINE
BUSINESSFOCUSMAGAZINE.COM
LUBAMBE COPPER MINE PROJECT
“When it comes to underground mining in Zambia generally, I’ve worked all over the world and Zambia needs to move up the productivity curve,” he admits. “It’s been a little bit isolated from what’s happening in the rest of the world. It’s not unique in that, but places like Canada and Australia have improved in underground mining. That’s what we’re bringing to Lubambe as the new shareholder, those new modern mining techniques.” Applying these methods to Lubambe’s active mine has already yielded positive results, as Bowen proudly points out, “In the three years we’ve been involved, the number of tons mined at Lubambe has increased 60% from what it was when we took over. Per month tons have gone up. It was a challenge to mine, but we’ve been able to bring in expertise, and training to lift productivity.” The particular technical challenges Lubambe presents are due to the depth of the mine, and the presence of water there. “The existing mine is 500 metres deep, and it’s wet, but with the extension project the orebody doesn’t begin until 1000 metres below the surface,” Bowen explains. “It’s not something that’s not done elsewhere in the world, it’s technically feasible. The mine’s deep, it’s not hot, but it is wet. So pumping is of real key importance.”
SAFETY FIRST
The benefits of this project are clear. As a multi-billiondollar capital investment, it will
BUSINESSFOCUSMAGAZINE.COM
create approximately 3,500 jobs for Zambians throughout its life, from construction to production. Aside from the jobs created by direct employment, local businesses are set to benefit as opportunities are created for local suppliers, with Lubambe planning to source as much equipment and materials as possible from Zambia. At the same time, Lubambe’s CSR Programmes orchestrated under the Extension project are focussing on key areas including agriculture, infrastructure, education and health. Through Corporate Tax and Mineral Royalty, Lubambe will also contribute significantly to Zambia’s economic growth. But for Bowen, all of these benefits come secondary to the safety of the people working on his site. “Lubambe had a good safety record when we arrived but we’ve significantly improved it, bringing in more modern and global practices but also getting people to understand we won’t accept unsafe performance,” Bowen says clearly. “We’re fatality-free since the mine started, which is unusual in Africa. We’ve also had only one lost-time accident in the last 21 months, which is unheard of in underground mining in Zambia.” As the leader of the company, Bowen believes he has a special responsibility to ensure that safety is the number one priority of everybody who works under him. “We’ve done a lot of work on safety, mines rescue and getting our workforce to understand we’re very serious about it,” he says. They’ve taken to that challenge and opportunity and embraced it. It’s a really safe mine and the envy of quite a few people. And it will be the same approach when we get to the Extension. I’m CEO and
BUSINESS FOCUS MAGAZINE | 11
AMC CONSULTANTS
AMC successfully manages Lubambe’s complex study
“
We are very pleased with the outcomes of the Lubambe Extension FEL1 scoping study that was undertaken by a large team of client personnel and specialist industry consultants. AMC did an excellent job of managing a complex technical program and delivered the study on time and to a high standard. AMC’s expertise in underground mining studies has been a significant factor in moving the project forward. We look forward to continuing to work with AMC as the Lubambe Extension project takes the next steps towards development.
“
- Nick Bowen, CEO and MD at Lubambe Copper Mine Limited
amcconsultants.com
SALAMANDER BUSINESS SERVICES ensuring your success
AMC SUCCESSFULLY MANAGES COMPLEX STUDY FOR LUBAMBE AMC Consultants (AMC) recently led and contributed to a comprehensive and rigorous FEL1 scoping study process to advance the potential development of the deep and challenging, high-grade copper resource at the Lubambe Extension project. The study identified potentially viable project options, outlined the programs required to further investigate the key areas of risk, and established a baseline for the further development of the project. “Few studies in AMC’s experience have been as complex at an early stage of planning. Success required extensive planning, collaboration, excellence, solid work, and perseverance”, said Principal Mining Engineer, Leo Dawson from AMC, who managed the study on behalf of the owner. Whilst Lubambe provided a clear vision, the study team took ownership of identifying and controlling the risks and maintaining the work to a high standard. Most importantly, the team kept an understanding of the limitations of the available data at all times, providing a clear definition of further work required, and contributing to the progress of the project into feasibility stages and advanced development, if appropriate. An established study structure, open and cloud-based communications, regular progress reporting, and group project reviews all contributed to delivering a robust technical outcome. “AMC looks forward to seeing the exciting Lubambe Extension project continue to be defined to a high standard in the feasibility study stages as the project progresses towards full development,” said Mr. Dawson. www.amcconsultants.com
SALAMANDER Nick Bowen: “One of the first challenges we had at Lubambe was to address the mine’s supply chain and spares warehousing. The level of spares we inherited was excessive and the purchasing of mechanical supplies was erratic and lacked systems. We were over stocked with slow moving and obsolete items but were out of stock of spares critical to the operation. To address this issue, we engaged Salamander Business Services to analyse and assess the situation at Lubambe. Its Principal, John Sestan visited site and undertook a detailed assessment of the problems. John has a long history building business plans and leading transformations of assets within the mining sector. In our case John was able to work with the Lubambe team to arrive at a detailed plan to transform the on site warehousing and ordering functions. He brought experience and maturity to the team immediately post implementation when our resources were overly stretched.
• Corporate advisory and management consulting • Supply chain efficiency • Optimising working capital – cashflow management • Feasibility studies - new mines and expansions
• Interim/ temporary CFO • Acquisition, due diligence and post-acquisition business integration/ separation • Commercial negotiations • Board representation • John Sestan, principal & CEO
T: +61 408 109 052 E: john@sestan.com.au E: john@sestan.com.au T: +61 408 109 052 WWW.SESTAN.COM.AU
12 | BUSINESS FOCUS MAGAZINE
Rather than just leave the plan on our desk we insisted John commenced implementation of the plan while helping build capability within Lubambe to ultimately take ownership of the project. He enthusiastically engaged with Lubambe staff and our suppliers to completely reset our processes. Within 9 months we saw a dramatic reduction of our on site spares, lowering our purchases and selling items that were obsolete to our needs. The reduction in working capital released cash which far exceeded the cost of the exercise and helped Lubambe weather the trough in copper prices we experienced late in 2019. Once the project was well established, with the help of processes and analytical tools provided by John, we reverted to our Lubambe team to complete the work.” We would enthusiastically recommend Salamander and John to other Mining operations seeking strong support and leadership in support of major operational transformation. john@sestan.com.au
BUSINESSFOCUSMAGAZINE.COM
LUBAMBE COPPER MINE PROJECT
if it’s not safe I don’t want to do it. It’s an ethos across our management team.” The big safety challenge facing Lubambe this year, as well as mining projects and other businesses around the world, has been the COVID-19 pandemic. “We live with it every day,” Bowen confesses. “I think we had a bit of a head start because our mines in other parts of the world were encountering COVID earlier than Africa did. It was quite late getting to Africa and I think most mines took a proactive approach to say ‘Let’s start our controls early before we have any COVID.’ We haven’t been immune to it, we’ve got 2,000 people working at the mine, it’s a big workforce. We’ve had very strong protocols in place since March including strong social distancing, strong hand hygiene, wearing of masks and everyone is checked for temperature and health as they arrive for work each day.” So far, Lubambe has seen 80 cases of COVID-19, 79 of whom had already recovered when we spoke to Bowen. “The majority didn’t know they had it, it was found through random testing,” Bowen says. “We’ve had no one seriously sick from it- we’ve been very fortunate and our controls have assisted in that. So, when it comes to health and safety, we’re very comfortable but know we’ll have to live with this for quite a while.” While the staff have been safe, COVID-19 has introduced other challenges, particularly with regards to the restrictions on travel that have been put in place. “Some supply routes have slowed down, so we’ve had to order well in advance and with suppliers looking at carrying higher levels of stock,” Bowen says. “But there have been no interruptions of operations.”
BUSINESSFOCUSMAGAZINE.COM
“LUBAMBE HAD A GOOD SAFETY RECORD WHEN WE ARRIVED BUT WE’VE SIGNIFICANTLY IMPROVED IT, BRINGING IN MORE MODERN AND GLOBAL PRACTICES BUT ALSO GETTING PEOPLE TO UNDERSTAND WE WON’T ACCEPT UNSAFE PERFORMANCE.” PATH TO PRODUCTION
Lubambe’s existing mine only has a ten-year life-of-mine ahead of it, but Bowen still believes its best days are ahead.
“We’re still on a ramp-up phase with the existing mine. We’ve another 20-30% increase in productivity to occur and another round of improvements at the moment,” Bowen says. “That’s about opening up additional areas, we’re being more efficient, introducing more mechanisation. That’s all happening over the next 12 months. We’re comfortable where we’re heading. The existing mine has a life of another ten years. It’ll get to producing 35,000 tons of copper a year for the next ten years. But our real focus is the Extension project.” The next steps for the Lubambe Extension Project are clear. The pre-feasibility study needs to be complete and necessary technical and environmental approvals from
BUSINESS FOCUS MAGAZINE | 13
LUBAMBE COPPER MINE PROJECT
“WE’VE HAD GREAT SUPPORT FROM CONTRACTORS, SUPPLIERS AND CONSULTANTS BOTH IN ZAMBIA AND INTERNATIONALLY.” the Government and other key stakeholders obtained. If these can be completed, it presents an opportunity to ensure the mine is approved and constructed in the shortest time possible. Talking with Bowen it’s clear he’s very excited about creating a world-class mine at a time when copper demand is increasing. “We’ve completed what we call the advance concept study, $55 million on exploration drilling and studies. We’ve proved a viable operation, which will ultimately be processing 5 million tons a year of ore and 160,000 tons of copper equivalent,” Bowen says. “The current expected mine life is 30 years but 50+, taking into account unexplored territory. Clearly, the next phase is to do the final feasibility studies, final design with a target to get investment approval in the second half of 2022 and start constructing in 2023. That’s our key focus- to take this from a concept to an operating mine.” Throughout this process, from the very beginning to the days still to come, Bowen has been grateful to the country, people and businesses that have made the Lubambe project possible. “There’s always press about Zambia and mining but some of is quite negative. From my perspective what we have here in this country is that it’s a mining country. There are a lot
14 | BUSINESS FOCUS MAGAZINE
BUSINESSFOCUSMAGAZINE.COM
LUBAMBE COPPER MINE PROJECT
of undeveloped ore bodies and additional exploration potential, and for the companies that want to be here there’s the opportunity, develop new mines and the government is working with us to make that happen,” he says. “We’ve had great support from contractors, suppliers and consultants both in Zambia and internationally. They’ve all helped us make the transformation from an underperforming mine to one that will soon be performing very, very well They’ve been supplying goods and services, resolving technical issues. All our suppliers and contractors have really worked well with us and we appreciate that. The people are extremely friendly and it’s a safe country which is important for investors, and the life of these ore bodies and the grades they offer is very attractive. There are challenges to work through but with both copper demand and copper production to fill the gap between supply and demand that’s going to make this an attractive location to invest in.”
BUSINESSFOCUSMAGAZINE.COM
BUSINESS FOCUS MAGAZINE | 15
LUBAMBE COPPER MINE
WWW.LUBAMBE.COM