Moxico Resources PLC

GROUNDBREAKING SUCCESS

A true titan of the Zambian mining industry, Moxico Resources PLC leads the way in the procurement and production of mineral assets. We speak to Theo Silver, Managing Director of Mimbula Minerals Limited, the company’s Zambian subsidiary, that is developing and operating the Mimbula Copper Project

Writer: Ed Budds | Project Manager: Joshua Mann

Zambia’s diverse mining landscape covers the production of a multitude of mineral raw materials, including copper, cobalt, gold, nickel, manganese, emeralds, beryllium, sulphur, zinc, coal, iron ore, steel, limestone, uranium and other platinum group metals.

Mining has long been a significant primary sector industry and a key contributor to the Zambian economy by providing export income, tax revenue and employment for its citizens. The geology and mineral resource distribution stretches across all 10 provinces of the African nation.

Mineral resource exploitation was originally clustered around the centres of mining operations along the Copperbelt, such as the Konkola and Kitwe mining sites. However, in the last two decades, multiple mining and exploration projects have been approved by the Zambia Environmental Management Agency (ZEMA) and large commercial mines now stretch to the central, north-western and southern provinces.

A LEADER IN INDUSTRY SOLUTIONS

Moxico is committed to aligning, integrating and delivering on positive Environmental, Social and Governance (ESG) outcomes across all of its mining operations. The company also operates transparently and responsibly whilst upholding good business practices with all its partners.

Likewise, Moxico strongly believes in fair opportunities, upholding ethical conduct and practising sustainability in all aspects of the company.

ENVIRONMENTAL

At all times, Moxico seeks to minimise the environmental impact of its operations, whilst being open and collaborative with local communities and its wider stakeholders.

Moxico continues to build on the excellent relations it has established with ZEMA as part of the government’s response to climate change and its impact on Zambia.

SOCIAL

With a strong commitment to sustainable development, Moxico is focused on contributing to the socioeconomic welfare of the areas in which it operates.

Shared value is also held by Moxico within the communities where it operates, and the maintenance of a social license to operate will enable the positive impact and outcomes for the long term.

GOVERNANCE

The Moxico board has an unwavering commitment to the maintenance of the highest standards of best practice corporate governance and accountability. The leadership culture will remain focused on zero harm in all existing mines, ensuring inclusion and diversity and an entrepreneurial approach to innovative solutions.

“The African mining space is very exciting and there is real potential for Africa to become the main hub for numerous commodities,” opens Theo Silver, Managing Director of Mimbula Minerals Limited, the Zambian subsidiary of Moxico Resources PLC (Moxico) that is developing and operating the Mimbula Copper Project (MPC) in Chingola.

The sector is expected to see a significant boost after a more accommodating taxation regime was introduced earlier in 2022. This upwards trajectory will also be supported by the flow-on effect of the implementation of the Cooperation Framework signed between Zambia and the Democratic Republic of the Congo (DRC) in 2022 for the electric vehicle (EV) battery value chain that will require abundant battery metals and battery precursors.

Discussing his life in this everexpanding industry, Silver explains how, “I started my mining career back in 1997, in the gold mines of South Africa. Ever since then, I have been involved with gold, diamond, platinum, coal, nickel, chrome, and now copper mining. I have worked in large-scale opencast mining for the past 24 years.

“Having grown up in a home where my father was a miner, and then my brother, it seemed to be the logical way for me to go too. I love the fact that not one day is the same in the business of mining; there is no time for getting bored,” he adds.

BECOMING A HOUSEHOLD NAME

Moxico is a private operating, development and exploration mining company incorporated in the UK. It has successfully partnered with active Zambian stakeholders to identify, secure and add value to mineral assets in Zambia, a number of which are located in the world-class Central African Copperbelt (CAC) and Zambia’s north-western province.

Lightcon

With a background in the mining industry, we design, manufacture and supply project specific solutions to cater for our customers’ Individual project needs.

We pride ourselves on delivering quality products with exceptional customer service. We are accustomed to the pitfalls of doing business on the African continent and shipping our goods across borders.

We see these challenges as opportunities to rise above our competitors and become reliable partners that have our customer needs at the forefront of our company mission.

‘Moxico’Mimbula Minerals – Lightcon Supply Contract

LIGHTCON ZAMBIA was a key electrical partner for Moxico Resources’ Zambian Mimbula Project.

We manufactured and supplied various electrical equipment for the Phase 1 development, including:

• ACTOM 11KV – SB4 - MAIN MV

Intake Substation Panels • ACTOM 11KV – SB4 – Crushing and

Screening MV Substation Panels • MCC Control Boards for all Plants

Including: Electrowinning, C&S, SX & EW, and Leaching Plant • BEKA SCHREDER – LED Lighting for all plants • STATIC Power – Battery Tripping

Units • O-Line Cable Trays and Accessories • Containerised Control Rooms • Various Distribution Boards and

Electrical Feeders

www.lcafrica.co.za www.ogambi.com - DRC

ELECTRICAL ENGINEERING AND MINING SUPPLIES

LIGHTCON is an Electrical Engineering Company with registered offices in South-Africa, Zambia and the DRC. We operate in various Industries including, MINING, INDUSTRIAL and COMMERCIAL. With over 15 years of Electrical Engineering and supply knowledge, our expertise provides solutions across a wide range of Electrical fields.

We have customers across the Africa continent and are familiar with the African Mining Environment as well as the logistical processes to distribute our goods across various African Borders.

• PANEL BUILDING

With Panel Building workshops in Johannesburg, South-Africa and Kitwe - Zambia, we are able to deliver quality Mining Starters and MCC Boards, built to specific Customer specifications. We have strict quality and Test procedures in place to ensure Safety Standards are adhered to across our products and production facilities.

WE MANUFACTURE AND SUPPLY

* MCC Control Panels * Containerized Control Rooms * Electrical Distribution Boards * Pump and Fan Starters * Gulley Boxes and Drill Rig Starter Boxes

• ELECTRICAL WHOLESALE: WE SUPPLY

* Electrical Cables * Switchgear (Circuit Breakers, Contactors, Overloads ext.) * Lighting Solutions * Transformers and Mini Substations * Fans - Non and Sound Attenuated Fans for Underground Ventilation * Electrical Test Equipment * Plugs and Sockets. * VSD’S and Soft Starters * Cable ladders/Trays and accessories * Electrical Consumables (Glands, Cable Joints, Insulation Tape, ext.) * Meters and Switches

Dirk Fourie - Managing Director Cell: +260 96 657 9887 (Zambia) | Cell: +27 76 400 1694 (SA) Email: DBF@LCAfrica.co.za Website: www.lcafrica.co.za Website: www.ogambi.com – DRC Registered Company • ELECTRICAL PROJECTS

LIGHTCON has executed various Electrical projects including:

• Electrical Infrastructure Upgrades • 11KV Overhead line upgrades, • Supply, Installation and Commissioning of 1250KVA CAT Gensets • Transformer Supply, Installation and Commissioning. • HP and LV Compressor Installations • Boiler Installations • Chiller Installations • MCC Installations and Commissioning

Mimbula Copper Project

“At Moxico, we consider Zambia to be one of the best mining jurisdictions in all of Africa,” acclaims Silver.

The CAC is the largest and most prolific sediment-hosted copper province on Earth. It has historically produced 50 million tonnes of copper metal and contains a further 150 million tonnes in known resources. To this day, it remains one of the most prospective high-grade copper-producing regions anywhere in the world.

This is an indispensable asset for Moxico to possess, as the demand for copper is expected to soar in the coming years due to the global shift to a lower carbon economy, where the metal is crucial for its conductive properties.

Moxico’s flagship asset, the MCP, is expected to develop into one of the world-class mines in the CAC which include the Sentinel, Lumwana, Konkola, Kolwezi, KOV, Kinsevere, Tenke Fungurime, Mufulira, Mopani and Chambishi facilities. Together, these efficient sites produce over 1.5 million tonnes of copper metal annually. Moxico’s 61 percent owned Kalengwa asset is also considered to have significant potential. The mine at Kalengwa was closed as a consequence of the fall in copper price in the 1980s but is now being developed as part of Moxico’s ongoing exploration programme.

“Our broad experience and knowledge of the copper market, balanced with our deep commitment to the communities in which we operate, ensures that we can deliver the best results for our stakeholders, employees, and local communities,” Silver declares proudly.

Moxico aims to establish itself as one of the lowest-cost copper producing companies in Zambia, possessing a unique approach to building mines where mostly everything is taken care of in-house, favourably positioning the company in the ultra-competitive mining industry.

Shawonga Enterprises

Mimbula Minerals Limited and Shawonga Enterprises Limited, became business partners during mid 2021 through the supply of an important piece of equipment in Mimbula’s production process, the Telescopic Stacker. Mimbula and Shawonga’s Partnership will go a long way going forward as Shawonga will be providing aftermarket services to support the equipment.

Shawonga is a Zambian engineering company based in the city of Kitwe. Shawonga represents OEMs of world class capital mining equipment manufacturers, which include Breaker Technology Inc., Osborn Engineered Products and Telestack, all belonging to Astec Industries Group. Shawonga, in partnership with various OEMs, supplies mining equipment ranging from the design stage to a finished product. OEMs represented include Astec Industries (modular crushing plants, crushers, feeders, screens); MacLean Engineering (utility vehicles), Boundary Equipment (undercarriage parts for large drills and shovels, ladles, apron feeder pans); PMSA (Concrete mixers, block/brick making and floor polishing machines) and Ionic Mechatronics (anode preparation and cathode stripping machines). Others are Beka Lubrication (lubrication systems and solutions), Linburg Engineering (white metal lined bearings) and Gray Tools (engineering hand tools). Shawonga is a leader in rock breakers in Zambia. Shawonga believes in excellent aftermarket support to ensure smooth running and increased lifespan of the equipment; and has invested heavily in aftermarket support in terms of highly trained and highly skilled technicians, good in-country parts stock holding, and a well-equipped workshop facility. Through its subsidiary, Zinpro Zambia Company Limited, Shawonga has been offering full house engineering services, from engineering designs to procurement and construction management. Zinpro specializes in turnkey project solutions and offers a wide range of engineering services.

www.shawonga.com

Moxico commenced opening of the existing Mimbula-2 pit in October, 2020

MIMBULA COPPER PROJECT

Moxico, through its 85 percent owned Mimbula Minerals Limited (the other 15 percent is held by Moxico’s Zambian partners), has successfully started up production and funded the low capital intensity MCP into a low-cost cathode copper producer. Mimbula Minerals Limited holds a large-scale mining licence which was granted in 2017 for 25 years.

Moxico is planning to commission heap leach operations at the Mimbula mine in the last quarter of 2022. This will represent a significant milestone for Moxico, as the company will have achieved the journey from start to full production in less than a year. Work also continues to advance the next phase of development for Mimbula which will see a significant increase in copper production.

The MCP consists of a copper rich oxide and sulphide deposit, located in the Zambian Copperbelt on the outskirts of the town of Chingola. It comprises three mining licences which Moxico owns through its Zambian subsidiaries: the Mimbula and Luano OB18 licences, in which Moxico holds an 85 percent ownership interest, with the remaining 15 percent owned by Moxico’s Zambian partners, and Zuka in which Moxico holds a 100 percent interest.

Environmental and social impact assessment (ESIA) approval has been received and the required permits have also been obtained for the expansive project. The MCP reached a significant milestone in April 2020 as it produced the first copper cathode from the processing of surface material at the KCM plant. Moxico opened the existing Mimbula 2 Pit in October 2020, in order to begin to exploit the high-grade in-situ material.

The development of operations at Mimbula will deliver a considerable economic benefit to the local communities and Moxico plans to pursue its efforts to ensure such development proceeds with the interests of all stakeholders in mind.

“Further upside is provided by its leading land position with highly prospective copper and zinc exploration opportunities across Zambia,” Silver adds.

The JORC Code is fundamental to the way capital markets work in

SAFTRONICS

YOUR AFRICAN POWER ELECTRONICS SPECIALISTS

Saftronics has been knocking electrons off atoms for over a half a century. With an install base of over 250 megawatts, Saftronics is one of the largest DC Power Rectifier manufacturers and suppliers in Southern Africa. To put that into perspective, that’s over 1.1 million Ampere’s of Direct Current.

The SX EW Rectifier and Transformer purchased by Mimbula Minerals Limited is our 131st Power Rectifier sold to date. The Mimbula Rectifier is designed for a maximum output of 37kA at 90Volts of Direct Current through 12-Pulse double Star winding and IPT’s configuration. Our Thyristor fired Rectifier includes Eddy Current reducing in-phase counter parallel circuitry. The Main Transformer adopts a multi-position OLTC for smooth operation and over all power factor improvement, all enclosed in a smaller OFWF Transformer Cooling arrangement, to reduce equipment footprint.

Complete power solutions available to suit your Electrowinning requirement, including Cell House furniture and shorting frames, auxiliary cooling stations and MV switchgear, we are able to provide and design a complete solution.

Visit our web page for a complete breakdown of what Saftronics can assist you with: www.saftronics.co.za

www.saftronics.co.za

respect to reporting mineral projects. These reports help to provide investors with a level of confidence that appropriate consideration has been taken when assessing the viability of a project. A JORC resource report of this nature, based on the evaluation of the Mimbula deposit was completed in October 2020, showing 93.7 million tonnes at a copper grade of 0.97 percent.

KALENGWA COPPER PROJECT

The Kalengwa project, although located remotely in the north-western province, is viewed as a prized asset. Moxico first acquired an ownership interest in Kalengwa in 2018 and has since increased its ownership in the project to 63 percent, with the remaining interest owned by Zambian partners. The Kalengwa project benefits from the support of local communities and the traditional leaders, and is an example of ensuring strong connection and engagement with local communities when retaining a social licence to operate.

Moxico currently has over 400 employees at its Kalengwa site as it undertakes extensive exploration to accelerate development of a new mine at Kalengwa and is preparing a plant to process the legacy tailings, stockpiles and dumps.

AN EVER-GROWING PORTFOLIO

Elsewhere, Moxico continues to juggle a multitude of other ongoing projects.

MOXICO CONCESSIONS IN ZAMBIA Industrial Composites cc

We specialise in the conceptualisation, design, documentation and manufacture of non-metallic, corrosion resistant support structures, walkways, staircases, handrailing and cable trays.

We also utilise state of the art manufacturing processes in our own factory in South Africa with emphasis on the use of Computer Aided Design (CAD) and Finite Element Modeling/ Analysis (FEA).

Using CNC machines and highly skilled staff, we achieve quality and accurate solutions within short delivery times.

Resistance to aggressive alkaline and acidic work environments, fire retardancy and electrical insulation are some of the benefits of our materials and technology. Our satisfied customers range from Eskom, Mondi South Africa and Arcelor Mittal.

Moxico is confident these projects will deliver value as low-cost and capex light operations, ensuring safe and fair practices for all Moxico employees and contractors.

Additionally, the company has a prospective portfolio of scalable copper, cobalt and zinc projects located in Zambia.

“As we continue to move forward, we have a great team handling the current discovery works and doing an exceptional job with our exploration programme, especially at the Kalengwa site,” Silver adds.

The company’s other assets are in the exploration phase with the intention of prioritising the most prolific higher up the development curve.

FUTURE EXPLORATIONS

At the Samba North property, which is wholly owned by Moxico, the LargeScale Exploration Licence (LSEL) was renewed in late 2019. This particular licence extends south of the Mimbula

Luano OB18 is a new addition to Moxico’s asset base

property, now covering a sprawling expanse of 10,154.58 hectares. The Environmental Project Brief (EPB) has been approved for this project, allowing Moxico to commence exploration, and to generate and then fulfil its high-quality drill targets for 2022.

The company foresees that Samba North will provide significant value to the already bountiful resource base and will supplement future expansions at Mimbula.

The Nchanga Nose site, which is 80 percent owned by Moxico, has an LSEL with an area covering 9,141.3 hectares. The property is underlain by basement rocks as well as the northern extension of the Lower Roan sequence that hosts the giant Nchanga deposit. Exploration drilling was completed in 2021, resulting in the discovery of several anomalies which has warranted further drilling in 2022. The licence will complement operations at Mimbula within the Chingola cluster of properties.

Regarding the Mufumbwe Cluster, the Kamikochi license, owned 80 percent by Moxico, has been reissued as an LSEL with a licence area of 26,831.938 hectares. The licence contains three prospects with Kansanshi-style Cu-Au stratigraphy and mineralisation with proximity to an intrusive dome. Extremely encouraging results were achieved during the recent drilling at this site, therefore warranting further evaluation and drilling across 2022.

Moxico has an 85 percent stake in the Kaoma licence facility, with an area covering 17,082.672 hectares and LSEL. Previous exploration at this site has identified Cu-Au occurrences. With an EPB in place, Moxico has conducted soil sampling activities in the area over 2021, showing positive geology results warranting a follow-up drilling campaign in 2022.

The Kalengwa East licence, owned completely by Moxico, covers 16,989.242 hectares with an LSEL. It adjoins the Kalengwa mine area to the east and is well known for the high copper grades from previous operations in the 1960-70s. Historical data compilation and potential soil sampling are now required to check for parallel mineralised structures to the Kalengwa deposit. The area is underlain by a similar stratigraphic sequence as in the Kalengwa mine area. Exploration drilling was completed in late 2021, resulting in several anomalies discovered by Moxico and a follow-up drilling campaign to come this year.

Elsewhere, the Solwezi East licence, also wholly owned by Moxico, lies north-east to the provincial capital Solwezi of the mineral-rich north-western province and covers 46,093.835 hectares. This deposit contains the same Kundelungu strata that hosts the Kansanshi deposit. A systematic exploration programme has been proposed over 2022 for this licence to confirm mineable copper targets.

COMMITTED TO ZAMBIA

Moxico remains committed to using local suppliers as far as possible and subsequently aims to continue contributing to meaningful economic and social development within Zambia. This would not be achievable if mining operations existed as enclaves, disconnected from the rest of the country in which it operates.

“The right suppliers are crucial to any project, and at Moxico we always aim to ensure that we get the right quality of service at the best possible price,” Silver explains.

He firmly believes that there are certainly benefits to be found from utilising a work team made up almost entirely of Zambians. For example, hiring local workers can help minimise project costs in the long term, through reduced transport costs and greater employee retention.

“Of course, we also want to play our part in supporting national priorities for job creation, human capital development and inclusive economic growth,” he adds. Silver is also acutely aware of how a happy, fulfilled workforce is key to a smooth-running operation at all Moxico facilities.

“Because most of our employees can be with their family each day, they are able to find a better work-life balance, which consequently creates positive morale in the workplace and ensures a healthy wellbeing amongst Moxico’s staff members,” he concludes enthusiastically.

Tel: +44 208 0655160 info@moxicoresources.com www.moxicoresources.com