KCM – Zambia’s mining giant
By Nawa Mutumweno – Konkola Copper Mines (KCM) has invested $2.7 billion in the Zambian economy on new projects and upgrading and modernising existing mines since London-listed FTSE 100 Vedanta Resources Plc took over the assets about 10 years ago.
Several new projects have been completed through this investment, which constitutes the largest single foreign direct investment (FDI) in the mining sector in the country, company CEO Jeyakumar Janakaraj has disclosed.
The new projects and major rehabilitation to existing assets have added impetus to job creation, with the number of employees rising to 20 000 at present from 13 800 when Vedanta Resources acquired a majority stake in KCM, to be the largest private sector employer in Zambia.
The company has also empowered Zambian talent through a reduction in expatriate workforce from a peak of 191 in 2008 to 98 currently.
About $1 billion of the capital expenditure has been ploughed into KCM’s flagship Konkola Deep Mining Project (KDMP), Chililabombwe, which has increased the life of the mine by over 24 years at Konkola Mine, the most northerly of KCM integrated business units, according to information obtained from the mining giant.
Several milestones have been achieved at the KDMP’s Number 4 Shaft, which represents the first shaft sinking project since Zambia’s independence in 1964, including reaching the depth of 1 505 metres at the mine.
Bottom shaft hoisting of waste material at the KDMP’s Number 4 Shaft started last November, while hoisting of copper ore will commence in July, according to Executive Director at Konkola Integrated Business Unit (KIBU) Thirugnanam Navamani. The KDMP is the lifeblood of Konkola Copper Mines.
Another of KCM’s new investments is the Upper Ore Body (UOB) project at Nchanga, Chingola, which has significantly increased mine life by 11 years.
The expansions and refurbishments have in recent years also seen the construction of the 300 000 metric tonnes per year Nchanga Smelter. The smelter, which captures 99.6% sulphur dioxide, is only one of three other such smelters globally, with the other two found in Australia and Poland.
The Nchanga open pits have been expanded to extract more ore, while upgrades to mining equipments and commissioning of new concentrators at Nchanga and Konkola mines and the construction of a new refinery at Nkana in Kitwe were undertaken.
KCM recently commissioned a second cobalt recovery furnace at the smelter. This facility has helped to increase cobalt recovery from 37 to 70%.
The newest in infrastructure upgrades are modern concentrators, the New East Mill and New West Mill, both of which were commissioned before the end of 2012.
‘’The new Nchanga concentrators come with enhanced mining output and improved recovery and concentrate grade and has a processing capacity of 10.5 million metric tonnes per year. This places KCM on a route that will enable us to reach the targeted 400 000 tonnes copper production in the next few years,’’ Mr Janakaraj pointed out.
KCM is one of few mining companies in which the government holds a higher stake at 20.6%, while the majority shareholding of 79.4% is held by Vedanta resources Plc.
Global Best Practice Models
Apart from focusing on the production line, KCM has taken the lead in implementing SAP, the leading global enterprise management system. This global best practice enabled KCM to be rewarded by the SAP Company with the Ace Award on Customer Excellence.
‘’We place a higher premium on ensuring our operations run within a framework of excellence,’’ Mr. Janakaraj reflected on the award.
Corporate Social Responsibility (CSR)
The company’s expenditure of $120 million or KR636 million (ZMK636 billion) on Corporate Social Responsibility (CSR), including health, education, sustainable livelihoods, sport and other social sectors in the last eight years, from the heart of KCM’s substantial social investment helping to change the lives of many Zambians.
The company’s focus is mainly in four key areas where its operations are located, namely Nampundwe, Kitwe, Chingola and Chililabombwe, although it has financed projects countrywide.
KCM also operates two modern hospitals in Chililabombwe and Chingola and eight satellite clinics, offering services to employees, their families and communities.
KCM’s Manager – Community Medicines Janet Sikasote says health programmes are tailored to meet specific needs of patients.
One such health programme, which has been running since 2008, is the eye care programme. Last year, First Lady Christine Kaseba launched the ‘Moneni 3’ diabetic eye care programme in conjunction with the Kitwe Central Hospital Eye Ward.
The initial phase of the programme was targeted at over 1 500 known diabetic s attending health facilities on the Copperbelt, but more than 2 600 diabetics in 10 districts on the Copperbelt were eventually screened and 570 were referred to Kitwe Eye Ward for treatment.
The goal of the eye programme is to establish a static and mobile digital fundus screening programme to detect retinal pathology in the already known population of diabetics and the newly identified, and provide corrective therapy or surgery,
Overcoming gaps in technical skills
In order to overcome gaps in vocational and technical skills, KCM brought in internationally recognised bodies to partner with it to develop Kitwe Trades School (KTS) curriculum and capabilities.
Some 250 students receive lessons at KTS at any given time. These include KCM employees and Mopani Copper Mines (MCM) employees and high school graduates.
KCM is also improving skills of its employees by sending high-potential Zambians on various training assignments abroad and already 765 employees have gone on these assignments and visits abroad.
The company has sponsored 230 young Zambians to study at universities at home and abroad in mining courses and medicine, some technical fields, and A –levels.
Senior managers have regularly been sent for leadership training to reputable international business schools like Harvard University in the USA as part of the group’s leadership development programme.
Regarding local education, KCM operates trust schools in Chingola and Chililabombwe, which offer education from Foundation Stage to A-levels to over 2 000 students.
High achievers in these schools are sponsored to study in India, local and other foreign universities in mining-related and other courses.
‘’The sponsorship of high achievers is intended to ensure there is a pool of human resource from which the company will draw the next generation of mining engineers and other technocrats that will ensure sustainability of KCM operations and help build Zambia’s economy,’’ said Mr. Ernest Makasa, the principal of the KCM Trust Schools.
Founding president Kenneth Kaunda described KCM’s CSR programmes during a recent visit as ‘’extremely deep and sound’’ as he acquainted himself with the contribution of the mining sector to the national economy.
Recently, KCM announced plans to reduce the total number of employees at its operations in Chingola by 2 000 from 8 263, citing rising operational costs and a drop in copper price. But the Government instructed KCM management and the company’s trade unions to dialogue with them in order to find a lasting solution to mitigate the proposed job cuts. The tripartite discussions have since resolved the situation and the decision has been reversed.
Indeed KCM aims to be a world-class producer of copper at a competitive cost of production and to become a role model for safety, environment and corporate social initiatives.
