Mopani Copper Mines – Contributing to Zambia’s economic progress
By Nawa Mutumweno – Mopani Copper Mines Plc (MCM) has invested over K10 billion ($5 billion) in its mining operations in Kitwe and Mufulira on the Zambian Copperbelt.
According to the mining conglomerate’s public relations manager Cephas Sinyangwe, among the highly-significant projects undertaken are the $323 million Synclinorium Shaft and the Smelter upgrade project.
The Synclinorium Shaft will extend Nkana mine’s lifespan by another 25 – 30 years from the current expected depletion dates of the existing reserves at Mindolo North, South Ore Body (SOB) and Central Shafts of 2015, 2017 and 2018 , respectively.
‘’This will lead to securing of about 3 000 jobs which would otherwise have been lost as a result of closure of some mines beginning in 2015. Apart from securing the jobs, the new shaft will provide Mopani with access to some 115 million tonnes of ore at a grade of 1.9 percent copper and 0.09 percent cobalt,’’ Mr. Sinyangwe elaborated.
Additionally, Mopani pumps in excess of $100 million annually into sustaining the old infrastructure of close to 80 years old. This is most critical in the deep, high-cost underground operations, which typically cost two to three times more than large-scale open pit mining operations.
Environment
The Smelter Upgrade project in Mufulira is one of the biggest environmental projects ever undertaken in the country. Before privatisation in 2000, sulphur dioxide was being released into the atmosphere unchecked since the 1930s when the smelter was first erected.
Currently, over 50 percent of all sulphur dioxide emissions are captured and turned into sulphuric acid at the first acid plant, which was commissioned in 2006, following the installation of a new Isa Smelt furnace and other accompanying infrastructure.
The third and final phase of the smelter upgrade is underway. The third and last converter is being installed and the second acid plant is over 60 percent complete.
‘’These will be commissioned in December this year, 18 months ahead of the agreed schedule with the Government at privatisation. This will result in about 97 percent capture of the sulphur dioxide from the smelter, thus achieving world-class environmental performance. The whole project is expected to cost about $450 million.’’
This state-of-the-art construction was made difficult as Mopani had a strategic goal to continue to grow copper production and workforce levels whilst constructing a new smelter complex at the same time.
Improved Production
Due to Mopani’s investment into the upgrade of its mine infrastructure, which it inherited in a dilapidated state at privatisation, the company has been able to steadily increase its copper production from around 50 000 metric tonnes of finished copper cathodes per year in 2000 to about 120 000 metric tonnes at present.
‘’In 2012, the company produced over 117 000 metric tonnes of finished copper. Future projections are even brighter once the Synclinorium Shaft is commissioned in April 2015 and other projects come on stream.’’
Corporate Social Responsibility (CSR)
Mopani’s policy is to plough money into improving the living standards of the people in the communities where it operates. As such, a sizeable part of the annual budget goes towards funding various CSR programmes.
Since 2000, MCM has invested about K1 billion ($200 million) into various community projects with the aim of improving the living standards of the people.
‘’This investment has greatly helped in bettering lives, especially in the host towns of Kitwe and Mufulira, where it has been used to improve such areas as infrastructure development, water and sanitation, education, health, sports and entrepreneurship development, among others,’’ the company spokesperson said.
Mopani operates four schools, two major internationally accredited hospitals and seven township clinics as well as sponsors a huge number of sports and social programmes in the country.
In 2012, for instance, the mining firm spent up to $30 million on various projects, including the construction of the Kitwe ring road, tarring of the Sabina-Mufulira Road as well as running of schools and medical facilities.
The company has since inception spent over $100 million on the provision of healthcare services, including running anti-HIV/AIDS and anti-malaria programmes.
‘’As a result of the focused interventions, Mopani’s HIV/AIDS programmes recently won international commendation from the Global Business Coalition Health while its anti-malaria programme has successfully managed to slash the incidence rate from 258 cases per 1 000 people on the Copperbelt to just about 21 cases per 1 000 people in its mining communities,’’ he pointed out.
Contribution to the Treasury
During the five-year period between 2007 and 2012, MCM paid over $420 million in taxes to the Zambian government. Over the same period, the company paid about $7 million to the Kitwe and Mufulira councils in property rates.
Such contributions to the national and local treasuries go a long way in improving service delivery and enhancing people’s livelihoods.
Mopani will indeed keep shining on the mining horizon as a number of projects are on course and are scheduled to be commissioned within the next few years.
