Kansanshi: a Great Mine Out of the Ruins
The Times of Zambia (Ndola)
NEWS
August 19, 2005
Posted to the web August 19, 2005
By Potipher Tembo
IN the late 1990s, uncertainty marred the future of many people working in mining companies across Zambia as many were affected by the retrenchments, which came with the wholesome privatisation of the mines.
One among the many affected was Kansanshi in the hinterland of Solwezi district in the North-Western Province.
The mine which was at the time said to have run low on copper deposits, was closed down and many bread winners, looking after hundreds of their families were strewn on the streets, rendering them destitute.Their only source of livelihood, "Dead as the Dodo".
The daily activities that took place in the district ground to a halt and all sorts of opportunistic business ventures equally affected.
A mass migration of job seekers kick started as a result of this development which saw the Copperbelt towns and the Midlands choked with the unemployed.
The Zambia Consolidated Copper Mines (ZCCM) ran the Kansanshi mine from 1977 to 1986 until it was sold in 1997 when a Canadian firm, Cyprus Amax acquired it but also later abandoned it in 1998.
As hope was raised in the minds of anxious Zambians, Cyprus Amax which demolished more than 30 houses on the pretext of paving way for the project again pulled out.
After the pull out they claimed to have committed US$25 million to the project. First Quantum Minerals, another Canadian firm, took over the running of the mine thereby igniting more hope for the people in the area.
Since First Quantum took over the mine, there has been no looking back and now Kansanshi mine has gone full throttle in production of copper shaming all that had rubbished the venture as a waste of time.
On Wednesday last week when President Mwanawasa commissioned Kansanshi mine, he said it was amazing and humbling to witness the emergence of what he described as a great mine out of the ruins that it had been consigned to.
Mr Mwanawasa said when Zambia under the MMD Government introduced the policy of privatisation, many Zambians doubted the efficacy of the policy because the immediate outcome of the privatisation of Government enterprises and parastatals was job losses and retrenchments.
He said however that the New Deal Government continued the policy of privatisation.
"When we came into office, the New Deal Government continued the policy of privatisation but with emphasis on corporate responsibility and sought capital with a human face and I am pleased that First Quantum is one such investor," said Mr Mwanawasa.
Addressing people who had come to witness the commissioning of the mine, Mr Mwanawasa said though Kansanshi mine was operational in Solwezi earlier, it did not have a remarkable impact on the development of North-Western Province but he was sure that the people of North-Western Province were now able to see and enjoy the benefit of having mining activities return to the area.
"This Government does not only strive for increased private sector investment, but it is very mindful of the benefits that should come to the local people, Kansanshi mine has changed the outlook and economy of Solwezi," said Mr Mwanawasa.
He said he was happy to note that First Quantum Minerals had already invested US$ 290 million (K1,347 billion) in the mine and hinted that the Government encouraged direct foreign investment for wealth creation and poverty alleviation.
Mr Mwanawasa said he was informed that a further US$ 70 million (K325 billion) would be invested next year bringing the total investment at Kansanshi mine to $360 million (K1,672 billion).
He pointed out that Zambia offers one of the best investment environments on the continent of Africa due to her political stability and peace loving citizens and it was for this reason that he encouraged investors to take advantage of this environment to do business in Zambia.
Mr Mwanawasa told the gathering at the Kansanshi mine plant that the mine was estimated to contain 4.5 million tonnes of copper and 1.6 million ounces of gold and given an average copper production of 150,000 tonnes per annum, the mine was expected to run for at least 30 years, assuring continuous employment for the people.
He explained that the mining sector has seen a lease of life under the New Deal adminstration.
"Copper output rose from 298,822 tonnes in 2001 to 337,742.7 tonnes in 2002. It rose further to 349,814.4 tonnes in 2004.
"We have mining companies from all corners of the world looking for investment opportunities and exploring in areas which have not been explored before.
This is happening because of the policies that this Government has put in place.
Certainly, Kansanshi mine is back to life because of these policies," Mr Mwanawasa explained.
He added that the Government appreciated the good work that First Quantum Minerals was doing at Kansanshi and Bwana Mkubwa mines and assured the company that should they see further investment opportunities beyond Kansanshi, they will be encouraged to turn them into viable projects.
Mr Mwanawasa was happy to note that another big mine with an investment value of $ 400 million (K1,858 billion) would soon open in Lumwana.
"The mining activities at Kansanshi and Lumwana will derive a number of advantages for the people of North- Western Province and Zambia as a whole," he said.
Once fully operational, Kansanshi mine is expected to employ more than 1,000 people and 6,000 more jobs would be created in other supporting industries.
Mr Mwanawasa was joyed to see that 10 per cent of the workforce at Kansanshi were women who did not only carry out their traditional duties but operated heavy trucks and worked in the processing plant.
The president said the advantages of mining activities in North-Western Province would not only end up at employment opportunities but would extend to other economic and social sectors such as agriculture, education and manufacruring.
He said the mine sector had a highly valuable segment that has not been exploited to its fullest potential refering to the gemstone sector and hoped that large scale investors in mines could find a way of forging parnerships with current owners of gemstone mines.
Seemingly, Solwezi has already experienced increased demand for agiculture produce and Mr Mwanawasa urged the people to look at the increased population as an economic opportunity.
He challenged farmers in the province to grow more food to meet the increasing demand.
First Quantum Minerals chairman, Philip Pascall said the current facilities at the plant were capable of producing 70,000 tonnes per annum of cathodes and about 40,000 tonnes per annum of copper in concetrate. This is somewhat more than the 72,000 tonnes in total envisaged in the feasibility study.
Mr Pascall said in addition to the operating process plant, there was considerable construction activity and this was because the mine had two major projects under way.
He explained that the first project was an upgrade of the sulphide milling and concentrate plant. This expansion was originally envisaged as taking place after three years, to overcome an expected decline in grade.
This has been brought forward and once commissioned would increase total copper output to an average of 145,000 tonnes per annum over the next five years.
"Our mine comes on stream at a time when the smelting facilities in Zambia are at absolutely full capacity. The coming of Mopani's new smelter next year will be of some help.
Even then, the further expansion of Mufulira's smelter of its convetors and refinery which will take almost two years will be required to satisfy First Quantum's envisaged concentrate output," said Mr Pascall.
He said the second project was the pressure- leach facility which was particularly ambitious and would be the first production plant of its kind in the copper industry.
Mr Pascall said the mine expected the total cathode capacity to increase from 70,000 tonnes per annum to 100,000.
He pointed out that the Kansanshi mine development was the first new mining operation to be started in Zambia for a generation and mid next year, some $350 million would have been invested.
"This investment has created 1,000 permanent jobs in Solwezi with an estimated 6,000 other indirect jobs also being created.
The stimulus to the town of Solwezi and the surrounding areas is self evident. The mine should have a life in excess of 30 years," explained Mr Pascall.
He said the company has made various contributions to the community which includes $150,000 to the department of works and supply for a feasibility study into developing a new road into the province.
"It is appreciated that the central Government has many commitments to meet without adequate resources to do so.
The directors of Kansanshi mining have thus decided to establish the Kansanshi Foundation as a vehicle to rejuvenate the infrastructure of the town," said Mr Pascall.
With the mining activities back in the district, places including markets, shops such as Shoprite and bars are teeming with customers.
This writer was thrilled to find that even bars where he found only scanty revellers a couple of months back were now crammed with imbibers.
Night spots have also become a hive of activity as men and women splash money to bar men without much fuss.
During the day, young men and women can be seen making business conversations on their cell phones which have become common in Solwezi.
Construction of new buildings including business structures and houses are going on in a big way pointing out to more life and the resurrection of the economy to the district which was once forced into a big slumber. This is as it should be.
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