Minutes of the 63Rdcouncilmeeting Held on 1St October, 2012, Atlex House,Lusaka

THE ASSOCIATION OF ZAMBIAN MINERAL EXPLORATION COMPANIES

Minutes of the 63rd Council Meeting Held on 1st October, 2012, at Lex House, Lusaka

14.00 hours (Lusaka Time) Present: Name Company Position COUNCILLORS: Gilbert Temba IEL Ltd President/ MoMEWD-GRZ Liaison Communication & Cadastre Affairs Sub Committee Leader Andrew Goode Denison Mines Secretary &Uranium Explorers & Producers Sub Committee Leader Geoffrey Mulenga Blackthorn Resources Treasurer – Administration, Finance & Membership Sub Committee Leader Alex Matthews MMG Zambia Ltd MoMEWD-GRZ Liaison Communication & Cadastre Affairs Sub Committee Julian Green GeoQuest Ltd Website Development & Maintenance Sub Committee Leader Hugh Carruthers FQM Ltd Member Nic J Money Individual Oil, Gas & Coal sub Committee Leader Hobson Bwalya FSSMAZ Alternate to President/Affiliate Matilda Tembo CMZ Alternate to GM/Affiliate Edith Lukwesa AZMEC Office Manager IN ATTENDANCE: The Pixel Factory Graphic Designer/Creative Director Mohammad Osman APOLOGIES: Willie Sweta Zambezi PP/MoMEWD-GRZ Liaison Communication & Resources/Mwembeshi Cadastre Affairs Sub Committee Roger Staley Barrick/Lumwana Member/Training, Career Development Sub Committee Paul Hardy Ausdrill Zambia Training & Career Development Sub Committee Leader Osbert Sikazwe UNZA School of Dean/ Affiliate/Training Career Development Mines Sub Committee Leader

1 1. Introduction

The Chairman welcomed everyone to the meeting and called the meeting to order at 14.15 hours.

 Summary Noting and Adoption of Minutes of the 62nd Council Meeting – Minutes of the last Council meeting were read, corrected and adopted, proposed by Alex Matthews and seconded by Andrew Goode.  Matters Arising Previous Minutes: – It was proposed and agreed that any matters arising from the previous minutes be discussed with the main agenda items.

MoMEWD – GRZ Liaison Communications & Cadastre Affairs Sub Committee

 AZMEC / CMZ / MoMEWD Proposed Amendments to the Mines & Minerals Development Act 2008 : it was reported that a meeting with the Minister was held on 17th September and AZMEC was represented at this meeting by Gilbert Temba, Willie Sweta, Andrew Goode and Geoffrey Mulenga. Among the issues discussed were; Review and development of the Mines and Minerals Development Act 2008; Review of the Mining Regulations; Mining Cadastre Unit; Mining and other Minerals Related Activities in National Parks; Geological Mapping of Zambia; Development of Small Scale Mining; Management of Uranium Mining; Zambia Environmental Management Agency (ZEMA) and AZMEC regular meetings with the Ministry and also the Quarterly Tripartite meetings between the Ministry, Chamber of Mines and AZMEC. All the issues raised above and any other outstanding should be highlighted and forwarded to the Minister for resolution and this should also include the Bidding/Tendering process issue. (A letter to be sent to the Minister).

 ZEMA Issues: The ongoing delays in approving EPBs & EISs (for mineral exploration / mining projects) were discussed. Julian Green reported that he had re-circulated an email (offering AZMEC assistance for long term pending cases) to the general membership but the response had been poor. The general consensus was that most companies either have submitted their concerns to ZEMA or to the relevant Minister directly. It was also discussed that the ZEMA Board has still not been re-formalized. However, it was also pointed out that the Board was not necessarily the only body that could make the approval recommendations for EPBs & EISs and that the relevant Minister could do this or delegate to a senior officer of his choice (eg PS or Director-ZEMA) to do this.

 Cadastre Affairs: the meeting was informed that the Head of Mining Cadastre Unit has agreed to work with the proposed working group from AZMEC and the Chamber of Mines. AZMEC still has concerns that the MCU is still not yet fully functional after such a long period. The proposed bidding/tendering process for selected areas by the Ministry was also alluded to. It was agreed that AZMEC’s concerns with regards to this issue should be brought to the attention of the Minister and this should be included in the proposed letter. (Julian Green to include this para in the letter). It was also brought to the attention of the council that the MCU will go on line from 1st November 2012. The council felt that this should also be raised with the Minister and request that this be done when the system is fully updated and up and running. (President to speak to the Minister). A Sub Committee should arrange a meeting with Head of MCU, 2 Gideon Ndalama and discuss this as a matter of urgency. (Julian Green and Hugh Carruthers).

3. Finance, Membership & Administration Sub Committee

FINANCE REPORT

DATE DATE 31/07/2012 % 29/08/2012 % MATURITY BANK BALANCE : US$ 84,679.43 83,947.43 ZMK 171,615,103.00 154,236,125.80 TBs (ZMK) PABS INVESTMENT

91 DAYS 131,582,481.48 12 131,582,481.48 12 09/10/2012

91 DAYS 112,000,000.00 12.5 114,923,934.43 12.5 03/12/2012

The Treasurer informed the council that the large amounts in the dollar account is due to the ZIMEC 2012 funds which have not yet been shared with the Chamber of Mines. The council also felt that the US dollar account should be maintained.  OFFICE ACCOMMODATION: it was reported that the landlord has offered AZMEC to stay another year. Andrew Goode informed the meeting that he is still waiting for communication on the position of Mpile House. (Andrew Goode to follow up on Mpile House).

 ZIMEC 2012 Funds: it was reported that upon consultation with ZRA it was established that these funds will attract VAT and not as earlier informed by an official from ZRA. ZRA said that all invoices to overseas companies for management fees or consultancy attract either 15% WHT or 16% VAT unless only for the supply of goods. AZMEC to confirm with ZRA and pay VAT before the funds are shared with CMZ. The President to discuss fund sharing with his counterpart at the Chamber of Mines. (Edith to confirm with Accountant before making payment) (President to discuss with President CMZ).

3  New Office Personnel: the council approved to go ahead and employ. A subcommittee formed to come up with suitable job description and find possible ways of advertising and interviewing candidates. The subcommittee of Julian Green, Alex Matthews, Matilda Tembo and Edith Lukwesa to take this up. (Edith to prepare Job Description and circulate to the committee for comments).

 New Member: it was reported that an Associate member has joined, Inkazteca Drilling Services. 4. Training & Career Development Sub Committee

 Proposed Courses by Snowden: a report from the Sub Committee leader was circulated electronically and a copy was read to the council by Julian Green. The next step was to firm the agreed dates with Snowden and also find out from them if they can run similar courses on the Copperbelt immediately after the Lusaka one other or vice versa. After the dates have been confirmed, this should be circulated to the general membership and invitations sent and start course preparations. (see attached report from Osbert Sikazwe) (Osbert Sikazwe to do the above).

 AZMEC Members Field Trip: Julian Green confirmed that the field trip to Lafarge will take place on Friday 12th October. He also reported that the response from the members was low. It was agreed that the invitation be re-circulated to try and attract more attendees. The following people on the council will go on the Lafarge field trip – Julian Green, Gilbert Temba, Alex Matthews, Hobson Bwalya, Hugh Carruthers, Matilda Tembo and Edith Lukwesa. (Julian Green to coordinate trip).

5. Publicity & Public Relations Sub Committee:

 ZIMEC 2012: as in 3 above.  AZMEC Bulletin: Mohammad Osman a Consultant Graphic Designer gave a brief presentation on how the AZMEC Bulletin can be improved and change its face as well as layout. He also went on to inform the council that the current quotations (see attached) include assisting with advert sourcing, distribution, etc. although advert designing will attract extra costs. Issues around its intended purpose of promoting, understanding and educating the general public, costs, input/content, advertising, distribution were extensively discussed and in conclusion it was proposed and agreed that:- i. Nic J Money continue to take the lead and spearhead the Bulletin production as Editor, edit input from mining technical point of view and any stories going in the Bulleting in collaboration with Mohammad and his firm; ii. Go ahead and produce this quarter Bulletin as a trial run. This draft should be ready and circulated to the council by 15th November and magazine should be ready for circulation to the general membership and public by mid December 2012. (Nic J Money to forward material for intended for next edition the publishers).

 Mining Film/Documentary Production: it was proposed that this issue be tabled at the next CMZ meeting and ask them to commit to the re-run of this documentary on ZNBC, etc. Loyola are still trying to edit the film to Utube size. (Geoffrey Mulenga to report back after CMZ meeting).

4 6 Website Development & Maintenance Sub Committee

 General Update: council requested to visit the site and make comments. Proposed that the EITI report should be posted on the site. 7. Uranium Explorers and Producers Sub Committee

 General Update: no change, prices continue to go down.  Council of Churches: reply to their letter not yet sent. (Andrew Goode to prepare reply). 8. Oil, Gas & Coal Sub Committee

 General Update: nothing new. It was felt that information on status of the new committee should be obtained from the Director of Mines at the Ministry. (NJM to follow up).

9. Chamber of Mines

 General Update:  Kalulushi Core Shed/Data Archive in General : it was reported that a meeting with CMZ (Dave Armstrong and Fred Bantubonse) and AZMEC (Gilbert Temba, Julian Green, Geoffrey Mulenga and Hugh Carruthers) took place on Wednesday, 19th September. At this meeting CMZ informed AZMEC that it has been already communicated to ZCCM-IH to take over the running of the core shed and the data archive. Issues around the Trust and legal position were also alluded to. It was resolved that a meeting be convened with both three parties in attendance to discuss the best way forward. The proposed meeting between CMZ/ZCCM-IH/AZMEC is scheduled for 2nd October. The legal opinion with regards to the Trust will be ready before the meeting tomorrow. AZMEC will be represented at this meeting by Messrs Gilbert Temba, Julian Green, Geoffrey Mulenga, Hugh Carruthers and Alex Matthews.  Kalulushi Core Shed/Data Archive – Payment of 50% by CMZ: CMZ should be reminded to honour their 50% payment of the core boxes.

10. Federation of Small Scale Mining Association of Zambia

 General Update: it was reported that the baseline study project with ZCCM-IH will be completed in 10 day in Eastern Province.  EEU Road Fund: the bidding of tenders from various contractors by RDA is in process.  FSSMAZ in Kenya: it was reported that COMESA invited FSSMAZ to a two day conference in Kenya. During this conference FSSMAZ has attracted oriental buyers and export contract arrangements are in process.  Constitution Making Process: No progress yet, still consulting with stakeholders who are required to contribute towards this constitution.  FSSMAZ Membership Structures and Operations: the council once again requested FSSMAZ to circulate its current status.

5 11. UNZA School of Mines

 General Update: no representation at this meeting.  National Symposium: the council would like UNZA to inform them on how they would like AZMEC to participate, whether they would want AZMEC to present a paper. (Osbert Sikazwe to report back to the council).

12. Geological Society of Zambia

General Update: no representation at this meeting. The Councilor’s expressed concern that the Society still does not appear to be functioning / operating as a sustainable and meaningful organization.

 It was recommended that an update be sourced from Dr Sixtus Mulenga

13. Any Other Matters;

 Metal Bulleting Copper Conference: the council was informed that this 2 day conference was very well organized and the topics were very interactive, it was a success. It was also felt that something should be learnt from this and be proposed to the organizers of future ZIMEC conferences. The council went on to thank Nic J Money for attending and presenting a paper to the conference on behalf of AZMEC.  AZMEC President : Gilbert Temba informed the council that effective 30th September he was no longer BHP Billiton local representative and was officially tendering his resignation from the AZMEC council. It was felt that before the council considers his resignation, it should be established what the constitution says with regards to company representatives sitting on the council and a decision be made at the next council meeting.  Workshop on Vocational Training in Zambia Organised by Embassy of Sweden: this conference will run from 4th to 5th October, 2012 in Lusaka this is a follow up to the meetings held earlier in the year with the Swedish Geological Survey.

14. Date of Next Meeting

 The next meeting will be held on Thursday, 18 th October, at 14.00 hours, at AZMEC Secretariat, Lusaka.

The Chairman thanked the councillors for attending the meeting, the meeting ended at 16.30 hours.

Signed ………………….. Signed ………………..

6 Chairman Secretary