Kcm – the Pride of Zambia Fact Sheet – January 2019
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KCM – THE PRIDE OF ZAMBIA FACT SHEET – JANUARY 2019 ABOUT KCM LOCATION OF OPERATIONS Konkola Copper Mines (KCM) is a leading Zambian integrated copper producer, operating 3 underground mines and 2 open pit mines as well as metallurgical plants, on one of the AFRICA highest-grade copper seams in the world on the Zambian Copperbelt. The AFRICA geological setting of the Copperbelt is unusual compared to other worldwide copper deposits in that it occurs in ZAMBIA sedimentary host rocks that have high ZAMBIA carbonate content. The presence of Konkola Chililabombwe dolomite in the geological sequence KonkolaNchanga ChililabombweChingola effectively eliminates any risk of acid NchangaNkanChingolaa Kitwe Ndola mine drainage. Nkana Kitwe Ndola Our commitment to LEGEND LEGEND Nampundwe Lusaka Operations Zambia is to return it to Nampundwe Lusaka OperationsTowns the position of top global Towns copper producer Vedanta’s contribution to Zambia in 2017 • 13,000 direct employees • US$1.3 billion in revenue • US$221 million contributed to KonkolaKonkola NchangaNchanga NampundweNampundwe public finances* •• UndergroundUnderground minemine •• Underground Underground mine mine with with 2 shafts 2 shafts • Underground• Underground pyrite pyrite mine mine • largest individual power •• NewNew concentrator •• Open Open pit pit mines mines (2 (2operational) operational) • Concentrator• Concentrator consumer and one of the •• OldOld concentrator •• 2 2concentrators concentrators (East (East and and West West mills) mills) highest tariff payers in Zambia •• BackfillBackfill plantt •• Tailings Tailings leach leach plant plant NkanaNkana •• Smelter Smelter with with acid acid plant plant • Refinery• Refinery * See Vedanta’s 2017/18 Tax Transparency Report at www.vedantaresources.com/Pages/TaxTransparencyReport.aspx PAGE 1 SAFETY IS “One of the largest single private-sector employers in Zambia, we have obligations and responsibilities above OUR FIRST and beyond our core operational focus.“ PRIORITY OUR ROLE IN ZAMBIA education for their families. In our communities, we have a responsibility As Zambia’s largest integrated copper to play our role in wider economic and ZERO HARM producer, we operate across the entire social development. This means not only mining value chain, which starts with that our Corporate Social Responsibility mining and ends up with copper refining (CSR) programmes have a critical role to to 99.99% LME grade. Considered the play, but also that we ensure that local largest single private-sector employer enterprises are given every opportunity to in Zambia, we have obligations and participate in the company’s procurement responsibilities above and beyond our value chain. core operational focus. A commitment to investment is critical to As a major employer, we not only have the position in which KCM stands today. a direct influence on the lives of our When Vedanta Resources acquired KCM employees, but on their families and in 2004, we embarked on an ambitious the wider communities in which we investment programme. operate. This means we have a critical responsibility – to keep our employees KCM is aiming to be a role model for safe and healthy at all times, to provide safety, environment and socio-economic them with a challenging and fulfilling development, while playing a key role work environment, and to ensure in making Zambia one of the world’s they have access to medical care and leading copper producers. INVESTMENT Since Vedanta Resources plc acquired KCM in 2004, more than US$3 billion has been invested to upgrade The future – equipment, build new facilities and expand capacity. These investments have increased reserves, resources further US$1 and extended the life of the mines by over 50 years. Notable investments include: billion investment • Sinking of a 1,500 metres deep shaft at the flagship Konkola Deep Mine planned • State-of-the-art smelter at Nchanga which was commissioned in 2008 Investment • New concentrators at Nchanga and Konkola with a Project (US$m) combined 15.5mtpa capacity Primary development 100 • Expansion of the Nkana Refinery and the Nchanga Tailings Leach Plant Accelerated development 300 This investment resulted in: Refinery 110 • 13,000 employees, making KCM one of the largest Cobalt 120 private sector employers in Zambia • US$1.2 billion taxes paid Power plant 300 The planned new investment of over US$1 billion in Elevated temperature leach 25 development and production facilities should see: • A planned increase in production from 200ktpa to 400ktpa Heap leach 25 • More than 10,000 additional direct jobs created due to Mine training academy 20 increased production capacity Total value US$1bn • Zambia becoming Africa’s top copper producer PAGE 2 THE FUTURE Our Vision is To build KCM into being the most respected copper producing complex on the African continent delivering more than 400KTPA, allowing us to OUR ENVIRONMENTAL as well as stronger stakeholder collaboration make Zambia Africa’s top have been recorded and are leading to copper producer. COMMITMENT much greater levels of mutual trust and accountability. These achievements include We understand that mining operations have a range of implications for the • US$500 million spent on the Nchanga environment and the communities Smelter with a sulphur capture of >99.6% where we operate. replaced the Nkana Smelter that captured only 30% at decommissioning. The We have carried out a series of actions to Nchanga smelter is best in class globally, address legacy environmental issues inherited with one of the best sulphur-capture rates in from mining operations that first commenced the world in 1957. We acknowledge there is still much • Water consumption has reduced by to be done to ensure KCM leaves a legacy of about 50% in the last 3 years across all being the cleanest mine in Zambia. To ramp our operations (60 million m3/year to up our environmental activities, we launched 30 million m3/year), including via recycling. the “Going Green” campaign, on which This has assisted in our move towards over US$27 million is currently being spent making KCM a zero discharge operation – to raise our environmental performance “We have now created a beyond compliance. • US$230 million spent on modern concentrators at Konkola and Nchanga strong position for KCM after Our goal is to achieve a new level of • Konkola Total Suspended Solids have investing over US$3 billion. environmental responsiveness and to reduced to below 100 ppm consistently in Last year I pledged to invest reclaim Chingola’s place as the greenest the last 5 years and cleanest town in Zambia. Our an extra US$1 billion. We are • Storage tanks and pipe infrastructure investments to date in remediation replaced at the Tailings Leach Plant (TLP), targeting strong growth for have corrected almost all of the legacy costing US$30 million KCM in the years ahead… environmental issues at KCM inherited from previous mine owners. • Pollution Control Dam (PCD) zero discharge Our desire is to have a win- hours have improved with an annual desilting win situation. The government We have established Community Liaison plan in place, at a cost of US$2 million Teams to improve our engagement and must be happy, the Zambian collaboration with local stakeholders. They KCM complies with the Vedanta public must be happy, and our Sustainability Framework, which is consult regularly with local stakeholders underpinned by the ICMM/IFC/OECD communities must flourish. and are engaged in long-term mutually principles, as well as statutory requirements beneficial interventions. We will maintain a continued of the Zambia Environmental Management focus on safety and the Significant achievements such as improved Authority (ZEMA). We are also accredited legal compliance averaging 99.6%, Zero by the British Safety Council (BSCEN) ISO environment to realise this.” incidents of Category III and above intensity 14001 environmental standards. Anil Agarwal PAGE 3 THE MINING SECTOR IN ZAMBIA Zambia is ranked as the world’s seventh largest producer of copper, generating nearly 4% of the world’s production, and is the ninth largest global producer of cobalt (2.6%). The industry employs just under 60,000 people in Zambia. Mining accounts for more than 70% of Zambia’s foreign exchange. ABOUT VEDANTA Vedanta Resources Limited is a globally diversified natural resources company, which acquired 79.4% of KCM in 2004. The group produces aluminium, copper, zinc, lead, silver, iron ore, commercial energy, oil and gas. Vedanta places strong emphasis on partnering with all • Over 600 university students with its stakeholders based on the core values KCM scholarships of entrepreneurship, excellence, trust, • Over 150 artisans trained every year at inclusiveness and growth. Vedanta has CSR KCM-run Kitwe schools operations in India, Zambia, Namibia, KCM takes its commitment to the • Around 9,000 children attend KCM- South Africa, Australia and Liberia region very seriously, with over funded early childhood schools and a strong organic growth pipeline US$200 million invested in CSR • Around 42,000 students have access to of projects. programs over 14 years. These clean drinking water facilities provided ABOUT ZCCM-IH investments include: by KCM ZCCM Investments Holdings Plc Health Environment (ZCCM-IH) maintains a 20.6% • 2 modern hospitals • Over 80,000 trees planted in communities shareholding in KCM. ZCCM-IH is and government run schools one of Zambia’s prime investment • 14 satellite clinics • Around 4,000 cattle and goats given to holding companies with the majority • Over 63,000 people receiving free small scale farmers of its investments in the copper healthcare services mining sector of Zambia. It is quoted • 3,000 families supported through KCM • Over 3,000 people receiving free ARVs on the Lusaka, London and Euronext support to entrepreneurs • Around 40,000 households covered by Stock Exchanges. The company’s KCM’s malaria indoor residue spraying Culture and sport shareholders are the Government of programme – with a resultant 90% • Pioneers of private sector sponsorship in the Republic of Zambia (GRZ) with reduction in malaria incidence Zambia Super League 87.6% shareholding and private equity holders with 12.4%.