Nkana Mine

Nkana mine is one of the largest in Africa, a copper mine located 1km south-west of Kitwe.

At Nkana, copper and cobalt ore is produced from five sources: Four underground mines namely: Mindola North Shaft, Mindola Sub Vertical Shaft, Central Shaft, South Ore Body (SOB) Shaft and Open Pits dotted across the Nkana Oxide Cap. Vertical crater retreat (VCR), both caving and post-fill, have been the predominant mining method utilised within the Nkana mine, but is now being converted to a combination of sub-level caving (SLC) and open stoping techniques.

Vertical shafts from the surface provide access to each of the four underground mines. In addition, in the deeper sections of the Mindola mine and Central Shaft, sub vertical shafts extend services to the 5500L and 3580L respectively.

The Nkana mine has been in operation since 1932 and has produced 6,000,000 tonnes of copper so far. Its reserves underground include 108,145,000 tonnes of ore at 1.83% copper and 0.12 cobalt.*

Copper and cobalt mineralisation occur within the ore shale. Copper mineralisation in the deposits changes from mostly chalcopyrite in the South Orebody, to chalcopyrite-bornite in the Central area and to bornite-chalcopyrite at Mindola. Cobalt occurs as carrollite and cobaltiferous pyrite in approximately equal proportions. The mine produces copper and cobalt from three sources: Mindola Shaft, Central Shaft and South Orebody Shaft. Vertical crater retreat is the predominant mining method while sublevel open-stopping and sublevel caving methods are also used.Other metallurgical facilities, under a management contract by an affiliate of the Anglo American Group at privatisation, include the Nkana smelter (not owned by Mopani), acid plant (not owned by Mopani) and copper refinery (not owned by Mopani). There is extensive mine tailings

Tailings

Tailings, also called mine dumps, slimes, tails, leach residue, or slickens, are the materials left over after the process of separating the valuable fraction from the uneconomic fraction of an ore...

 around this mine.

In April 2011 Mopani announced its intentions to sink a new $295million shaft at Mufulira, this should extend the life of the mine by some twenty-five years. The synclinorium shaft will have a production capacity of 115 million tonnes of copper ore. Once commissioned in the first quarter of 2015 it will create about 600 jobs.

Nkana Concentrator

The Nkana Concentrator is located in Kitwe and treats copper-cobalt sulphide ore using a bulk flotation and segregation flotation flowsheet to produce separate copper and cobalt concentrates. The Nkana Concentrator is the most important mineral processing unit of Mopani, as it contributes to produce high purity cobalt metal.

Nkana Cobalt Plant

The cobalt plant treats the cobalt concentrates to produce high purity cobalt metal.

Mopani Social & Community Involvement

MCM is spending around US$16-20 million per year on social projects which includes: operating two hospitals and seven township clinics, five first-aid centres and public health departments at Nkana and Mufulira. Mopani also runs two schools for 1,850 pupils, HIV

HIV

Human immunodeficiency virus is a lentivirus that causes acquired immunodeficiency syndrome , a condition in humans in which progressive failure of the immune system allows life-threatening opportunistic infections and cancers to thrive...

 and malaria

Malaria

Malaria is a mosquito-borne infectious disease of humans and other animals caused by eukaryotic protists of the genus Plasmodium. The disease results from the multiplication of Plasmodium parasites within red blood cells, causing symptoms that typically include fever and headache, in severe cases...

 prevention and control programmes, supports local orphanages, charities and sports clubs. Retired miners have also been supplied with opportunities for post-retirement employment at a Mopani supported farm near Mufulira.

Education

Mopani continues to offer high standards of education at its schools. At the time of vesting in the year 2000, the Mopani schools namely MCM Nkana School and MCM Mufulira School, were primary schools (up to grade 7) but beginning 2005, Mopani increased its investment in the schools resulting in the addition of two secondary schools, i.e. one in Kitwe and the other in Mufulira. The schools have a total population of 1,847 pupils — both employees’ and community members’ children, who are selected on merit. These schools are amongst the best on the Copperbelt both in terms of infrastructure and performance. The annual average cost of running the schools is US$1.5 million.
Besides investments in its own schools, the Company gives various awards to students at institutions of higher learning and in some cases prizes for pupils in primary and secondary schools for academic excellence. The company has also been instrumental in rehabilitating infrastructure in some public institutions - the most recent project being the rehabilitation of infrastructure at a Government school in Kitwe. The works included building of a perimeter wall, construction of a new ablution block, rehabilitation of an old ablution block and installation of a water tank all at a cost of USD 54, 000.00.

Health

Mopani owns and operates two ISO 9001:2008 certified hospitals, the Malcolm Watson hospital in Mufulira and the Wusakile Hospital in Kitwe. It also runs seven township clinics and five first aid centres with complementary fully fledged public health facilities at both Nkana and Mufulira respectively. Activities include the implementation of the integrated malaria control programmes (since October 2000), and HIV/AIDS programmes (since January 2003) at both Nkana and Mufulira respectively. Mopani continues to pursue a plan to ensure long-term control of malaria and HIV prevention at district, provincial and national levels in collaboration with other stakeholders.

The services at the seven clinics within the nearby communities have gone a long way in enhancing child and maternal health and hence reducing the hospital admission rates by 60%. With regard to the catchment population, Mopani’s health facilities provide medical and public health services to close to 95,000 people with Mufulira accounting for a third of this total number. The integrated malaria programme aims at reducing the incidence rate from about 216/1000 population in October 2000 when the programme commenced to less than 20/1000 population within Mopani’s catchment areas. The population covered is 60,446 and 34,065 at Nkana and Mufulira respectively. The average annual expenditure on the malaria programme is US$650,000.00.

The chart below indicates the incidence trend during the period under review:
Mopani developed an HIV/AIDS Policy in 2002 and commenced its programme implementation in January, 2003. The HIV/AIDS Programme aims at influencing behavioural change among employees and the immediate community to prevent new infections and the incidence of HIV. In addition to the above, the programme has a treatment and care component as well. This programme has been conducted in collaboration with partners including Comprehensive HIV/AIDS Programme Management (CHAMP), AIDSRelief as well as the Zambian Government through the Ministry of Health. The number of persons enrolled on treatment increased from 24 in 2004 to 7,300 by April 2011 (including 600 children) at all the company’s medical facilities. Increased access to antiretroviral therapy has enhanced the quality of life and in turn reduced incidences of morbidity and mortality among individuals on treatment.

Most encouraging of the interventions is the Prevention of Mother to Child Transmission (PMTCT), with a notable downward trend of babies testing positive in spite of being born to HIV positive mothers. Additionally availability at work for employees on treatment has improved as their condition has been well managed.
Most of the treatment and prevention costs on the HIV programme are incorporated in the medical costs. However, there is a component of training of the HIV programme team members in line with the Company’s HIV policy where an average of US$60,000.00 is spent per annum.

Support to Former Employees

Former employees have been provided with opportunities for post-retirement employment and notable among them is at a Mopani supported farm near Mufulira.

The 1,300 hectare farm plot was acquired at the end of 2004 and was managed as a project for 106 former employees with their respective dependants under the supervision of a Farm Manager employed by Mopani until August 2010. The former employees were assisted in forming a Cooperative whose activities include growing of bananas, bee keeping, poultry and dairy farming, piggery and vegetable growing.

During the period of the project - from acquisition of the land to the full implementation of a running Cooperative, Mopani spent approximately US$1million. The company continues to help as and when assistance is required.

Public Roads

Since inception in April 2000, Mopani has helped with the maintenance of public roads, and in particular the Sabina/Mufulira road. In the years prior to 2011, expenditure on roads averaged US$320,000 per annum and this was largely to mend potholes. However, effective May 2011, Mopani commenced major road works to rehabilitate four public roads namely Central, Mindolo and Chibuluma roads in Kitwe, which will be followed by Sabina/Mufulira road at a cost of US$ 10.5 million.Urban Roads Facelift - The Long Cry Heard, AllAfrica.com 07/06/2011

Sanitation Infrastructure in Wusakile Township

For a long time, the Company has had to contend with high medical costs owing to recurrent typhoid fever in Wusakile Township. This has been due to the continued use of dilapidated communal toilets which were meant for fewer people than the current number of people using them. To overcome this problem, Mopani commenced the construction of 1,500 units of individual sanitation facilities in April 2011 at a cost of US$4.5 million. The project is being carried out in collaboration with the Government of the Republic of Zambia and Nkana Water and Sewerage Company.

Sport

Since inception Mopani has supported Nkana Football Club and Mufulira Wanderers Football Club with a monthly grant. Other sports that receive regular support are rugby, tennis, golf, swimming and occasionally boxing and squash. As regards golf, besides supporting the Nkana and Mufulira Golf Clubs, Mopani has consistently supported the Zambia Open Golf tournaments. The average annual support to sporting activities is US$ 200,000.00.

Other Areas of Support

Mopani supports a number of other social causes on an ad hoc basis, such as traditional ceremonies and deserving charitable organisations both financially and materially depending on the need. Notable on some of the support rendered in the past is the donation of grain worth US$ 5 million to the GRZ during the 2005 drought.

Social Investment

US$,000	2002	2033	2004	2005	2006	2007	2008	2009	2010	Total
Hospitals & Clinics	4,837	5001	6,173	6,866	9,235	13,782	18,485	9,114	11,117	84,646
Donations	142	156	105	215	*5,368	330	129	63	160	6,668
Schools	453	531	767	1,338	1,621	2,343	2,746	1,092	1,967	12,858
Maleria	213	234	395	545	767	1,236	1,289	266	759	5,704
Roads	0	318	343	374	434	387	384	418	200	2,858
Sport	111	135	229	279	348	213	283	34	150	1,782
HIV/AIDS	0	0	0	136	171	123	43	15	915	1,403
Farms Ex Workers	0	0	178	172	198	341	180	0	0	1,069
Total	5,792	6,375	8,190	9,925	18,142	18,755	23,539	11,002	15,268	116,988
*Includes US$ 5m

Zambia and the World Copper Market

In Zambia, Africa's top copper producer, the copper industry is estimated to represent more than half of the country’s GDP, and plays a crucial role in enabling economic development.

Zambia has vast high-grade reserves of the metal used in power and construction. The majority of the copper deposits in Zambia are found along the “Copperbelt” a 500 million year old mountain chain, which hosts world class copper deposits. Its output is expected to more than double from current levels to around 2 million tonnes by 2015.

Copper has had a spectacular run with prices racing ahead to consecutive new highs. Continued strong demand on the back of a recovering world economy, coupled with tight supply, has stoked increasing interest in the market.

At the peak of the recession many western investors either fled or scaled back their presence in the copper belt. This departure of the western investors saw Chinese investors taking up the abandoned positions. In 2009 alone, China

China

Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

invested over $400m into Zambia's mining industry.

The copper belt region is once again thriving, and an astounding $3.6 billion industry beckons in mining-related activities in north-west Zambia. According to some estimates, Zambia is set to become one of the world's top five copper producers by 2013.