The mine is expected to provide employment to over 1, 500 locals and additional jobs will be created by companies supplying goods and services to the mine.
Global mining giant Vale, through its 50-50 joint venture with African Rainbow Minerals (ARM), has just launched the US$400 million KONNOCO project .
Vale traces its roots to Brazil and has a strong presence in Africa and many parts of the world.
The estimated annual output of the project, which is expected to reach full potential in 2015 is 45, 000 metric tonnes of copper concentrates per year.
Construction works started in August 2010 and the first copper ore extraction is scheduled for 2013 while full production is due in 2015.The construction and development of the mine will take approximately 27 months.
The mine’s life span is estimated at 28 years, including a three-year exploration programme to evaluate an area which has the potential to increase output to 100,000 metric tonnes of copper concentrates per year from 2010 onwards. Initially, the south east limb (SEL) will be developed, after which the deeper higher grade and wider reef areas will be mined.
Vale is the world’s second largest diversified mining company currently operating in more than 30 countries. It is the world’s largest producer of iron ore and pellets, key raw materials for the steel industry and the second largest producer of nickel.
The company also producers copper, potash and phosphates, among other raw materials important to the global industrial sector.
Vale’s recent purchase of a 51 percent stake in Sociedade de Desenvolvimento do Corridor do Norte South Africa (SDCN) places it as the leading partner in the development of the Nacala Corridor, a vital transport link between the region’s interior and the port of Nacala in Mozambique.
The integrated logistics network will provide an alternative transport route for production from the Copperbelt to the Democratic Republic of Congo (DRC) to the seaside market, as well as for other cargo from Zambia, Malawi and Mozambique.
The Konkola North Ore Body (KNOB) was discovered in 1924 and extensive exploration was conducted by Bancroft Mines Limited (BML) until 1938. Mining began in 1953 and continued until 1959 when it stopped due to adverse economic conditions.
Zambia Consolidated Copper Mines (ZCCM) had identified the potential of KONNOCO but did not have the financial capacity to exploit the mine. In 1997, ZCCM sold the mine to Anglovaal Mining Limited (AVMIN) of South Africa.
AVMIN failed to progress with the project and management sold it to Teal exploration company who resold it to the ARM-Vale, which is a 50-50 joint venture. Exploration works continued uninterrupted even during the global recession which hit the sector in 2008.
“I would like to thank investors for their resilience in the face of uncertainties and for believing in the policy of my government on mining. The story of this mine demonstrates that investing in such projects is not easy, especially for governments.
“The role of Government is to create an environment which will make investment rewarding to investors, while at the same time ensuring that our people benefit from such investments,” President Rupiah Banda said during the commissioning of the project.
Mr Banda said the privatisation of the mining industry is bearing fruit and the performance of the sector has significantly improved, with all the former ZCCM mines now operational and some of them expanding while exploration activities are increasing across the country. New mines are also developing.
He said the country is beginning to see the benefits of the privatisation programme. Employment in the mining sector now stands at 50,000 compared to fewer than 30,000 at privatisation.
“During the construction phase of this mine alone, an extra 1,500 jobs will be created in Chililabombwe. The development has created greater business opportunities for suppliers of goods and services and contractors in the mining industry.
I expect KONNOCO to engage local suppliers and contractors in the provision of goods and services, both at the construction stage and when the mine is fully operational,” he said.
He said good management of mineral resources is one way of creating a conducive environment for investment.
The vision for the government is to have a vibrant and well organised mining industry contributing in excess of 20 percent to the gross domestic product and providing a level of employment that will significantly move the country forward, in terms of poverty reduction in the next five years.
“As part of our vision, we want to diversify within the mining sector by encouraging the exploration of minerals other than copper. Investors should look beyond copper and promote the diversification of production in the mining sector.
“We want our mining sector to be a risk-free investment in the world. We welcome all investors with open arms and I wish KONNOCO every success,” President Banda said.
And Vale Mining Company (VMC) chief executive officer Roger Agnelli assured Zambians that the mining firm would work with the local community to implement viable projects which will benefit the people in Konkola.
“We want to do what we have done in Brazil where the area we are operating from has one of the highest standards of living. We want to do the same in Konkola. We are happy that we have community support in Zambia and we will do our best to develop Konkola,” he said.
Mr Agnelli said VMC has contributed a lot to the development of Brazil and that the company is determined to ensure that the people of Zambia benefit from its operations in Konkola.
He said the proposed capital expenditure in the Konkola North Project and the expected job creation illustrates Vale’s confidence in the Zambian economy and its commitment to the community.
He said his company will take care of the environment and surrounding communities to ensure that the people benefit from mining activities.
He said Vale expects the
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