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Pumping for profits in Zambia
Alan Muir
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Despite still trying to recover from a severe order backlog, last year Weir Minerals Zambia (WMZ) celebrated its most successful financial year since the branch was established in 2001. With even higher expectations for 2008, the company is working hard to diminish its pump backlog within the first few months of this year.
Laura Cornish reports from Zambia on the development and progress of WMZ's business in the country, and talks about the latest developments at some of the copper belt's biggest mining operations.
WMZ
In seven years WMZ has doubled its annual turnover , partly owing to the significant increase in mining activity globally, and specifically on Zambia's famous copper belt.
John Mukuna, WMZ branch manager, adds that the branch's more recent success, which includes business in the DRC, is also due to the increase in overall business in the country following the conclusion of elections.
The branch has nine 'dedicated' employees, and sources its pumps for local distribution from SA.
Philip Hoff, sales and marketing director for Weir Minerals Africa, says that the company is working to reduce its 2007 backlog by June this year - and is confident that lead times will substantially return to the original eight to 12 weeks.
Hoff adds that longer lead times are not exclusive to the pump industry, indicating that the negative impact is across all supply industries.
An order on a mill has increased from about 18 months to about 45, lead time on a haul truck from about two months to 25 months, and that for new tyres from five months to about 24 months. (Statistics according to a comparative analysis reported by PriceWaterhouse Coopers.)
Mopani Copper Mines Mufulira (MCMM)
Last year saw MCMM's upgraded smelter become operational at the end of 2007, with total completion of the upgrade targeted for the 2008 year-end, says Brian Rowlands, MCMM concentrator superintendent.
The upgrade project was started two years ago, and the company has already spent $200m on the venture.
Mopani produces copper through in-situ and heap leaching, which Rowlands says is the most cost-effective way of generating copper, ensuring that production costs remain minimal.
MCMM also recently started in-situ leaching underground in old mining areas which have not been accessed in years, which have become more viable following the upswing in copper prices.
The mine is also incorporating new mining method technologies which have increased the operation's overall life of mine to a minimum of 20 years.
At depths of approximately 1400m, MCMM processes 250 000tpm, with 94% recovery of pure copper. Cobalt is not produced as a by-product, as it is not commonly found in Mopani's particular area of Zambia.
The process plant, which was first constructed in the early 1930s, still makes use of most of the original equipment, which, Rowlands says: "Is still in perfect working condition."
And although new equipment could increase recovery rates, the effect would be so minimal that the cost does not warrant it.
MCMM exports 100% of its copper product, and is co-owned by Glencor (70%), First Quantum (16.5%) and the Zambian government. WMZ currently has a variety of slurry pumps and water pumps installed at MCMM throughout the mine, plant and tailings operation.
Konkola Copper Mining (KCM) - Nchanga
Possibly one of the oldest copper mining operations in Zambia, Konkola's Deep Mining project is progressing well, according to CEO, Kuldip Kaura.
During 2007, the company has been able to increase the operation's output 'progressively', from 6mtpa to 7.5mtpa.
The smelter project at Nchanga is also progressing smoothly, and Kaura is certain the smelter will be fully operational by December.
The CEO says the "immediate task" ahead is to achieve a production figure of about 200 000tpa.
In a local KCM newsletter, KCM chairman, Navin Agarwal, was quoted as asking all employees to remain focused on working towards achieving the company's vision of producing 500 000tpa of finished copper product.
Agarwal added that KCM's parent company, London-listed Vedanta Resources, is not "without faith" that the company can return to its former annual production figures of around 750 000tpa of copper.
In additional to the Konkola Deeps project and the new Nchanga smelter, the copper refractory ores project in Chingola should ensure that the 500 000tpa copper production target can be met.
WMZ has a number of slurry and water pumps installed throughout KCM's operations, and is currently in the process of replacing four competitor units with four G-frame pumps for the tailings dams at Nchanga - a contract worth about $300 000.
Most needed at present is Weir Mineral's C5 de-watering pump, which is vital during the rainy season in Zambia. WMZ currently has orders for 21 C5 pumps.
Luanshya and Chambishi Metals
Luanshya is owned by Enya Holdings, which is co-owned 42,5% by International Mineral Resources (IMR), 42,5% by BSG Resources and the remainder by the Zambian government.
Luanshya started as an underground mining operation in 1937, and is currently going through an expansion programme which could see the project double its capacity.
Baluba remains Luanshya's only underground operation still in production, with most of Luanshya's resources already mined out.
Baluba produces about 150 000tpm of ore, or 24 000tpa of copper concentrate, and has a minimum life of 15 years. It also produces about 1200tpa of cobalt as a by-product.
Exploration is underway to expand Baluba's current tonnage capacity. Derek Webbstock, Luanshya and Chambishi Metals CEO, says the operation's most exciting prospect is its new copper oxide open-pit project, Mulyashi.
The Greenfield project was first conceptualised in 2004, and basic earth and civil works were started in October last year.
Mulyashi will extend to a depth of about 200m, is the first of at least two additional pits, has a minimum 10-year life expectancy, and total project cost to production is estimated at less than $350m.
The open pit will also require a new process plant, which should be completed next year.
"Mulyashi will produce about 60 000tpa of copper and will also produce cobalt as a by-product," Webbstock says, adding already that the project does have the potential to become an underground operation in time.
There are two additional prospects associated with the Mulyashi lease area - Mulyashi South and Mashiba. Mining on the south project will start in April this year, and approximately mid-year at Mashiba. The Luanshya project also includes an area with a 20km strike length lying adjacent to the current prospect.
Webbstock says it is a sulphide copper resource, and notes that it is still too early to determine if the resource will be an opencast or underground operation.
Luanshya currently transports its copper and cobalt concentrate to Chambishi Metals, also owned by Enya Holdings. It is not a mining operation, but a plant operation which processes all of Luanshya's concentrate.
Chambishi is currently accelerating the development of a copper SX-EW plant, which will be complete in June next year. This will see its processing capacity increase from 27 000tpa of copper to 50 000tpa.
The plant also has a 7000tpa capacity for processing cobalt. There is a shortage of about 3000tpa on the plant, and two different options are being considered for finding additional capacity.
The two options include processing low grade rock dumps as well as sourcing additional cobalt from the DRC - it already has prospecting rights in the country which could potentially hold cobalt resource.
Chambishi Metals and Luanshya remain two of WMZ's biggest Zambian clients, and the company is pushing itself to supply all outstanding pumps and spare part replacements to them.
The company has a mixed number of pumps installed at both operations, including spillage pumps and pumps designed for highly corrosive and abrasive applications.
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