By Brave Kachusha Mushikita – Zambian Economy and Mining Expert
It was 2003 Mwanawasa’s MMD was in power, and panicking after the withdraw of Anglo American Corporation from KCM.
They were really looking out for anybody who would invest in mining, especially copper mining. In comes Australian treasure hunters with a couple of millions AU$ calling themselves Zambezi Resources Ltd.
They applied for an exploration license and it was granted, an area of 240sq km in the Zambezi Game Park. They registered a subsidiary called Mwembeshi Resources Ltd prospecting Kangaluwi Copper Project consisting of Kangaluwi, Chisawa, Kalulu and Imboo prospects.
In 2008 after the death of LPM, Rupiah Banda takes over and this project gains even more steam even if the environment impact assessment was full of holes.
In 2011 after Sata takes over the project is rejected by ZEMA and it goes quiet.
In January 2014 Harry Kalaba then Minister of Land, Natural Resources and Envitonmrntal Protection, overturned ZEMA’s ruling and promptly issued Mwembeshi/Zambezi with its mining permit, ML15547. He claimed that the mine would eventually create employment for ordinary Zambians in the area.
It should be noted that Sata died on 28 October 2014, so when HK was issuing this permit the cobra was at the helm.
Its 2019, Zambezi Resources Ltd is now called Trek Meta; they have since sold the Kangaluwi Copper Project to a company called Grand Resources after the frustrations of nearly 5 years after being granted a mining license.
The address shows that Grand Resources is Dubai based. Its CEO is Marinko Vidovic with a registered address in Australia. The project was bought for just AU$1.1m but all the debt was absorbed (estimated at AU$12m). Grand Resources took the matter to court to resolve the dispute, which I am told they have won.
When ZRL applied for the mining license the inflated in the thrir feasibility study. They reported it would cost them $494m to develop the mine and it would have a LOM of 25 years producing a total of 3Mt of copper at 28%.
This is 840ktpa of contained copper in the concentrate. This would have simply made this mine the biggest copper mine in Africa and one of the biggest in the World.
Zambia currently produces about 800Ktpa and it is the second largest producer in Africa. This mine would have doubled Zambia’s production. Is this what HK looked at when he overturned the decision of ZEMA?
After they got the license the truth finally came out; the ore was copper oxide and not copper sulphide, it was low grade ore at only 0.7% and running as an Open Pit it had a stripping ration of ore to waste of 3.3. The life of mining was only 5 years at cathode production rate of only 7379t, requiring capex of $44m to develop.
The picture is completely different; production rate of 840ktpa of copper in concentrate would have brought in revenue of about $4.8bn/yr at copper price of $6000/t but the picture of 7379 cathode will only bring in about $45m/yr.
If you closely look at the total opex of running an oxide of this size, this mine would just be break even, at best making a profit of $1m/yr. I am no financial expert but only a full will put in $44m and make a profit just $1m/yr. After 5 years you still be owing $38m.
The Kangaluwi site is about 19km from the Zambezi River and at about 800m above the valley floor, so whatever rubbish coming from the mine will be draining into the Zambezi and polluting the Zambezi downstream into Mozambique.
The question is with all this against this project why did Harry Kalaba issue a mining permit? Without a mining permit these guys would not have gone to court. That guy needs to come and explain. Why as a political head did he interfere in the work of ZEMA.
The civil servants who signed and approved the relevant documentation at the time need to explain why they did that when the environmental report did not recommend. The minister of mines at the time need to explain why he signed on that mining permit. The two useless permanent secretaries, with masters and doctorates falling out of their pockets, why did they allow the politicians to over rule them?
The PF are in govt, they did not star this issue but they messed up by issuing the mining permit but overturning the experts, now it’s time they listened to the experts and cancelled that permit. Is 7ktpa worth disturbing the hippos, elephants, the vegetation and mighty Zambezi itself? Is it really the copper you are after or it’s the elephants, hippos, rhinos and the other good stuff God has blessed us with?
I am son of a former miner, I grew up in mining town, I have worked in the mines all my life. I know all the benefits mining can bring to a community, especially a community trying to develop. But this mining project is not worth destroying Zambia’s and Southern Africa ‘s life line, the Zambezi. Look at what we have done to the Kafue.
Just stop PF, it’s in your hands. The courts will just pronounce on the fact of law, and the fact is that Grand Resources have a valid mining permit.
This project is a dead duck. Avaaz is mobilising.
Yes, Harry Kalaba did it because to the govt he served in, this was no big deal. Under an upright govt, he wouldn’t hv done it.
Do not implicate SATA in this rubbish, he was unwell by the time Kalaba made that decision, the country was in pilot mode at some point when SATA was unwell, it was free for all, and a lot of shoddy deals were done by overzealous Ministers.
Sata was sick at this time and I doubt he was really aware of decisions being made.
Well written article Brave.
We just happen to have cadres in government ruling us. Sad state of affairs.
CHILDWASA was the WASTE PRESIDENT ever. CHILDISH is the WASTE H-OPPOSITION leader H-EVER.
First I heard the S-word from HH, and I was shocked. But with such wreckless decisions that affects entire ecosystems… I wouldn’t be surprised to hear the word “sanctions” more often.
For one to speak of climate change, then go on to allow such wrecklessness… we are a people who haven’t a clue what we are talking about.
The same Harry Kalaba claiming corruption??
Mining is an ephemeral business and should not be allowed in ecologically sensitive part of the country.
Some of these so called leaders are Just jealosy of ECL. They will be the worst if power was given to them. Thé observation by Zambian Citizen deserves serious reflection by all well meaning Zambians.
HARRY KALABA MUST CLARIFY THIS MATTER. BEFORE HE WENT TO FOREIGN AFFAIRS HE GRANTED MINING LICENCE TO SOME COMPANY AND THERE WAS PUBLIC OUTCRY. BECAUSE HE WAS IN THE PF GOVT EVERYTHING WAS SILENCED. HOW HAS IT COME UP AGAIN?
This could spell the end of HKs political ambitions. He’ d better come up with some explaining. If he remains silent like how lungu remained silent to the corrupt thief tag, that’s it for him.
If that mining revival was a political trick by PF to kill off HK , well done. Clever move.
I am not so sure PF are capable of such brilliant political moves though.
Now all that remains is for lungu to come out as saviour and cancell that game park mining idea once and for all end his stock will raise.
If lungu remains silent, then he too will be caught up in the negative repercussions.
My bet is lungu will come out and cancell this thing. If he does not , I am dumbfounded….
Dr Jona will cancel F00k all.
Dr Jona loves a dodgy Dollar, & all he worries about is getting back to power in 2021, & even if the Devil asked Dr Jona to shave his hand for more time in Plot No1, ba Jona would happily do it!
If lungu long fingers does not cancell this thing , he is dumber and more crooked that I thought, and that is saying a lot seeing how critical I am of this man…..
If lungu has any brains past his long fingers , he will realise that the international negative publicity this will generate won’t be worth the value of that mine…..
If he keeps silent hoping silently for the money from that mine, he is in for a rude awakening…..
Please credit the image to the photographer who took it: Megan Alves
I believe the neighboring countries that are beneficiaries of the mighty Zambezi should all have a say in this as they will also feel the impact of the pollution and other negative impacts mining in a game park will have on the environment.
Thanks for a well researched paper. Why are the politicians quiet? Were their hands oiled? Shame on you Harry Kalaba. PF, show some leadership, revoke this permit
If an ordinary ‘citizen’ is able to pay this much attention to details relating to our natural resources and other deals, then what do these ministers and parliamentarians spend time doing after being sworn in? Are we being lead by the wrong people? Imagine there was no social media, this country would have gone to the dogs.
Hats off for the vigilante gentleman, I hope we will all be inspired to place keen interest in national issues regardless of our party affiliation, tribe, gender or creed.
The mistake was made by technocrats in LPMs time who granted this company the permit to carry out exploration works at huge costs. Why allow them to spend money on exploration if you have no intention of allowing them to mine? An impact assessment was also approved by ZEMA before the exploration commenced.
I call for Kalaba’s head, we kick it like a mpombwa.
HK, Kwesu tutila umutembo ngobulile! All those that you disturbed abruptly when you were in foreign service, cried out to GOD ALMIYTHY as to why such incident has happened to them for no apparent reason at all ??? Only best known by you and who ever gave you such courage. The Bible has spoken or it is written, Love your nabour as you love yourself. WE came naked with nothing so shall we go.