Luanshya copper mine shines bright with investment from China

Investment from China Nonferrous Metal Mining (Group) Co Ltd, or CNMC, breathed life into the bankrupt century-old copper mine in Luanshya, Zambia, in 2009, a time when the African city famous for mining was experiencing a tough time caused by the global economic crisis.

Through global bidding, CNMC acquired a controlling stake of 80 percent in the copper mine of Luanshya and set up a joint venture. Zambia Consolidated Copper Mines Investment Holdings, or ZCCM-IH, an entity that holds shares in all mining companies on behalf of the Zambian government, took the remaining 20 percent of the shares.

After 14 years of development, the joint venture, CNMC Luanshya Copper Mines Plc, or CLM, has become a large-scale comprehensive copper mining enterprise, integrating mining, ore processing and leaching.

CLM is capable of producing more than 50,000 metric tons of copper per year with a total investment of $810 million. Up to June, the company has paid taxes of $675 million and distributed dividends of $170 million to its shareholders, according to CLM.

"Luanshya Copper Mines plays a vital role as a significant driving force behind CNMC's overseas resource and development business sector," said Wang Jingjun, board chairman and CEO of the joint venture.

Meanwhile, the company is providing momentum to the social and economic growth of Luanshya city, which has not only benefited the mining sector but led to the development of infrastructure and social amenities in the city, improving the overall quality of life for residents, Wang added.

Transformation

It all started from a devastated mine with dilapidated infrastructure and overgrown weeds that stretched for hundreds of kilometers, Wang recalled.

The copper mine of Luanshya was among a large number of mining companies around the world that were forced to close by the steep drop of copper prices amid the global economic crisis of 2008.

The employees of CLM showed extraordinary perseverance and dedication by working tirelessly. In just six months, the mine recommenced production, which had been widely deemed impossible.

Once production returned to normal, the company started to build a brand-new hydrometallurgical copper plant with a designed capability of 40,000 tons of cathode copper production annually. The company also began work on creating an open-pit mine at Muliashi, which is located in the middle of the geological structure known as Roan-Muliashi basin.

In just 18 months, a state-of-the-art hydrometallurgical copper plant was completed and commenced commercial operations in April 2012. At present, the actual production capacity has surpassed its initial design.

In 2015, CLM decided to build a slag flotation production line at the site of two slag heaps that had been dormant for many years.

"The move created win-win results, which could improve the ecological environment of the mining area, expand the company's production scale, contribute tax revenue to the local government and stimulate employment in the community," Wang said.

In addition to construction, the company implements digital transformation and utilizes efficient, advanced and mature technologies and equipment to drive continuous improvement and optimize operations.

Talent localization

As a Chinese-funded company in Zambia, CLM emphasizes the value of human capital and has spearheaded initiatives to foster a localized workforce, according to the CEO.

"We have ushered in reforms within our personnel selection and appointment system, ensuring a conducive internal environment that nurtures the growth and development of Zambian employees," Wang noted.

Currently, more than 95 percent of the company's front-line management and technical staff are Zambian.

Within the company's leadership team and senior management, one Zambian serves as the deputy CEO and three others hold assistant positions to the CEO, making up 40 percent of the leadership team and senior management.

"Our commitment to nurturing and developing Zambian managers and technical experts is an essential cornerstone of our corporate strategy. It serves as a catalyst for local economic and social development and contributes to our long-term sustainability," said Wang.

Given the high-risk nature of the mining industry, the company highlights safety, promoting the transformation and upgrade of enterprise safety management from post-remediation to prevention.

CLM has achieved excellent results in consecutive years with zero work-related major accidents and zero environmental concerns, Wang noted.

Besides cultivating and caring for employees, the company is dedicated to the training of the much-needed skilled workers, especially for the mining industry in Zambia by running a craft vocational school.

CLM took over the operations of Luanshya Craft School from 2009, which has since trained more than 2,000 graduates and provided training for more than 3,000 technical personnel members for enterprises.

Of the specialties, the heavy equipment repair and the rigging have gained a reputation in Luanshya and even in Zambia.

In 2019, CNMC Luanshya Copper Mines upgraded the craft school to become the Sino-Zam Vocational College of Science and Technology.

The college, which mainly provides training to high school graduates, offers four specialties for its two-year program, including fitter and assembly, metal processing, factory assembly and heavy equipment repair, and nine specialties for its three-year program.

The company has allocated $3 million this year to build a comprehensive teaching building and supporting facilities for the college to support its expansion and improve the quality of teaching. It is planned to be completed by April 2024, said the CEO.

As a good member of the community in Luanshya, CLM has invested about $33.6 million since 2009 to show its commitment to social responsibilities.

chenhong@chinadaily.com.cn