Modern Mining May 2019

MINING News

lasting and shared with our local commu- nities and host government.” Simon Purkiss, CEO of CNM, said the reopening of Munali was the culmination of nearly four years of hard work by the team and had involved a full reassessment of the project to de-risk it both technically and economically. “I’d like to thank all the stakeholders involved – our employees and contractors, local communities, busi- ness partners, regulatory authorities and Government – who have contributed to our plan to re-start operations at the Munali nickel mine. This is a tremendous accomplishment,” he said. CNM acquired full operational control of Munali and the adjacent exploration area in 2015 through a 10-year lease and royalty agreement with Jinchuan, with an option to extend for a further 10 years. Located 75 km south of Lusaka, the mine has excellent transport and com- munication links in a well-known mining jurisdiction. In excess of U$180 million was spent by previous owners on developingMunali and bringing the mine into production in 2008. However, for a number of reasons, such as the use of the wrong geological model and hence the wrong mining method being employed, this led to uneconomic operations and, when the nickel price fell in 2011, the mine was placed on care and maintenance. The Munali mine has been recognised by the Zambian Government as “the lead- ing mining company for CSR in Zambia”for its innovative approach to corporate social responsibility (CSR). A Resettlement Action Plan (RAP) has been successfully completed, with US$7,5 million spent on building new homes for the households impacted by the mine’s operations, as well as commu- nity infrastructure, including a new school, a new clinic, community water boreholes, a community dam and two bridges. Alongside Munali’s CSR programmes, CNM has established the Musangu Foundation, providing seed money for the first year of business. The Musangu Foundation aims to create livelihoods in rural Africa in collaboration with the mining sector through a variety of proj- ects. The projects reportedly move away from the typical ‘donor’ style, and instead embed business principles, generating sustainability and longevity. 

Kangra Coal announces share allocation initiative Kangra Coal reports it made history on 2 May 2019 when it hosted a cel- ebration to announce plans to allocate free-carry (unencumbered) shares to workers and local communities for the first time since the mine was estab- lished in 1957. concluded, but we thought we should make our intentions firmly clear right from the start so that you can assess us against our undertaking,” he said. Speakers at the ceremony lauded the initiative, saying it laid the foundation for the redefinition of the relationship between workers, communities and the new mine owners.

Workers were given a day off to be part of the celebration with the mine managers and local community mem- bers. This was an initiative of Menar, the investment company that purchased Kangra through its subsidiary, Canyon Coal, in September 2018. Kangra is the first mine to allocate shares to workers and communities sinceMineral Resources Minister Gwede Mantashe issued Mining Charter III. The Charter requires mining compa- nies to allocate shares to workers and communities. Billed as the‘Kangra New Beginning’, the event was held near themine, which is located in the Mkhondo municipal- ity. The municipal leaders, traditional authority leaders and other community leaders joined the celebration. Workers and community mem- bers ululated when Menar Managing Director Vuslat Bayoglu presented symbolic certificates to signify the 5 % allocation to each. The shares will be held under separate trusts. “In the next few months, the legal process to give effect to the allocation will be

Menar Chairman Mpumelelo Mkhabela said the share allocation to employees and communities was different to the usual employee share- ownership schemes where shares are granted for a limited period. “This is a permanent arrangement. For as long as you work at Kangra, you will own shares. If the company makes profits and dividends are declared, you will also benefit from dividends that will accrue to the employee trust,” Mkhabela explained. Canyon Director Dr Sakhile Ngcobo provided a broad overview of Kangra’s operations, explaining that the com- pany is involved in the mining and processing of thermal coal through the operation of an underground mine, along with several opencast pits, located in the Mpumalanga coalfields. Kangra currently produces about 2 million tons a year of saleable coal with the majority of its high volatile coal sold on the export market, and the rest sold to independent users. 

Menar MD Vuslat Bayoglu (on the left) at the ‘Kangra New Beginning’ celebration.

May 2019  MODERN MINING  5