FIRST Quantum Minerals Limited (FQML) was formed in 1996 to primarily develop Bwana Mkubwa mine, but it has since evolved over the years to become one of the fastest growing mineral exploration, development and mining companies in the world.
Headquartered in Vancouver, Canada, with a listing on the Toronto and London Stock Exchange, First Quantum reopened Bwana Mkubwa in 1997 and led the way to becoming the first privatised mine to operate in Zambia following 33 years of nationalisation of the mining industry from 1967 to 2000.
In 2011, the company realised $2.58 billion or K13.4 trillion (KR 13.4 billion) as income from metal sales.
The resurgence of Bwana Mkubwa, which is more than a century old, came against a backdrop of a 14-year-old closure kick-started by an initial investment of $30 million (K156 billion KR156 million) that helped to re-open the mine and create employment.
The first copper production was recorded in March 1998. After commissioning Bwana Mkubwa operations, the company was involved in the privatisation of Mopani, and the subsequent acquisition of Kansanshi Mine in Solwezi, considered the group’s flagship bearer, and to which the success of FQML is credited.
Through its 16-year existence, FQML now rubs shoulders with the world’s major copper producers. In 2011 for instance, the company produced 265,576 tonnes of copper with Kansanshi Mining Plc accounting for 230,000 tonnes. Other metals were 5,666 tonnes of nickel and 175,225 ounces of gold.
FQML holds 80 per cent ownership of Kansanshi Mining with ZCCM Investment Holdings having a 20 per cent stake.
The mine is currently undergoing multi-faceted capital works aimed at increasing output capacity to 400,000 tonnes by 2015 to which $1 billion (K5.2 trillion or KR 5.2 billion) was sourced and invested in the execution of expansion works.
Among the developments are construction of a sulphide tailings storage facility involving the upgrade of the existing copper ore treatment plant from six million tonnes per annum (MTPA) to 12 MTPA and the erection of the number five sulphuric acid plant located behind the new and huge copper smelter that is also undergoing construction.
FQML adheres to many charters and principles and corporate social responsibility (CSR) is a key ideology.
Under its work environment, the company strictly observes dictates of various externally developed charters and sets of principles that include the Universal Declaration of Human Rights and Voluntary Principles on Security and Human Rights.
The rest are Equator Principles, International Labour Organisation’s Declaration of Fundamental Human Principles and Rights at Work, and the Extractive Industries Transparency Initiative.
As a consequence of stringent adherence to these principles and national laws, the company has embarked on a number of initiatives aimed at empowering communities under the host countries where it operates.
This is being done by imparting skills training and promoting good health, occupational health, and safety for employees through the implementation of internationally acceptable health and safety standards and procedures.
The group spent $35.63 million (K182.2 billion or KR182.2 million) under its CSR activities, representing six per cent net earnings after tax, an increase of 230 per cent over 2010, which emphasises a commitment to sustainability and CSR.
A case in point is the Mary Begg Community Clinic in Ndola (MBCC) run as a company with a board in place that stands out as a classic example of helping the community. MBCC, located in the upper market Kansenshi residential area, has been refurbished and equipped to the tune of K6.2 billion (KR6.2 million), in addition to the provision of K2 billion (KR2 million) annual grants.
First Quantum’s CSR activities focus on governance, economics, and environmental, social and labour issues, involving the taking of positive steps that provide economically viable investments, technically appropriate operations, and environmentally sound practices backed by social responsible actions.
Despite huge contributions made towards improving the MBCC facility, employees for First Quantum like anybody else pay for medical services rendered to them and their families and the company continues to sponsor in-house training and development of staff, and provision of scholarships to deserving professional staff.
The company is also equal to the task of playing a fundamental role in support of the Malaria Public Private Partnership (MPPP) run through CHAMP.
The company is assisting by filling gaps in the national malaria programme and developing new and innovative ideas aimed at educating and stimulating the community towards better malaria management.
This is evident under the areas in which the company operates namely, The Trident Project at Kalumbila, Kansanshi – Solwezi and FQMO – First Quantum Mining Operations Zambia office based in Ndola.
In Solwezi, the general hospital is being transformed, with old structures receiving a facelift and a new wing being built at a cost of (KR114 million) K114 billion through funding by Kansanshi Foundation, a company that drives and implements CSR programmes. The works that commenced in 2011 are ongoing.
The company is also at the core of sponsoring the current scientific enquiry by the Ndola District Health Management Team (NDHMT) and Tropical Diseases Research Centre (TDRC) through a study of entomology (study of insects) and parasite prevalence.
This too involves examining the effectiveness of insecticides and breeding site mapping, and the greatest success to date is the reported resistance to DDT (Dichloro diphenyl trichloroethane) and other chemicals by the anopheles mosquito which almost derailed the fight against malaria infections, but after collaboration with the National Malaria Control Board and NDHMT, corrective measures were taken and put into effect.
The company is also actively involved in the promotion of HIV programmes such as Voluntary Counselling and Testing (VCT), which has led to a pilot scheme aimed at effecting behavioural change dubbed ‘One Man Can’ started in 2010 at Kansanshi highlighting the critical role of men as agents of change.
This programme looks at issues central to family income; security, drug and alcohol abuse, and negative behaviour towards women are discussed with the men who are encouraged to take control of a responsible headship role over their own households.
And on the basis of group sessions individuals are offered the opportunity to undergo VCT, which forms a central part of the First Quantum HIV programme.
Women have since expressed interest in a similar agenda that should address many issues working women face with regard to HIV transmissions.
They point to lack of self esteem and the inability to negotiate favourable outcomes in the work place and bedroom.
FQML, through its roads division, has just completed construction of a new 2,700 metre-long Code 4c runway at Solwezi Airport replacing the old runway that measured 1,300 metres, which includes other ancillary works at an estimated cost of (KR51.2 million) K51.2 billion.
This will enable large aircraft such as Boeing 737 and Airbus 320 to land. The project is awaiting official handover to Government.
Production of copper cathodes ceased at Bwana Mkubwa in September 2010 and was followed by the introduction of acid production in September 2011.
Machinery used for copper processing has since been dismantled and carted away. And at the time of going to Press, the two acid plants closed down with machinery placed under care and maintenance.
Bwana Mkubwa has stood resolute the past 15 years and contributed to worthy causes variously through sinking boreholes at schools and communalities in urban and peri-urban areas, and came to the aid of Kafubu Water and Sewerage Company many times.
And when it mattered most, the local authority was assisted to tackle malaria by spraying potential mosquito breeding grounds, dredging the Kafubu River and regular maintenance of street and traffic lights and support to pothole mending, besides sponsorship of youth sport development.
First Quantum Minerals subscribes to many charters and principles. With the closure of the two acid plants reaching a fait accompli, the company is now working on restoration of the environment by providing vegetation around the mine and surrounding areas, including the walls of tailings dams in line with Equator Principles and the International Finance Corporation’s Performance Standards (IFCPS).
Approximately 150 km away from Solwezi, First Quantum is engaged in further development of Greenfield mines under the Trident Project through its 100 per cent owned subsidiary, Kalumbila Minerals Limited, that comprises the Sentinel copper deposit, Enterprise and Intrepid targets.
Once in production, the new copper mine at Kalumbila is envisaged to equal Kansanshi in copper output.
The Trident Project was obtained through the acquisition of Kiwara Plc in February 2010. Right now, there is heavy construction being undertaken at Kalumbila, and the estimated capital cost to develop the mine including necessary infrastructure is put at $1 billion (K5.2 trillion or KR5.2 billion).
Outside Africa, First Quantum acquired Haquira Copper Mine in the Apurimac Region of South-Central Peru, now undergoing development.
In Australia, the group made a further acquisition of Ravensthorpe Nickel Operations in 2010 which went into production in 2011.
In Europe, the company bought Kevitsa Mine in Finland endowed with a large deposit of low grade ore body consisting iron, nickel, and copper sulphides with locally high concentrations of platinum, palladium and gold.
In Mauritania, the Guelb Moghrein is another copper-gold mine owned by the company. The deposit was first developed in the early 1970s by Anglo American Corporation, but closed in 1977 due to technical difficulties and high fuel prices.
First Quantum acquired an 80 per cent stake in the asset in 2004 and achieved commercial production in April 2006.
In 2010, the company increased its ownership to 100 per cent. The plant now produces approximately 17,000 tonnes of concentrates per month at a grade of 22.5 per cent copper with credits received for gold in concentrate and gold in bullion.
As FQML continues to grow by spreading its operations around the globe, Zambia is the heartbeat and future for the group.