GROUP 2 TOUR REPORT TO NAMPUNDWE MINING PLC BY HON ALASO ALICE ASIANUT

1. GROUP 2 TOUR REPORT TO NAMPUNDWE MINING PLC BY HON ALASO ALICE ASIANUT

2. INTRODUCTION Purpose of Visit • To find out what policies and laws are adhered to as a company? • Who audits the company? • What do they audit? • How and to what extent does the company contribute to the national development of the country?

3. What tax exemptions does the company have? • What challenges does the company face in the sector • Is the company listed in Zambia? • Where is the market for the company products?

4. HISTORY • The mine was initially called King Edward Mine in 1913 and was supervised by the Broken Hill Division (Kabwe Mine) • The mine was closed during the second world war from 1931-1951 • The Mine has gone through different hands including; the Government’s wholly owned Zambia Consolidated Copper Mine and many other private companies. • Currently Nampundwe mine is a branch of the mother company known as Konkola Copper Mine PLC.

5. OPERATIONS • The Nampundwe mining operating assets are the Nampundwe pyrite underground mine and concentrator. (Group only toured the surface and never went underground ) • These are located in the Shibuyunji District of Zambia, approximately 50 kilometres west of Lusaka City. • Nampundwe exploits iron pyrite rich ore bodies that are blended with copper concentrate for smelting. • Some pyrite is also sold to Chambishi Metals for use in the processing of cobalt oxide concentrates in their smelting plant.

6. OPERATIONS (cont’d) According to the Branch Manager; The capacity to produce more is there except that there is no ready market for the product The pyrite produced at Nampundwe mine is of low standard compared to the Zimbabwean product Zambian ore : 10% Zimbabwean ore : 40% For the past over five years now, the mine has been running on a loss!

7. OPERATIONS (cont’d) The Cost of Production Pyrite/Ton Projection $224.9 per ton Actual $552.8 per ton

8. COPRPORATE SOCIAL RESPONSIBILITY The Manager cited Social Responsibility as the reason why the branch exists and some of the undertakings include; • Sponsoring women groups by providing them animals (draft power) • Providing reading materials to pre schools • Awarding the high scoring pupils in schools

9. GROUP’S OBSERVATIONS • There is lack of full disclosure of figures by the private companies • The company receives medals almost every year yet the manager claims that it operates on a loss! • The group observed lack of competence on the Branch Manager who seemed not conversant with the full details about the branch.

10. GROUP’S OBSERVATIONS • The Company seemed not to care much about the community as it was observed that the road leading to the mine is in a deplorable state despite operating the mine for more than

11. Group Observation • Group expressed concern on how a company could continue operating on a loss for a long period • The Group Observed with concern as to how the Company could operate on a limitless license • Corporate Social responsibility does not have a critical community Initiation • Non Audit (only private auditors involved) • Non Participation of Government in the Production

12. The End