Copper, gold and zinc miner First Quantum Minerals (FQM) has maintained jobs and production at its operations in Zambia, despite sector-wide moves to cut its workforce and scale down production as a result of the Covid-19 pandemic.

Speaking at a visit by Zambia Mines and Minerals Development Minister Richard Musukwa to its Kansanshi mine earlier this month, GM Anthony Mukutuma attributed the positive results to the initiatives the mine had put in place to mitigate the impact of the pandemic on its operations and workforce.

“FQM has put in place a range of precautions to provide business resilience, retain production and protect jobs amid the Covid-19 pandemic,” says Mukutuma.

However, he adds that as much as Covid-19 has stifled operations in the mining industry, the broader sector continued to suffer from the effects of an uncompetitive mining tax code.

Mukutuma gave the Minister and his entourage an overview of the mine’s operations and the declining copper ore grades, which meant the mining firm would have to double its fleet of haul trucks and upgrade its processing facility, as well as increase its workforce, to produce sufficient feedstock to increase total copper production.

“Ore grades have decreased from about 1.5% . . . to about 0.8%.”

Musukwa was also briefed by senior management on the mine’s community development initiatives in almost all sectors and its Covid-19 preparedness.

The Minister, accompanied by Permanent Secretary Barnaby Mulenga and other senior officials, were also given a tour of the mine’s Sulphide 3 Project, which has been on hold for seven years as a result of the uncertainty created by an uncompetitive fiscal policy.

The stalled project was meant to ensure continued copper output because of technology such as in-pit crushing and transfer of the slurry to the smelter.

The project was estimated to cost $1-billion, but was put on indefinite hold, with some of the capital equipment being diverted to other FQM projects like those in Panama, to avoid the cost of a nonperforming asset, explained Mukutuma.

Musukwa commended Kansanshi mine for sustaining business despite the odds and for its continued contribution towards tax revenue, and added that government would support the mine to ensure its continued viability.

He also promised to convey the message to central government to help address the concerns raised so the project may be resuscitated.