HIGHLIGHTS

Zambia Mining for Development Alumni Day and Launch of ZAM4D Alumni

Partnering to harness mineral wealth for enhanced socio-economic development in Zambia

2 December 2014 Radisson Blu, Lusaka, Zambia

Opening remarks

Vincent Kawamya ZAM4D Alumni Coordinator

In his opening remarks, Vincent Kawamya, ZAM4D Alumni Coordinator, described ZAM4D Alumni as a multi-disciplinary interest group founded on individual passion to contribute to good practice in mining. Its aim is to bring about maximum benefits from the local extractive industry to achieve significant social, economic and environmental sustainability in Zambia. He commented that “ZAM4D Alumni believes that in order to achieve sustainability from the extractive industry, strong partnerships are needed between all players including the government or policy makers, industry, professionals, NGOs, local regional and international partners and more importantly the community in which mining is taking place.”

Vincent indicated that “all of us have a role to play in achieving development from mining through our various disciplines and strengths and by applying the skills we have learned in our everyday work engagements.”

He mentioned that Alumni will focus on extractive industry issues of most concern to the Zambian society and said the local coordinating committee was therefore very pleased to see so many alumni at the event. He encouraged participants to share their knowledge and experience so that by the end of the day, ZAM4D Alumni will have a guide to future strategy and activities.

Vincent expressed hope that the event will mark the beginning of a stronger partnership between IM4DC and ZAM4D Alumni.

2

The International Mining for Development Centre (IM4DC) is proud to have hosted the Zambia Mining for Development (ZAM4D) Alumni Day and Launch of ZAM4D Alumni on Tuesday, 2 December, 2014 at Radisson Blu Hotel in Lusaka, Zambia.

The theme for the event was “Partnering to harness mineral wealth for enhanced socio–economic development in Zambia”. Vincent Kawamya, ZAM4D Alumni Coordinator gave overall context to the day in his opening remarks before the Honourable Christopher Yaluma, Minister of Mines, Energy and Water Development, officially launched the ZAM4D Alumni. Dr Wilfred Lombe, former African Minerals Development Centre Coordinator, gave the inaugural lecture on the African Mining Vision and Country Mining Visions.

The Alumni Day and Launch was attended by over 70 alumni from Australian government Department of Foreign Affairs (DFAT) programs implemented through IM4DC, Australia Africa Partnership Facility and Australia Awards.

IM4DCWith grant funding from the Australian Government through the Australian Aid initiative, implementing partners The University of Western Australia and The University of Queensland have established the International Mining for Development Centre (IM4DC) to facilitate the development of world-class mining practice to improve social and economic benefit.

IM4DC is a key element of Australia’s Mining for Development Initiative and commenced operations in October 2011 to assist in lifting the quality of life in resource-rich developing nations through a more sustainable use of mineral and energy resources.

The benefits of the work of IM4DC for developing nations are realised principally through increased skill levels of key personnel within government, universities, research institutions and other organisations through short courses, fellowships, research and information exchange to bring about:

• improvedpoliciesandpracticesinthe governance and management of extractive industries and their interactions with society and the environment

• improvedlegislativeframeworks

• improvedknowledgeofacountry’sresources base

• anabilitytocontinuetobuildlocalcapacity in minerals governance and mining.

OVERVIEW

Timothy Moono Zambia Australia Alumni Association Ambassador

In his remarks, Timothy Moono, Zambia Australia Awards Alumni (ZAAA) Ambassador referenced the official launch of ZAAA by His Excellency Mr. Matthew Neuhaus, the Australia High Commissioner to Zambia and Zimbabwe. He spoke of the objectives of ZAAA, which include providing a platform for networking among alumni within and outside Zambia and participating in the development and implementation of sound policies in Zambia.

Message from His Excellency Matthew Neuhaus Australian High Commissioner to Zimbabwe and Zambia (read on his behalf by Richard Slattery)

His Excellency, the High Commissioner, was delighted to learn about the Alumni gathering in Zambia to celebrate the training and achievements in the Mining for Development program.

The High Commissioner highlighted that he was there at the origin of the program in Perth in 2011 during the Commonwealth Heads of Government meeting. He mentioned that since that time, over a thousand participants from around 40 developing countries have benefited from the wide range of professional courses, study tours and conferences under the program.

This means Australia has contributed significantly to the development of expertise and understanding of issues on mining in developing countries and has been generous in sharing knowledge and skills. The High Commissioner shared an example of empowerment provided by the program “Handbook of 50 pieces of advice to an official who is engaged in the Negotiation of Mining Contracts” by Fabien Nkot, University of Yaounde, Cameroon.

His Excellency also mentioned the complimentary role courses have played to the extensive Australian mining investments in Zambia. He paid special tribute to IM4DC Director Ian Satchwell and the leadership of The University of Western Australia (UWA) and The University of Queensland (UQ) in Australia in taking the program forward.

Richard Slattery Deputy Director Operations and Business Development, IM4DC

Richard Slattery emphasized that the forum and the launch of ZAM4D Alumni were an IM4DC priority. He noted that achieving development from mining is different for the following reasons:

• Itislinkedtoglobalmarketsandcommercially implemented;

• Itcomeswithsomepoorheritage;

• Itisanationutilisinganon–renewable resource;

• Itsimplementationcanbeprotractedin timeframe and dominating in scale;

• Therearesignificantopportunitiesand risks; and

• Theopportunitiesarerealisedinshared benefit and value.

“In this context IM4DC believes it has value to add by encouraging, developing and empowering individuals, organisations and coalitions to address the challenge and influence the realisation of social and economic development. This is done collaboratively by sharing knowledge, engaging in and validating policy discourse and supporting credible local interventions.”

He said that IM4DC aspires for developing countries to transform their resource endowment to inclusive and sustainable economic and social development. He mentioned that this is why the alumni is critical. “Alumni have a role through stewardship, leadership, influence and coalitions that will realise this transformation. This is cross sectorial and cross discipline.”

Hon. Christopher Yaluma Minister of Mines, Energy and Water Development

The Hon. Christopher Yaluma expressed gratitude to be associated with the Alumni Day and Launch of the ZAM4D Alumni as “a platform for various stakeholders to network, exchange ideas, share experiences and also to provide input for future Australian capacity building priorities, delivery modes as well as mechanism of strengthening existing partnerships for the development of the mining sector.”

The Minister stated that the theme of the event was relevant and timely because mining is the driving force of Zambia’s economic development. He further indicated that the launch of the ZAM4D Alumni will provide an opportunity to deliberate on how best the continued growth of the mining sector can be safeguarded for Zambia’s enhanced socio-economic development.

He emphasised that Zambia is endowed with a vast amount of mineral resources which need to be properly utilised He mentioned the huge challenge faced by Zambia to ensure it receives an appropriate share of the economic rent at the same time attracting and sustaining much needed foreign investment. “There is need for Zambia to have a pool of trained, and experienced professionals to manage such a complex system.”

The Minister also commended the Australian government for supporting Zambia through knowledge transfer, capacity development and professional training. He paid special tribute to IM4DC for building capacity among Zambians, noting the opportune timing of ZAM4D Alumni as Zambia needs to establish viable partnerships and harness the available mineral wealth for community benefit. He spoke of the government’s approach to address the skills shortage by reviewing curriculum in training centers and encouraging mining companies to work with training institutions to deliver skills development. He emphasised that “alumni should continue providing a valuable link and work closely with other local, regional and international partners such as IM4DC, The AU and African Mining Development Centre (AMDC) to position themselves as a resource centre and a consultative forum for mining for development in Zambia.”

3

4

Inaugural lecture

Dr Wifred Lombe form er African Minerals Development Centre Coordinator

Dr Lombe’spresentation, “Mainstreaming the Africa Mining Vision (AMV) into National Development” began by explaining the African Mining Vision was adopted by the African Heads of State and Government in February 2009. It seeks to create a “Transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socio-economic development”.

He outlined the principles of AMV as:

• Harnessingthepotentialofsmallscale mining

• Optimisingknowledgeandbenefits

• Fosteringsustainabledevelopmentprinciples

• Fosteringatransparentandaccountable mineral sector

• Buildinghumanandinstitutionalcapacities

• Developingadiversifiedandgloballycompetitive African mineral industry

• Promotinggoodgovernanceofthemineral

Dr Lombe said an action plan coordinated by Africa Minerals Development Centre and Country Mining Visions (CMV), will guide implementation of the AMV. CMV is a tool for designing AMV compliant mineral policies which provides the institutional framework for intersectoral coordination through high level inter-ministerial dialogue.

“CMV creates space for shared and integrated implementation of AMV by all stakeholders through participation and joint ownership of activities”. He said the current situation and medium and long term development goals can be divided into seven areas: policy and licensing; geological and mining information systems; governance and participation; artisanal and small-scale mining; linkages, investment and diversification; human capital and institutional capacities; and environment and social issues. He then presented the process Lesotho undertook in developing its country mining vision.

The key drivers and success factors of the Africa Mining Vision

A shared belief that mining in Africa has to play a developmental role

Strong leadership and ownership by Government over development outcomes

A shared understanding of the differing stakeholder roles and space for the roles to be played

A shared understanding of the key drivers and the associated benefits and costs

A shared understanding that implementing the developmental outcomes is the responsibility of all stakeholders

Strong partnerships and ownership of outcomes by all stakeholders

Alumni panellists

Belinda Zimba Environment/Project Coordinator, Citizens for Better Environment

Environmental management consultant and IM4DC Emerging Leaders in African Mining 2014 Alumnus, Belinda Zimba was also supported by IM4DC to attend Columbia Center on Sustainable Investment’s Executive Training Program on Extractive Industries and Sustainable Development in New York in 2014. She pointed out that the Zambian extractive industry has created significant environmental burdens which have reduced benefits obtained from mineral wealth. She attributed this primarily to lack of action on environmental legal mandates and limited community engagement during environmental impact assessments.

She noted key lessons learnt over time including the importance of personal leadership, involvement of stakeholders (public participation) and the Africa Mining Vision advocacy to augment benefits from the extractive industry. She has implemented these lessons by creating Community Environmental Protection Committees and establishing dialogue between communities and companies, for example, Butondo Stakeholder Committee to solve acid mist emission and sulphur dioxide in Mufulira. The burden on Zambia Environmental Management Agency has been reduced through inclusive decision making and funds raised through Global Green Grants (GGF) to procure monitoring equipment for the participatory environmental management and compliance monitoring by the community. Other mining companies have expressed an interest in implementing the ‘Dialogue Strategy’ as part of their grievance mechanisms.

Dr. Bunda Besa Head, Mining Engineering Department, The University of Zambia

Dr Besa’s, presentation was titled “Outcomes of my engagement with IM4DC programs”. It began by describing his first involvement with IM4DC in 2012 when he participated in a Life of Mine Management of Large Volume Waste course in Brisbane. Based on this engagement, he made a number of pledges;

• TobecomeinvolvedinIM4DCactivitiesin Zambia / Africa especially training;

• Torunshortcoursesincollaborationwith IM4DC in Zambia and Africa;

• Toinitiatetheprocessofreviewingmining engineering curriculum to include some knowledge gained from the course;

• Toworkwithpolicymakersandotherconcerned stakeholders so waste management issues are addressed effectively;

• Toinitiateaconsultancyaswellasresearch in mining related activities.

When he returned home Dr Besa began to implement some of his pledges, successfully organizing courses on:

• ManagementofLargeVolumeWastein mining, Lusaka 2012;

• RiskanalysisandManagementinMineral Industry, Kitwe 2013;

• IncidentInvestigationandAnalysis,Kitwe 2013;

• ArcGIScourse,Lusaka2014.

As a result of these courses, inspectors are now able to confidently conduct an incident investigation and write an investigation report.

Through IM4DC support, Dr Besa has participated in a number of training programs including: Masterclass in Mineral Economics in Perth Australia in 2013; IM4DC Mining for Development Conference and Alumni Forum 2013; and the Extractive Industry Transparency Initiative Conference.

These events enabled him to explore broader aspects of resource governance. Dr Besa was also supported to attend the Australia Africa University Network (AAUN) forum on mining, the African steering group meeting in South Africa to evaluate The University of Zambia (UNZA) joining the network. Dr Besa was pleased to report that UNZA is now a member of the AAUN and is enjoying the benefits of the network.

At this stage Dr. Besa has not fulfilled all his pledges although he is involved in IM4DC activities and has pledged to continue. He will also work with ZAM4D Alumni for the development of Zambia and Africa. He hopes to strengthen the bilateral cooperation between Zambia and Australia and thanked the Australian Government through IM4DC for their support.

George Banda Acting Chief Inspector, Mines and Explosives, Mines Safety Department (MSD)

George Banda an alumnus of Occupational Health and Safety Management 2012, OHS Incident Investigation 2014 and Mines Inspector Leadership Program 2014 delivered a presentation entitled “Realizing the Benefits of IM4DC Collaborations”. A key benefit for the Mines Safety Department, according to Mr Banda, is the number of individual inspectors able to attend various IM4DC courses and their improved confidence and conduct of accidents/incidents investigations.

“There is a shift to the approach in OSH matters, from reactive to pro-active inspections guided by Inspection Guides,” he said. Other long term benefits to the industry include:

• AmoreenlightenedworkforceonOSH matters

• Reducedaccidents

• Highproductivity

• Inspectorsarewellequippedto

handle OHS in the Mining Industry

Martha Mutalange Acting Health Inspector, Kitwe City Council

Mainza Sibajene Senior Planner, Kitwe City Council

Martha Mutalange and Mainza Sibajene made a joint presentation - “Overview of the project for construction of an engineering landfill in Kitwe”. Martha is an alumnus of Regional Development, Ghana 2013 and Mainza participated in Regional Development Ghana 2013, Masterclass Resource Governance 2014 and Geotechnical and Environmental Management of Large Volume Waste Kitwe 2014. They discussed the proposed sanitary landfill in Kitwe which will mitigate negative environmental issues, such as air and water pollution. The planned landfill of around 20 hectares will be designed to allow dumping of waste for more than 20 years. Project benefits will include a tightly regulated and responsible waste disposal method to remove current and potential pollution and local employment opportunities. There will be work for around 200 people during construction and 60 during operations. Potential project outcomes are new waste management districts in Kitwe to improve collection efficiency; improved stakeholder collaboration including mining companies; and formation of a waste management unit at Kitwe City Council.

5

ZAM4D presentations

Edward Chisakulo Lecturer, Copperbelt University

Edward Chisakulo gave a presentation entitled “Perceptions on Revenue Capturing as a way of increasing benefits from mineral wealth in Zambia.” He highlighted the problem of mineral taxation and contrasted the unique project life cycle and cash flow of the mining sector compared to typical manufacturing industries. He talked about taxation policy aims in Zambia to earn as much government revenue as possible from the exploitation of mineral resources. Edward Chisakulo spoke of the limited capacity to carry out regular minimum monitoring and auditing of copper mining companies in Zambia and the areas in need of attention:

• Bordersitestoverifywhatisbeingsold out of the country

• Trackingtheunder-reportingofproduction volumes, grade, and intermediate products and by-products

• Fullappreciationofthecomplicatedvalue chain involved in large scale copper mining

• Understandingtherefiningand/orsmelting carried out by separate or associated companies

Mwiya Mwandawande National Coordinator, Extractive Industry Transparency Alliance

In his presentation, Mwiya Mwandawande shared some of the common conflicts arising between mines and the communities in Zambia and steps the mines should take to involve the communities to avoid and or address the conflicts. Key causes of conflicts include: lack of community access to

information that will allow them to negotiate from a position of knowledge and power; mines disrespect of community culture and heritage; mines divide communities and corrupt structures of traditional and democratic governance; mines prevent communities from participating fully in the benefits of mining such as joint ownership, employment, procurement and management of mines; lack of planning and provision for mine closure and completion, leaving communities with massive environmental costs.

He mentioned the importance of community consultation and systems for community shared ownership that will see benefits of mining accruing to the community while mitigating the negative impact of mining. He emphasised the importance of mining companies recognising the right of the community to continue prior and informed consent, as well as their right to independent legal representation and expert technical, social and environmental advice. He further commented that communities must be aware of their rights and the mine’s responsibilities during closure and completion.

Sifariano Banda Head, Zambia EITI Secretariat

Sifariano Banda presented the background and objectives of EITI in Zambia during his presentation. He spoke of the goal to promote transparency and accountability in the mining sector by disclosing payments by mining companies and revenue received by the Government and to contribute to poverty reduction and sustainable development. The benefits of EITI in Zambia include:

• Improvedgovernance

• Fightagainsttaxevasion

• Fightagainstmisappropriationofpublic funds

• Improvedrevenuecollection

• Improvescreditratingandinvestment

• Reducesriskofconflict

Augustine Mubanga Vice National Coordinator for ZAM4D and President Association of Mine Suppliers and Contractors - Zambia

Augustine Mubanga spoke on the “Promotion of local content as a way of increasing benefits from national mineral wealth.” He observed that “A local content strategy is not a quick fix or a route to achieving short-term benefits. It requires planning, coordination, resources and perseverance to obtain improvements—which are often realised in the long term.”

Quoting World Bank report- June 17, 2014

‘On the competitiveness of mining, the report shows that the demand for mining-related goods and services soared in the past decade because of investments, but the share of Zambian suppliers remains low (around 4% of total local sourcing worth $2.5-4 billion in 2012). There are a large number of suppliers, but value addition is low. Most suppliers are also traders and distributors.

Zambian suppliers find it hard to break into sophisticated supply chains of mining companies. Developing competitiveness is constrained by skills scarcity and gaps that prevent firms from technological upgrading, low capital investment by local service providers and structural cost-raising factors common to other sectors of the economy, such as border costs and access to capital.’

He highlighted the opportunities of local content in broadening tax contribution to the central government, building local workforce capacity, providing opportunities for diversification and creating shared value. However challenges to local content implementation include willingness of mine companies, government bureaucracy, lack of program consistency, quick fix initiatives that are not inclusive, lack of enforcement and monitoring, lack of government support and no legal framework to operate from.

6

Alumni speed presentationsTwo alumni delivered speed presentations of five minutes outlining implementation of their learning outcomes from participating in IM4DC programs. Sidney Sichilima, Lecturer Copperbelt University discussed lessons learned in his Mineral Industry Risk Management training. Chileshe Mwiko, Director of Administration Kasama Municipal Council, shared key elements of her return to work project, after attending an IM4DC OHS course in 2014 where she began a project to reduce or remove the risk to health, safety and welfare of workers and any one affected by operations at the Municipality of Kasama. Successes included the creation of a team to help develop the OHS plan, formulation of a work plan for training of employees and the inclusion of the OHS activities in the budget.

Alumni workshop – Significant changes in mining for development in ZambiaAs part of the Alumni Day, a workshop was held to capture significant changes in mining for development in Zambia and provide input for future Australian government DFAT capacity building priorities and delivery modes.

Alumni were seated in five thematic groups: policy and governance; health, safety and regulation; environment; community; and training and research. They were asked to consider specific examples of significant changes within their sphere of influence; challenges and personal commitments for the future.

Policy and Governance

Significant changes

• Policychangesintheareasofresettlement, relocation and compensation

• Distributionofmineroyalties

• Supportingthedevelopmentofsmallscale mining operations

• Enhancedcollaborationamongstakeholders and capacity building through training programs

• InvolvementofFirstQuantumMinerals to review the resettlement and compensation package for 1,400 households in Kalumbila

• Localsupplydevelopmentandbusiness opportunities

Areas for improvement

• Enforcementoflegislation

• Regulationbygovernmentinstitutions and private sector compliance on responsible mining

• Changeofpolicytoencouragesmallscale mining operations

• Skillsdevelopmentandtraining

• Enhancementofinstitutionalcapacitiesfor tax administration and monitoring

• Enhancesensitizationandmonitoring

• Disclosureofinformationonminingactivities

• Curbingcorruptionfromthegrantingof licenses

Environment

Significant changes

• Trainingmanualonenvironmentalpolicy and regulation; significant capacity building; prevention of pollution; streamlined mining operations; and ensuring sustainability of operations at all levels

• TheEnvironmentalImpactAssessmentReview Process in Zambia has been structured to ensure ecological balance; economic and social sustainability

• Guidelinesforauditingminingcompanies in accordance with environmental protection mandate - ensures that environmental and social liabilities are captured and that liabilities are costed accurately

Areas for improvement

• Increasedcommunitysensitisation on environmental laws

• Sensitisationandharmonisation of policies

• Capacitydevelopmentinareasofenvironmental protection in a fully developed system.

Training and research

Significant changes

• Localauctioningofgemstoneshasincreased local revenue.

• Capacityofresearchandteachingat UNZA and CBU has improved significantly at both undergraduate and postgraduate level.

Areas for improvement

• Smallscaleminersinthegemstonesector to acquire skills in basic processing and value addition

• Furtherresearch,trainingandcapacity building opportunities

7

Feedback overview

What was the most important information you learnt?

“ The existence of the Africa Mining Vision and what it’s all about.“

“ The information presented by the EITI representative. I felt it was a true reflection of community reactions (and to some extent, ignorance) to local mining activities. All other information presented was also vital.“

“ Discussions and presentations clearly indicated that a lot of knowledge is available amongst the alumni. Issues on local content were very interesting and relevant lesson for Zambia.”

“ Initiatives on environmental impact and management. Benefits of community participation. The AMV and CMV principles and plan to realise mining benefits, sector.“

“ I was very amazed at what efforts are being put in place in terms of increasing both the quality and quantity of the benefication process of the resource sector and how much more effort needs to be done to for this.“

“ That mining is comprised of so many actors who when coordinated and strengthened can interact together and can yield significant development.

“ The workshop presentations and experiences from the different alumni was very excellent and helpful for future activity monitoring.”

Partners• CopperbeltUniversity

• MinesSafetyDepartment, Ministry of Mines Energy and Water Development

• UniversityofZambia,SchoolofMines

IM4DC delivery in Zambia at November 2014

IM4DC activities attended by Zambians

4238 Short courses 3 Alumni Events 1 Conference

Courses delivered in Zambia

6OHS incident investigationRisk managementManagement of large volume wasteApplication of GIS

Research projects specifically including Zambia

5The potential of Zambian copper-cobalt hyperaccumulator plants for phytoremediation of polluted (mining/smelter) soils

Regionalplanning–ZambiaCaseStudy

Participants

150Zambian

18%females

38organisations

Thank you to the Local Coordinating CommitteeVincent. Kawamya ZAM4D Alumni Coordinator / Lecturer, Copperbelt University

Augustine Mubanga ZAM4D Alumni Vice- Coordinator/ President, Mine Suppliers Association of Zambia

Dr Bunda Besa ZAM4D Alumni Secretary / Lecturer, University of Zambia

Edward Chisakulo Lecturer, Copperbelt University

Christopher Simuntala Head of Biotechnology, Central Veterinary Research Institute

Belinda Zimba Environment/Project Coordinator, Citizens for a Better Environment

Dr Enock Sakala Lecturer, University of Zambia