BALUBA M I NE ’ s SURVIVAL PLAN

1: Preamble:

During 2006, the Baluba concentrator under the leadership of Ken Seecharran as
Manager and ably supported by Vincent Namushi as Plant metallurgist, and
logistics provided by Johnson Chola as General Foreman, experimented with the
reprocessing of discarded 14 shaft mine waste, which was crushed and dumped
on the surface between the early 1950’s and the mid 1980’s. Mr Seecharran used
his vast copper flotation experience on three continents to support his economic
justification of a total copper recovery of 55% for the treatment process.

Figure 1: Luanshya Copper Mines as seen from Roan Township

In reality, the plant achieved 65% copper recovery; this was as a result of the
commitment of the plant operators to this noble cause. As Mr Seecharran was
leaving Zambia to take up an appointment in the DR Congo, he cited this
achievement of using surface waste to make copper in his farewell message to
the metallurgical staff by saying, “We have proven that in the unlikely
event of the present investors having to walk away from Luanshya, you
guys will never have to endure what you went through with the
unceremonious departure of Binani. My staff and I proved that copper

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can be made at a minimal cost utilising discarded surface waste; please
let that be your inspiration to persevere for the development of the
country and for the well being of your families”

Figure 2: Baluba’s concentrator efficient two-stage crushing plant

This report, explains in details the costing and logistical implications which were
involved in such a venture. It conclusively proves that the Baluba mine
should not be put on care and maintenance but continue to produce
copper for the benefit of the country and the workers involved in the
venture.

2: Assumptions:

• The plant will process 5 000 tonnes of waste per day, working 24 hours
per day, this equates to 14 trucks of 15 tonnes capacity per hour.
• Tipping of the ore will be done on the Cable Belt transfer conveyor, TB1,
feed end. Tipping will be carried out North and South, thus allowing two
trucks to tip simultaneously, in a safe manner.

Figure 3: Ore flowing on TB1 conveyor

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• Loading of trucks will take place at two points on the waste dump, this
well ease congestion, and facilitate the smooth flow of traffic.
• Since the waste was primary crushed before being tipped, there will be no
need for blasting. Large rocks will be shifted aside and manual labour
used to break them before loading.
• Since the waste is predominantly copper bearing, the chemical reagents
associated with cobalt processing (lime, cyanide and dithiophosphate) will
not be required, contributing to significant cost savings.
• Forged mill balls will be used because of its cost effectiveness.
• Local industries will be given preference to foreign ones. Because of
logistics, and our commitment to forge a Zambian symbiosis.
• A person who owns a successful business will be brought in to handle the
procurement function. In so doing, that person will know all the tricks
involved in the supply function, and get the best bargains, in terms of
quality and pricing, for the mine. Ie the classical case of the proverbial
poacher becoming game ranger syndrome!!!
• Overtime will not be paid, everyone from GM to helper will work until the
work is finished, or he/she is relieved, before going home. The Kibbutz
principle from Israel!!!
• There will be a quarterly profit sharing bonus scheme to compensate for
the sterling work called for above. It is proposed that 25% of all profit
made be shared, in proportion to salary, to EVERY worker. This will act as
a motivation and will deter thefts. It will also spur hard working members
of the team to drive their lagging counterparts.
• The hospital will be maintained as a service to the workers and to the
community, but as a self funding concern.
• The appointment of a Government Liaison manager will be made; his/her
function will be regular liaison with the local and central Governments.
The stakeholders must be kept informed at regular intervals!!!
• Communication meetings will be held on a quarterly basis at which the
production activities of the mine will be review and the bonus percentage
announced. Attendance will represent a cross section of the entire work
force.
• Workers will work 12-hour shifts. This will require a three-shift rotation
system, as opposed to the current four shifts system.

Figure 4: Baluba’s milling section

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3: Calculations:

• 5 000 tonnes per day.

• Feed grade 0.55% Cu, for average case scenario, 0.45% Cu for worst
case scenario, and 0.40% Cu for extreme worst case scenario.
• Plant recovery 65% total Cu, although higher recoveries can be expected
as shown below at the Frontier mine 50kms away.

W ASTE ROCK TREATMENT

91.0

86.0
RY(%)

81.0
RECOVE

76.0

71.0

66.0
0.14 0.24 0.34 0.44 0.54
GRADE % Cu

Figure 5: Average grade waste rock treatment at Frontier mine

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 WASTE ROCK TREATMENT LOW GRADE

90.0

85.0
RECOVERY(%)

80.0

75.0

70.0

65.0

60.0
0.14 0.24 0.34 0.44
GRADE (%Cu)

Figure 6: Low grade waste rock treatment at Frontier mine

• Smelter/refinery combined recoveries 95%.

• Processing cost 7¢/lb recoverable copper for average case scenario,
8¢/lb for worst case scenario and 10¢/lb for extreme worst case scenario
due to increased mill balls usage.
• Mining and transporting cost to plant, max 5kms, 5¢/lb recoverable
copper for average case scenario, 7¢/lb for worst case scenario and 9¢/lb
for extreme worst case scenario, because of the larger volume of barren
rock at the lower grade to be transported.
• Overheads and contingencies, 3¢/lb recoverable copper for average case
scenario, 4¢/lb for worst case scenario and 5¢/lb for extreme worst case
scenario.
• LME selling price of copper $1.10/lb, for average case scenario $1.00/lb
for worst case scenario and $0.90/lb for extreme worst case scenario.

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3.1 Average Case Scenario

1. Production, volume and cost:

(5 000X0.55X0.65X0.95)/100x2 205>>>>>37 443 lbs of copper
per day…….@ $1.10/lb>>>>>> $41 000 per day in revenue
2. Operating Cost: 37 443X(7+5+3)/100>>>>>> $5 616, say
$5 700 in expenses
3. Profit: Daily profit is expected to be $41 000 - $5 700 = $35 300
say $35 000
Operating 350 days per year gives $12.25m, or $1m per month profit

3.2 Worst Case Scenario

1. Production, volume and cost:

(5 000X0.45X0.65X0.95)/100X2 205>>>>>30 635 lbs of copper
per day…….@ $1.00/lb>>>>>> $30 635 per day in revenue
2. Operating Cost: 30 635X(8+7+4)/100>>>>>> $5 820, say
$5 900 in expenses
3. Profit: Daily profit is expected to be $30 635 - $5 900 = $24 735
say $24 500
Operating 350 days per year gives $8.57m, or $0.7m per month profit

3.3 Extreme Worst Case Scenario

1. Production, volume and cost:

(5 000X0.40X0.65X0.95)/100X2 205>>>>>27 231 lbs of copper
per day…….@$0.90/lb>>>>>>$24 508 per day in revenue
2. Operating Cost: 27 231X(10+9+5)/100>>>>>> $6 535 say
$6 600 in expenses
3. Profit: Daily profit is expected to be $24 500 - $6 600 = $17 900
Operating 350 days per year gives $6.26m, or $0.5m per month profit

3.4 Extreme Worst Case Scenario, with doubled cost

1. Production, volume and cost:

(5 000X0.40X.65X.95)/100X2 205>>>>>27 231 lbs of copper
per day…….@$0.90/lb>>>>>>$24 508 per day in revenue
2. Operating Cost: 27 231X(20+18+10)>>>>>> $13 070 say
$13 100 in expenses
3. Profit: Daily profit is expected to be $24 500 - $13 100 = $11 100
Operating 350 days per year gives $ $3.88m, or $0.3m per month profit

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4: Conclusions:

• The above presentation shows conclusively that the surface waste from
the defunct Luanshya mine could be reprocessed to sustain profitably at
the mine as a going concern, employing about 150 people.
• The general manager will have a financial model on his computer, as the
LME price increases; he will calculate when 18 shaft and 28 shaft waste
can be trucked into the plant from Mpatamatu.
• While 14 shaft waste is being processed, unemployed youths will be
placed on the two Mpatamatu waste dumps to hand pick copper rocks,
they will be paid according to the copper content of such ore.
• The underground workings will be placed on care and maintenance to
prevent flooding of the mine and vandalism.

Figure 7: Baluba mine, to be placed under care and maintenance

• The people working with the mine will be taught life skills on the running
of a successful enterprise.
• This will be a model for the rest of the copperbelt to follow, utilising the
vast tonnages mine waste discarded on surface, at every copperbelt mine.
But as the connotations which go with the name, this material is often
overlooked. This project will prove that with innovation, experience and
ingenuity, such waste can be converted to a valuable resource to benefit
the country.
• The surface waste which is seen as an environmental “eye sore” will be
processed and the ensuing waste stored in the tailings dams in a
responsible manner.
• The concentrate produced is deemed to be “sweet” for smelting. This is
attributed to the high pyrite content which makes it exothermic (gives off
heat, and saving on smelting fuel). In addition, it contributes to a low
viscosity slag, thus improving smelter recovery.

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Figure 8: “Sweet” flotation concentrate, cherished by all smelters

Figure 9: Baluba’s flotation section, rebuilt using local expertise

• This venture will act as motivation for the youths of Zambia, proving to
them that external investors are not the panacea for all development!!
• Great emphasis will be placed on multiskilling of the workforce.
• Such a venture will restore the rich mining heritage on which Roan
Antelope (Luanshya) was founded, and so many miners’ lives were
sacrificed!!!
• Local suppliers will be given a dedicated part in the mine store to hold
consignment stock, to be controlled by their staff. Issues will be reconciled
at the end of each month, and payment promptly made 30 days later.
• The cost of running the mine is expected to be high initially, but as the
company culture disseminates, and efficiencies are achieved, cost is
expected to steadily reduce.
• The results of Figures 5 and 6, from the Frontier mine in Sakania, 47 kms
away show that a higher recovery can be obtained if waste alone is
treated, as opposed to treating a mixture of waste and virgin ore. In this
case, between 15 and 22% greater production/revenue is to be expected.

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• The amount of funding required as working capital can be met by a
consortium of Zambian entrepreneurs.

Figure 10: 15-year copper price graph,………..clear patch shows the

price band used in this financial model