Mining Sector Diversification Programmecdn1.practicalaction.org/2/0/4d927dca-443c-42cd-be5f...Programme/Project Title Mining Sector Diversification Programme EDF Accounting Number

Swedish Geological AB Rehnsgatan 20

Mining Sector Diversification Programme

Financing source: Lomé IV-8th European Development Fund

Project Accounting Number:Financing Agreement:

Identification Number:Service Contract Number:

8 ACP ZA 036 6308/ZA ZA/9999/001 TA/ZAM/001/02

Phase One Report with Statement 2002/2006

Ending 2006-12-31

(18 January 2007)

V1.0

PO Box 19090 SE-104 32 Stockholm Sweden

Programme/Project Title: Mining Sector Diversification Programme EDF Accounting Number 8 ACP ZA 036

Table of Contents Table of Contents Abbreviations Executive summary 1Recommendations 3Logical Framework - Results 7Logical Framework - Activities 14Achievements in Phase 1 - Results 22Achievements in Phase 1 - Activities 33 Annex A MSDP Steering committee and sub-committees Annex B Contractual Issues Annex C Phase 1 Statement Annex D MSDP PMU administration Annex E Monitoring and Evaluation Documents Ω

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Table of contents

Programme/Project Title Mining Sector Diversification Programme EDF Accounting Number 8 ACP ZA 036

Abbreviations and definitions

1Q2002 First quarter 2002, etc. 1QR2002 First quarterly report 2002, etc. 1WP/CE First Work Programme with Cost Estimate (1WP/CE) 1WP/CE1 First Work Programme for the period 1 April – 31 December 2002, (With commitments

and activities to 31 July 2002), Cost Estimate No 1 1WP/CE2 First Work Programme for the period 1 April – 31 December 2002, (With commitments

and activities from 1 August to 31 December 2002), Cost Estimate No 2 2WP/CE Second Work Programme and Cost Estimate for January to December 2003 3WP/CE Third Work Programme and Cost Estimate for January 2004 to September 2005 4PE Fourth Programme Estimate for October 2005 to December 2006 AFEWIGMM Association for the Empowerment of Women in Gemstone and Mineral Mining AGM Annual general meeting ASM Artisanal small miners (See definition) AZWIM Association of Zambian Women in Mining CASM Community and Small-scale Mining (WB and DFID) CE Cost Estimate CSO Central Statistics Office dB Database DBZ Development Bank of Zambia DDP Delivery Duty Paid DMG Danish Management Group EA Export advisor EBZ Export Board of Zambia EC European Commission EDF European Development Fund EIA Environmental impact assessment EIB European Investment Bank EIB/FF European Investment Bank Financing Facility ERIPTA Economic Recovery Investment Programme Technical Assistance (WB project) ESMAZ Emerald and Semi-precious stones Mining Association of Zambia EU European Union F&I Finance and investment FA Financial advisor FI Financial institution FDI Foreign direct investment GIS/dB Geographic Information System/Database GRZ Government of the Republic of Zambia GSD Geological Survey Department of MMMD ISP Internet service provider IT Information technology Lilayi MTR Mid-Term Review Stakeholders Workshop, Lilayi, 21 October, 2004 LFA Logical Framework Analysis LT Long term MCTI Ministry of Commerce Trade and Industry MDD Mines Development Department of the MMMD ME Mining engineer

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Abbreviations & definitions


MFNP Ministry of Finance and National Planning MFI Micro finance institution MIS Management information system/s MLSD Ministry of Lands Survey Department MMMD Ministry of Mines and Minerals Development MoU Memorandum of understanding MR Midterm review MSDP Mining Sector Diversification Programme MSDP/SC MSDP Steering committee NAO-EDF National Authorising Office of the European Development Fund NAPSA National Pension Scheme Authority NEDT National Economic Diversification Taskforce NTE Non-traditional export NTM Non-traditional miners NTMS Non-traditional mining sector (participants) OJ Official Journal of the European Communities PDAC Prospectors and Developers Association of Canada PFI Participating financial institution (in the EIB/FF) PM Project management ~tools, etc PM Programme manager PMU Programme management unit PPF Pre-production loan facility PSDG Private Sector Donor Group PSDP Private Sector Development Programme PSDTF Government Private Sector Diversification Task Force RA Regional Advisor RA-Cb NW&L Regional Advisor Copperbelt North-Western & Luapula RA-ENC Regional Advisor Eastern Northern & Central RA-S&W Regional Advisor Southern & Western RMB Regional Mining Bureau RoE Rate of Exchange S&M Small and micro (mines/miners) SADC Southern African Development Community SC Steering committee of MSDP SGAB Swedish Geological AB, a wholly owned subsidiary of the HIFAB group SLF Small loan facility SMM Small medium and micro (mines/miners) SSM Small-scale mining (or miners) ST Short term STC Short term consultant SuWP Start-up work programme TA Technical assistance TAP Technical and administrative provisions for implementation (of the MSDP) TBA To be advised ToR Terms of reference (for the MSDP contracts) TESF Trade and Enterprise Support Facility TSX Toronto Stock Exchange UNZA University of Zambia




UNZA SoM University of Zambia, School of Mines WB World Bank VE Valuation expert VPN Virtual private network WP/CE Work programme/cost estimates ZEPZA Zambian Export Processing Zones Authority ZIC Zambian Investment Centre ZMK Zambian Kwacha ZPA Zambian Privatisation Agency ZRA Zambia Revenue Authority

Definitions

MSDP definition of small-scale mining community Volume 13 of the Laws of the Republic of Zambia, Mines and Minerals Act, 1995 [Cap 213] and ancillary legislation [Caps214-220] does not contain a clear definition of “small scale mining”. The different classes of mining as dealt with in the Act describe them under the different types of licence: viz. mining is classed into two sections, Large scale mining operations, for which the following licences apply: Prospecting licences, Retention licences & Large scale mining licences and Small scale mining operations, for which the following licences apply: Prospecting permits, Small-scale mining licences, Gemstone licences. Under Part VII provision is made for Artisanal mining rights. The granting of such rights are not renewable and may only be made for two years and are intended to be for communal mining activities. It is not clear from the act what should occur after 2 years, but general consensus holds that the licences are expected to be upgraded. The following definition has been adapted from the literature to assist in focussing project resources. Artisanal small-scale mining (ASM): Sub-sector of Small-scale mining. Mining undertaken as a livelihood activity usually together with peasant agriculture or some other form of income generation. Absence of or little mechanisation, low safety standards, poorly trained personnel, low pay scale, low productivity, chronic lack of capital, little consideration of environmental impacts, sometimes registered as an artisanal minor or unregistered. Artisanal miner in transition : A miner exhibiting entrepreneurial organisational skills, some level of mechanisation, division of labour, market linkages, etc. Small-scale mining: Mining activities that are adequately capitalised and properly mechanised to ensure sustainable effective and profitable exploitation of a mineral resource.

Ω




End of Phase One Report 2002 - 2006 Summary This report records the achievements of the Mining Sector Diversification Programme during the first phase. After summarising the outputs from the phase, the report makes recommendations for similar programmes and follow-on work in Zambia. The details of the work are recorded using the logical framework and reinforced with a short narrative section at the end. Despite design and administrative constraints much has been achieved during Phase 1. The Mining Sector Diversification (MSDP) targets the Non-Traditional (i.e. excluding copper and cobalt mining) mining sector (NTMS) to develop the sustainable exploitation of mineral commodities, including gemstones, industrial minerals, building materials, and metals. The Financing Agreement shows three core components;

A Credit Facility (with a Loan Facility managed by the European Investment Bank (EIB) and a Pre-Production Facility (PPF) managed by MSDP),

The Business Assist Scheme component, and The Institutional and Infrastructure Strengthening component.

Monitoring reports in 2005 and 2006 noted how the assumptions behind the Financial Facility (FF) of the project were totally unrealistic. The risk associated with some of the mining ventures, which the project could potentially support, necessitates equity investments rather than bank loans and thus small-scale miners have found it very difficult to secure the loans as envisaged by the project documentation. As a result, the loan funds have been moving slowly, Phase 1 of MSDP ran from January 2002 to December 2006. After the mid term review in 2004, there was a major change in the objectives and supervision of the programme. It was taken into the Ministry of Mines and Minerals Development (MMMD) from the Export Board of Zambia (EBZ) and a much greater emphasis was placed on institutional capacity building in MMMD. Phase 2 will run through to May 2008 following a Rider to the Financing Agreement. Unfortunately, this phase was characterised by the lack of coordination between the financial instruments of the project that compounded the poor design of the Credit Facility. The PPF that had to precede the Loan Facility was in fact launched in August 2005, while the Small Loan Facility (SLF) was signed off in late 2005. After early delays and an impasse around the mid term review, the MSDP core team of seven long-term experts has been able to deliver the planned activities and .achieved many of the expected outcomes. At the beginning of 2006, MSDP relocated to the New Government Complex (NGC) within the Mines Development Department (MDD) of the MMMD. This was a very positive development that has improved communications between MMMD and MSDP and allows easier exchange of ideas and knowledge transfer. From the Financing Facility, ten loans have been disbursed to date with a total value of 7.3million EURO. The first loan was disbursed in July 2003, and the most recent in May 2006. So far one loan has been repaid in full while three loans are in trouble/receivership. Three applications for the PPF were under evaluation at the end of Phase 1 (two emerald projects and one industrial mineral project) and are likely to be the first beneficiaries of this component. Six loans for a total of 42, 800 EURO have been granted to date under the SLF. MSDP has delivered technical training, including equipment demonstrations, to more than 900 people. Additionally, business training courses were delivered to about 669 people. The Regional Advisors, Financial Advisor, Mining Engineer and Valuation Expert have all counselled and advised clients in their offices. Approximately, 20 clients per month visited each TA and therefore more than 5,500 appointments were recorded. The international profile of Zambia as a gemstone producer has grown during Phase 1 through the sponsored attendance at the Tucson, Shenzen and Bangkok international gemstone fairs. An evaluation of gem fair participation confirmed that participants realise the benefits from this type of exposure and are committed to continuing attendance in the future. The potential for a centralised and government sponsored gemstone exchange was investigated and because such institutions have failed elsewhere the consultants recommended that gemstone marketing should be entirely left in the hands of the private sector and the controls of a free market. The training programmes were delivered in conjunction with the mining associations. Their role as service providers to their members was developed through this involvement and their capacity strengthened through training and the mentoring of the TA team. They were active participants and lobbyists for the sector throughout the Phase 1 period. A recent monitoring report highlighted the pilot project in Lufubu for small-scale iron processing with the engagement of the Association for the Welfare of Former Miners in Zambia, and the amethyst processing and marketing facility at the

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December 2006 End of Phase One Report 2002 - 2006 1 / 48.


End of Phase One Report 2002 - 2006 Mapatizya Mining Centre as fine examples of engaged communities in potentially successful enterprises that were developed by MSDP. Both projects must be finalised in Phase 2 if their full potential is to be realised. Many people believe that too many mineral resources are exported in the raw state and that value addition is necessary to increase the economic value of the commodities in Zambia. NTMS operators were encouraged to add value through simple techniques such as tumbling, the new lapidary school in Ndola received books and equipment and the local jewellery industry was stimulated through the Zambia Jewellery competition. While the country has major gemstone resources, there are other minerals that have potential for employment creation, profitable exploitation and poverty reduction. An MSDP study showed that small scale gold mining is possible and desirable in Zambia. New environmentally friendly extraction techniques were demonstrated and even acquired by at least one company. Recommendations were tabled for the support and regulation of this new activity to avoid the problems of a gold rush. This study was complimented with another with a wider remit to examine the existing and required legal and regulatory environment. MSDP mobilised resources to assist MMMD develop regulations for the extraction and preliminary processing of uranium ore. This sub-sector has a high growth potential in a world looking for energy production that avoids fossil fuels. MSDP worked extensively with the Geological Survey Department (GSD) to make geo-scientific information and geo-science services more accessible to the NTMS. New resources and areas were mapped and samples analysed using the new equipment such as the XRF and spectrometer procured through the programme. The analytical laboratory was refurbished and vehicles repaired to facilitate the work. Valuation facilities were also upgraded and the long-term shortage of human resources was addressed in part through basic gemmology training at UNZA SOM and by encouraging an increased supply of professional geoscientists. The focus was on women students and the industry responded by providing a large number of full and part scholarships for those choosing mining related courses in university. The Chamber of Mines is an important repository of geological data assembled over many decades. MSDP assisted the Chamber to digitise a portion of the data and establish a catalogue and GIS based access system. Perhaps the single most important capacity building activity at MMMD has been the development of the new computerised cadastre for managing the mining licenses using Flexicadastre software from South Africa and consultancy expertise from Sweden and working in conjunction with the World Bank SEED project a web-based system was installed that can be made available from remote locations. All stakeholders recognised the need to establish a modern computerised mining cadastre to ensure investor confidence at all levels of mining and properly controlled revenue flows for Zambia. The Regional Mining Bureaux will be regional offices for the cadastre and MSDP supported and used bureaux staff during Phase 1 to update mineral data. Organisational development workshops were implemented in the cadastre unit and their IT skills assessed in preparation for continuing training in Phase 2 of the programme. Whilst the outputs themselves are a measurable achievement it is equally or more important to assess their impact on the performance of the sector and ultimately employment creation and poverty reduction. Hard data on the performance of the sector are very hard to obtain as the NTMS is notoriously secretive and very tardy in providing even statutory reporting to the ministry. A recent study on the impact of the MSDP training conducted by independent consultants concluded that those who attended the course acquired the technical and business skills that they needed but were not able to implement what they had learned because they still needed operating finance. Some operators had left the industry because they realised their holdings would never be profitable. This should be viewed as a positive development as ultimately their tenements should come onto the market and through amalgamation with others yield businesses with potential for profitability. The authors of the training study were disappointed that mine licensees were unable to appreciate that meeting the cost of training was their responsibility and felt they were unable to make a proper judgement on the economic progress of the sector. Generally, the sector believes that government should provide the training they require and miners appear to be equally unrealistic about how much equity ownership they can retain in a joint venture or other investment deal with local and foreign investors. The next section contains a detailed description of an alternative investment vehicle to promote NTMS development and it is quite apparent that much still needs to be done to bring out the full potential of the sector to bring economic progress. GRZ is committed through the Fifth National Development Plan to continue to promote the sector through a Small Scale Mines Development Authority. MSDP hopes to support the creation of the SSMDA during Phase 2 which together with a




End of Phase One Report 2002 - 2006 new approach to financing should build a sustainable NTMS which will continue to grow. This will require the full commitment from GRZ and continuing help from cooperating partners.




End of Phase One Report 2002 - 2006 Recommendations 1. The Stakeholder Environment

1.1. Expectations There was a major problem when implementation of MSDP began in 2002. The major stakeholders had different views and perceptions of the role and modalities of MSDP. Although they had participated in the design of the project, they appeared unaware of the final changes that were made to the project. Much effort was expended early on to explain what MSDP was all about. Even up to now there are a few stakeholders (some very close and involved in the project) who do not understand what MSDP is, what it can do, how it operates and how it is managed.

The Programme Implementation Unit had a project document to implement that was very different from what everyone else expected. The project actually became a political hot potato with authorities reluctant to support a project which the stakeholders did not like.

If other projects are faced with such a large information asymmetry amongst stakeholders, they should devote enough time and resources to explain what is in the final document, and explain project procedures especially procurement. EDF agreements stipulate that the contributions from GRZ officers to the project are part of their duties and not the subject of separate remuneration; this is still an issue up to this day and led to open hostility towards the project in the earlier stages. The awareness campaigns should involve middle management.

The loan fund component of MSDP required that miners had an appreciation of mining as a business. This requirement took time to be acknowledged and appreciated by major stakeholders and a lot of time was lost trying to either wish for unrealistic lending conditions or a new loan scheme. Neither happened! Honest statements from all stakeholders and particularly the signatories to the Programme Financing Agreement concerning the conditions for the loan scheme would have closed the gap between expectations, myths and reality and removed much of the hostility expressed towards the PIU which was not implementing the loan fund nor controlling the conditionalities.

1.2. Institutional relationships The management structure of the programme was problematic from the outset and not properly rectified until after the protracted mid-term review process. The necessary close relationships with the MMMD and the financial institutions were not established with a semi-autonomous PIU reporting to EBZ but improved when the PIU was embedded in MMMD.

2. Geological Environment

2.1. Relating to Financing ASM/SSM projects Gemstone ASM mining does not justify investment in pre-production costs and mining is therefore carried out on obvious deposits that generally yield levels of output that satisfy the expectations of the artisanal miners. There are few if any examples of the successful promotion of ASM projects to SSM status, with financing being generated from mining. ASM projects were early identified to be “un-bankable”, and most TA has been targeted at strengthening associations and providing training.

The SSM operations are hampered by poor pre-production work, with little or no geological feasibility investigation being done. Mining is therefore a ‘shoot in the dark’ exercise in most cases. The cost of pre-production work is high resulting in most mining being trial and error, in most cases quickly resulting in the insolvency of the projects.

This reflects a weakness in the implementation of the policy controlling the issue and renewal of mining licences. Recommendations have been advanced by MSDP and particularly the consultants engaged to review the legal and regulatory framework, that have brought attention to the need for companies to provide adequate evidence that they have the capacity to mine prospects before licences are issued. In addition, the role of national Geological Survey Departments has changed, and private sector financed and motivated




End of Phase One Report 2002 - 2006

exploration has become the vehicle for developing new prospects. This change is not reflected in the present institutions and legal framework.

Recommendations:

o That the regulations are amended to reflect the needs of third party investment institutions;

o That licences be issued to companies with proven competence. 3. The Legal Environment

3.1. Relating to Financing ASM/SSM projects The SSM legal framework is not conducive to long-term investment. The tenure for both gemstone and small-scale mining licences are considered too short to attract long-term capital, and the regulations governing renewals is considered too subjective.

The limit of tenements for SSM licences to 400 Ha is generally far too small for commercially sustainable exploitation. This is particularly true of the Kafubu Emerald Area and the Mapatizya amethyst area. The limited size reduces their attractiveness to long-term risk capital.

GRZ has started to address these issues with the introduction of the new Mining Cadastre. Investors are looking with interest to the introduction of an objective licensing procedure when the new computerised mining rights registry is commissioned. This means that all discretionary procedures should be removed, and be replaced with a transparent objective process for the issue, renewal and cancellation of mining licenses, in line with international best practice.

It is also recommended that the properties in both Ndola Rural and Lundazi be consolidated to allow for commercial and unsustainable exploitation.

Recommendations:

o Tenements which have not been developed be repossessed as the licences expire and consolidated into properties of sufficient size to justify the levels of investment required to exploit them. These properties should be offered to investors by some transparent and competitive process, such as by public auction;

o Enforcement: It is expected that the computerised Mining Cadastre Unit will incorporate the long-expected process of objective issue/cancellation of mining licences. However, the regulatory framework requires monitoring and inspection by several institutions. It is recommended that the enforcement process be reviewed with recommendations for improvement. Cf. Zambia’s Mining Sector Policy and Strategy, which is under review.

4. The Financing Environment 4.1. Term finance versus equity financing

In addition to the difficulties SSMs experience in finding capital, few if any, including the consultants who prepare purportedly bankable documents, have any understanding of capital market operations, especially as applied to mining projects.

The true situation is that most small-scale mining in Zambia is really in the pre-feasibility stage (prospecting/exploration), and have not established dependable income streams. Such operations are not attractive to providers of term capital. As most SSMs are engaged in gemstone mining, the mining risks make even established operations poor clients for commercial banks.

During Phase One, MSDP has facilitated Zambian participation in two premier investment promotion events, the Cape Town Mining Investments conference (CT Indaba) and the Canada PDAC. Through the contacts at these conferences MSDP has tried to link Zambian miners to potential mining venture capitalists. Several MOUs were signed with a view to entering into joint venture agreements.

Recommendations:





o Because of the typical nature of small-scale mining opportunities, especially gemstones, existing financial products, including the EIB/LF, are not appropriate. Most projects do not justify investment as separate entities. The Programme TA did a great deal to promote a private investor led specialist mining company, or “Junior Mining House” with a focus on small-scale projects. Several groups had shown interest in the business potential, but by December 2006 no definitive action had been taken. It is recommended that this initiative be kept alive. A Zambia based consortium is evaluating the potential of such a business initiative, while a leading businessman involved in the coloured gemstone business will be visiting Zambia to investigate the potential for a gemstone focused mining company.

4.2. Pre Production financing (PPF) The fact has been mentioned previously that most small-scale mining projects are in the pre-feasibility stage of the mining cycle. The need to provide funding to enable miners undertake pre-feasibility studies, was identified in the Programme design, however the PPF was activated very late. Unfortunately feasibility studies are very costly, and the contribution expected from most licence holders is far beyond their means.

To address this obstacle, JVs were recommended to licence holders to enable them to finance the feasibility studies, utilising the PPF, and to then commence mining within a joint venture.

Recommendations:

o The PPF has been promoted as an incentive to the Junior Mining House investors, to identify mining targets. The facility should be allowed to operate until the close-down of the second phase of the Programme. Short-term TA can be used to assist with PPF implementation.

5. Mining equipment environment The small-scale miners in Zambia use mainly labour intensive methods of extraction. While some prospects are profitable in the short-term, most quickly become non-viable to labour intensive extraction. As most gemstone mines are based on unpredictable pegmatite deposits, investment in capital equipment is out of the question. With current equipment hire costs running at about US$100 per hour, the financial risk is extremely high. The lack of sound geological information multiplies this risk. However, duty and tax rebates are available to mine operators, but not to companies hiring equipment to mining companies.

Recommendations:

o Government introduce the same incentives for equipment companies serving the mining companies. Such an incentive should provide for more reasonable equipment hire costs.

6. Training environment The small-scale gemstone mining sector in Zambia is dominated by a work force whose education levels are either very low, or have little or no relevance to mining. For example out of a total of 669 ASMs trained, about 80% had not gone above basic secondary education and the rest managed to finish secondary education.

Though MSDP conducted business training in most of the mining areas the impact of the training will be compromised by the low basic education levels in the sector.

Recommendations:

o The establishment of an ASM training facility at a recognised vocational training institution is recommended. Successful completion of a prescribed Mining Qualification should become a prerequisite for issue of a mining licence. Such an institution should provide for the demonstration of appropriate, safe and environmentally sound technologies for mineral extraction and beneficiation by this sector of the economy

7. Marketing environment







Sponsoring members of mining associations to international trade fairs was effective, not only in terms of promoting Zambia as a source of gemstones, but also in terms of building the marketing and technical capacity of the mining and trading firms and establishing links with international buyers. The Geological Survey Department in conjunction with Export Board should continue to coordinate the participation of Zambia in at least one international gem fair per year in order to provide technical assistance to the miners and to keep up to date with the current international market trends and prices and moreover to be able to offer better gemmological services. However, the miners should make increasingly significant contributions towards the stand rental costs.

The established mining associations should affiliate their associations with the International Coloured Gemstone Association to receive further technical assistance and recognition. Previous and future participants to the international fairs should use existing market information from EBZ and Geological Survey Department to contact potential buyers prior to the show so that they can maximise their returns.

The miners need to work with their respective associations to lobby for training programmes in cutting and polishing of gemstones and value addition to their products. The Ministry of Mines and Minerals Development must play an active role in encouraging cooperation, for example with the Indian or Chinese government through their embassies in Lusaka to facilitate the training of miners in cutting and polishing of gemstones.


End of Phase One Report 2002 - 2006 MSDP - LOGICAL FRAMEWORK: (Revised 2005-02-28) Intervention Logic Planned for Programme Actual to End of Phase One Comment

Poverty alleviation in non-traditional mining communities (NTM)

Individual standards of living increased in non-traditional mining communities (% of NTM households living above the poverty line as defined by CSO – income of > 1US$ a day - increases)

General rise in household incomes throughout Zambia although those incomes are still barely or even insufficient for the basic needs basket monitored by the Jesuit Centre for Peace and Justice.

There are problems of attributability for a general rise in living standards. The Zambian economy is doing well generally at the end of the first phase of MSDP but the programme would not claim the credit for this. A recent report did suggest benefits were accruing in the mining households from better skills imparted through MSDP training.

Non-traditional miners improve their profitability through volume increase in production (in kg/year), increased export earnings and sales value in domestic and international markets

Anecdotal evidence from in-house M&E that those who have been trained to mine better and those who have marketed their production internationally through trade fairs have made economic progress during the course of the programme.

The evidence is anecdotal because lack of clear and accurate financial records is a characteristic of the NTMS. Even where operators have responded to training and now keep records it is not possible to objectively verify progress if historical records do not exist.

Overall Objectives (Benefit)

Safety in client mines improved (in terms of: No. of fatal accidents per year (the absolute number is the best statistic for NTMS))

Not known These data are not kept by the industry or the Mines safety department

20 NTM claims activated or expanded through EIB capital

No PPF awards were delivered, contributing to poor uptake of finance. 10 mines/entrepreneurs received loans under the main scheme, while 12 mines/entrepreneurs received loans under the SLF.

10 client companies regularly participate in local and international fairs (with more than 20% of cost for participation borne from own resources)

The MSDP has facilitated exhibitions to the following international gemstone trade fairs: Tucson 2003, Shenzhen 2003, Tucson 2004, Shenzhen 2004, Bangkok 2005, Tucson 2006 and Bangkok 2006. Clients have become accustomed to paying for their own upkeep

The participants in these fairs have been able to gain new / expand their local / international markets as well as getting a full understanding on how the international trade works.This number was exceed as more than 10 companies regularly participated in both local and international fairs on a significant cost sharing basis, with companies being responsible for all personal expenses and travel costs. In the future participants should be able to organise themselves as capacity has been built within the various associations.

Project Purpose (Utilisation of project services)

Sustainable exploitation and marketing techniques employed in the NTMS (non-traditional mining sector)

30% of NTM clients who seek technical advice from MSDP employ at least 1 competent person as defined in S.I. 95/1973.

15% of NTMS clients surveyed by MSDP now employ a competent person whilst 23% now employ a licensed blaster

A number of NTMS companies have not grown to the extent that they can afford a competent person. It is proposed that a cluster of operating mines can actually share the services of one competent person





40 NTM clients with improved business management (% of NTM clients whose business management (after participating in the respective MSDP capacity building measures) is jointly assessed as good or very good (1 or 2 on a scale of 1 – 5))

Around 85% of the people trained through the business assist scheme say they now appreciate mining as a business and more than a third say they are implementing what they learned during the business training.

More training concerning the practical application of the business management skills taught has been requested.

40 NTM clients submit production returns to MMMD The data is not available Although the submission of this data is a requirement of the Mines and Minerals Act of 1995, it is not enforced. GRZ should consider removing the requirement to make other issues that are enforced more credible.

3 associations have good corporate governance (a participatory assessment using the criteria of the Zambia Institute of Directors)

ESMAZ, AZWIM, AFEWIGMM, Kalomo have improved their governance practices since the inception of MSDP. They have manned offices, maintain bank accounts and are easily reachable. They strive to provide services and seek opportunities for their members. North Western, Luapula and Mpika form the second tier of associations. They have offices which are not always manned, but they are reachable and actively participate in initiatives to assist their members. Problems have persisted in Mkushi (lack of capacity) and Lundazi (which has never had stable leadership) for the duration of the phase one.

The collaboration between MSDP and the associations has completely transformed some into viable intermediaries for their members. Compliance to proper governance practices remains a big challenge. For instance a number of associations do not hold AGMs; usually giving the excuse that they cannot afford them. Another big challenge is the inclusive participation of all association members in activities and in leadership. This has led to a highly fragmented sector. Three attempts to form an umbrella association, one of them by MSDP, failed. It is hoped that in the fullness of time the associations will be able to come together and form an umbrella organization

NTMS stakeholder lobby has formal and regular contact with decision makers in MMMD (diarised schedule of meetings)

In 2002 contact between the authorities was limited to a few meetings and mainly involved only three associations: ESMAZ, Kalomo and AZWIM. Presently participation is broader and more frequent. Associations’ participation in national development plans has now been established is now the practice.

At present associations have become part of the sector governance and are consulted and invited to take part and give input into matters that affect them. One significant development over the life of the project was the appointment of a Deputy Minister to specifically look at the needs of the small-scale mining sector.

NTMS and other institutions obtain dBase material from GSD (No. of requests from NTMS for dBase material from GSD that have been served as required)

The plan to digitise this material was not implemented during phase one.

GSD will be asked if they would like the information to be digitized during phase two.





Increased satisfaction amongst MMMDs NTM clients (% of MSDP NTM clients who express their satisfaction with the usefulness of project services (1 or 2 on a scale of 1-5)

Feed-back from training courses is almost unreservedly favourable as is the view of those who participated in the marketing events.

There is a general negativity towards the programme that is based on the misperceptions outlined elsewhere concerning the loan funds.

25% of client firms acquire appropriate equipment This target was largely not met as the clients could not raise sufficient capital resources to mechanise their operations. However in the active areas of Ndola Rural, Mapatizya and Kalomo about 30% of miners are able to periodically hire equipment, mainly earth moving.

All companies that accessed MSDP loans were able to buy equipment for their mines

With improving prices and better marketing systems the viability cut off will be lowered for a number of operations. However, it is not anticipated that more companies will acquire mine specific equipment but will be able to hire equipment services. Facilitation therefore should be provided for companies that will provide such services to the NTMS. Tax concessions are recommended elsewhere in the report.

Results (Services delivered)

1 20 loan applications submitted More than 20 loan applications have been submitted. MSDP assisted many NTMs with applications; however the Bank/Client process makes it difficult to monitor all applications.

Loan applications from the Non-Traditional Mining Sector (NTMS) are facilitated

4 participating financial institutions in the NTM sector

5 PFIs have disbursed loans

2 The access of the NTMS to domestic & international markets (miners, buyers, processors, financiers) is facilitated

40 clients p.a. assisted by the project to participate in local and international fairs

The MSDP has facilitated exhibitions to the following international gemstone trade fairs: Tucson 2003, Shenzhen 2003, Tucson 2004, Shenzhen 2004, Bangkok 2005, Tucson 2006 and Bangkok 2006

There were more than 40 clients who participated in the local and international shows. The strategy of sponsoring mining and trading firms to international trade fairs was effective not only in terms of promoting Zambia as a source of gemstones, but also in terms of building the marketing and technical capacity of the mining and trading firms.

The participation in these trade fairs have given miners and dealers invaluable information on how the market works. Important contacts have been established for current and future trade

Participation in local fairs should continue to be organised by the mining associations and international trade fairs should be reinforced with continued support to efforts aimed at building capacity and marketing Zambia as a producer of gemstones by the EBZ and GSD. The participants should make a contribution towards the stand rental costs





500 hits per year on marketing web-site This was archieved with the hits exceeding 500 per year.

MMMD should work with Africa Insites who have expressed keen interest to work with MMMD and to continue manginging the site. The site should be run on a commercial basis by inviting various companies to place adverts on the site so that the ministry can avoid financial costs.

10 market enquiries/ month The MSDP VE gets almost daily (15-20/month) visits from miners and dealers requesting valuation and subsequent international/local market potential and advice.

This service provided by MSDP has given miners and traders a quick and free consultation that many times lead to a quick decision on whether to start/continue/stop mining and or trading

The market information result was achieved and most enquiries were sent via email. It is vital for EBZ and GSD to have internet facilities that can be accessed by officers that are responsible for this sector

3 NTMS has acquired adequate skills

a. technical (exploration, mining, processing, valuation)

400 people receive adequate technical training

The MSDP technical training programme has so far trained 936 (431in 2003, 376 in 2004, 71in 2005 and 58 in 2006) people and has covered aspects of geology, mining, processing, environment and health and safety. The course covered both the theoretical and practical aspects of small-scale mining. Geographical coverage of the training included areas like Kabompo and Sesheke.

The MSDP has sponsored three 2-month diploma courses in gemmology at the UNZA campus. 23 students in 2003, 24 students in 2005 and 17 students in 2006

b. entrepreneurial skills

400 people receive adequate entrepreneur training 669 trained.

The main challenge of the training programme was to design a syllabus that would address the needs of a wide spectrum of students in terms of age, gender, literacy, business and technical literacy and experience in mining. In the end the training was structured to meets the needs of different groups at different times with some specific training given to selected areas like Kabompo and Sesheke. The training syllabus designed can easily be used for future programmes.

The courses in gemmology have given participating students a broad based foundation of knowledge spanning from geology, exploration, mining, gem identification, valuation and lapidary processing.

4 The capacity of mining associations is strengthened

3 associations with audited financial statements AZWIM and AFEWIGMM carry out audits yearly whilst Kalomo and ESMAZ have occasional audits. No known audits have been implemented by the other associations

The main challenge with the associations has been their governance practices. Many associations including members would not see the need to invest in sound governance practices let alone the discipline to adhere to them. This should be addressed by the recommendations from the evaluation study and will be part of the training for associations’ leaders in 2007.





3 associations with phone, fax, box no, e-mail, manned office

ESMAZ, AZWIM, AFEWIGMM, Kalomo have manned offices, maintain bank accounts and are easily reachable. North Western, Luapula and Mpika form the second tier of associations. They have offices which are not always manned, but they are reachable and actively participate in initiatives to assist their members. Problems have persisted in Mkushi (lack of capacity) and Lundazi which has never had stable leadership for the duration of the project.

Notable improvements have been observed in a number of associations since the beginning of the programme. More work is needed to assist associations set up strong participatory structures which will enhance ownership

20 executive members trained 30 executives from 9 associations were trained in managing associations. Another training course will be held in 2007 after a status evaluation of all associations

The main players by and large did not change over the five years. Through interaction and participation in MSDP activities the capacity of a number of executives to lead and manage was enhanced

3 associations received organisational advice Organisational advice has become routine for the programme and associations are advised at each meeting and during training courses. At least 4 associations receive advice and support every quarter.

The status evaluation study will propose sustainable ways of advising associations and how they can share experiences using low cost means and technologies.

A stakeholder lobby for the NTMS is promoted

10 associations assisted to organise income generating activities

All MSDP training programmes were held in collaboration with mining associations. Over four years MSDP worked with 14 associations to organise activities in which they earned facilitation fees.

The approach, though resisted initially, has worked well as it enabled associations’ profiles and visibility to be enhanced among their members. From this experience it is strongly advised that associations should earn their support. Giving them resources usually causes problems and splits without creating or enhancing capacity.





1 stakeholder meeting p.a.

2 meetings p.a. to lobby MMMD

Due to the increased interaction amongst associations, stakeholder meetings and lobbying have increased. In 2002 an MSDP sponsored seminar explored the merits of setting up a Gemstone Exchange. Mining associations became an integral part of the PRSP process up to 2005. Meetings were held each quarter first with MMMD and then at multi - ministerial level. At the end of the PRSP process in 2006, associations were involved in the mining policy review process (2 meetings) and the Fifth National Development Plan (several meetings). In 2005, associations participated in 3 meetings on investment, legal and regulatory review and on the setting up of a gemstone exchange

The main challenge that the NTMS faces concerning lobbying and advocacy is being able to work together and channel their concerns systematically professionally and in an orderly manner; which is quite a challenge as most of the associations use personal political contacts as a method of advocacy. An apex association would also improve the sector’s relationship with other stakeholders.

5 10 mapping & resource verification activities & geological bulletins

The MSDP has sponsored mapping and resource verification by the GSD in Ndola Rural emerald mining areas, NW Province emerald prospects and Southern Province tantalite prospects.

The work done should provide the SSM with improved information to be used as a basis in exploration targeting and mining decisions.

Analytical facilities at GSD refurbished The laboratory was decorated and refurbished in 2005. An XRF machine has been procured and a spectrometer is ordered.

The GSD will now be available to perform additional analytical and exploration services to the NTMS that were previously not possible due to lack of certain crucial equipment

Geo-science GIS/dB services for the NTMS, MMMD, investors, donors, consultants, govt departments, ZIC EBZ are provided on a sustainable basis

Gemstone valuation facilities at GSD rehabilitated The MSDP procured basic gemmological equipment and handbooks for the GSD in 2005. This equipment provides the GSD with adequate facilities to perform routine identification and valuation tasks.

6 The capacity of the Ministry of Mines and Minerals Development (MMMD) to deliver services to the Non-Traditional Mining Sector in Zambia and to provide a

Ministry capacity building needs identified and priorities identified and implemented, eg Cadastre

The capacity building required to develop the computerised mining cadastre were clearly identified towards the end of Phase One. These needs were identified by consultants whereas the assistance needed to develop new mining regulations for uranium was identified by the Ministry themselves.

Building capacity in the MMMD was introduced into Phase One through the mid term review process where the direction of the programme was adjusted. This was a major adjustment for the team and MMMD as the host ministry. An understanding of the new focus was only reached after some time and therefore a wider capacity building mission was not possible in the time available. Instead, a focused approach centred on the computerized mining was adopted.





Key MMMD performance indicators developed Not achieved – see note. A deeper assessment of needs and priorities is expected during Phase Two.

Sustainable development strategy for service delivery to NTMS identified and priorities implemented

The sustainable development strategy was developed through the process of preparing the Fifth National Development Plan. MSDP played a minor role in developing the overall plan but was part of the Mining Sector Advisory Group. Through the plan, sustainable service will be delivered through a Small-Scale Mines Development Authority.

The Fifth National Development Plan is a very large commitment by GRZ to the development process and is designed to guide government policy and cooperation and development aid. The Small-Scale Mines Development Authority may be GRZ policy but will probably require external funds to become properly established. The continuing definition of the SSMDA is a task for Phase Two of MSDP but there will be insufficient funds to launch the SSMDA unless money is diverted from the loan fund or other areas destined for road construction in the mining area.

supportive environment for the development of the sector is strengthened

The access of NTMS to adequate equipment/technology is facilitated

50 clients receive technical advice from the MSDP unit

The Mining Expert met an average of 25 clients per quarter seeking technical advice. Where necessary joint meetings would be held with other TAs especially the Geologist/Gemmologist in giving technical advice.

More detailed advice involved the evaluation of submitted project proposals by clients either seeking external funding or their using own equity.

An average of 6 clients per week received technical advice from Kitwe MSDP office, equivalent to over 360 clients during the entire period of Programme’s Phase One.

The Valuation Expert provided daily service to miners and dealers. Service requested involved mainly identification, valuation and marketing advice for coloured gemstones.

Technical advice to clients was routine activity executed by all the TA, especially Regional Advisors and the Mining Engineer.

Where possible and necessary technical advice in the office was followed up by field visits for on site explanations. Field visits usually involved a number apart form the targeted miner; that way any technical advice given actually benefited more people.





Activities 0 Base-line studies

1.1 Familiarise NTMSs with financial sector activities

Ad hoc workshops planned. Over 70 individuals attended PPF workshops, more than 50 attended special events in Kitwe.

1.2 Pre-PPF evaluation & PPF tracking activities

Demand driven assistance planned to start in 2003 but PPF was finally mobilised in 2006.

One PPF approved, but work not started; One PPF application on the table, One more PPF application expected.

Main constraint is finding clients that 1) have the ability to pay the 30% contribution, and 2) recognise the importance of undertaking a proper feasibility study.

1.3 Orientation of bankers to NTMS & EIB loan facility

Mine visits planned for loan officers Many mine visits carried out. 3 planned for 2006 abandoned.

Interest from PFIs was high, however finding opportunities that suited busy bank officers proved difficult to synchronise. Following consultation with Kagem, many visits to the emerald mine were facilitated over the life of the Programme.

1.4 Linkages/matchmaking(companies & between investors)

Demand driven activity, from investors and mine owners No JVs finalised, several still under discussion (Tantalite, zinc).

Efforts were made to link as many NTM operators to third party capital as possible. The success rate was low due to high expectation levels amongst a majority of the miners. These expectations ranged from miners wanting a cash payment in exchange for equity and the reluctance by the miners to relinquish part of the equity.

1.5 Monitoring of EIB borrowers

Monitoring at arms length to allow the confidential relationship between lender and borrower to be maintained.

Information about the borrowers was given informally by EIB.

2.1 Information provision and dissemination

A proactive approach was planned to provide as much information as possible to the sector about mining methods, business techniques and marketing opportunities. The print and electronic media were to be deployed.

Information was available to all stakeholders in the form of leaflets, folders, calendar, brochures, and EBZ newsletter sponsored by programme, adverts, and articles in leading commercial magazines, newspapers, and website.

MSDP sponsored the production of a directory of international buyers that operators and traders in Zambia can use to locate markets for their production.

EBZ, GSD and MMMD should continue to provide information to various stakeholders. It is recommended that this information should be available on the website (in PDF format) so that it can be downloaded and accessed by all interested parties.

2.2 Gemstone exchange(Commercial feasibility study, leading to other initiatives)

A study to assess the viability and modalities of a gemstone exchange. The MSDP study was designed as the first phase of a collaborative effort with the World Bank SEED project.

The study was implemented through a short-term TA contract. The study was completed in mid 2005 and the final report was presented to MMMD incorporating the comments from stakeholders

The study undertaken by the consultants showed that centralised gemstone exchanges have not worked anywhere in the world. Success might be possible if the exchange is completely in the hands of the private sector.

2.3 MSDP website & newsletter/internet access

Activities to complement the work designed under 2.1 The website served as a source of information and was accessible from the inception of the programme.

Responsibility for the website called “mining in Zambia” was transferred to MMMD at the end of 2006. They should enter into an agreement with Africa Insights to maintain the website through commercial advertising.




End of Phase One Report 2002 - 2006 MSDP - LOGICAL FRAMEWORK: (Revised 2005-02-28) Intervention Logic Planned for Programme Actual to End of Phase One Comment 2.4 NTMS trade promotion Activities were planned on an annual basis with the aim of

raising the profile of the products of the Zambian NTMS on the world markets. Exposure through international trade fairs and other gatherings. Exposure in the international technical press. Production of technical and marketing materials and copy. Exposure through local trade fairs.

Various trade promotion materials were printed throughout the programme which were used at local and international fairs MSDP facilitated trips to the following international gemstone trade fairs: Tucson 2003, Shenzhen 2003, Tucson 2004, Shenzhen 2004, Bangkok 2005, Tucson 2006 and Bangkok 2006. The NTMS appeared annually throughout the programme at the Kitwe, Ndola and Lusaka shows. The Kolomo Miners Association have held two marketing events in Livingstone aimed at the tourist market. The Gemological Institute of America (GIA) agreed to promote Zambian gemstone production by visiting Zambia and publishing articles on the country. The GIA has published articles on Zambian gemstones in Gems & Gemology, the world’s foremost publication on gemstones. The GIA contributed all costs for gemmological analyses, microphotography and printing. The first article, Emeralds from the Kafubu Area, Zambia, was published in 2005. MSDP provided gemstone material from several important gemstone localities of Zambia. Some samples were faceted for photography. Interest from the international market in Zambian gemstones created by the latest article in G&G prompted the GIA to invite the MSPD gemmologist to present Zambian gemstone localities at the 4’th International Gemological Symposium and the GIA Gemological Research Conference in San Diego, USA. The Valuation Expert presented information on amethyst mining in Zambia.. The EBZ newsletter carried articles about the programme and the export potential of the NTMS

Much of this work focussed on the gemstone sub-sector as the expectations from this group were very high. Other NTMS products have international and particularly regional markets and further promotional activity is possible through the continuing work of EBZ and by linking with other EDF programmes including regional activities. When MSDP started it was quite common to attend an international gathering and be shown material emanating from Zambia but labelled with another country of origin. This was the product of ignorance about Zambia and its production. Such incidents are now much rarer and the profile of Zambia is much higher. EBZ should continue to print promotional material for the NTMs which can be included in the cost contribution for international trade fair participation. EBZ has continued to produce the newsletter currently sponsored by EDP II. In future it is recommended that EBZ should sell the newsletter to commercial outlets and sell advertising space in the magazine to sustain the production costs of the newsletter.

2.5 Industry directory (sub-directory EBZ classified listing)

Facilitation of the annual EBZ audit of exporters to track the progress of the sector. Production of an industry directory to ensure that overseas and local buyers know where products are available.

The exporter audit was part sponsored annually during the life of the programme. The industry directory was completed late in 2006.

EBZ will distribute the directory to various stakeholders and sustainability can be ensured if the NTMS is encouraged to purchase copies from EBZ so that additional copies can be made in future.

3.1 Exploration & deposit evaluation

Subsidised evaluation of mined material. Equipment procured for planned Gemmological Institute of Zambia

Material was analysed in Kitwe and UNZA and the results forwarded to the operators. Procurement delayed when WB SEED failed to complete the feasibility study for the GIZ during the Phase 1 period.

It is generally accepted that a significant problem for the NTMS is a lack of capacity to evaluate material. Currently, Zambia does not produce enough skilled personnel. The proposed GIZ will be a major step forward if it is implemented but this is out of MSDP hands as we wait for the feasibility study to be completed through WB SEED.




End of Phase One Report 2002 - 2006 MSDP - LOGICAL FRAMEWORK: (Revised 2005-02-28) Intervention Logic Planned for Programme Actual to End of Phase One Comment 3.2 Mining & safety training

and consultancy Training in mining, safety and environmental protection in every active mining area. Training interventions planned through training needs analysis and appropriate allocations in work programmes and programme estimates.

Training courses with UNZA in 2003 covered all the active areas. Areas of focus were geology, mining, processing and the environment. In 2004 practical courses were held in all mining areas focusing on mining and geology. In addition each session was attended by a Mines Safety Department (MSD) official who delivered lectures on mining safety. In 2004, in collaboration with MSD a safety workshop was convened which included miners, Workman’s Compensation, Ministry of Health, explosives manufacturing companies and safety equipment suppliers. In 2005 training focused on selected geographical locations and in 2006 training focused on mining equipment demonstrations. During the 3WP/CE equipment was provided to UNZA SoM to set up a walk-in E-Learning centre where individuals from the NTMS can have access to computers in order to access market and technical information from the internet and to follow tuition provided over the internet. This was considered an effective contribution to the NTMS as UNZA SoM had embarked on provision of an E-Learning tuition programme targeted at the region. In the 4PE, UNZA SOM converted all the MSDP training courses to an E-Learning format that will be carried on their E-learning platform. First Aid and HIV/AIDS awareness training was conducted for 100 people in 5 key NTMS areas at the end of 2006

Though the training was well received, compliance with the best practices for safe operations and implementation of what was learned depended to a large extent on the operational state of the mines from which the trainees were gathered. Unfortunately, many people who claim to be miners and attended the courses do not have a working mine. Some prospective miners may have been discouraged by the training and this should not be viewed as a negative. It is important for the proper development of the sector that people are competent and know what safety standards are needed before they undertake this activity which is potentially damaging to the environment and carries very real risks to life and health.

3.3 Processing Identify and implement pilot projects that demonstrate the feasibility and modalities of processing run of mine materials in Zambia to add value.

The Mapatizya Mining Centre was designed to give a physical location and skills to enable the amethyst miners in the area to complete preliminary processing of their material. By the end of Phase 1, MMC is almost built and set-up and functional. A pilot plant was sourced to demonstrate small-scale gold processing which is almost unknown in Zambia. The plant was procured by a private company and others were able to see the demonstration at the Lusaka Show of 2006

The idea of the mining centre was born early 2003. Implementation of the project was hampered seriously by the delays in constructing the necessary building to shelter the pilot project. Valuable time was lost as first a tendering process had to be agreed and then the first tender was cancelled. It will be necessary to launch the activities of the centre during Phase 2 and hand it over to the mining association who will mange it as a ltd company




End of Phase One Report 2002 - 2006 MSDP - LOGICAL FRAMEWORK: (Revised 2005-02-28) Intervention Logic Planned for Programme Actual to End of Phase One Comment 3.4 Valuation Training to provide a proper knowledge of basic gemmology

and gemstone evaluation which is a prerequisite for any individual producing and/or selling gemstones. Basic skills in faceting are also fundamental to properly evaluate rough gemstone material.

MSDP sponsored three 2-month diploma courses in gemmology at the UNZA School of Mines campus.

Training courses in these disciplines addresses the issue of miners not obtaining fair prices for their products. It is anticipated that UNZA will be able to carry on this popular course and hence make it a sustainable training facility. MSDP recommends that equipment and materials procured for the courses are transferred to UNZA during Phase 2.

3.5 Downstream value adding Activities to encourage down-stream value adding to ensure more economic benefits from the NTMS remain in Zambia: Zambia Jewellery Competitions to encourage local design and production of jewellery. Tumbling Courses Training in value adding activities.

Zambia Jewellery Competitions were held in 2005 and 2006 3 one-week tumbling courses have been held in Mapatizya in the second half of 2006 with a total of 45 participants GRZ established the Processing & Lapidary Training Centre in Ndola to train students in faceting and other lapidary. MSDP procured six complete faceting machines for the centre.

With the acquisition of six complete faceting machines the Gemstone Processing & Lapidary Training Centre will be able to train a small number of students in faceting. With the expected assistance of other donors, the Centre is anticipated to make a major contribution to building the human resource needed for down stream vale adding.

3.6 Entrepreneurial skillstraining

Training courses to build the business competence of at least 400 NTMS operators

A total of 669 people have received business training from 2003 to October 2006. The training was conducted in Lundazi, Mapatizya(Kalomo), Ndola Rural, Solwezi, Lusaka, Ithezi-thezi Mumbwa. Mkushi and Mpika.

A separate evaluation was conducted in 2006 on the training delivered. Trainees are still not prepared to pay the full cost of training even though they indicate that they realise its value. They expect GRZ to provide training free to the user.

3.7 Business, marketing and management consultancy and counseling

Delivered by the TA team during their contacts with clients in the office or on-site.

Specific advice and assistance delivered by the Financial Advisor.

This activity was delivered on a daily basis and the numbers recorded in the TA logs presented in each quarterly report. A conservative estimate would be twenty clients per TA per working month or 6 600 consultations.

This was an important contribution from the MSDP TA team and should be work incorporated into the tasks for the Small-Scale Mines Development Authority. For this to be possible, the SSMDA will have to contain staff with the appropriate business training, skills and experience.

4.1 Status evaluation In 2002, a survey to establish the status of the associations active then.

In 2006, a second survey to establish the status of associations after working with MSDP for 5 years

The 2002 survey was carried out and responses were received from the three associations which were active then and from 151 miners and traders.

The 2006 survey highlighted the growth in numbers of associations.

The 2002 survey provided input into MSDP activities and revealed the challenges that associations were facing. The main challenges faced had to do with associations not being focused on delivering services to the members, which in turn led to reduced membership and reduced financial resources to deliver services. Inclusive participation in association activities remains a challenge to this day and led to a number of splits in some associations. Splits were experienced in Lundazi, Mkushi and AZWIM during the course of the project.

4.2 Capacity buildingactivities

Capacity building through MSDP assistance in implementing activities in line with MSDP objectives.

This mainly involved organising training, lobbying authorities, acting as intermediaries for miners and organising and promoting such activities as marketing initiatives both local; and international, All regional associations had opportunity to organise training courses with the major areas organising more than five courses each during Phase 1.





4.3 Support to stakeholder interests (Studies & advisory)

Activities that allow associations to participate in studies and representations concerning the NTMS through the support of MSDP.

Studies on regional mining bureaux, the gemstone exchange, a legal and regulatory review, baseline study and the impact of MSDP marketing initiatives. The fiscal environment for mining was reviewed and recommendations prepared for the budget were forwarded through MMMD. Other studies were limited to particular areas like the study on the Mapatizya Mining Centre. By the end of Phase 1 the gender study, Mapatizya water study, MSDP training impact and the status evaluation of mining associations were completed. In all these studies associations have and continue to play a key role in terms of participating, co-ordination and information dissemination.

The failure of the associations to form an umbrella association was also a major obstacle to a strong lobby group. Though a number of external stakeholders desired that this apex body be formed a number of efforts to form it were frustrated when major associations could not work together. This lack of trust within the NTMS has been noted as a constraint in other areas such as the formation of groupings to deliver against large orders. Women operators appear to be able to buck this particular trend and it is hoped that their example will help their male colleagues to understand the need for cooperation.

5.1 Geo-science GIS/dB The development of a GIS database that would allow ready and easy access to the data available in GSD even through the internet. Access to the information controlled and charged for to provide resources for the ongoing costs of GSD.

A nascent database was developed and is held by MSDP

The management at GSD always feared for the security of the data and thought that once it was digitised it would escape their control. This would be a commercial disaster as selling data is their fundamental source of income. Therefore, the activity was stillborn.

5.2 Commissioning Geological mapping

Resource verification activities

MSDP financed mapping and resource verification by the GSD in Ndola Rural emerald mining areas, NW Province emerald prospects and Southern Province tantalite prospects.

40% of Zambia still needs to be flown for basic radiometric survey. This large task was beyond the resources available through MSDP. The 4 PE contained an activity to prepare a project proposal for this important work that GRZ could use to solicit assistance from cooperating partners. The work was not completed during Phase 1 but could be added to the activities in Phase 2

5.3 Data collection capture & processing

Activities planned to collate, store and preserve this data.

The Zambian mining sector is rich in data from the past (from the early 1900s onwards) when geological research was conducted by private and then parastatal companies. Additional data is being added including the extent to which mining tenements are being exploited.

.

Field inspections to update mining rights status, digitising cadastral data by the Regional Mining Bureaux. This was an ongoing activity for three years and the data is now held by the new cadastre unit in Exploration House.

Data held by the Chamber of Mines that is important to investors in the NTMS was selectively captured and is now held on a specially designed database in their offices in Kalalushi

The Chamber of Mines is willing to provide resources to digitise more of the data that they hold if cooperating partners are willing to continue with the assistance to preserve this most valuable resource.





5.4 Activities to improve service delivery & dissemination

Digitisation of reports, maps and other documents generated by GSD. TA to set up section to capture all historical records and to train staff for the ongoing work.Gemstone valuation facilities at GSD rehabilitated Analytical facilities at GSD refurbished and re-equipped Geological bulletins published Study to evaluate the commercialisation of GSD functions

Design of project, definition of TOR, etc. Contract advertised, tenders submitted, and evaluations completed, submitted to NAO/EC for approval.

Laboratories refurbished and new equipment procured in 2005. Spectrometer and XRF procured in 2006

Reports and maps on 5.2 activities published

Design of project, definition of TOR, etc.

Postponed to Phase 2

Implementation postponed to Phase 2 6.1 Capacity building with

MMMD 4PE only Relocation and upgrading of MMMD Library Upgrading of IT architecture for MMMD Basic equipment for new mines cadastre unit in Exploration House Basic Equipment for the new mines cadastre branch offices in RMBs

Library furniture purchased. Librarian employed on ST contract to provide a catalogue system and to catalogue the existing collection. A small LAN was developed in MDD. This can form the basis of an MMD-wide network or be the starting point of a system for the nascent Small-Scale Mines Development Authority. Mostly ITC equipment purchased to establish a proper working environment for the new cadastre unit. The servers to run the cadastre were purchased by the WB SEED programme. The ITC equipment here is used in the wider environment of the cadastre unit to allow the proper flow of information and the proper storage of records in a digital format.

This section of the programme was added after the mid term review. Therefore all the outputs were achieved in 2005 and 2006. These two activities highlight capacity gaps within the ministry. MMMD has an incomplete compliment of professionals such as mining engineers but important support personnel such as network administrators for IT and documentalists that can care for the records are even more stretched. This leads to inefficiencies which compound the problems caused by the incomplete compliment of staff. Poor security of tenure has been a great constraint on mining investment in Zambia. All stakeholders concluded that a new computerised mining cadastre where the rules of the Mining Act would be administered objectively through computer software would be a very important step in developing the industry by encouraging investment and in particular foreign investment. The cadastre is being installed through an addendum to the programme management contract.

6.2 Legal and regulatory framework study

A review of the legal and regulatory framework for the NTMS with recommendations for appropriate changes to encourage the development of the sector. Assistance to MMMD to develop regulations for exploitation and preliminary processing of uranium ore.

The review was completed by a short-term TA team from the consortium who indicated the constraints imposed by the current regime and suggested appropriate changes. The PM was part of a working group established by the PS/MMMD to draw a road map for the preparation of regulations. The PM was an active link between the industry and government stakeholders. By the end of Phase One regulations were available in first draft.

One major recommendation was the introduction of the requirement for basic skills before mining licenses are granted. By mid 2006, two companies had discovered extractable uranium resources in Zambia. One of them wished to proceed to mining by the end of 2007.




End of Phase One Report 2002 - 2006 MSDP - LOGICAL FRAMEWORK: (Revised 2005-02-28) Intervention Logic Planned for Programme Actual to End of Phase One Comment 6.3 Other studies, training

and initiatives 4PE only Organisational reform Gender baseline study and gender policy development

The costs to establish and run the new cadastre unit were studied to provide data for sensible planning. The ITC training needs of the staff in the unit were established A legal specialist was provided by MSDP to support the process of preparing new uranium mining regulation and establish a skills base for the future. The gender baseline study was undertaken in mid 2006.

A structured approach was planned but a more ad hoc outcome has emerged. The MMMD has yet to finish its internal thinking on structural reform and therefore the resources made available here were used for the immediate problem of developing new regulations for uranium exploitation and studies linked to the establishment of the new cadastre unit. The information provided in the study enables those who are willing to make proper plans to bring gender equality to the NTMS. On close examination, much of the work that is needed is common currency for equal opportunities throughout society and particularly throughout the work force. There are few industry specific issues.

6.4 Sensitisation to the needs of the sector

4PE only Water study in the Mapatizya area

The water study in the Mapatizya area was implemented through a short term contract towards the end of 2006.

The study established the situation but it is up to the industry and political decision makers to utilise the information to facilitate the development of mining in the area.

6.5 Human resourcedevelopment – training, mentoring, shadowing etc

4PE only Training mentoring and shadowing etc

3 Surveyors were sponsored for training at Copperbelt University. Senior professionals from MDD attended a high level course in UNZA titled “Managing a mineral based economy. Staff at the cadastre unit received organisational development and team building workshops Materials were purchased to allow cadastre staff to be trained for the International Computer Driving License.

See note under 6.3. The capacity building work with the ministry was focussed on the introduction of the computerised mining cadastre because that was a vital component to make the MMMD more responsive to the needs of the sector. Therefore training and mentoring also focussed in this area.

6.6 Facilitation of a service oriented culture

Included after the mid term review process. No activities were planned for this area in Phase One.

None planned. This is an important issue and a start on changing attitudes and systems may be made during Phase Two and in particular through recommendations of the Small-Scale Mines Development Authority.



PrograEDF A

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mme/Project Title: Mining Sector Diversification Programme ccounting Number 8 ACP ZA 036


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MSDP - LOGICAL FRAMEWORK: (Revised 2005-02-28) Intervention Logic Planned for Programme Actual to End of Phase One Comment 6.7 Access to appropriate

equipment/technology Demonstration of small scale processing of metal ore. Demonstration of small scale processing of minerals

Designs for a ten tonne capacity mini-furnace using charcoal briquettes made from sawmill waste (sawdust) as fuel reductant. Construction of mini-furnace consisting of casting 58 tonne reinforced mass concrete foundation with 9m steel columns, and fabricating of steel shell lined with refractory bricks. The other works included fabricating and installing of furnace accessories such as charging, gas cleaning, furnace cooling water systems, recuperator, and constructing sheds and water supply system. Producing Environmental Project Brief to the Environmental Council of Zambia Providing business training to the project partners Areas on the Copperbelt identified where red oxide ore can be mined and processed economically at small scale level Sampling on at least four of the identified deposits on the Copperbelt. Red oxide materials characterised by mineralogical analysis the ore mineral characteristics related to possible industrial applications. Red oxide products currently made by the women on Copperbelt sampled to suggest ways of improving the quality of the products. The ways of upgrading the quality of the red oxides investigated by identifying contaminant materials Determine technical, economic and marketing parameters for mining and processing the red oxide ore at small-scale level.

In the case of the NTMS in Zambia, access to these items is more often denied by a lack of information and a lack of institutional capacity to adapt the technology to the specific needs of the national industry. Small scale processing or metal ores is commonplace in countries such as Brazil and even Zimbabwe. The focus of Zambia has always been the large scale and particularly copper and cobalt. This project was incomplete at the end of Phase 1. Serious consideration should be given to making more budget available to complete construction and allow operations to start in Phase 2

6.8 Training: use and selection of appropriate technology

Technical advice on the selection, use and hiring of appropriate technology/equipment to all main active mining areas of the NTMS.

Equipment hired from ZNS was demonstrated in Mapatizya, Mkushi, Mpika, Lundazi,Ndola Rural and Solwezi before the end of 2006.

Challenges were on acquiring appropriate equipment within a viable distance from the mining areas. Except for Ndola Rural all the other active mining areas have to ferry equipment from long distances. There are also very few equipment suppliers besides the government owned ZNS Land Development Department which is always difficult to secure and is unreliable. The Junior Mining House recommended elsewhere would address these issues if NTMS operators can be persuaded to relinquish equity.

6.9 Facilitation:demonstrations, promotions, interfacing with commercial suppliers

An ad hoc activity to link up service providers with the NTMS whenever those service providers made themselves available .

Three major activities were organised up to end of phase one. However, as a routine, clients were always advised on the equipment options available for them during technical advisory sessions

Due to the small – size of the sector it is difficult to get service providers with equipment solely for the NTMS. Usually technology options involve adaptation from other uses to suit the NTMS.



Achievements in the First Phase

Results 1. Loan Applications from the Non-Traditional Mining Sector (NTMS) are facilitated Term finance under the EIB/FF

This facility provided €16.5m to be managed originally by 5 banks.

Improved conditions

The original lending conditions were relaxed following intervention from MSDP. Original conditions included a 50/50 risk share between EIB and PFIs on loans disbursed and a fixed cost of finance of 5.81%. No specific provision was made for working capital. Following the changes made on the recommendation of MSDP, the facility provides some of the best lending conditions available: Risk born by EIB is now 75%, cost of finance to PFIs is now EU LIBOR+100 points, and working capital loans have been approved.

EIB/FF “The best game in town”

Effective interest rates

8-11%

Cost of finance: EU LIBOR +100points Interest ceiling 5.81% EIB Risk 75% PFI Risk 25%

Additional banks Term up to 5 years Grace period negotiable Capital, development & working capital

The TA approached Standard Chartered to apply for admission as some MSDP clients banked there. Also, in 2002, the TA met with the management of Finance Bank and the Development Bank of

Zambia with a view to their admission as PFIs.

Many of the ASM clients visiting MSDP held accounts with Finance Bank, as the bank has a wide network of branches around the country. During 2005, Finance Bank was admitted and soon afterwards they disbursed the largest loan under the facility. DBZ was not included.

EIB/FF – Overview

The EIB/FF was introduced in 2001. In the Financing Agreement MSDP TA activities were linked to the EIB managed Financing Facility (EIB/FF) and a Pre-Production Facility was included to facilitate access to finance by approved project promoters. The PPF was mobilised in August 2005 with the deposit of €500 000 a bank account opened for this purpose. The Small Loan Facility (SLF) was signed off in late 2005 and the first finance tranche (€200 000) was made available in April 2006.

The first loans were disbursed in July 2005, which coincided with the reduction of interest rates. This reflected both the improvement in the economy, and the very favourable risk share by EIB.

Inclusion of the Small Loan Facility

PPF summarised o Short-term unsecured loan o Interest free o Covers costs of feasibility report o Repayable upon receipt of investmeno Written off if project proves unfeasiblo PPF contribution 70% o Promoter contribution 30% o Approval:

Recommended by PPF sub-committe

Structural economic problems, resulting in very high interest

rates, impacted negatively on the uptake of the loan facility. This, and the poor credit rating of the ASM/SSM client base with the established PFIs, indicated the need for the introduction of a small loan facility. This was taken up in 2002, and after a period of discussion, a consultant was appointed to review lending institutions in Zambia, and to recommend one institution that would best deliver services to the ASM/SSM sector. In 2003 the request was submitted for the inclusion of Pride Zambia to manage a special facility. The SLF became operational in early 2006.

Approved by NAO Partners needed to help access the PPF Endorsed by EC

PPF funding came on line in late 2005. Since then special workshops have been held to present the opportunities that PPF presents to project promoters. The PPF workshops have also reinforced the

financial training delivered over the life of the project, by specifically focussing on the financial needs of small-scale mining. An element of this presentation dealt with the benefits of co-financing operations through JVs, and the value the local licence holder could introduce to a JV through access to the PPF.




End of Phase One Report 2002 - 2006 It is necessary to reiterate that most ASM/SSMs do not appreciate the level of investment required to, firstly, verify their optimism in their projects by undertaking a feasibility study, and secondly, to undertake mining operations. Most licence holders are convinced that ongoing mining operations will be financed from mining revenues. This must be unique to this constituency, as it rarely proves true anywhere else. Unfortunately their false expectations are often dashed when even the most optimistic of miners find their projects fail. Insolvency is largely due to the exhaustion of their limited capital on the development of the mine, without generating any income whatsoever. That is, nearly all projects fail because no feasibility work has been done.

It is necessary to reiterate that most ASM/SSMs do not appreciate the level of investment required to, firstly, verify their optimism in their projects by undertaking a feasibility study, and secondly, to undertake mining operations. Most licence holders are convinced that ongoing mining operations will be financed from mining revenues. This must be unique to this constituency, as it rarely proves true anywhere else. Unfortunately their false expectations are often dashed when even the most optimistic of miners find their projects fail. Insolvency is largely due to the exhaustion of their limited capital on the development of the mine, without generating any income whatsoever. That is, nearly all projects fail because no feasibility work has been done.

Unfortunately, most of the MSDP client base cannot find the 30% contribution needed to obtain PPF support. Although MSDP has attempted to facilitate JVs between potential investors and holders of mining licences, none have succeeded. The PPF has in fact provided a valuable contribution a local partner can bring into the negotiations. However, as mentioned elsewhere, naivety when attempting to arrive at equitable JV arrangements has destroyed most discussions.

Unfortunately, most of the MSDP client base cannot find the 30% contribution needed to obtain PPF support. Although MSDP has attempted to facilitate JVs between potential investors and holders of mining licences, none have succeeded. The PPF has in fact provided a valuable contribution a local partner can bring into the negotiations. However, as mentioned elsewhere, naivety when attempting to arrive at equitable JV arrangements has destroyed most discussions.

Need for innovation Need for innovation

The real challenge to financing small-scale mining faced by MSDP was to deal with the fundamental design flaw of the facility. The real challenge to financing small-scale mining faced by MSDP was to deal with the fundamental design flaw of the facility.

Term finance is only suitable for low risk, established business activities. Established and operating mines, with predictable income are normally financed by commercial banks that offer a wide range of products to these kinds of operation.

Term finance is only suitable for low risk, established business activities. Established and operating mines, with predictable income are normally financed by commercial banks that offer a wide range of products to these kinds of operation.

However the majority of mining enterprises that characterise the ASM/SSM community targeted by MSDP do not fit this description. Few projects have progressed beyond discovery stage and mostly undertake ad hoc mining, with very unpredictable outcomes. Few, if any, have any reliable geological information.

However the majority of mining enterprises that characterise the ASM/SSM community targeted by MSDP do not fit this description. Few projects have progressed beyond discovery stage and mostly undertake ad hoc mining, with very unpredictable outcomes. Few, if any, have any reliable geological information.

The chart RISK CAPITAL NEEDS OF SMALL SCALE MINING illustrates the financing cycles of mining operations.

The chart RISK CAPITAL NEEDS OF SMALL SCALE MINING illustrates the financing cycles of mining operations.




End of Phase One Report 2002 - 2006 Risk capital with an Investor-EIB/FF initiative

In fact most of the projects seen by MSDP are at the DISCOVERY or even PRE-FEASIBILITY stage. Most proposed mine owners, or licence holders, lacking adequate finance, will find it difficult to source investment from commercial banks.

Therefore it was considered appropriate to look at how this situation could be remedied, and to propose a model that would address the pressing need of every small scale miner, how to effectively exploit the particular mineral deposit. Many of the gemstone deposits visited by the TAs indicated short-term productive output using manual labour, however hard rock conditions would require the application of appropriate heavy equipment, or the abandonment of the claim. In addition it seemed likely that, for these reasons, the EIB/FF would not be fully utilised. Below is a diagram illustrating what has come to be known as the “Junior Mining House”, (JMH).

What was needed was a vehicle that would provide a credible operation to partner ASM/SSMs, while attracting third party investment. It was also expected that the EIB would take up some of the equity in the venture, thereby underwriting some of the risk, and making the venture more attractive to private investors. In addition it was expected that the PPF could be employed to co-finance, and take up the risk, on potential JVs with small-scale miners. Mining operations would be spread over a wide geographical area, and include a spread of minerals, with operations of different size. The diversified portfolio would also provide a greater risk spread.

The diagram explains the way small discreet projects would be sequentially exploited. Sub-projects would be structured as subsidiary companies. The involvement, reward and ownership of projects would be individually negotiated. Worked out mines would be closed down and the subsidiary liquidated. Venture 3 could represent a substantial mining operation taken on board to generate a consistent income stream.




End of Phase One Report 2002 - 2006 The EIB would exit at some point within 2-5 years.

Investment focus on ZAMBIA

Inward investment is essential if the non-traditional mining sector is to grow. Following MSDP participation at the Mining Indaba and the PDAC, two of the most important mining investment conferences, it was realised that Zambia could host such a conference. Therefore MSDP initiated Explore Zambia in February 2005. The event drew participants from many different countries including exploration and mining companies, investment banks and other parties from North America, Europe, Australia and Southern Africa. The potential of this event was realised by a well known international convention organiser in the USA, and subsequently this event become the Emerging Mining Conference held in Livingstone in February 2006, and is scheduled to be repeated in 2007.

Jaipur Trade and Investment Missions

A mission was planned for Jaipur in late 2003, but it was rescheduled to coincide with the state visit to India earlier in July. This mission was extremely successful and it was planned to repeat the event on an annual basis. However, the next mission was undertaken in October 2006. MSDP motivated and facilitated 8 individuals to travel to Jaipur. The mission was focused on establishing trade and investment links. Two of the participants were from MMMD: a GSD official valuer and gemmologist, and a MDD economist. Those from the private sector paid all of their own costs. Participants followed a very full programme that included industry visits to artisanal size lapidaries and a visit to one of the industry’s biggest and most extensively integrated jewellery companies. They also met some of the most influential traders. The trip was most successful, and several participants have returned to follow up on business deals.

2. The access of the NTMS to domestic and international markets(miners, buyers, processors, financiers) is facilitated

In terms of the local shows, capacity has been built within the mining associations who organised participation of fellow miners in the local events. In particular Kalomo Miners Association, AZWIM, AFEWIGMM and ESMAZ have successfully organised NTMS participation. These associations are committed to sustaining this work through their own efforts.

Sponsoring members of mining associations to international trade fairs was effective, not only in terms of promoting Zambia as a source of gemstones, but also in terms of building the marketing and technical capacity of the mining and trading firms and establishing links with international buyers. The Geological Survey Department in conjunction with Export Board should continue to coordinate the participation of Zambia in at least one international gem fair per year in order to provide technical assistance to the miners and to keep up to date with the current international market trends and prices and moreover to be able to offer better gemmological services. However, the miners should make increasingly significant contributions towards the stand rental costs.

The established mining associations should affiliate their associations with the International Coloured Gemstone Association to receive further technical assistance and recognition. Previous and future participants to the international fairs should use existing market information from EBZ and Geological Survey Department to contact potential buyers prior to the show so that they can maximise their returns. The miners need to work with their respective associations to lobby for training programmes in cutting and polishing of gemstones and value addition to their products. The Ministry of Mines and Minerals Development must play an active role in encouraging cooperation, for example with the Indian or Chinese government through their embassies in Lusaka to facilitate training of miners in cutting and polishing of gemstones.




End of Phase One Report 2002 - 2006 The Following international gem shows were sponsored by EU/MSDP: Shenzhen International Jewellery Fair 2003 & 2004, China The Shenzhen International Jewellery was a success as most companies were able to obtain orders. Furthermore they were able to find new customers and obtain first hand knowledge of the Chinese gemstone industry and the market. The Zambian gemstones were well received by potential clients and business contacts. Most of the people met are familiar with South Africa as a producer of precious and semi-precious stones in Africa and were pleasantly surprised that Zambia is a producer of various gemstones. The Chinese market is huge and can absorb large quantities of Zambia gemstone rough. It is now up to the participants to deliver promptly to the buyers. Visit to Hong Kong International Jewellery Fair 2003 & 2004 The Hong Kong fair is the single largest display of the world’s jewellery and jewellery products in Asia and showcases a wide range of fine finished jewellery, polished diamonds and gemstones, all varieties of pearls, jewellery timepieces, jewellery packaging, displays, jewellery making equipment, tools and machinery. Moreover, Hong Kong is the third largest exporter of fine jewellery for example, in 2003 exports increased by 17% to US$ 2.85 billion. Tucson International Jewellery Show 2004 & 2006, U.S.A The Tucson Gem & Jewellery Show provided a forum where Zambia was marketed as a leading producer of gemstones. Kagem Limited is an example of a company that has now decided to explore the possibilities of marketing itself internationally. It was the first time that the company has participated at this international fair in 2006 in the U.S.A. They have pledged to continue participating at this show in the future. Bangkok Gem & Jewellery Show 2005 & 2006, Thailand The Bangkok Gems and Jewellery Fair was an ideal platform to learn about this market, the pricing structure of the market, to establish business contacts and formulate a strategy of how to penetrate the market. The exhibitors were able to take orders and to negotiate with buyers and must deliver according to the agreements that they made.





3. NTMS has acquired adequate skills

Lack of adequate skills was identified as one of the major obstacles hindering many of the small mining activities to develop into prosperous businesses. Adequate skills have been transferred to the clients by MSDP generally in three ways: Firstly, through advice given to clients visiting the MSDP-offices on specific issues and questions or as part of the extensive field visit programme directly at the mines. Regional Advisors were backed up by other team members on special issues. Secondly, by organising training programmes in the main mining areas throughout the country and Lusaka. These training programmes have been organised in co-operation with several mining associations active in the areas. Thirdly, one of the major objectives for setting up MSDP’s Pilot Projects, such as the Mapatizya Mining Centre is to transfer knowledge, information and skills to the mining communities. MSDP clients who need to improve their skills can be divided in two categories. (a) Miners with extensive bush experience and skills in artisanal and small scale mining, however, failing to transform their activity into an business enterprise and (b) local business men/women trying to expand into mining as a business opportunity but lacking the necessary mining background. Consequently, the MSDP training programme was structured into two categories, technical and entrepreneurial.

a)Technical (exploration, mining, processing, valuation) (I) MSDP’s Technical Training Programme:

o Classroom type basic training in exploration, geology, mining, and processing, implemented in 2003,

o Field training programmes at mine sites during 2004 and 2005, o And practical demonstrations, workshops and trial mining including hiring of heavy equipment

such as excavators and bulldozers, during 2006. (II) Seminar type training workshops like the Safety, Health and Environment workshop held in October 2004 in collaboration with the Mines Safety Department and the 1st aid and HIV/AIDS awareness training in co-operation with the Red Cross during 2006. (III) Additional training courses and workshops to cover special issues, areas and needs, such as the Tumbling Courses in Mapatizya (IV) The Gemmology Course Programme with UNZA/SoM (V) Awareness raising workshops and seminars in areas with potential for mining activities (e.g. Sesheke, Kabompo) to deliver basic information and to discuss the potential benefits and threats to the sector in those localities.

b)Entrepreneurial skills

In order to assist small-scale miners derive maximum benefits from their operations; MSDP commissioned Business Entrepreneurship Training programmes that were delivered in six major small-scale mining centres in the country namely Kalomo, Kitwe, Lundazi, Luanshya, Lusaka, Mpika, Mkushi and Solwezi. The training workshops covered all the major functions of a small business operation. The mining associations in each of the centres undertook all the logistical preparations for the training workshops. MSDP contracted a variety of consulting firms to deliver the training in the mining centres.




End of Phase One Report 2002 - 2006 The Terms of Reference required the consultants to deliver training in the following courses:

• Basic principles of business management (BPBM); • Basic elements of business planning (BEBP); • Operations planning and resource utilisation (OPRU); • Marketing (MKTG); • Practical bookkeeping (PB); • Basic financial statement analysis and interpretation (BFSAI); • Finance sourcing and application (FSA); • Personal development (PD); and • Electronic Business (E-Business)

Benefits drawn from the Training Participants were requested to give an indication as how they felt they had benefited from attending the Business Entrepreneur Skills training programme. In response to this question the participants reported that they had learnt several business skills, which would enhance their mining operations once applied. Some significant examples were:

• The role of personal values and attitudes in development of business • Participants know how to translate their personal and business visions into activities by setting

of objectives and goals to govern their operations; • Participants have now acquired insight as to the benefits of business planning • The importance of preparing business plans, not only to facilitate accessing loans from

financial institutions, but as a management tool for monitoring performance of the mining enterprise.

• Miners are in a position to re-engineer their mining operations to incorporate the acquired business planning skills;

• They are able to use business plans as guides for their day to day operations of their mining companies;

• They know how to prepare a costing and financial plan for the business; • They are aware of different sources of financing the project and the associated risks • They are able to prepare the cash-book and cash flow statements • They are equipped with the skills to identify customers and supply minerals to meet their

needs and wants at a profit; • The miners are now in a position to optimise their operations by ensuring that mining

production is based on the needs of the markets in terms of quality and quantity of products; • The know how to use the Internet to advertise gemstones both the local and international

markets • Miners will be able to employ acceptable management practices to improve operations; • Miners will be able to ensure that appropriate business structures are set up and registered

with the appropriate authorities; • Miners will comply with all the relevant provisions of the Mines and Minerals Act of 1995; • Miners are is a position to maintain primary books of accounts in which to record all financial

transactions relating to their business; • Miners understand the components and how to developed a business plan; • Miners understand the requirements of different financial institutions and the processes of

obtaining finance from the institutions, and; • Miners are aware of the available and uses of different sources of finance; • They are able to use electronic business more effectively to improve their performance.





4. The capacity of mining associations is strengthened. A stakeholder lobby for the NTMS is promoted

When MSDP held its first meeting with small-scale mining associations in August 2002 with representatives from 5 associations (Lundazi, ESMAZ, AZWIM, North-Western and Kalomo) some of the associations’ leaders were meeting for the first time. The meeting marked the beginning of a lobby for the sector which has continued since then. Between the end of 2002 and the beginning of 2006, firm representation was established in Mkushi, Mpika, and Luapula. The first activity carried out by the associations was to gather information form their members on behalf of MSDP. The responses provided vital input in the modelling of MSDP work programmes. A number of associations can now organise activities on their own without the direct assistance of MSDP. In this category are Kalomo, AZWIM, ESMAZ and AFEWIGMM. Associations had the opportunity to lobby the authorities in/at the following instances:

MSDP work programmes through representation in the steering committee. Mining associations have always had three representatives in the steering committee which also included representatives from the participating financial institutions, EC, Ministry of Mines and Minerals Development, Ministry of Trade and Commerce, Ministry of Finance and National Development, Export Board of Zambia and the Zambia Revenue Authority. This gave the associations an opportunity to interact and forge linkages with these important stakeholders whilst having a say in what MSDP implemented in its work programmes.

Poverty reduction strategy workshops. Due to their newly raised profile, mining associations participated in quarterly meetings with the government to review the mining portion of the poverty reduction strategy initiative for Zambia. MSDP was a core component of this initiative

Mining policy reviews. The country’s mining policies are currently being reviewed and mining associations are participating in that process.

MSDP policy studies and initiatives. In collaboration with the associations, MSDP was able to study the legal/regulatory structures and marketing systems for Zambia.

Ad hoc representations to government departments and other institutions. Currently, mining associations make ad hoc representations with far more frequency and consistency than before the programme. These are usually concerning fiscal issues and policy issues.

Deputy Minister small-scale mines. Due to the increasing importance of the NTMS government appointed a deputy minister responsible for small-scale mines in 2003. This provided an office where small-scale miners would channel their grievances. For instance, in 2004, the EC did not approve MSDP support for the marketing trip to Hong Kong. Mining associations, led by AFEWIGMM, made presentations to the deputy minister who intervened and the trip was reinstated.




End of Phase One Report 2002 - 2006 Generally associations have now established themselves as crucial stakeholders in the NTMS and all initiatives now involve their participation. It is also important to note that before MSDP only a few associations formed part of the consultation group but participation is now from all parts of the country. Kalomo Miners Association (KMA) In 2002 KMA was dormant, had no office, no functional executive, no bank account and no paid up member. Only a handful of operators in the area were striving to keep the association alive. The association has undergone a big transformation with a functional executive, healthy bank account and more than thirty paid up members who include Kariba Minerals, by far biggest mine in the area. This success story is the result of several factors especially, but not only, the EU/MSDP initiative. Beyond doubt, the association like many others in the country increased its membership when MSDP was about to start. This is no surprise since the Mapatizya Amethyst Area is named as one of the high-priority areas in the project agreement and the KMA has a seat in the steering committee. After the common struggles and misunderstandings between miners’ expectations and the operating framework of MSDP, the KMA and MSDP managed to agree on a practical way forward to work successfully towards the common goals. The association’s most important strengths are the following: o Unlike most of the other associations, KMA and its members were always able and willing to look

into concepts and ideas beyond the direct funding of individual miners and mines. It is very active in implementing community-projects, such as the clinic, the police-post etc. not only entirely relying on donor funding. This fits into MSDP’s (and other donors’) concept of supporting community and capacity building projects and its activity based approach for funding.

o KMA maintained a healthy relation between the more active (executive) individuals and ordinary members.

o KMA has, in Kariba Minerals, a very strong member. However, this could lead to conflicts between the larger and smaller players but is in fact seen from both sides as a win-win relationship.

o KMA covers a relatively small area with a high density of mining activity and its members are all mining the same mineral. This builds common understanding and information exchange is easier and supports the practical implementation of all kinds of projects and activities.

The association was able to lobby MSDP for the Mapatizya Mining Centre constructed with the association’s full participation. In three consecutive years, KMA organised a Gemstone Exhibition in Livingstone which targets the tourist industry. This exhibition is very likely to continue as an annual event, even after the end of direct MSDP funding. KMA also lobbied MSDP for additional training courses, such as the “Tumbling Courses” and special initiatives such as the “Mapatizya Water Study” to establish water resources in the area since the lack of water is one of the biggest obstacles hindering the development of communities and mining industry. KMA’s good level of organisation makes Mapatizya an easy destination to implement studies, training courses and other supporting activities. Consequently, KMA not only established a healthy relationship with MSDP, but also with other (donor) programmes such as World Bank’s SEED and managed to lobby successfully for private and public infrastructure development, such as the extension of the CELTEL-cell phone network, which was functional in Mapatizya towards the end of 2006. Certain stakeholders and observers believe that KMA and the Mapatizya area are enjoying disproportionately high level of support compared to other mining associations and areas in the country, even accusing MSDP and its personnel of being biased. However, the facts are that through diligent management the KMA is able to use existing opportunities more successfully than others. This leads to a positive circle of development. A successful and promising association attracts more members and (donor) support which allows better service delivery to its members, communities and stakeholders. This empowers the association even more, attracts more members and support etc.





5. Geo-science GIS/dB services for the NTMS, MMMD, investors, donors, consultants, govt departments, ZIC, EBZ are provided on a sustainable basis

Even before nationalisation of the mining industry, geo science services were provided by a government department that obtained some data from private operators. Initially post-nationalisation, the Geological Service Department was able to rely on government funding to explore the geology of the country and provide information. With the decrease in government funding research diminished and GSD had to concentrate on disseminating the information already possessed. A new paradigm is needed to sustain services in the new market based situation following the privatisation of the industry in the 1990s. This is a painful and difficult process and radical change has not been embraced to-date. MSDP support was used by GSD to map and verify the resources in Ndola Rural emerald mining areas, NW Province emerald prospects and Southern Province tantalite prospects. This is fresh material now in the possession of the central repository for geological data. Processing of the data was delayed by administrative problems with procurement within EDF rules. However, by the end of Phase 1, the laboratory was decorated and refurbished including rewiring and re-plumbing in 2005 and an XRF machine and a spectrometer were procured. Additionally, MSDP provided finance for basic gemmological equipment and handbooks for the GSD in 2005. This equipment provides GSD with adequate facilities to perform routine identification and valuation tasks. The mining chapter of the Fifth National Development Plan indicates that GSD should become a semi autonomous unit and much work needs to be done to establish how this might be achieved.

6. The capacity of the Ministry of Mines and Minerals Development (MMMD) to deliver services to the NTMS in Zambia and to provide a supportive environment for the sector is strengthened

Building capacity in the ministry to deliver services and provide a supportive environment for the development of the NTMS was added to the programme through the mid term review process. In effect, such a focus was not added to the programme estimates until the 4PE (October 2005 to December 2006). Therefore it is very early days to expect results to emerge. However, it is possible to indicate some areas where impact is beginning to emerge. The PM was part of the Mining Sector Advisory Group that was tasked to draft the mining chapter of the Fifth National Development Plan. For the NTMS, one of the most interesting components of the FNDP is the promise of a Small-Scale Mines Development Authority. From the brief description found in the FNDP it is probably fair to assume that the SSMDA will be the instrument of choice for GRZ to deliver service to the NTMS or at least develop a supportive environment for private sector led growth in the sector. The successful promotion of all mining investment and activity is contingent on the investor being confident in the security of tenure over the tenement granted to the company. The existing manual mining cadastre is out-dated, inefficient and less than transparent. This results in overlapping licenses and a failure of the government to collect the correct fees for the land that is occupied and the mineral resources that are extracted. MSDP has joined with the World Bank SEED project to install a modern computerised mining cadastre which will be transparent and efficient in regulating the use of Zambia’s mineral resources. Work in this area crosses the boundary between Phases 1 and 2 of MSDP. The potential for the development of a small scale gold mining sector was explored through a study that also examined the environmental and regulatory problems that such development would create. Recommendations were made for future policy, regulatory reform and promotional activity. Appropriate technology suitable for mining and processing of iron ore at small scale level was introduced into Zambia. This was to stimulate interest and encourage small-scale mine operators to diversify into metal ore mining and processing, thereby broadening economic activities in the NTMS. A start was made with a study in the third Quarter of 2003 during the second work programme. The main components of the study were the identification of areas in Zambia where iron ore can be mined and processed economically at small-scale level and identification of existing small-scale iron processing technologies that can easily be adaptable to Zambia’s NTMS. The study provided information and insights on the prospects of mining and processing of iron ore at small-scale level in Zambia. It also provided the basis for a pilot project to practically demonstrate the identified technology.





Fig 6.7.1(a): A cut from the iron metal produced from the study To broaden the economic base of Zambia’s NTMS; operators were encouraged to adopt efficient and cost effective appropriate technology for processing of industrial minerals such as red oxide. It was anticipated that the successful outcome of this work would create a spin off effect by which the small-scale miners, mainly composed of semi-urban and rural women, would broaden their incomes and thus foster sustainable livelihoods that would lead subsequently to poverty reduction. The parameters for success were established through a study and hopes are high that this nascent industry will take off.





Activities 1 Loan Applications from the Non-Traditional Mining Sector (NTMS) are facilitated 1.1 Familiarise NTMSs with financial sector activities

Business training focused on preparation of loan applications (Refer to the information above). This was enhanced by in-house MSDP seminars that reinforced understanding of how mining projects are financed during PPF orientation seminars. The financial advisor, geologist and mining engineer, delivered structured presentations on the importance of preparing feasibility studies. Geological exploration and techniques were discussed, then how this information is used to

formulate a mine plan. This information is used to determine equipment needs, operating costs and beneficiation. Finally, the physical, equipment, market, logistic, capital and operating costs, and other information are evaluated to determine the feasibility of the project.

Several special seminars were held on the Copperbelt and in Lusaka, where ASM/SSMs and bank officials participated.

1.2 Pre-PPF evaluation & PPF tracking activities As described above, PPF orientation seminars were delivered by the TAs. All but two seminars were delivered in Lusaka. The other two were held in Mpika and Lundazi.

The delayed mobilisation of the PPF meant a very poor response. The time remaining was not sufficient to follow up on the linkages that would have given ASM/SSMs the possibility of finding partners to put up the 30% contribution. The PPF was extended into Phase 2 and it is hoped that this will give more opportunity for draw down on these funds. It is expected that a number of PPFs initiated in Phase 1 will be finalised in Phase 2. 1.3 Orientation of bankers to NTMS & EIB loan facility

Regional advisors took bank officers to visit projects in their areas. The FA delivered a paper at the annual ZICA conference in Livingstone. Other workshops were presented in Lusaka by the FA, Gemmologist and Mining Engineer.

Most foreign controlled FIs have limited in-country authorisation levels. Disbursements above relatively low levels must be authorised offshore, and few of these FIs have specialist mining evaluation personnel. Visits planned for groups of in-country bank officials were difficult to

timetable as they found it difficult to leave their offices. Efforts that were made in 2006 to arrange visits to the new Gemfields PLC emerald operation failed to materialise for this reason.

Statistics: PPF Projects approved 86 000 Balance 1 440 000

Total facility €1 500 000 Approved by PPF-Sub Committee, NAO/EC sign-off awaited

Statistics: PPF Workshops MEN WOMEN

TOTAL 69 60 9 1Q4PE Oct-Dec’05 18 16 2 2Q4PE Jan-Mar’06 24 20 4 3Q4PE Apr-Jun’06 27 24 3 4Q4PE Jul-Sep’06 TBA TBA TBA

Participating Financial Institutions Original PFIs African Banking Corporation Barclays Bank Industrial Credit Corporation Indo Zambia Bank Stanbic Additional PFIs Standard Chartered Finance Bank Pride Zambia PFIs who withdrew Indo Zambia Bank Barclays Bank

PPF summarised o Short-term unsecured loan o Interest free o Covers costs of feasibility report o Repayable upon receipt of investment o Written off if project proves unfeasible o PPF contribution 70% o Promoter contribution 30% o Approval:

Recommended by PPF sub-committee Approved by NAO Endorsed by EC

1.4 Linkages/matchmaking (companies & between investors) A junior mining exploration and development company (JMEC) in the United Kingdom with offices in Cape Town, South Africa was interested in investing in Zambia as a result of MSDP’s participation at Africa’s premier mining investment forum in Cape Town South Africa. One of the directors met with one of the MSDP TAs at the Cape Town Mining Indaba in 2003. JMEC has since been interested in investing in base metals in Zambia. MSDP assisted them acquire prospecting mining rights on the Mokambo property JMEC was also assisted by MSDP to enter discussions for a possible JV arrangement with a Zambian mining company based in Ndola with mining rights in Mokambo, Zambia. The deal could not go through because the Zambian company expected to be paid cash upfront in exchange for equity.




End of Phase One Report 2002 - 2006 Another junior mining and exploration Company (JMEC2) based in the United Kingdom with offices in Cape Town, South Africa was interested in investing in Zambia. The directors met with MSDP at the Cape Town Mining Indaba in 2003. MSDP assisted them acquire prospecting mining rights in Mwekera, Copperbelt.

MSDP also helped link a Zambian mining company (OldCo) with a gold mining prospect in Eastern Province. MSDP linked them up with small-scale gold mining operators in Eastern Province. A JV agreement was signed for Venture Mining Limited to provide both technical and financial support to the small-scale gold mining operators. MSDP also assisted OldCo and another Zambian mining equipment hire company enter into a JV to operate the gold mining prospect in Eastern Province. The agreement was signed by both parties and endorsed by MMMD. An individual miner from Ndola approached MSDP to look for an equity partner for her Ifuna-Luwombwa Iron deposit in Central Province. MSDP linked them up to Chinese financiers. A JV has been signed but awaits MMMD’s endorsement. MSDP is assisting the Luanshya Iron ore project promoters look for buyers for their over 3000 tons of Iron that they have mined so far. Contact has been established with Ndola based dealers who have shown interest. Agreement awaits signature by both parties. MSDP linked up OldCo to promoters of Muchena aquamarine prospect in Old Mkushi mining area for a possible JV. The deal fell through due to a

misunderstanding. Prepared over twelve mining project promoters for possible funding through MMMD. These promoters include Ms. Namakau Kaingu (amethyst), Mr. Kelly Kalimukwa (emerald), Muchena Shisholeka (aquamarine), Moses Zama (Aquamarine), Malizgani Mphande (amethyst), Gary Nkombo (emerald), Rita Mittal (aquamarine), Misheck Chewe (aquamarine), Mary Lubemba(emerald) and a diatomaceous earth project in Mongu. MSDP introduced the promoter of Chicha Quarries Limited to the Directors of Selly Oak Asset Management for a possible JV. The deal fell through because the promoters of Chicha quarries Limited did not want to sell any shares. An agricultural lime project needing reliable quarrying equipment was introduced to a Copperbelt based mining operator. The annual input of limestone to the factory was about 2 000 tons. A deal was brokered where the quarried limestone would be stockpiled annually to meet production requirements. However the deal failed as the quarry owners refused to give up some equity. Unfortunately the project continues to struggle with old unreliable equipment.

Statistics: EIB/FF

First loan approved Jul 2003 Latest loan approved May 2006 Highest loan value € 4 000 000 Lowest loan value € 81 519 Average loan € 729 000 Total value of loans € 7 293 363 Total number of loans 10 Number of women borrowers 1 Total number of PFIs 2002 5 Total number of PFIs 2003 6 Total number of PFIs 2005 8 PFIs that have disbursed funds 4 Stanbic € 1.45m 20% ICC € 1.48m 20% Barclays € 0.37m 5% Finance Bank € 4.00m 55% Loans in trouble/receivership 3 € 1.53 21% In receivership 2 1.43 20% In trouble 1 0.10 1%

Statistics: Small loan facility Individual loans Firms ZMK

Approved & disbursed 4 120 000 000

Approved but not disbursed 0 0

Individual loans: Approved/disbursed 4 120 000 000

Under evaluation 0 0

Rejected 6 459 950 000

Total under revue/rejected 6 459 950 000 Group loans Groups Firms ZMK

Approved & disbursed 2 8 101 560 000

Approved but not disbursed 0 0 0

Group loans: Approved/disbursed 2 8 101 560 000

Under evaluation 1 3 50 000 000

Rejected TBA# TBA# TBA#

Group loans: Under revue/rejected 1 3 50 000 000

Total loans: Approved/disbursed 2 12 221 560 000 Total projects submitted TBA# TBA# TBA#

Note: # Figures not available at time of preparation of report




End of Phase One Report 2002 - 2006 An equipment hire company (EquipHire) based in Lusaka was assisted by MSDP find a source for the mining equipment in the USA. Mr. Ed Kostenski of Nation Wide Equipment was contacted at the PDAC in Toronto, Canada, in 2003 and 2004. EquipHire sourced finance from the EIB loan facility. A JV deal is being negotiated between owners of a diamond prospect in Kalengwa South along Dongwe River in Northwestern Province, Zambia and Noodklip Diamonte (Pty) Ltd of South Africa. MSDP met the Executive Director at the Cape Town mining Indaba in 2005. MSDP also assisted Equiphire acquire an Investment Licence in 2005.

1.5 Monitoring of EIB borrowers

The PPF was intended to provide feasibility studies to support funding applications. The very poor uptake of the loan facility, and possibly the resulting failures, may be attributed to the lack of PPF support provided to applicants.

PFIs disbursed loans to a number of projects not known to MSDP, however TAs did follow up those projects financed under the EIB/FF that requested TA support. Requests for help often came from projects that were in trouble. Two loans were foreclosed, and a third is likely to fail. The small loan facility was eventually mobilised in early 2006 under the management of Pride Zambia, a specialist micro finance bank. As expected Pride took time to evaluate projects and gain a fuller understanding of the sector before making its first disbursements. Unfortunately the late introduction of this facility will make it difficult to properly exploit its full potential.

In summary, the main constraints to the successful deployment of the EIB/FF were the general economic climate at the time of project start-up, and the mismatch of the facility with the needs of the sector. EIB/FF provided a term-finance geared product where equity finance might be more appropriate. In addition it must be understood that mining is one of the riskiest of all economic activities. And in the mining world, coloured gemstone mining is considered riskier still.

Gemstone mining constraints Constraints to financing Constraints to success ♦ Poor understanding of risk ♦ Lack of entrepreneurial ability ♦ Lack of reliable geological information ♦ High cost of geological exploration ♦ Uneconomic tenement size ♦ High capital equipment costs ♦ Poor previous track record ♦ No previous mining experience ♦ Little/No business training/experience ♦ No collateral

♦ Reluctance/expense of employing professionals

♦ Use of poor geological information ♦ No mine planning ♦ Unrealistic expectations ♦ High operating costs ♦ Continued investment in uneconomic

deposits ♦ Reluctance to accept market facts ♦ Small deposits ♦ Poor market links ♦ Poor management skills ♦ “Desirability of belief”

This table summarises the challenge facing the sector. Although the Programme has impacted positively on most of these issues, it has been difficult to deal with the entrenched expectations, or “desirability of belief”, of the client-base. It will be necessary to continue to deal with the attitudinal issues during Phase 2. The perceived failure of the EIB/FF reflects this situation. Third party financiers will invest in projects that are sound and the risk elements have been identified and are manageable. However it must be understood that lenders are risk-averse, prudent businesses that will not entertain proposals that do not offer to mitigate the risks, and offer evidence of dependability. 2 The access of the NTMS to domestic & international markets (miners, buyers, processors,

financiers) is facilitated 2.1 Provide partners (miners, intermediaries, processors, financiers) with up-to-date market

information about domestic & international markets The miners were regularly provided with current market information which was available on the internet and will be available in the form of a trade directory the end of the project. The trade fairs also provided a platform where the miners were able to meet buyers face to face, for many companies trade fairs provide indispensable tools for entering new markets or to expand existing market shares.




End of Phase One Report 2002 - 2006 2.2 Gemstone exchange (Commercial feasibility study, leading to other initiatives) Aa a perceived need to promote the growth of the Gemstone industry, the Government of Zambia declared its intention to establish of a Gemstone Exchange in the country. The MSDP contracted a consultant, Projekt-Consult of Germany, to study and evaluate international and local experience in gemstone trading and propose appropriate arrangements for a possible implementation of a gemstone exchange. They concluded that government sponsored centralised gemstone exchanges had not worked anywhere in the world although it was being tried in Sri Lanka. They recommended that GRZ should leave gemstone trading entirely to private enterprise. This was the first and feasibility phase of work to be continued by World Bank SEED who had not undertaken the Phase Two investigation of modalities by the close of the MSDP programme period. 2.3 MSDP website & newsletter/internet access The MSDP websites were useful information tools for miners and stakeholders and the Ministry website increased their visibility to the sector and to the wider international mining community. MSDP recommended that the Ministry website could be run on a commercial basis after the end of the programme. The current host, Africa Insites, entered negotiations with the Ministry to continue the site using funding from advertisers to avoid further strain on ministry resources. By the end of Phase 1, MMMD had agreed in principle to the arrangement but contracts had not been signed. It is important that EBZ and GSD continue to promote the sector internationally especially via the internet in order to be able to maximize the sustainable long-term benefits from the sector that are recognised in the Fifth National Development Plan. 2.4 NTMS trade promotion Trade promotional material in the form of leaflets, brochures, flyers, display units were made throughout Phase 1. They provided information for various stakeholders and international gemstone buyers. The printed materials were distributed at local and international trade fairs. The designs remain the property of the ministry and EBZ and can be reprinted whenever they are needed.

The MSDP gemmologist published articles on Zambian gemstones in Gems & Gemology, the world’s foremost publication on gemstones. It is the house journal of the Gemological Institute of America (GIA). The first article, Emeralds from the Kafubu Area, Zambia, was published in 2005. MSDP provided gemstone material from several important localities of Zambia to provide illustrations for the article. Some of the samples were faceted for photography. Further articles based on the Lundazi and Solwezi districts were composed in 2006 for publication early in 2007. The MSPD gemmologist presented amethyst mining in Zambia at the 4’th International Gemological Symposium and the GIA Gemological Research Conference in San Diego, USA in August 2006.

2.5 Industry directory (sub-directory EBZ classified listing) The directory was completed in December to 2006 and is a useful source of information for potential international buyers of gemstones as it contains addresses of established miners, traders and suppliers of gemstones. The directory will be distributed to various stakeholders by EBZ and to international buyers based on enquiries. EBZ should continue to update and reprint copies in the future. 3 The NTMS has acquired adequate skills - technical (exploration, mining, processing,

valuation) entrepreneurial skills 3.1 Exploration & deposit evaluation Early on MSDP recognised the need for substantial improvement in the knowledge of gemmology. Although gemmology training to diploma level at the SOM UNZA helps to address this constraint, a full education with internationally recognized degrees in gemmology would hugely benefit prospective students and Zambia. MSDP budgeted for equipment for a planned Gemmological Institute of Zambia




End of Phase One Report 2002 - 2006 in collaboration with WB/SEED. However, by the end of Phase 1 the SEED feasibility study was still awaited.




End of Phase One Report 2002 - 2006 3.2 Mining & safety training and consultancy The training process involved first identifying the training needs, drawing up a syllabus, finding suitable trainers and then the implementation of the training courses in various places. Consultative meetings were held with various stakeholders and the UNZA SoM to plan the above. Of particular note were meetings held with Eric Wightman, then Chairman of Kalomo Miners’ Association, Steering Committee member and a board member of the Science and Technology, on training needs. Material was acquired on the training that had been used in the World Bank ERIPTA training road shows and the training done by the Ministry of Science and Technology. Secondly a questionnaire was sent out to miners and mining associations which captured the training needs of the sector. 154 valid responses were received. Using the material collected a syllabus was designed with the collaboration with SoM. The challenge was to draw up a syllabus that would be appropriate to a wide range of participants in terms of geography, commodity mined, education and experience in the sector, gender and business knowledge. The tiered training courses were structured as follows:

• Lecture type classes for mine owners and senior managers. These focused more on management and management of technology. Subjects covered were geology, mining, processing and health and environment.

• Demonstration type courses for mine employees. These courses were held on site and

covered geology, mining safety and environment. Officers from Mines Safety Department were involved in the safety and environment training course.

• Specific training convened for particular areas or for certain subject matters. Courses of this

type were held in areas like Itezhi tezhi/ Kaindu, Sesheke and Kabompo.

• Seminar type training workshops like the Safety, Health and Environment workshop held in October 2004 in collaboration with the Mines Safety Department

3.3 Processing Mapatizya Mining Centre The Mapatizya area within the Kalomo District is known as the centre of Zambia’s amethyst mining industry. Amethysts have been mined there for more than 30 years. A “town centre” called “The UK”

with mushrooming informal shops, night clubs and other service providers is the heart of the mining community’s social life. About 4,000 to 6,000 people currently living in the immediate area, depend mostly on the amethyst mining industry. Currently there are 60 registered mining plots; about 10 are in an active

stage. Kariba Minerals is by far the biggest company operating in the area; the area hosts the whole range of mining operations including artisan miners and so called “illegals”. The “Kalomo Miners Association” is reasonably well organized grouping of most of the operators in the area.




End of Phase One Report 2002 - 2006 Generally, small-scale miners in this area are facing the following problems:

Lack of access to affordable and appropriate heavy equipment No value addition No financial sustainability for the local miners association Lack of appropriate marketing information Absence of organised marketing Absence of quality standards for Amethysts Limited quality control for the products Limited technical and business management skills; Low productivity; Material wastage Limited access to affordable transport facilities. No access to financial resources Poor infrastructure in the area Difficult communication with the rest of Zambia ( radio, television, telephone, internet/email,

postal services) Food shortages Water shortages (low rainfall, dry area) Environmental degradation; Poor health and safety conditions

The Mapatizya Mining Centre targets the following issues.

Value addition Appropriate, organised marketing Quality standards for Amethysts Quality control for the products Increased productivity; Minimizing material wastage Improved infrastructure in the area Improved communication with the rest of Zambia

The Mapatizya Mining Centre (“MMC”) Approach

The successful larger producers in the area demonstrate that there is a key-need to upgrade the product (especially the medium and low quality) to optimise the revenue. This includes sorting & grading, knocking, eventually sawing and perhaps most importantly the introduction of a grading system which is internationally known and trusted. One problem faced by most of the “small” miners in the area and which leads to further problems in marketing their products, is the lack of an appropriate upgrading facility for the Amethyst. The “Mapatizya Mining Centre” (“MMC”) will allow miners

To optimise value-adding for their products To process their minerals in an optimal way according

to the quality of their stones and to market demands. To create, promote and market a brand To produce a product according to internationally

known & trusted grades and standards. To market their products more successfully either;

individually with or without the help of the centre, but to a extended clientele, since the quality and grades are known.

by selling to other local miners/traders since the grading system is unique. together with other small producers to increase and secure the required quantities since

products from different miners can be blended using the agreed grading system.




End of Phase One Report 2002 - 2006 After Phase 1, the MMC provides:

A secure centrally located venue within the mining area where the upgrading can take place. Infrastructure, such as electricity, water etc. Trained personnel to process material according to the required grading system. The necessary equipment and machinery Centre management to ensure its smooth running. Quality control to secure the necessary standards. A transport facility (tractor with a trailer) for the raw product from the mine to the Centre.

And possibly at a later stage:

A marketing office, equipped with modern communication systems. Further processing equipment, e.g. a tumbling machine A truck for transporting the final products to Lusaka.

The MMC will also provide a base for any other future development project in the area. As a pilot project, MMC provides opportunities:

To test the approach of a customised minerals processing centre To optimize the set-up, equipment etc. for such a centre To prove the feasibility of such a centre To introduce new and alternative processing & value-adding methods and equipment to the

miners and test their appropriateness To come up with standardised, internationally known qualities for the Kalomo Amethyst To test and introduce common marketing strategies for Kalomo’s small and artisanal miners To strengthen the capacity of the local mining association To increase employment in the area To provide a well established base for a stand alone service provider To provide a successful example of a custom minerals processing & marketing centre for

gemstone-ASM-areas in Zambia and internationally.

Overall design The workflow in the centre is based on the successful set-up at the Kariba Minerals’ processing plant, adjusted to the expected turn-over of material as well as to the special needs of the mining community. Compared to Kariba’s set-up, more emphasis will be given to additional value-adding, such as tumbling, etc. The planned set-up is designed for the start-up and can be adjusted according to

the needs during the pilot project lifespan to develop the best design.





Main processing flow at proposed MMC plant

n

3.4 MSThto ph 3.5 3.5 OncoSoraidejewovbyTodesmAfpreBuwaA coJeThJeinfetcA ev

Q:\0

De

Mine Ru
Sorting & Grading
MINE RUN Washing & Selecting

Sawing Knocking

Tumbling etc. Marketable

Products

Valuation

DP sponsored three 8-week diploma courses in gemmology at the UNZA School of Mines campus. e courses were designed to give students a broad knowledge of gemmology spanning from mining market. The curriculum covered exploration techniques, gemstone geology, mining techniques, ysics and chemistry of gemstones, hands-on faceting, valuation and marketing.

Downstream value adding

.1 Zambia Jewellery Competition

ly jewellery making is the ultimate value adding for gemstones and precious metals mined in the untry. The local jewellery industry is currently driven by a few companies and gifted individuals. me of these produce high-quality products but they can not provide a critical mass of production to se local and international awareness for the sector. For the same reason, the sector could not velop a style that could be seen as “Zambian”. Generally, with a few positive exceptions, Zambian ellery does not do justice to the high quality and standard of Zambian gemstones, well known all

er the world. Zambia not only produces high quality gemstones but also gold and silver (silver is a product from the copper industry) which do not find a local market. address these constraints, MSDP launched an effort to promote Zambian jewellery making and sign. The Zambian Jewellery Competition began in July 2005 to encourage local jewellers, including all-scale producers, to develop a “Zambian Jewellery Design”

ter a status evaluation of active jewellers in the country, eleven selected participants were invited to sent collections within MSDP’s pavillion at the 2005 Lusaka Agricultural Show in August. ilding on success and experience of the first Competition, the 2nd Zambian Jewellery Competition s held in 2006. Jury of experts and VIPs as well as votes from the public audience nominated a winner. This llection was than further developed and marketed locally and internationally as “The Zambian wellery Design”. e winners were invited to join the MSDP-sponsored delegation to visit the annual Bangkok wellery and Gemstone Show, one of the biggest of its kind in the world. This allowed the winners to orm themselves on up to date trends and developments in the sector, new markets and techniques, . and bring this information back into Zambia’s jewellery industry.

total of more than 2,500 visitors cast their votes during the two shows. The good coverage of the ents in the press and electronic mass media gave the participants and particularly the winner the

23EDFreports\20061231EndPhaseOneReport\MSDocs\20060512EOPR_019.doc

cember 2006 End of Phase One Report 2002 - 2006 42 / 48.


End of Phase One Report 2002 - 2006 publicity they deserve. This should encourage more Zambians to appreciate locally made jewellery and encourage gifted entrepreneurs to engage themselves in Jewellery making and design.

3.5.2 Tumbling Courses in Mapatizya Following experiences from the MSDP sponsored Gemstone and Jewellery Exhibitions in Livingstone, the Kalomo Miners Association expressed the need to develop local value adding, especially for low-grade amethyst which can be relatively easy manufactured into products suitable for the local (tourist) market. Consequently, MSDP developed in co-operation with Kariba Minerals and KMA a training programme for tumbling and cabochon making. A local craftsman was hired to run three one-week courses using machinery and resources from the Mapatizya Mining Centre. The courses emphasised appropriate techniques and basic machinery and equipment, suitable for micro and small scale entrepreneurs in the area. The courses were described by participants as an “eye-opener” especially since material which was until then considered as waste was transformed into high-value products, using relatively simple means. Women in the industry especially expressed high interest and hopes.

3.5.3 MSDP procured lapidary equipment and reference books for the Gemstone Processing & Lapidary Training Centre in Ndola. The centre is training students in faceting and other lapidary techniques to promote downstream value adding for the gemstone industry in Zambia.

3.6 Entrepreneurial skills training More than 600 miners trained in basic business skills. As stated in the recent review of training, some of those trained have attended more than one session and the majority indicate that the training has changed their business approach to their operations. The training was taken to the mining areas and the evaluators were happy that this methodology increased the efficiency and cost effectiveness of the training delivered. 3.7 Business, marketing and management consultancy and counselling Although the design of MSDP has been consistently criticised in the area of the loan fund, the provision of Regional Advisors and a Financial Advisor in the TA team ensured that sector operators were able to receive consistent and easily accessible business advice and consultancy. The team Mining Engineer and Marketing Advisor added further dimensions to the services available on demand. NTMS operators called at the MSDP offices on a daily basis to consult with the team. Each team member provided advice to more than twenty operators each month. The visits are recorded in the TA diaries and the collated information is available through the TA reports in each Quarterly Report. 4 The capacity of mining associations is strengthened 4.5 Status evaluation At the beginning of MSDP a questionnaire was administered to establish the status of the mining associations operating at the time. This was followed by visits and regular consultations. In 2006 another independent evaluation was carried out to establish how far the associations had progressed over the period of the project and how they should be supported going into the future. The output of the evaluation will be particularly important to the Small Scale Mines Development Authority as it emerges from the ideas in the Fifth National Development Plan. 4.6 Capacity building activities The MSDP approach was to work in partnership with the organisations to deliver services to their members and use these events as opportunities to build capacity through informal training, mentoring and shadowing of the personnel involved. The plan was for the associations to continue with similar activities after the close of MSDP but with more skill and competence. Over the course of the project 14 associations were assisted to organise activities and earn facilitation fees to strengthen their financial capacities: AZWIM, ESMAZ, AFEWIGMM, Kalomo, Lundazi, EPWIMA, Luapula, Mkushi,




End of Phase One Report 2002 - 2006 Mpika, Nkala Olimba, Union of Former Miners, North Western, Sekeseke Mining Co-operative (Kabompo) and Sesheke Co-operative Union. Whilst they earned some money from the activities the associations’ participation in the activities also enhanced their linkages with their members and other stakeholders like consultants and service providers. 4.7 Support to stakeholder interests (Studies & advisory) This activity supported lobbying and advocacy activities of the NTMS, facilitating the presentation of ideas, opinions, grievances and participation in fora concerning their sector. The initiative for meetings came from GRZ through MMMD or the miners themselves. Through this activity the NTMS had opportunity to participate in seminars, contribute to studies and make presentations to the authorities. The sector participated in studies on regional mining bureaux, the proposed gemstone exchange, legal and regulatory review, baseline study and the impact of MSDP marketing initiatives. Other studies were limited to particular geographical areas like the study on the feasibility of the Mapatizya Mining Centre. In the final year, the gender study, Mapatizya water resources study, the training impact and needs assessment and the status evaluation of mining associations were completed. In all these studies the associations have played a key role in terms of participating, co-ordinating and information dissemination. This should be their continuing role as an interface with authorities and a voice of the sector. 5 Geo-science GIS/dB services for the NTMS, MMMD, investors, donors, consultants, govt

departments, ZIC, EBZ are provided on a sustainable basis 5.1 Geo-science GIS/dB The digitisation of geo-science data and its collation and indexing through a GIS database was planned for but not achieved during Phase 1. 5.2 Commissioning The Geological Survey Department of the Ministry of Mines and Minerals Development does not have its full compliment of professional staff. However, they were able to conduct field surveys in North Western Province, the Emerald Area and Southern Province. Although detailed geological investigations have to be left to the private sector, preliminary investigations through the national survey do encourage investment in prospecting. Forty percent of the land surface of Zambia requires an aeromagnetic survey. 5.3 Data collection capture and processing 5.3.1 Updating mineral rights records. MSDP worked extensively with the survey staff in the regional mining bureaux to establish mining rights on the ground and to update cadastral data. The regular updating of records had been neglected because staff and resources had been unavailable for sometime. Early on in Phase 1, the MSDP team recognised that the industry was demanding changes in the licensing system to make it more transparent and objective. A similar conclusion was drawn by the design team for the World Bank SEED programme. A collaborative effort was arranged to install a modern computerised cadastre. After much discussion, the NAO and EC agreed to extend the TA contract to allow new members to complete the cadastre. By the end of Phase 1, the custom software was ready for a full trial and all the workflows and business rules were in place. 5.3.2 Digitising geo-science data and Reports the Zambia Chamber of Mines The Zambia Chamber of Mines holds numerous valuable geo-data it inherited from ZCCM and its predecessors’ exploration programmes which date back to early 1930s which risked being be lost or permanently ruined. The objective of the activity was to digitize and organize the geo-science data records at the Zambia Chamber of Mines in a computerized format that would make them readily available to the NTMS stakeholders, investors and others on a sustainable basis. At the conclusion of the activity the following results were obtained:

i. Mineral Inventory Database system with subsystems or menus consisting of data entry, search, report and utility modules.





ii. Records captured from 29 localities and 14 special reports. Each locality contains on average 20 maps, 15 aerial photographs and 60 reports of over 30 pages. The special reports in most cases were in excess of 800 pages.

iii. Report outlining the database system, data selection criteria, volume of data at the Chamber of Mines, data captured estimated cost of capturing the entire data and recommendation for future works.

Due to limited resources allocated to the activity, the number of records captured was only a small portion of the total volume. However, all the objectives set for the activity were met and the Chamber has committed resources to further digitisation if a cooperating partner can be located. 5.4 Activities to improve service delivery and dissemination GSD provides vital services to the industry and in particular the NTMS. It is the repository of geological information and a supplier of analytical back-up. During Phase 1, the laboratory was refurbished to provide better services; vehicles were repaired to allow more field-work and new IT equipment provided for record keeping. New equipment such as the XRF and the spectrometer ensure that operators have to go elsewhere less often. The Fifth National Development Plan encourages the separation of GSD from MMMD as a semi autonomous unit. Other national geological surveys have followed similar paths and the planned consultancy to look at the potential for commercial operations at GSD could not be procured by the end of Phase 1. There is a general shortage of professional geo-scientists in Zambia and women are even more poorly represented. In conjunction with the Geological Society of Zambia, MSDP worked with UNZA and secondary schools to promote careers in the geosciences for female students. The semi formal meetings were successful and more students entered the school of mines for their second year at university. Further success was secured when the industry promised twenty full and part scholarships for geo-science students. 6 The capacity of the Ministry of Mines and Minerals Development (MMMD) to deliver

services to the Non Traditional Mining Sector in Zambia and to provide a supportive environment for the development of the sector is strengthened. The access of the NTMS to adequate equipment/technology is facilitated

6.3 Capacity building activities The partial paradigm shift for MSDP from an almost complete focus on the direct provision of services to the NTMS to an almost equal focus on building capacity in the MMMD was a challenge for all the stakeholders concerned. Especially as the definition of capacity building is always open to interpretation. The MSDP team has endeavoured to target capacity building activities on those areas of the ministry that do, or perhaps will, provide services to the NTMS or can influence the environment in which they function. From this position a pragmatic strategy was adopted towards activities. If an activity was requested by MMMD and in particular MDD and it could be seen to strengthen current or future capacity to deliver services then MSDP sought to implement it. Library furniture was purchased and a librarian was employed on a ST contract to provide a catalogue system and catalogue the existing collection of reports and charts. This invaluable repository of information will be needed to provide technical advice to the NTMS in the future. A small LAN was developed in MDD. This can form the basis of an MMD-wide network or be the starting point of a system for the nascent Small Mines Development Authority. ITC equipment was purchased to establish a proper working environment for the new cadastre unit. The servers to run the cadastre software was purchased by the WB SEED programme. The ITC equipment purchased by MSDP is used in the wider environment of the cadastre unit to allow the proper flow of information and the proper storage of records in a digital format. 6.4 Legal and regulatory framework study The legal and regulatory framework for the NTMS was another area of cooperation for MSDP and WB SEED. The MSDP study was targeted at the NTMS and fed into a larger and wider study conducted by WB SEED looking at the environment for the sector as a whole. The MSDP study was conducted through a combined effort of international and local experts who canvassed the views of a wide group




End of Phase One Report 2002 - 2006 and then pulled it all together into a report with practical recommendations of how the legal and to an extent the fiscal regimes might be adjusted to encourage more growth in the sub-sector. 6.5 Other studies, training and initiatives To install a new computerised cadastre, essential to attract investors into the sector, a major reorganisation of MDD was required to establish the new cadastre unit. MSDP sponsored ST TA to verify the costs to establish and run the new cadastre unit and provide data for sensible planning. Further work established the ITC training needs of the staff in the unit. Two mining companies discovered exploitable uranium in Zambia and one wished to bring their tenement to production very quickly. A legal specialist was provided by MSDP to support the process of preparing new uranium mining regulations and establish a skills base to develop regulations in the future. It was established in the early days of the programme that there were many women involved in mining and many more female livelihoods were indirectly linked. In 2006, a major study was completed to establish any special constraints faced by women and a strategy was prepared to mitigate these problems. Small scale gold mining is yet to take off in Zambia. However, the mineral is available and at some stage small scale operators will begin to exploit it. A detailed study was conducted by MSDP to examine the potential for this activity and made proposals for the way in which it should be regulated and promoted.

6.6 Sensitisation to the needs of the sector Many miners complain that government institutions do not understand or care about the problems that they face. A study of available water resources in the Mapatizya area was implemented through a short term contract towards the end of 2006. The needs are numerous and varied but this study enables proper planning of mines development in that area where the availability of water is a very serious limiting factor. The promotion of the NTMS lobby also contributes to the sensitisation objective. 6.7 Human resource development – training, mentoring, shadowing etc The activity was included in the programme to address needs identified for the organisational reforms established in 6.3 above. After 6.3 became narrowly focussed on the development of the cadastre unit then so did the HRD work. 3 Surveyors were sponsored for training at Copperbelt University. Staff at the cadastre unit received organisational development and team building workshops. Materials were procured to train cadastre staff for the International Computer Driving License. However, in addition, senior professionals from MDD attended a high level course in UNZA titled “Managing a mineral based economy. They are now much better equipped to interface with MSDP during Phase Two and drive the organisational reform process. 6.8 Facilitation of a service oriented culture This activity was included in the logical framework that was developed after the mid-term review process. The only opportunity for this work in phase one was under the 4PE but the activities were not possible before progress on organisational reform was achieved. 6.9 Access to appropriate equipment/technology

Provision of access to adequate equipment/technology was realised through studies and implementation of pilot projects. 6.9.1 Appropriate technology for small-scale mining and processing of iron ore A pilot iron ore project was set up at Lufubu hills iron deposit in Luanshya with a community of former ZCCM miners as project partners. Adopting former miners as project partners, added value to the project in terms of the programme’s contribution towards poverty alleviation through provision of sustainable livelihood since the pilot project facility will be donated to the community to be used as business venture after the project conclusion. Q:\023EDFreports\20061231EndPhaseOneReport\MSDocs\20060512EOPR_019.doc




Fig 6.7.1(b): Project Partners Fig 6.7.1(c): Part of iron ore mined by Project partners

Implementing the Lufubu appropriate technology pilot project involved activities that include: • Designing a ten tonne capacity mini-furnace using charcoal briquettes made from sawmill waste

(sawdust) as fuel reductant.

• Construction of mini-furnace consisting of casting 58 tonne reinforced mass concrete foundation with 9m steel columns, and fabricating of steel shell lined with refractory bricks. The other works included fabricating and installing of furnace accessories such as charging, gas cleaning, furnace cooling water systems, recuperator, and constructing sheds and water supply system.

• Producing Environmental Project Brief to the Environmental Council of Zambia

• Providing business training to the project partners

This project is innovative and even experimental. Therefore, by the end of Phase 1, construction of the plant was incomplete and the original design budget had been exceeded significantly.

7 Appropriate technology in industrial minerals processing – Red Oxide This activity was targeted at disadvantaged women in rural areas. Specifically, the activity analysed, and characterized the different red oxide ores currently exploited by women on the Copperbelt and investigated their potential for industrial application, with the view of identifying appropriate technology to enhance the value of the material and thus broaden the application and market.

The work included: a. Identified areas on the Copperbelt where red oxide ore can be mined and processed

economically at a small scale level b. Sampled at least four of the identified deposits on the Copperbelt. c. Characterized the red oxide materials through mineralogical analysis and related the ore

mineral characteristics to possible industrial applications. d. Sampled and analysed the red oxide products currently made by the women on

Copperbelt to suggest ways to improve the quality of the products. e. Investigated ways of upgrading the quality of the red oxides by identifying contaminant

materials f. Ascertained the response of the red oxide material to different calcining temperatures g. Designed a low cost treatment flowsheet for production of red oxide h. Determined the technical, economic and marketing parameters for mining and processing

the red oxide ore at small-scale level.

7.3 Training: use and selection of appropriate technology Appropriate equipment was identified and selected for the different mining areas of the country. Miners in each area then had the opportunity to go through a structured and practical demonstration course showing how to get the best out of the equipment/ technology appropriate for that area. Courses were held in Mapatizya, Mkushi, Mpika (2), Lundazi, Ndola Rural and Solwezi.

Feedback from the NTMS was positive with comments like ‘the best ever hands on course held’ and ‘a sure eye opener’.




End of Phase One Report 2002 - 2006 7.4 Facilitation: demonstrations, promotions, interfacing with commercial suppliers A seminar with equipment suppliers was held in Mapatizya in May 2003 where suppliers were given an opportunity to demonstrate their equipment in an actual mining environment.

In June 2005 a gravity concentration equipment supplier from Zimbabwe was invited to Zambia to make presentations of their machines. The machines are applicable for gold and tantalite processing. One local gold company has since acquired a machine from the company. MSDP has also acquired a machine for training demonstrations.

In 2006 Europlant, a company dealing in hydraulic hammers and accessories was invited to be part of the technology demonstrations. They participated in the Mpika technology demonstration course in Mpika.




End Of Phase 1 Report 2002 to 2006

Annex AMSDP Steering committee and the sub-committees

1 Steering Committee

1.1 Supervision

The Lilayi MTR workshop recommended that the supervision of the MSDP be moved to the MMMD. This was confirmed by a letter from the NAO and it will be ratified in Rider 1 to the Financing Agreement.

1.2 Members of the Steering Committee

The Steering Committee held its first meeting on the 23 October 2001. At the date of the End of Phase 1 Report the composition of the MSDP SC was:

Member Alternate Organisation

1. Chairman Glyne Michelo (Caroline Makasa) Export Board of Zambia 2. Member Justin Machila (Lackson Kanyemba) Export Board of Zambia 3. Member George Shaba (TBA) Emerald & Semiprecious Miners Association of Zambia 4. Member Thomas Krimmel (Temwani Chihana) National Authorising Officer – EDF 5. Member Lyapa Mansa (Eric Wightman) Kalomo Miners Association 6. Member Gerald Tembo (Boniface Kunda) Ministry of Commerce Trade and Industry 7. Member Damore Mulima (TBA) Zambia Revenue Authority 8. Member Gandson Moyo (Abel Shimba) Bank of Zambia 9. Member Lutombe Kawana (TBA) PRIDE Zambia

10. Member Gerhard Kangamba (TBA) Ministry of Mines and Minerals Development 11. Member Juan Jose Villa-Chacon Chilambwe Lwao European Commission Delegation 12. Member Namakau Kaingu Mumeka Wright Association of Zambian Women in Mining 13. Member Wally Brand (Juan Jose Villa-

Chacon) European Investment Bank

Secretary Chris Sealy MSDP Programme manager

At the 7th meeting of the MSDP SC (2003-03-21): The Chairman was succeeded by Glyne Michelo. Names of one alternate to each member were requested to be submitted in order to ensure consistency in MSDP SC activities. These names appear in brackets after the member’s name. At the 5th meeting of the MSDP SC (2002-09-05) the above constitution of the SC was ratified to include the representatives of the MCTI and the ZRA as voting members.

1.3 Changes to the Steering Committee Member Juan Jose Villa-Chacon replaced

Jenny Correia-Nunes European Commission Delegation

Member Gerhard Kangamba replaced Ministry of Mines and Minerals development Mr Chansa Member Danmore Mulima replaced Zambia revenue Authority Raymond Mbali Member Lyapa Mansa replaced Kalomo Miners Association Pauline Mundia Member Thomas Krimmel replaced National Authorising Officer -EDF Temwani Chihana Chairman Glyne Michelo replaced Export Board of Zambia Johnson Mwenya Member Namakau Kaingu replaced Association of Zambian Women in Mining Mary Lubemba Member Temwani Chihana replaced National Authorising Officer – EDF Ladislous Kanene Member Jenny Correia-Nunes replaced

Petra Lindberg European Commission Delegation

Petra Lindberg replaced European Commission Delegation

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MSDP Steering committee and sub-committees Annex A 1 / 4



Jenny Correia-Nunes replaced European Commission Delegation José Correia-Nunes Member José Nunes replaced European Commission Delegation Erik von Pistholkors Member George Shaba replaced Emerald & Semiprecious Miners Association of Zambia Ndiwa Yuyi Member Pauline Mundia replaced Kalomo Miners Association Eric Wightman Member Ladislous Kanene replaced National Authorising Officer – EDF Robert Keith Member Gandson Moyo replaced Bank of Zambia Elvis Mtonga Member Wally Brand replaced European Investment Bank Serge Klumper Member Robert Keith replaced National Authorising Officer – EDF Bill Young Member Chifumbe Chansa replaced Ministry of Mines and Minerals Development W.R. Sweta Member Lutombe Kawana replaced PRIDE Zambia Jeffrey Tembo Member Jeffrey Tembo replaced Stanbic Bank Caiphas Habasonda

1.4 TAP provisions regulating the Steering Committee

1.4.1 Composition Members:

Original constitution 1. EBZ Chairman 2. EBZ One additional member 3. MMMD Member 4. NAO Member (Note i.) 5. EIB Member 6. Bank of Zambia Member 7. Non-voting representatives from mining community Member (Note ii.) 8. Non-voting representatives from mining community Member (Note ii.) 9. Non-voting representatives from mining community Member (Note ii.) 10. Non-voting representatives from the financial institutions Member 11. EC Delegation Member (Note i.)

Additional members: 12. ZRA Member (Note iv.) 13. MCTI Member (Note iv.)

Secretary 14. MSDP Programme manager (Note iii.)

Voting members 7 Non-voting members 4 (Note v.)

Notes: i. Decisions of the Steering Committee will be taken with the consent of the NAO and of the EC Head of

Delegation (or their representatives) ii. Representatives who will not have voting capacity in case of conflict of interests iii. The SC will meet on a quarterly basis or as requested by the Programme manager iv. At the 5th meeting of the MSDP steering committee (2002-09-05) the above constitution of the steering

committee was ratified to include the representatives of the Ministry of Commerce Trade and Industry and the Zambian Revenue Authority as voting members.

v. Co-opted members may be invited to participate when needed Source: Financing Agreement No 6308/ZA, Annex, Technical and Administrative Provisions for Implementation, The

Republic of Zambia, Project: Mining Sector Diversification Programme; Accounting No: 8 ACP ZA 036; Identification No: ZA/9999/001, §3.2 Organisation and Implementation Procedures




End Of Phase 1 Report 2002 to 2006 1.4.2 Quorum

The MSDP SC set the quorum at 7, of whom 4 should be voting members.

(This decision modified the decision taken at the 2nd MSDP SC Meeting held on 2001-10-23 where the quorum was set at 7 members. No quorum is indicated in the TAP.)

1.5 Steering Committee meetings

Minutes of the meetings are available for inspection at the MSDP offices. 2001-09-14 First Steering Committee meeting held at the offices of the NAO 2001-10-23 Second Steering Committee meeting held at the offices of the EBZ 2002-03-28 Third Steering Committee meeting held at the offices of the NAO 2002-07-04 Fourth Steering Committee meeting held at the offices of the NAO 2002-09-05 Fifth Steering Committee meeting held at the offices of the EC Delegation. 2002-12-19 Sixth Steering Committee meeting held in the MSDP meeting room. 2003-03-13 Seventh Steering Committee meeting held in the MSDP meeting room. 2003-06-26 Eighth Steering Committee meeting held in the MSDP meeting room. 2003-07-17 Ninth Steering Committee meeting (extraordinary) held in the MSDP meeting room. 2003-11-13 Tenth Steering Committee meeting held in the MSDP meeting room. 2004-03-04 Eleventh Steering Committee meeting held in the MSDP meeting room. 2005-03-31 Twelfth Steering Committee meeting held in the MSDP meeting room 2005-08-28 Thirteenth Steering Committee meeting held in the MSDP meeting room 2005-11-03 Fourteenth Steering Committee meeting held in the MSDP meeting room 2006-01-26 Fifteenth Steering Committee meeting held in the MSDP meeting room 2006-04-27 Sixteenth Steering Committee meeting held in the MMMD conference room 2006-06-15 Special Steering Committee meeting with a report on SLF held in the MMMD conference room 2006-07-27 Seventeenth Steering Committee meeting held in the MMMD conference room 2006-10-26 Eighteenth Steering Committee meeting held in the MMMD conference room

2 MSDP sub-committees

At the 7th Meeting of the SC it was agreed to discontinue the Finance and Technical Sub-committees, and retain only the Administrative Sub-Committee.

The Administrative Sub-Committee of the MSDP will meet when required. The quorum will be 3 members and 48 hours notice of meetings is required. The resolutions of the Sub-Committee shall be endorsed by the Chairman of the MSDP/SC and ratified at the next meeting of the MSDP SC. The Administrative Sub-Committee was constituted at the 5th meeting of the MSDP SC.

2.1 Administrative Sub-Committee

Member Export Board of Zambia SC member Member Mining sector SC member Member MMMD SC member Member Banking sector SC member Member EC or NAO SC member The business of the sub-committee will be determined as required by the MSDP SC. The Chairman will be elected at each meeting. 2002-11-28 1st Meeting 2003-01-23 2nd Meeting





2.2 Technical Sub-Committee

This sub-committee met only once and has been superseded by the Administrative sub-committee 2002-06-18 1st Meeting

2.3 Finance and administration Sub-Committee

This sub-committee met only once and has been superseded by the Administrative sub-committee 2001-11-15 1st Meeting

Ω




End of Phase 1 Report 2002 - 2006

Annex B

Contractual Issues

1.1 Technical Assistance Service Contract details

The MSDP is funded under a grant from the Lomé IV-8th European Development Fund SYSMIN facility, Project Number 8ACP ZA 036, Financing Agreement 6308ZA, and Identification Number ZA/9999/001. The project is being executed under Technical Assistance Service Contract No.TA/ZAM/001/02. The contracting authority is the National Authorising Officer of the European Development Fund. The contracting consortium is led by Swedish Geological AB, with Hifab International AB, Raw Materials Group, Projekt-Consult GmbH, and Intermediate Technology Consultants Ltd.

The memorandum of association was signed with the NAO/EDF on 2001-07-04, and the commitment was opened on 2001-08-28 for M€ 15. Notification of the Award of Tender was dated 2001-11-05 and the Technical Assistance Contract No.TA/ZAM/001/02 was finalised on 2001-11-08. Commencement date was 2002-01-07 for a contract period of 60 months. Addendum No.1 was approved on 2002-07-03 which was to confirm the commencement date. Addendum No.2 dated 2003-12-29 approved the extension of the service period of the Valuation Expert to terminate at the same date as the other TA contracts. Addendum No.3 was approved on 2004-11-09 to record the change of Team Leader from Reidar Hoffner to Christopher Sealy. Addendum No4 changed the bank account to be used for the foreign payments on the SGAB Service Contract. Addendum No5 signed 2005-04-01 concerns additional short term inputs for a revised Cadastre system at the Ministry of Mines and Minerals Development and studies concerning a gem exchange, gold exploration and the legal and regulatory framework.. Addendum No.6 allows all invoicing for the studies and tasks in Addendum No. 5 to be prepared and paid in Swedish Crowns (SEK) Addendum No.7 to the Technical Assistance Contract No.TA/ZAM/001/02 was signed by the EC in December 2005. Addendum No. 7 extends the period of the contract in line with Rider No. 1 to the Financing Agreement. Addendum #8 signed in September 2006 gave permission for re-disposition of man days and roles within the Consultant team, and the addition of a Swedish expert in workflow design and training, Eva Stredder. Addendum Number Nine signed in December 2006 introduced new personnel and rescheduled the activity introduced to the contract by Addendum #5 and called Development of a new mining cadastre system (TA/ZAM/001/02/CADASTRE). During the fourth AWP period MSDP received a directive to apply the Administrative, Financial and Contractual Procedures of the 9th European Development Fund, May 2004 unless they specifically contradict the Financing Agreement. In all other respects the General Conditions for Works, Supply and Service Contracts by the EDF (1990-12-31 Official Journal of the European Communities, Annex I No L382), General Conditions for Supply Contracts Financed by the EDF (1990-12-31 Official Journal of the European Communities, Annex III No L382), and General Conditions for Service Contracts Financed by the EDF (Official Journal of the European Communities, Annex IV No L382/75 of 1990-12-31) apply to the execution of the Contract. The Financial and Contractual procedures were further modified by the second set of guideline issued under the ninth EDF and effective from January 2007.

Project supervision is now the responsibility of the Ministry of Mines and Minerals Development and in particular the Permanent Secretary.

1.2 Annual work programmes and cost estimates

1.2.1 Value of AWP/CE at time of approval

Period Imprest account

ZMK

Specific commitment

ZMK

RoE: ZMK/€ Approved by SC

SuWP/CE 2001-12-01 to 2002-03-31 101 200 000 715 000 000 3 354.43 2001-10-23 1WP/CE1 2002-04-01 to 2002-07-31 1 156 886 000 195 169 000 3 411.79 2002-03-28 1WP/CE2 2002-08-31 to 2002-12-31 1 583 998 000 1 026 600 000 4 381.00 2002-07-04 2WP/CE 2003-01-01 to 2003-12-31 5 168 810 000 2 966 300 000 4 487.46 2002-09-05 3WP/CE 2004-01-01 to 2004-12-31 10 373 897 503 12 469 000 094 5 567.00 2003-11-13

4AWP/CE 2005-10-01 to 2006-12-31 8 477 418 605 6 198.02 2005-08-28

Q:\023EDFreports\20061231EndPhaseOneReport\MSDocs\Annex B_Contractual Issues_004.doc

January 2007 End of Phase 1 Report 1 / 4.



Information on the Audit and Closure status of the AWP commitments is found in § 5.5 below.

1.2.2 Addenda to the AWP/CEs

Net increase arising from the addenda:

Period Imprest account ZMK

Specific commitmeZMK

RoE: ZMK/€

Approved by NAO/EC

1WP/CE Addendum 1 Nil Nil - 2002-12-31 2WP/CE Addendum 1 1 583 998 000 1 026 600 000 4 381.00 2003-04-17 2WP/CE Addendum 2 Nil Nil - 2003-09-05 2WP/CE Addendum 3 521 398 750 841 398 750 4 381.00 2003-12-25 3WP/CE Addendum 1 Nil Nil 5 567.00 2004-07-12 3WP/CE Addendum 2 Nil Nil 5 567.00 2004-11-30 3WP/CE Addendum 3 Nil Nil 5 567.00 2004-11-30 3WP/CE Addendum 4 200 000 (5 909 851 204) 5 567.00 2005-02-18 3WP/CE Addendum 5 Nil 5 567.00 2005-06-30 4AWP/CE Addendum 1 Nil Nil 6 198.02 2005-12-13 4AWP/CE Addendum 2 (342 850 000) Nil 6 198.02 2006-06-19 4AWP/CE Addendum 3 6 198.02 2006-07-24 4AWP/CE Addendum 4 (839 830 000) 6 198.02 2006-11-06 4AWP/CE Addendum 5 (938 500 000) 6 198.02 2006-12-15

1.2.3 Value of AWP/CE after changes

Period Imprest account ZMK

Specific commitment ZMK

RoE: ZMK/€

Approved by SC/NAO/EC

SuWP/CE 2001-12-01 to 2002-03-31 101 200 000 715 000 000 3 354.43 2001-10-23 1WP/CE 2002-04-01 to 2002-12-31 2 740 884 000 1 221 769 000 3 411.79 2002-12-31 2WP/CE 2003-01-01 to 2003-12-31 6 598 648 607 1 856 461 393 4 487.46 2002-09-05 3WP/CE 2004-01-01 to 2005-06-30 10 573 897 503 6 559 148 890 5 567.00 2004-07-12 4AWP/CE 2005-10-01 to 2006-12-31 8 477 418 605 6 198.02 2005-08-28 4AWP/CE 2005-10-01 to 2006-12-31 8 134 468 605 6 198.02 2006-06-19 4AWP/CE 2005-10-01 to 2006-12-31 7 294 638 605 6 198.02 2006-11-06 4AWP/CE 2005-10-01 to 2006-12-31 6 356 138 605 6 198.02 2006-12-15

Notes 1. The 1WP/CE1 & 1WP/CE2 were consolidated to 1WP/CE with the approval of the NAO/SC 2. Addendum 2 of the 2WP/CE did no make any changes to the total imprest account amounts: the addendum moved

budget allocations between budget lines. 3. Addendum 3 of the 2WP/CE increased the 2WP/CE by K 320 000 000, moved K 841 398 750 back to Specific

Commitment and moved budget allocations between budget lines of the imprest account. 4. Addendum 1 of the 3WP/CE did no make any changes to the total imprest account amounts: the addendum moved

budget allocations between budget lines. 5. Addendum 4 of the 3WP/CE did no make any changes to the total imprest account amounts: the addendum moved

budget allocations between budget lines. Plans for specific commitments were scaled back 6 Budget allocations in 3WP/CE were adjusted by an exchange of notes approved 2005-06-28 7 Budget allocations in 3WP/CE were adjusted by an exchange of notes approved 2005-07-18

1.3 Governance and PIU

The strategic oversight of the MSDP is delegated to the MSDP Steering Committee under the chairmanship of the EBZ. Decisions of the Steering Committee concerning allocation of EDF funding resources may be taken with the consent of the NAO and of the EC Head of Delegation (or their representatives). Meetings are to be held quarterly and the Programme manager, who is the secretary, may, when necessary, also organise additional meetings of the MSDP/SC.





At the Lilayi MTR workshop it was recommended that the supervision of the MSDP would be moved to the MMMD. This change has been implemented and was regularised by a Rider to the Finance Agreement.

The Steering Committee is assisted by an Administrative Sub-Committee, which meets on an ad hoc basis as required (Annex A).

Details of the MSDP/SC and sub-committee are contained in Annex A.

1.4 Strategy and implementation The strategic plan for the implementation of the Programme is set out in the logical framework (Annex B); the original Logical Framework was reviewed at a workshop in May 2002 with representatives of the EC, NAO, EBZ, MMMD, the Mining associations and the TA team. As more than 3 years elapsed from the time of design of the Programme to the start-up, elements of the original intervention logic had changed which was reflected in the LFA review. Some of the original results were modified, resulting in 3 core components, 8 results and corresponding activities. A further modification was needed after the deliberations around the 2004 Mid-Term Review of the project with the inclusion of a Result linked to capacity building of the MMMD. The latest logical framework is a key component of Rider number one to the Finance Agreement. The Rider was approved by the EC in Brussels in October 2005.

1.5 Technical assistance team Programme manager Christopher Sealy, BSc, PGCE, MSc (Dev Studies) Financial advisor Trevor Robson, Prof Dip (Acc & Coy Law), MSc (RREP), ACIS Regional advisor 1 – Copperbelt North-Western & Luapula

Alex Mutale, BSc (Min Eng), Dip (Bus Admin), Advanced Cert (Mining Technology)

Regional advisor 2 – Eastern Northern & Central Stephen Mutambo, B Acc, Prof Dip (Acc & Fin), ACCA Regional advisor 3 – Lusaka Southern & Western Bernd Drechsler, MSc (Min Eng) Mining engineer Tapiwa Samanga, BSc (Hons) (Min Eng), MBl, Cert (Ind

Psych), Cert (Bus. Admin), Cert (Bus. Leadership) Valuation expert and geologist Björn Anckar, BSc, MSc (Earth Sc), MSc (Petroleum Sc), FGA,

GG Export promotion advisor (on secondment from EBZ) Caroline Makasa, BBA (Marketing)

Contractual completion dates

Contractual completion dates for the technical assistance team were agreed by the NAO by their letter (NCDP/6/7/24 NAO/3.1/TC) of 2006-07-07 as follows: Completion Date

Stephen Mutambo 18th December 2006

Bjorn Anckar 16th January 2007

Berndt Drechsler 23rd January 2007

Tapiwa Samanga 1st March 2007

Alex Mutale 3rd January 2007

Trevor Robson 10th February 2007

1.6 Coordination, audit and monitoring

With effect from January 2006 the EC Head of Delegation is represented on the SC by Mr J Villa-Chacon.

The National Authorising Officer is represented on the SC by Temwani Chihana and he is the NAO coordinator for the MSDP activities.

The Programme auditors for the SuWP/CE and the 1WP/CE were Fidelity Consulting Services Ltd, whose contract expired. During the 6Q2004 Newton Lungu & Associates completed the audit of the 2WP/CE. Fidelity Consulting Services completed the audit of the 3WP/CE during the third quarter of 2005/2006.





Danish Management A/S prepared a project monitoring report dated 30 March 2003.

The midterm review was conducted by ECO in May-June 2004. The stakeholders’ review of the draft report was held at the NAO office, MFNP, 2004-08-17, and a revised version was submitted dated 2004-09-03. A stakeholders meeting was held on 21 October, 2004 (Lilayi MTR workshop) and the workshop report was finalised in December 2004.

Price Waterhouse Coopers prepared a project monitoring report in December 2005. and a second report in December 2006Ω




Annex C

PHASE ONE FINANCIAL STATEMENT Ω

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Table of contents

Programme/Project Title: Mining Sector Diversification ProgrammeEDF Accounting Number 8 ACP ZA 036

Phase One Interim Financial Report - Dec 2001 to Dec 2006

Revised Global budget vs Actual break down as amended by Rider # 1 to the FA

Budget Item Revised budget YTD Balance UsageYear 2002-2006 after Dec 06 In %

EURO EURO

EIB financing facility 16 500 000 7 293 364 9 206 636 44%PPF 1 500 000 0 1 500 000 0%Long term Technical Assistance 5 068 000 4 207 050 860 950 83%Short term Technical Assistance 800 000 796 878 3 122 100%Review/Evaluation 167 000 74 395 92 605 45%Sub total 24 035 000 12 371 686 11 663 314 51%

Annual WP/CEProject Team 1 380 000 1 166 044 213 956 84%

0Regional Bureaux

3 147 000

0

1 573 583 50%Support to MMMD and GSD 0Support to EBZ 1 573 417Support to Mining Associations 0Training 0Infrastracture 0 0 0

Sub total 4 527 000 2 739 461 1 787 539 61%

Total 28 562 000 15 111 147 13 450 853 53%

Contingency (5%) 1 438 000 0 1 438 000 0%

Grand Total 30 000 000 15 111 147 14 888 853 50%


End of Phase one report

Annex D

MSDP PMU administration

1 Administration 1.1 Bank accounts (a) Standard Chartered Bank – Kabulonga branch; account number: 01 00 16 01 752 00 MSDP-

4PE. A double-signature account requiring a signature from the Imprest Administrator or his substitute and the Imprest Accounting Officer or his Substitute:

Imprest Administrator Chris Sealy Imprest Accounting Officer

Trevor Robson

Substitute Imprest Administrator

Tapiwa Samanga Substitute Imprest Accounting Officer

Stephen Mutambo

(b) Standard Chartered Bank – Kabulonga branch; account number: 01 001 601 372 00 MSDP-3WP/CE. A double-signature account requiring a signature from the Imprest Administrator or his substitute and the Imprest Accounting Officer or his Substitute:

Imprest Administrator Chris Sealy (and Reidar Hoffner who left on 05-11-04)

Imprest Accounting Officer

Trevor Robson


Glyne Michelo Substitute Imprest Accounting Officer

Justin Machila

(c ) Standard Chartered Bank – Kabulonga branch; account number: 01 001 600 231 00 for the Start-up WP/CE, MSDP-1WP/CE and MSDP-2WP/CE. A double-signature account requiring a signature from the Imprest Administrator or his substitute and the Imprest Accounting Officer or his Substitute:

Imprest Administrator Reidar Hoffner Imprest Accounting Officer

Trevor Robson


Glyne Michelo Substitute Imprest Accounting Officer

Justin Machila

1.2 Manning 1.2.1 MSDP TA team and support staff

TA team / programme implementation Date of commencement Date of departure

Programme manager 2004-11-15 Programme manager (Left 2004-11-05) 2002-01-14 2004-11-05 Financial advisor 2002-01-07 2006-02-07 Regional advisor 1 – Eastern Northern & Central 2002-01-07 2006-12-15 Regional advisor 2 – Copperbelt North-Western & Luapula 2002-01-21 2007-01-03 Regional advisor 3 – Lusaka Southern & Western 2002-01-21 2007-01-29 Mining engineer 2002-03-04 2007-03-01 Valuation expert and geologist 2002-01-14 2007-01-16 Export promotion advisor (on secondment from EBZ) 2002-04-01 2006-12-31 Administrative support Programme accountant 2005-07-01 Monitoring and Evaluation Administrator 2005-07-01 2006-12-31 IT Administrator 2005-07-01 Procurement and Contracts Administrator 2005-07-01 Programme Assistant 2005-07-01 2006-12-31 Driver/Office Assistant 2005-07-01 2006-10-31 Driver/Office Assistant (Kitwe) 2005-07-01 2006-12-31 Office Orderly 2005-07-01

Q:\023EDFreports\20061231EndPhaseOneReport\MSDocs\20070109 Annex-E_000 dn.doc

MSDP PMU administration Annex E 1 / 12



1.3 Short-term consultants 1.3.1 The status of ST service contracts is as follows:

Date: 2002-12-19 Inception Report: 2003-01-15 M&M Associates Ltd: Mike Mbulo Contract No: SC/ZAM/030/02 Draft Final Report: 2003-02-07 Value: € 4 676.00 Final Report: 2003-03-31

Study of the micro-finance and small loan institutions in Zambia

Date: 2002-12-19 Inception Report: 2003-02-06 Swedish Geological AB: Göran Fredrikson Contract No: SC/ZAM/031/02 Draft Final Report: 2003-02-26 Value: € 35 500 Final Report: 2003-05-22

Study on the Regional Mining Bureaus

Date: 2002-12-19 Inception Report: 2003-01-20 Eva Anckar Contract No: SC/ZAM/032/02 Draft Final Report: 2003-06-18 Value: € 28 384 Final Report: 2003-08-14

Design and implementation of the MSDP GIS/Database

Date: 2003-01-30 Inception Report: N/A Jagoda Gems Ltd: Claire Chan and Ross Walker Contract No: SC/ZAM/001/03 Draft Final Report: 2003-04-30 Value: ZMK 66 363 413 Final Report: 2003-07-25

Preparation of Trade Fair Publicity Materials and Gemstone Exhibits

Date: 2003-01-30 Inception Report: N/A Namakau Kaingu Contract No: SC/ZAM/002/03 Draft Final Report: 2003-04-30 Value: ZMK 49 127 925 Final Report: 2003-05-27

Support to MSDP marketing activities in 2003

Date: 2003-07-02 Inception Report: N/A UNZA School of Mines Contract No: MSDP/03/SC01 Draft Final Report: 2003-08-22 Value: ZMK131 184 525 Final Report: 2003-12-18

Preparation of Technical Training Handbook in Mining & Environment

Date: 2003-07-02 Inception Report: N/A Premium Performance Limited Contract No: MSDP/03/SC02 Draft Final Report: 2003-12-03 Value: ZMK183 996 854 Final Report: 2003-12-16

Entrepreneurial Training – Preparation of training modules

Date: 2003-07-01 Inception Report: N/A UNZA School of Mines Contract No: MSDP/03/SC03 Draft Final Report: 2003-08-22 Value: ZMK140 773 537 Final Report: 2003-12-18

Preparation of Technical Training Handbook in Geology & Processing

Date: 2003-07-11 Inception Report: 2003-07 Intermediate Technology Consultants Ltd Contract No: MSDP/03/SC04 Draft Final Report: 2003-09 Value: ZMK138 259 039 Final Report: 2003-09

Mapatizya Mining Centre/Management Study

Date: 2003-09-19 Inception Report: 2003-10-20 UNZA School of Mines Contract No: MSDP/03/SC05 Draft Final Report: 2003-12-29 Value: ZMK133 903 775 Final Report: 2004-02-24

Preparation & delivery of training in gemmology


Preparation & delivery of training in mineralogy, geology & exploration


Delivery of technical training in Lusaka

Date: 2003-09-19 Inception Report: 2003-11-07 UNZA School of Mines Contract No: MSDP/03/SC08 Draft Final Report: 2003-11 Value: ZMK93 891 957 Final Report: 2004-02-24

Delivery of technical training in Kitwe


Delivery of technical training in Lundazi

Date: 2003-09-19 Inception Report: 2003-09 UNZA School of Mines Contract No: MSDP/03/SC10 Draft Final Report: 2003-12-09 Value: ZMK93 891 957 Final Report: 2004-02-24

Delivery of technical training in Mapatizya






Delivery of technical training in Mkushi

Date: 2003-09-19 Inception Report: 2003-10-12 UNZA – School of Mines Contract No: MSDP/03/SC12 Draft Final Report: 2003-12-10 Value: ZMK93 891 957 Final Report: 2004-02-24

Delivery of technical training in Solwezii

Date 2003-09-19 Inception Report: 2003-12-03 Premium Performance Limited Contract No: MSDP/03/SC13 Draft Final Report: 2003-12 Value: ZMK92 731 640 Final Report: 2004-02-24

Business Entrepreneurship – Delivery oftraining in Lundazi

Date 2003-10-01 Inception Report: 2003-12-08 Premium Performance Limited Contract No: MSDP/03/SC14 Draft Final Report: 2003-12-15 Value: ZMK104 584 500 Final Report: 2004-02-24

Business Entrepreneurship – Delivery oftraining in Lusaka

Date 2003-09-09 Inception Report: 2003-11 Premium Performance Limited Contract No: MSDP/03/SC15 Draft Final Report: 2003-12 Value: ZMK89 699 600 Final Report: 2004-02-24

Business Entrepreneurship – Delivery of training in Mkushi

Date 2003-10-13 Inception Report: Cepra Limited Contract No: MSDP/03/SC16 Draft Final Report: 2003-12-08 Value: ZMK86 237 562 Final Report: 2004-02-27

Business Entrepreneurship – Delivery of training in Kitwe

Date 2003-10-09 Inception Report: 2003-10 Faith Consultancy Contract No: MSDP/03/SC17 Draft Final Report: 2003-12-04 Value: ZMK76 262 400 Final Report: 2004-02-27

Business Entrepreneurship – Delivery of training in Solwezi

Date 2003-10-09 Inception Report: 2003-11-07 Premium Performance Contract No: MSDP/03/SC18 Draft Final Report: 2003-12-03

Value: ZMK87 583 210 Final Report: 2004-02-24 Business Entrepreneurship – Delivery of training in Kalomo

Date 2003-09-22 Inception Report: 2003-10-03 UNZA School of Mines Contract No: MSDP/03/SC19 Phase 1 Report: 2004-03-22

Value: ZMK284 474 828 Final Report: Appropriate Technology for Small Scale Mining and Processing of Iron Ore

Date 2003-10-01 Inception Report: UNZA School of Mines Contract No: MSDP/03/SC20 Draft Final Report: 2004-03-16

Value: ZMK501 801 916 Final Report: NTMs Baseline study

Date 2003-09-29 Inception Report: N/A Dipankar Acharya Bhowmick Contract No: MSDP/03/SC21 Draft Final Report: 2003-11-11

Value: ZMK11 724 474 Final Report: 2003-11-13 Data collection GIS/dB: Mineral licences

Date: 2003-11-05 Inception Report: M&M Associates Ltd: Mike Mbulo

Contract No: SC/ZAM/03/SC22 Draft Final Report: 2004-02 Value: ZMK52 458 000 Final Report:

Selection of FIs and formulation of the terms & conditions for a SLF for the NTMs in Zambia

Date: 2004-10-05 Inception Report: 2005-03-08 UNZA School of Mines

Contract No: MSDP/04/SC23 Draft Final Report: 2005-06-24 Delivery of Gemmology course Value: ZMK130 697 205 Final Report: 2005-06-24

Date: 2006-06-28 Inception Report: UNZA School of Mines Contract No: MSDP/06/SC24 Draft Final Report: Delivery of Gemmology course

Value: ZMK95 000 000 Final Report:

Date: 2006-06-07 Inception Report: Upstreet Consultancy Services Contract No: MSDP/06/SC25 Draft Final Report: October 2006 Training Evaluation and Training Needs Assessment

Study Value: ZMK144 963 000 Final Report:





Date: 2006-06-07 Inception Report: Marieke Heemskerk Contract No: MSDP/06/SC26 Draft Final Report: Sept. 2006 Gender Baseline Study

Value: ZMK79 850 000 Final Report: Sept. 2006

Date: 2006-11-16 Draft Final Report: December 2006 Practical Action Consulting Contract No: MSDP/06/SC27 Final Report: December 2006 Legal Support to draft Uranium Mining Regulations

Value: ZMK35 827 923

Date: 2006-10-31 Final Report: December 2006 Zambia Red Cross Society Contract No: MSDP/06/SC28 First Aid and HIV awareness course for Small Scale

Miners Value: ZMK54 950 000

Date: 2006-11-06 Inception Report: December 2006 UNZA School of Mines

Contract No: MSDP/06/SC29 Draft Final Report: December 2006 Conversion of Technical training manuals for E-Learning

Value: ZMK40 000 000 Final Report: December 2006

Date: 2006-11-29 Inception Report: December 2006 Ashfield Resources Zambia Limited Contract No: MSDP/06/SC30 Draft Final Report: December 2006 Status Evaluation of Mining Associations


Date: 2006-11-30 Inception Report: December 2006 UNZA School of Mines Geology Department Contract No: MSDP/06/SC31 Draft Final Report: December 2006 Mapatizya Water Study


Date: 2006-06-20 Output: Kalomo Miners Association Contract No: MSDP/06/SC40 Date finalised: Supply of Bricks for the Mapatizya Mining Centre


Date: 2006-06-07 Output: Base at MMC Kasi Business Enterprises Contract No: MSDP/06/SC41 Date finalised: August 2006 Construction of Base at Mapatizya Mining Centre

Value: ZMK129 775 375

Date: 2006-06-20 Output: Light Steel Roof Company (1976) Limited Contract No: MSDP/06/SC42 Date finalised: Construction of Steel Structure for the Mapatizya

Mining Centre Value: ZMK73 800 000

Date: 2006-10-02 Output: Cipkhal Civil Contractors

Contract No: MSDP/06/SC43 Date finalised: General Construction works for the main Mapatizya Mining Centre building


Date: 2006-09-13 Output: Pozzolona Engineers and Builders Contract No: MSDP/06/SC44 Date finalised: Construction of Staff House, Garage and Pit Latrine for

the Mapatizya Mining Centre Value: ZMK77 209 677

1.3.2 The status of ST service contracts below €2500 is as follows:

Date: 2003-10-03 Inception Report: Dr Silane K Mwenechanya Contract No: MSDP/03/INTSC01 Draft Final Report: Value: ZMK13 905 931 Final Report: 2003-10-10

Mining Legislation Workshop

Date: 2003-10-13 Inception Report: Yusuf Mussa Dodia Contract No: MSDP/03/INTSC02 Draft Final Report: N/A Value: ZMK12 891 528 Final Report: 2003-10-16

NTMs Investment Opportunities

Date: 2003-10-13 Inception Report: Dipankar A Bhowmick Contract No: MSDP/03/INTSC03 Draft Final Report: N/A Value: ZMK12 280 087 Final Report: 2003-10-26

Collection of mineral area co-ordinates





Date: 2003-10-15 Inception Report: Zoran M Zuze Contract No: MSDP/03/INTSC04 Draft Final Report: N/A Value: ZMK12 923 757 Final Report: 2004-02-19

Ndola Rural Scoping Study

Date: 2003-08-03 Inception Report: Dr Silane Mwenechanya Contract No: MSDP/03/INTSC05 Draft Final Report: N/A Value: ZMK12 000 000 Final Report: 2003-10-11

Detailed feasibility & Conceptual assessment

Date: 2003-12-03 Inception Report: Rorum Consult Contract No: MSDP/03/INTSC06 Draft Final Report: N/A Value: ZMK13 827 726 Final Report: 2003-12

MSDP Strategic plan & workshop

Date: 2003-12-09 Inception Report: Cimms Aluminium Contract No: MSDP/03/INTSC07 Draft Final Report: N/A Value: ZMK11 287 940 Final Report: 2003-01-04

Planning & building of Mapatizya Mining Centre

Date: 2004-01-12 Inception Report: Zoran Mwanza Zuze Contract No: MSDP/03/INTSC08 Draft Final Report: N/A Value: ZMK12 519 069 Final Report: 2004-02-19

Client investment profiles

Date: 2004-01-16 Inception Report: Violet Ketani Contract No: MSDP/03/INTSC09 Draft Final Report: N/A Value: ZMK13 843 307 Final Report: 2004-03

Artisanal limestone quarrying in Lusaka/Data Collection

Date: 2004-01-21 Inception Report: Dipankar A Bhowmick Contract No: MSDP/03/INTSC10 Draft Final Report: N/A Value: ZMK13 353 672 Final Report: 2004-04-14

Evaluation of rough gemstone prices

Date: 2004-02-06 Inception Report: Zoran M Zuze Contract No: MSDP/04INTSC11 Draft Final Report: N/A Value: ZMK15 147 915 Final Report: 2004-02-24

Promotion of investment opportunities Indaba 2004

Date: 2004-02-06 Inception Report: Lee-Anne Singh Contract No: MSDP/04/INTSC12 Draft Final Report: N/A Value: ZMK13 718 293 Final Report: 2004-03-09

Preliminary marketing of the Zambezi Mining Forum

Date: 2004-02-18 Inception Report: Intermediate Technology Consultants Contract No: MSDP/04/INTSC13 Draft Final Report: N/A Value: ZMK15 175 490 Final Report: 2004-03-10

Mapatizya Mining Centre/Initial Workshop facilitation

Date: 2004-02-27 Inception Report: Zoran M Zuze Contract No: MSDP/04/INTSC14 Draft Final Report: Value: ZMK15 018 100 Final Report: 2004-03-29

Promotion of investment opportunites PDAC 2004 in Canada

Date: 2004-04-31 Inception Report: Kalomo Miners Association Contract No: MSDP/04/INTSC15 Draft Final Report: MMC – Technical Quality Control Value: ZMK14 245 889 Final Report: Date: 2004-04-31 Inception Report: Kalomo Miners Association Contract No: MSDP/04/INTSC16 Draft Final Report: MMC – Supervision of implementation Value: ZMK14 897 955 Final Report: Date: 2004-04-05 Inception Report: Gilbert Banda Contract No: MSDP/04/INTSC17 Draft Final Report: Telecentre for Lundazi Gemstone Value: ZMK14 360 775 Final Report: 2004-06-21 Date: 2004-04-07 Inception Report: Victor Mutambo Contract No: MSDP/04/INTSC18 Draft Final Report: Mkushi Scoping Study Value: ZMK14 131 003 Final Report: 2004-06-21





Date: 2004-04-07 Inception Report: Douglas Ng’andu Contract No: MSDP/04/INTSC19 Draft Final Report: Luapula Technical Training in Geology Value: ZMK11 345 012 Final Report: 2004-05-19

Date: 2004-04-04 Inception Report: Tembe Mulenga Contract No: MSDP/04INTSC20 Draft Final Report: Value: ZMK11 345 012 Final Report: 2004-05-19

Safety Technical Training in Luapula Province

Date: 2004-04-22 Inception Report: UNZA - SoM Contract No: MSDP/04INTSC21 Draft Final Report: 2004-08-31 Value: ZMK21 828 378 Final Report:

Summarizing Small Scale Miners handbooks in Geology and Processing

Date: 2004-04-22 Inception Report: UNZA - SoM Contract No: MSDP/04INTSC22 Draft Final Report: 2004-08-31 Value: ZMK21 828 378 Final Report:

Summarizing Small Scale Miners handbooks in Geology and Processing

Date: 2004-05-04 Inception Report: Linda Bosman Contract No: MSDP/04INTSC23 Draft Final Report: Gemmology training in Mpika Value: ZMK6 438 701 Final Report: 2004-07-18 Date: 2004-05-11 Inception Report: Gilbert Banda Contract No: MSDP/04INTSC24 Draft Final Report: Business training in Strategic Management – Lsk Value: ZMK13 777 133 Final Report: 2004-08-01 Date: 2004-05-11 Inception Report: Edward Siame Contract No: MSDP/04INTSC25 Draft Final Report: MMC Student report Value: ZMK14 252 188 Final Report:

Date: 2004-05-11 Inception Report: Bourne Chooka Contract No: MSDP/04INTSC26 Draft Final Report: Business training in Gemstone Marketing – Lsk Value: ZMK12 371 304 Final Report: 2004-09-02 Date: 2004-05-11 Inception Report: Masulani Mazyopa Contract No: MSDP/04INTSC27 Draft Final Report: Business training in Financial Management - Lsk Value: ZMK13 495 968 Final Report: 2004-10-02 Date: 2004-06-04 Inception Report: Samuel Chembe Mango Contract No: MSDP/04INTSC28 Draft Final Report: Data Collection GIS/dB: Mineral Licences Value: ZMK12 592 294 Final Report: 2004-07-12 Date: 2004-06-04 Inception Report: Kaimfa Chandagoma Contract No: MSDP/04INTSC29 Draft Final Report: Business training in Strategic Management – Chipata Value: ZMK12 592 294 Final Report: 2004-08-10 Date: 2004-06-04 Inception Report: Mike Sinyinza Contract No: MSDP/04INTSC30 Draft Final Report: Business training in Gemstone Marketing – Chipata Value: ZMK12 592 294 Final Report: 2004-08-10 Date: 2004-06-04 Inception Report: Masulani Mazyopa Contract No: MSDP/04INTSC31 Draft Final Report: Business training in Financial Management – Chipata Value: ZMK13 965 999 Final Report: 2004-08-10 Date: 2004-06-04 Inception Report: Gilbert Banda Contract No: MSDP/04INTSC32 Draft Final Report: Business training in Strategic Management – Mpika Value: ZMK12 516 128 Final Report: 2004-08-02 Date: 2004-06-04 Inception Report: Mike Sinyinza Contract No: MSDP/04INTSC33 Draft Final Report: Business training in Gemstone Marketing – Mpika Value: ZMK12 516 128 Final Report: 2004-08-02





Date: 2004-06-04 Inception Report: Masulani Mazyopa Contract No: MSDP/04INTSC34 Draft Final Report: Business training in Financial Management – Mpika Value: ZMK13 922 433 Final Report: 2004-08-02 Date: 2004-07-06 Inception Report: Fred Njamu Contract No: MSDP/04INTSC35 Draft Final Report: Assessment of Strategically located mineral deposits Value: ZMK8 585 655 Final Report: 2004-07-12 Date: 2004-07-06 Inception Report: Emmanuel Mulenga Contract No: MSDP/04INTSC36 Draft Final Report: Verification study of the strategically located mineral

deposits Value: ZMK13 708 429 Final Report: 2004-07-12 Date: 2004-07-06 Inception Report: Zoran Zuze Contract No: MSDP/04INTSC37 Draft Final Report: Equity Financing Options Value: ZMK13 737 048 Final Report: 2004-07-20 Date: 2004-07-06 Inception Report: Dipankar A Bhowmick Contract No: MSDP/04INTSC38 Draft Final Report: Jaipur Gem Auction Value: ZMK12 063 051 Final Report: Date: 2004-07-06 Inception Report: Emmanuel Mulenga Contract No: MSDP/04INTSC39 Draft Final Report: Technical Training in Geology Value: ZMK11 046 877 Final Report: 2004-06-25 Date: 2004-07-06 Inception Report: Coin Siakachoma Contract No: MSDP/04INTSC40 Draft Final Report: Safety Technical Training Value: ZMK11 046 877 Final Report: 2004-06-26 Date: 2004-07-14 Inception Report: Dipankar A Bhowmick Contract No: MSDP/04INTSC41 Draft Final Report: Preparation for the Jaipur Zambia Trade and Investment

Mission Value: ZMK13 495 968 Final Report: Date: 2004-07-13 Inception Report: Namakau Kaingu Contract No: MSDP/04INTSC42 Draft Final Report: Mumbwa Itezi-Tezi Training and field demonstrations in

gemmology Value: ZMK11 297 328 Final Report: 2004-10-02 Date: 2004-07-19 Inception Report: Muvundika Alick Contract No: MSDP/04INTSC43 Draft Final Report: Mumbwa/Itezi-Tezi Training and field

Demonstrations in mine safety knowledge Value: ZMK11 297 328 Final Report: 2004-10-02 Date: 2004-07-19 Inception Report: Ismail Ali Contract No: MSDP/04INTSC44 Draft Final Report: Mumbwa/Itezi-Tezi Training and field demonstrations in

mine engineering knowledge Value: ZMK11 297 328 Final Report: 2004-10-02 Date: 2004-08-04 Inception Report: Cecil Shamululu Contract No: MSDP/04INTSC45 Draft Final Report: Mapatizya technical training in safety Value: ZMK10 483 567 Final Report: Date: 2004-08-10 Inception Report: Boniface Muibeya Contract No: MSDP/04INTSC46 Draft Final Report: Mapatizya technical training in geology Value: ZMK10 483 567 Final Report: Date: 2004-08-10 Inception Report: Dr Victor Mutambo Contract No: MSDP/04INTSC47 Draft Final Report: Mapatizya technical training in Mining Value: ZMK10 483 567 Final Report:





Date: 2004-08-12 Inception Report: Dipankar Bhowmick Contract No: MSDP/04INTSC48 Draft Final Report: Pre-feasibility report Value: ZMK13 786 344 Final Report: Date: 2004-09-03 Inception Report: James Kazembe Contract No: MSDP/04INTSC49 Draft Final Report: Nkala Olimba Support Value: ZMK14 673 893 Final Report: Date: 2004-09-16 Inception Report: Billy Chewe Contract No: MSDP/04INTSC50 Draft Final Report: Mkushi Technical training in Safety Value: ZMK10 598 139 Final Report: Date: 2004-09-16 Inception Report: Fred Njamu Contract No: MSDP/04INTSC51 Draft Final Report: Mkushi Technical training in Geology Value: ZMK10 598 139 Final Report: Date: 2004-09-16 Inception Report: Bunda Besa Contract No: MSDP/04INTSC52 Draft Final Report: Mkushi Technical training in Mining Value: ZMK10 598 139 Final Report: Date: 2004-09-16 Inception Report: Vincent Muma Kawamya Contract No: MSDP/04INTSC53 Draft Final Report: Lundazi Technical training in Geology Value: ZMK10 598 139 Final Report: Date: 2004-09-16 Inception Report: Mooya B Lumamba Contract No: MSDP/04INTSC54 Draft Final Report: Lundazi Technical training in Safety Value: ZMK10 598 139 Final Report: Date: 2004-09-16 Inception Report: Bunda Besa Contract No: MSDP/04INTSC55 Draft Final Report: Lundazi Technical training in Mining Value: ZMK10 598 139 Final Report: Date: 2004-09-16 Inception Report: Douglas Ng’andu Contract No: MSDP/04INTSC56 Draft Final Report: Ndola Rural Technical training in Geology Value: ZMK10 598 139 Final Report: Date: 2004-09-16 Inception Report: Gerhard Kangamba Contract No: MSDP/04INTSC57 Draft Final Report: Ndola Rural Technical training in Safety Value: ZMK10 598 139 Final Report: Date: 2004-09-16 Inception Report: Francis Yombi Contract No: MSDP/04INTSC58 Draft Final Report: Ndola Rural Technical training in Mining Value: ZMK10 598 139 Final Report: Date: 2004-09-16 Inception Report: Bonifface Ng’uni Contract No: MSDP/04INTSC59 Draft Final Report: Mwinilunga Technical training in Geology Value: ZMK10 598 139 Final Report: Date: 2004-09-16 Inception Report: J J Chungu Contract No: MSDP/04INTSC60 Draft Final Report: Mwinilunga Technical training in Safety Value: ZMK10 598 139 Final Report: Date: 2004-09-16 Inception Report: Sam Kangwa Contract No: MSDP/04INTSC61 Draft Final Report: Mwinilunga Technical training in Mining Value: ZMK10 598 139 Final Report: Date: 2004-09-16 Inception Report: Mathew Banda Contract No: MSDP/04INTSC62 Draft Final Report: Strategic Management in Kitwe Value: ZMK12 562 500 Final Report: Date: 2004-09-16 Inception Report: Linda Bosman Contract No: MSDP/04INTSC63 Draft Final Report: Marketing Training in Kitwe





Value: ZMK13 227 088 Final Report: Date: 2004-09-23 Inception Report: Mwelwa Daiman Chibichabo Contract No: MSDP/04INTSC64 Draft Final Report: Finance Training in Kitwe Value: ZMK13 974 016 Final Report: Date: 2004-09-24 Inception Report: Namakau Kaingu Contract No: MSDP/04INTSC65 Draft Final Report: Public Relations Training to Women in Mining Value: ZMK10 292 310 Final Report: Date: 2004-09-24 Inception Report: Jonathan Simwawa Contract No: MSDP/04INTSC66 Draft Final Report: High level Business training in Management of

gemstone Marketing Value: ZMK7 351 650 Final Report: Date: 2004-08-04 West Sikombe Contract No: MSDP/04/INTSC67 Final Report 2004-10-15 Geology Technical Training in Mwinilunga Value: ZMK10,483,567 Date: 2004-11-01 Dr Francis Tembo Contract No: MSDP/04/INTSC68 Final Report 2004-10-15 Status of Mining in Zambia Value: ZMK3,715,074 Date: 2004-11-01 Dr Simukanga Contract No: MSDP/04/INTSC69 Presentation 2004-10-08 Rapporteur – CASM Learning Event Value: ZMK3,219,730.80 Date: 2005-06-05 Final Report 2005-07-21 CIMMS Contract No: MSDP/05/INTSC70 MMC/Buiding/Civil Engineering Drawings Value: ZMK7,556,105.00 Date: 2005-06-30 Inception Report: Development Research Group Contract No: MSDP/05/INTSC71 Draft Final Report: 2005-01-06 Evaluation of MSDP sponsored participation in

International Trade fairs Value: ZMK28,460,000.00 Date: 2005-06-05 Final Report 2005-06-23 Zoran Zuze Contract No: MSDP/05/INTSC72 Financial Due diligence of Small Scale Mining Projects Value: ZMK1,800,000.00 Date: 2005-07-29 Inception Report: 2005-08-29 Dr. Fredrick Chileshe Contract No: MSDP/05/INTSC73 Draft Final Report: Mini Furnace design – Lufubu Pilot Project Value: ZMK10,703,251.00 Final Report: 2005-12-15 Date: 2005-07-19 Inception Report: Michael Singoyi Contract No: MSDP/05/INTSC74 Draft Final Report: Jewellery Competition Preparation Value: ZMK4,486,915.00 Final Report: 2005-08-02 Date: 2005-09-16 Inception Report: Dipankar Acharya Bhowmick Contract No: MSDP/05/INTSC75 Draft Final Report: Collection and Prep. of Gemstone Export Data Value: ZMK11,000,000.00 Final Report: 2005-10-31 Date: 2005-09-23 Training materials: Changa Management Services Contract No: MSDP/05/INTSC77 Draft Final Report: Business and Management training in Luanshya Value: ZMK13,020,849.24 Final Report: 2005-10-27 Date: 2005-09-22 Draft Final Report: Patrick Chibulu Contract No: MSDP/05/INTSC78 Final Report: 2005-10-27 Gemmology training in Kabompo Value: ZMK6,673,316.60 Date: 2005-09-22 Draft Final Report: Douglas Ng’andu Contract No: MSDP/05/INTSC79 Final Report: 2005-10-28 Geology training in Kabompo Value: ZMK6,410,587.60





Date: 2005-09-22 Draft Final Report: 2005-11-01 Evaristo Chitalu Contract No: MSDP/05/INTSC80 Final Report: Mining skills training in Kabompo Value: ZMK6,410,587.60 Date: 2005-09-30 Anders Bjork Contract No: MSDP/05/INTSC81 Final Report: 2005-12-28 Collection and Formulation of Data Concerning Potential

Investors Value: ZMK12,610,992.00 Date: 2005-09-30 Training manuals Samuel Chembe Maango Contract No: MSDP/05/INTSC82 Draft training report 2005-11-30 GIS training course for Geological Survey Department Value: ZMK22,069,236.00 Final training report Date: 2005-11-30 Vincent Kawamya Contract No: MSDP/05/INTSC83 Business of Mining training course in Sesheke Value: ZMK3,232,488.60 Final training report Date: 2005-12-16 Changa Management Services Ltd Contract No: MSDP/05/INTSC84 Business and Management training course in Mpika Value: ZMK9,900,000.00 Final training report Date: 2006-05-12 Henry Sumbukeni Contract No: MSDP/06/INTSC85 Inception Report: 2006-05-23 GIS Expert - Digitising Geo-Data and reports at Zambia

Chamber of Mines Value: ZMK10 000 000 Final training report Date: 2006-01-09 Dr. Fredrick Chileshe Contract No: MSDP/05/INTSC86 Mini Blast Furnace Design Phase II – Lufubu

Appropriate Technology Pilot Project Value: ZMK11,500,000.00 Final training report Date: 2005-12-20 Wightman Bob Charles Contract No: MSDP/05/INTSC87 Mapatizya Mining Centre-Supervision of planning,

construction and operation Value: ZMK22,800,000.00 Date: 2006-05-12 Reuben Nthere Contract No: MSDP/06/INTSC88 Inception Report: 2006-05-23 GIS Techniciant - Digitising Geo-Data and reports at

Zambia Chamber of Mines Value: ZMK9 600 000 Final training report Date: 2006-05-12 Wilson Moono Contract No: MSDP/06/INTSC89 Inception Report: 2006-05-23 Geologist - Digitising Geo-Data and reports at Zambia

Chamber of Mines Value: ZMK10 000 000 Final training report Date: 2006-05-30 Paul Kangwa Contract No: MSDP/06/INTSC90 Inception Report: 2006-05-23 Assistant no.1 - Digitising Geo-Data and reports at

Zambia Chamber of Mines Value: ZMK3 600 000 Final training report Date: 2006-05-30 Gift Keisho Contract No: MSDP/06/INTSC91 Inception Report: 2006-05-23 Assistant no.2 - Digitising Geo-Data and reports at

Zambia Chamber of Mines Value: ZMK3 600 000 Final training report Date: 2006-05-30 Christopher Chilembo Contract No: MSDP/06/INTSC92 Inception Report: 2006-05-23 Assistant no.1 - Digitising Geo-Data and reports at

Zambia Chamber of Mines Value: ZMK3 600 000 Final training report Date: 2006-05-30 Fredrick Chileshe Contract No: MSDP/06/INTSC93 Inception Report: 2006-05-23 Appropriate Technology in Industrial Minerals

processing at Small Scale Level – Red Oxide Phase I





Value: ZMK10 000 000 Date: 2006-06-20 Amon Banda Contract No: MSDP/06/INTSC95 Tumbling Training in Mapatizya Value: ZMK9 630 000 Final Report Date: 2006-06-28 Fidelity Consultancy Services Limited Contract No: MSDP/06/INTSC96 Inception Report: Investment and Operational Costs of the Computerised

Mining Cadastre Value: ZMK8 560 000 Draft final Report Date: 2006-07-20 Kelly + Kelly Contract No: MSDP/06/INTSC97 Draft final Report 07 Sept 2006 ICT Training Needs Assessment at Cadastre Unit Value: ZMK9 460 000 Date: 2006-06-06 Mike Singoyi Contract No: MSDP/06/INTSC99 Jewellery Competition Preparation Value: ZMK5 000 000 Date: 2006-08-01 Kaizen Consulting Internationl Contract No: MSDP/06/INTSC100 Inception Report: August 2006 Environmental Project Brief – Lufubu Appropriate

Technology Pilot Project Value: ZMK10 000 000 Date: 2006-08-24 UNZA School of Mines Contract No: MSDP/06/INTSC101 Draft final Report October 2006 E-Marketing course for Small scale miners Value: ZMK7 100 000 Date: 2006-09-07 Samson Musonda Kahiya Contract No: MSDP/06/INTSC102 Business Training in Kitwe Value: ZMK8 000 000 Final Report October 2006 Date: 2006-08-24 Final Report Dec. 2006 Dipankar Acharya Bhowmick Contract No: MSDP/06/INTSC103 Jaipur trade and Investment mission October 06 Value: ZMK15 000 000 Date: 2006-11-09 Final Report Dec. 2006 Cecilia Masheke Contract No: MSDP/06/INTSC104 Cataloguing books, reports, journals and Magazines in

the MMMD library Value: ZMK3 500 000 Date: 2006-08-24 Amon Banda Contract No: MSDP/06/INTSC105 Second Intake – Tumbling Training in Mapatizya Value: ZMK9 630 000 Final Report Sept. 2006 Date: 2006-09-13 Final Report Dec. 2006 Roseta Mwape Contract No: MSDP/06/INTSC106 Exporter Audit Mineral exports data entry Value: ZMK1 650 000 Date: 2006-09-08 Johnstone Fanwell Chizinga Contract No: MSDP/06/INTSC107 Final Report Sept. 2006 TA support to Pride Zambia for loan appraisals – Toki

Mining Ltd Value: ZMK6 150 000 Date: 2006-09-15 Douglas N’gandu Contract No: MSDP/06/INTSC108 Final Report Geological Evaluations in Mpika Value: ZMK14 660 000 Date: 2006-09-27 Geological Society of Zambia Contract No: MSDP/06/INTSC109 Final Report Popularising Geosciences among female students Value: ZMK17 400 000 Date: 2006-10-13 Kalomo Miners Association





Contract No: MSDP/06/INTSC110 Final Report Dec. 2006 Management of the Mapatizya Mining Centre Set-up Phase

Value: ZMK11 600 000 Date: 2006-11-02 Inception Report: Dec. 2006 Kelly and Kelly Contract No: MSDP/06/INTSC111 Draft final Report Dec. 2006 ICTL Training for Cadastre Unit Staff Value: ZMK8 482 558 Final Report Dec. 2006 Date: 2006-11-06 Final Report Dec. 2006 Amon Banda Contract No: MSDP/06/INTSC112 Advanced value adding training in Mapatizya Value: ZMK9 630 000 Date: 2006-11-22 Final Report Dec. 2006 Chilekwa Mwansa Contract No: MSDP/06/INTSC113 Cataloguing books, reports, journals and Magazines in

the MMMD library – Assistant to the Consultant Value: ZMK1 500 000 Date: 2006-11-07 Final Report Dec. 2006 Hikmain Management Consultancy Limited Contract No: MSDP/06/INTSC114 Business Training in Mapatizya Value: ZMK10 800 000 Date: 2006-12-29 Final Report Dr. Silane Kalenge Mwenechanya Contract No: MSDP/06/INTSC115 Mines 2006 backstopping and resource person Value: ZMK25 481 000

1.4 Accounting and audit The chart of accounts forms the basis for the project administration guide and is continually updated to meet the administrative requirements of the project. SuWP/CE audit was completed on 2003-06-02. 1WP/CE audit was completed on 2003-12-31 2WP/CE audit completed in 7Q2004. 3WP/CE audit completed in 3Q2005/2006. Ω

