14.00 Hours (Lusaka Time)

Minutes of the 75thCouncilMeeting Held on 16 January, 2014, atMpile Board Room,Mpile Office Park, Lusaka

14.00 hours (Lusaka Time)

Present:

Name / Company / Position
COUNCILLORS:
Nathan Chishimba / Barrick / President/MMEWD-GRZ Liaison Communication & Cadastre Affairs Sub Committee Leader
Gilbert Temba / IEL Ltd / IPP/ MMEWD-GRZ Liaison Communication & Cadastre Affairs Sub Committee
Hugh Carruthers / First Quantum Minerals Ltd / Chairman/Secretary/ MoMEWD-GRZ Liaison Communication & Cadastre Affairs Sub Committee
Geoffrey Mulenga / Blackthorn Resources / Treasurer – Administration, Finance & Membership Sub Committee Leader
Alex Matthews / MMG Zambia / MoMEWD-GRZ Liaison Communication & Cadastre Affairs Sub Committee
Roger Staley / Barrick / Member/Training, Career Development Sub Committee
Julian Green / GeoQuest Ltd / Website Development & Maintenance
Sub Committee Leader
Andrew Goode / Vale Zambia / Member
Maureen Jangulo Dlamini / Chamber of Mines of Zambia / General Manager
Getrude Mundia Phiri / FSSMAZ / Publicity Secretary/Alternate to President
Edith Lukwesa / AZMEC / Office Manager
IN ATTENDANCE:
John Wilton / Antofagasta Minerals / Prospective Member
APOLOGIES:
Willie Sweta / Zambezi Resources/Mwembeshi / PP/MMEWD-GRZ Liaison Communication & Cadastre Affairs Sub Committee
Nic J Money / Individual / Oil, Gas & Coal sub Committee Leader
Simon Nkemba / African Energy Resources / Member
Osebrt Sikazwe / UNZA School of Mines / Dean

1. Introduction

The Chairman welcomed everyone to the meeting andwent on to introduce the new Chief Executive Officer of the Chamber of Mines of Zambia, Ms Maureen Jangulo Dlamini, he also paid a special welcome to her. John Wilton of Antofagasta Minerals, a prospective member was also welcomed to AZMEC and the council meeting.

Confirmation of Quorum: a quorum was confirmed.
Summary Noting and Adoption of Minutes of the 74thCouncil Meeting – Minutes of the last Council meeting were read, corrected and adopted, proposed by Roger Staley and seconded by Alex Matthews.
Matters Arising from Previous Minutes:- most matters arising from the previous meeting form part of the agenda itemsfor this meeting:-

AZMEC / CMZ / MMEWD Proposed Amendments to the Mines & Minerals Development Act 2008:the chairman informed the council that there has been no formal contact with the Minister to follow up on the many outstanding issues, e.g. Proposals to the 2008 Act, ZEMA, ZAWA, etc which have been raised and brought to the attention of the Ministry through written and verbal communications. After further debate it was proposed and agreed that the President sends written communication to the Minister proposing dates on which meetings can held. If possible propose an informal meeting with senior ministry officials be held during the third week of January (15th) 2014. The chairman informed the council that this letter was sent to the Minister and a response is still awaited.
2014 Cape Town Indaba: Edith informed the council that she had checked with the Canadian High Commission representativein Zambia, Solomon Milambo, who confirmed that the High Commission organizes its own events during the indaba every year and that this will not coincide with the AZMEC breakfast meeting. They requested for an invitation to the function.

2.

/ MMEWD – GRZ Liaison Communications & Cadastre Affairs Sub Committee

AZMEC / CMZ / MMEWD Proposed Amendments to the Mines & Minerals Development Act 2008: the council wanted to know the position of the draft Act and where it? The council has also express concern on how the review process has gone and the length of time it has taken. It was reported that there has been no public consultation since June 2013. They also felt that has industry (the Chamber of Mines and AZMEC) have invested an enormous amount of time and resources since this whole process started in 2009 and would like to see a good Act which will serve the interests of both government, industry and all stakeholders. The council should by all means try and obtain a copy of what is currently obtaining of thedraft Act with amendments. The chairman went on to inform the council that we are still awaiting for communication from the Minister on progress on the revised 2008 Act and what the position is so far. The council emphasized the importance to secure an appointment in order to follow up on the outstanding issues with regards to the proposed amendments to the 2008 Act. It was also proposed that an enquiry should be made to establish whether a new Permanent Secretary has been appointed, and if so the chairman and a few councilors should pay a courtesy call on him and also inform the general membership of the appointment. (NC and ELto follow up).

Property Transfer Tax (10%): this issue was debated at length and thereafter it was proposed and agreed that since this matter is urgent AZMEC in collaboration with the Chamber of Mines should find a of way of engaging the Ministry of Finance and Zambia Revenue Authority through the holding ministry, the Ministry of Mines, Energy and Water Development to a round table discussion to try and shareconcerns surrounding mining taxeswith the tax authorities, e.g. VAT etc. Also bring it to their attention that if this is not properly handled this may affect future investments in the exploration and mining industry. Also to use power point presentations with factual cases in 1) Foreign owned – based on cost history and 2) local owned companies. To invite KPMG to this discussion. The chairman to engage his counterpart at the Chamber of Mines (Emmanuel Mutati) to strategise on how to approach the 2 ministries (MoF and MoMEWD). (NC to follow up with CMZ President).

ZAWA Issue: as para 2 above, still awaiting response from the Minister and no further update on this issue. (NC and EL to follow up).

Cadastre Affairs: no latest news on this issue, but the council was informed that the Mining Cadastre Unit has run out of licence printing paper.

3.

/ Finance, Membership & Administration Sub Committee
FINANCE REPORT
DATE / 29/11/2013 / % / 10/01/2014 / %
BANK BALANCE :
US$ / 100,399.31 / 99,964.31
ZMW / 89,127.46 / 24,237.11
PABS INVESTMENT / Principle Amount / % / Principle Amount / % / MATURITY DATE / INTEREST
90 DAYS / 133,070.98 / 13 / 133,070.98 / 13 / 01/03/2014 / 4,265.56
90 DAYS / 152,059.25 / 13 / 156,933.48 / 13 / 02/04/2014 / 4,783.25

2014 Budget: the council proposed that a committee to look at the draft budget be in place to be led by the Treasurer.

VAT Exemption: the Treasurer informed the council that AZMEC has finally been exempted from VAT by the Zambia Revenue Authority (ZRA) in their letter dated 2nd January, 2014. A consultant has since been engaged to work on the deregistration process.

AZMEC FUNDS: the council discussed the issue of under expenditure during the last financial year. It was also debated that one way of giving members value for their money would be to hire consultants on different issue affecting the industry, e.g. lobbing government on issues around licencing, taxes, ZAWA, etc. Also in collaboration with CMZ hire a marketing consultant to disseminate the ICMM report to the public once it has been officially launched, and also when necessary react to public reports and comments on issues that affect the industry. The issue of employing a full time personnel was also alluded to once again.

4.

/ Training & Career Development Sub Committee

Andrew Goode informed the council that there has been no update on the Queensland University, Australia offer to donate technical expertise to Zambia, through AusAid training section. He also went on to inform the council that government of Western Australia and a number of African countries through COMESA will sign an MOU in Lusaka regarding the sharing of West Australian expertise and training on 31st January, 2014.

Roger Staley also informed the council they will be a roundtable discussion by the West Australia/Zambia Education in Lusaka on 30th January. He went on to propose that AZMEC and the Chamber of Mines be invited to this discussion. (RS to follow upwith invites).

5.

/ Publicity & Public Relations Sub Committee:

AZMEC 2014 Explorers Forum:Edith informed the council that preparations for the Forumhave reached at an advanced stage, the Minister as confirmed his attendance as keynote speaker and guest of honour; invitations have been sent; request for sponsorship letters have also been sent, venue Hotel Intercontinental Lusaka has been secured, etc. The Sub Committee led by Roger Staley, consisting of Julian Green, Alex Matthews will meet on 12th February for review of the preparations. (EL to arrange meeting).

2014 Cape Town Indaba: Edith informed the council that the preparations for the Cape Town Indaba Breakfast meeting to be held on Thursday, 6th February have reached at an advanced stage as well, the Minister has confirmed as guest of honour; venue secured at Southern Sun Garden Court De Wall and iInvitations have been sent. The council proposed that we should target individuals and organisations to be invited to this breakfast meeting in order to achieve the intended purpose. It was also proposed to print fliers and invitation cards. Nathan Chishimba will travel to Cape Town, AZMEC to pay for his accommodation and upkeep. Julian Green and Alex Matthews will represent AZMEC at the Breakfast meeting but they will travel on their company expenses. Edith also to follow up with the Australian High Commission representative in Zambia to coordinate their event.(ELorganize printing of fliers and invitation cards).

CBM-TEC Mining Conference 28 – 29th April 2013, Kitwe: AZMEC isgoing ahead to participate in this mining conference.Also will contribute towards input on topics for the conference program. It was proposed and agreed that CMZ and AZMEC to set up joint subcommittee to work with the conference organisers. (EL follow up).

Council Meeting Schedule: it was proposed and agreed that this year’s Council meeting schedule be circulated and that this should include the Friday of the month Get Together. It was felt that the Friday of the month get together should be held on a Friday after the council meeting and should include the Chamber of Mines. Getrude Mundia-Phiri to evaluate the current venue, Portico.

6

/ Website Development & Maintenance Sub Committee

General Update: on going.

7.

/ Energy Minerals Sub Committee

General Update: no report for this meeting.

8.

/ Bulletin Production

General Update: no report for this meeting.

9.

/ Chamber of Mines

General Update: the Chief Executive Officer informedthe councilthat the Chamber have started the year with touching base with government ministries in order to get the exact picture of what ministers feel about mining. She said they are encouraged to discuss with government than the press. They are also beefing up the Chamber capacity and resources e.g.

Education program for the media.
CNBC profile on industry, bring in other countries.
Skills and development, e.g. skills shortages, etc.
Common strategy including CSR
Local Suppliers –host suppliers and show or compare local and foreign products.

The council also proposed that the Chamber of Mines compares with how other Chambers of Mines run, e.g Australian, Namibia and Ghana.

10.

/ Federation of Small Scale Mining Association of Zambia

General Update: FSSMAZ to attend a Japanese Expo organized by ZACCI to be held on 29th January. They have also been invited to the CBM Tech in Kitwe.

Feeder Roads: there has been no progress on the feeder roads even after being given the Euro 11 Million through Rural Development Agency, a report will be tabled at the next meeting.

Constitution – this is still in draft form and to be approved at the next Annual General Meeting. Due to financial constraints, they have been unable to hold the AGM.

11.

/ UNZA School of Mines

General Update: no representation and no report for this meeting.

12.

/ Any Other Matters;

Mining Skills Framework: Andrew Goode informed the council that a steering committee is being put in place. On funding the government expects industry to fund this initiative.

The entire AZMEC council paid a special welcome to Maureen Jangulo Ndlamini to the Chamber of Mines of Zambia and the mining industry as a whole and wished her success in her future endeavours.

13.

/ Date of Next Meeting

The next meeting will be held on Thursday, 27th February, 2014 at 14.00 hours, at Mpile Office Park, Lusaka.

The Chairman thanked the councilors for attending council meeting. The meeting finished at 16.30 hours.
Signed ………………………… Signed ……………………..
Chairman Secretary