GROUP R MINING & EXPLORATION ZAMBIA LIMITED

SOB SHAFT MOPANI COPPER MINE – KITWE

TWIKATANE

June 2017

~ 2 ~ Twikatane – June 2017

Cover Page Photo: Temporary Crusher on 3960 Level constructed by Murray & Roberts, BUT, we can really appreciates the physical mining of an excavation done by Group R for such an installation........ 11,0m high.

Index

v Message from Management

v Message from the Safety Department

v Mining news / achievements

v Engineering news / achievements

v Finance Department

v Stores Department

v Human Resources

v Birthdays

v New Employees

v Labour Day

v New Union

v Disillusionment of a new employee

v Contact Details for Contributions

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Message from Management “No More”

This slogan from our Project Manager Mr. Nic Claassen has proved to motivate the team to drive the Mopani SAFEMINING campaign. Once again the Group R Mining employees have achieved a “Safe Quarter” and Management recognizes and applauds their commitment. Group R has accumulated over 1200 LTI free days and this is a great team achievement that must grow daily with everyone’s commitment.

Mopani acknowledge Group R team’s dedication and ambitions and look forward to a great team safely achieving its targets. It is our commitment that every man and women working on MCM will go home safely to their families after their shift. Achieving our Production targets will remain essential to ensure that the MCM completion and commissioning dates are achieved. Utilizing the MCM High Risk Work verification, will ensure that any possible “Hazards” are identified and thus procedures and processes can be applied to eliminate any undesired events.

Productivity is a Mind Set Think Safe and You WILL BE Safe!

Written by: Henry Patterson

Attitudes are contagious… Is yours worth catching?

~ 4 ~ Twikatane – June 2017

Message from the Safety Department On 29 May 2017, Group R Mining reached 1 250 days without a Lost Time Injury. This is only one of numerous milestones along our road to success. Milestones which we acknowledge and proceed because we have more important milestones ahead of us, greater heights to reach. This road to success has no destination, hence no end, yet we persevere.

Group R employees have proven their commitment by working safe. They have demonstrated their desire to return safely to their families and loved ones.

We are dedicated and adamant to achieve our next milestone which is 4 Years LTI Free on 21 December 2017.

Mopani recently launched what they called the Family Season competition. The different crews and different companies entered into Waiting Place competitions. The competing waiting places were inspected and evaluated and Group R came 2nd overall. Winners were rewarded with 25kg bags of maize meal.

Another part of this competition was letters from family members giving reasons why it is important for their husband, son, father, grandfather, brother to return from work safely. The letters were scrutinized and the best ones also won maize meal.

As we are an important part of Mopani Copper Mines we strive to participate in their campaigns and competitions which also keep our workforce motivated.

Written by: Jan Botha

~ 5 ~ Twikatane – June 2017

Mining news / -achievements

From mining, we are proud to have completed our second quarter of 2017 Lost time injury free (LTIF), with 1283 LTIF days by the 30th of June. Congratulations to everyone for this excellent achievement, and we are looking forward to another LTIF quarter.

On the production side, the last 3 months have been challenging to meeting our production targets of 315 meters per month. This has been caused due to the ore handling which must run concurrently with our waste handling. At this stage we are utilizing one re-muck bay on the loading level for both ore and waste. Hoisting must be coordinated in order to get the required call for ore as well as the waste. In this regard, our monthly production targets had to be revised to a reasonable level to accommodate the ore handling.

During this quarter, the following were achieved: v We successfully completed the temporary Waste crusher

excavation and signed it off to the client. v The access to top of pump chamber was successfully completed

and mining of the top level for the pump chamber has commenced. v Our low points towards Best Practice performance has been

improved when we achieved 82% in May improving on the 73% in April, and we remain optimistic with June performance to reach the target of 85%.

Our operational strategies for the mining department will always be:

v Safety first: we will stay humble and we apply all the safety drivers before tackling the assigned task.

v Production quality: our goal is to always complete a quality jobThe future of Group R with Mopani remains favourable as the mine plans to start production for the Synclinorium Shaft. The development for the mine have been increased in order to get enough copper to achieve their future production targets.

Written by: Bonaventure Munjile Site Manager

~ 6 ~ Twikatane – June 2017

Engineering news / -achievements

We would like to welcome our new Engineering Planner Mr. Penjani Kanyimbo. Feel free to ask him anything regarding work; he is always more than willing to help. He has already started to implement new electronic programs to help with scheduling, tracking and pinpointing problem areas and spares.

Loading Level The loading level has been handed back to Mopani. Relieving us of the pressure of maintenance and day to day operations on the conveyor belt, loading box and Rock breaker. We will still help and advice Mopani employees on the running of this section until they are confident with this section.

Machines The production pressure and the age of our machines are slowly making the work of the engineering team difficult.

LHD’s Replacement buckets is in the process to be slung down for LHD’s No 2 and -3. Line boring will be done on both machines with new pins and bushes. This will give us chance for a bucket to be sent for refurbishment and we can do the same LHD No 1. This will improve on the efficiency and the reliability of our LHD’s. Most of our breakdowns regarding LHD’s are minor but now is the right time to start preventative maintenance due to the high hours on them.

Dump Trucks With a new AD30 dump truck in our section operated by Murray & Roberts and maintained by Group R Mining, the amount of copper ore

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moved have increased and so also the pressure to keep all these machines available. The overall condition of our trucks is fairly good. The one big concern is the condition of some roadways. Our appreciation regarding the roadways goes out to the mining department as they are working at it daily. We need to clean and grease these machines regular to prevent damage to drive shafts and corroding of electrical components. The operators are also being coached on greasing their machines if an engineering person is not immediately available to help right away.

Drill rigs This is our biggest single challenge. Due to the high cost of spares for drill rigs, lead times for spares and wear and tear the challenge is on to keep our “money makers” available for mining. The first of cylinders have been sent for reconditioning and we are waiting for refurbished pins and bushes. Mechanics will be monitoring all drill rigs in order to minimize break down time drastically.

UV s Our new Normet scissor lift is working great with no major breakdowns. Unbelievable that this machine is due for its first set of tires. The Cherry Picker is on major maintenance and we are waiting for new diesel injectors to have it operating environmentally friendly.

Message to all Please encourage operators to wash and grease our machines regularly – this will increase the life of our machines.

Written by: Theo Nel-General Engineering Supervisor

There is an island of opportunity in the middle of every difficulty.

~ 8 ~ Twikatane – June 2017

Finance Department

In Zambia fuel subsidies have been cut and the cost of transport has risen with 25% in the last 6 months. This move is part of government’s attempts to reduce its ballooning budget deficit, and it is also believed, part of the groundwork necessary to qualify for a bailout loan from the international monetary fund. But rising fuel prices are making life increasingly difficult for the Zambians and the small businesses that many of Zambians run. Notwithstanding that, as the fuel prices go up, so does the basic commodities.

The above factors lead to borrowing. It is a vicious circle that when gotten into requires a lot of discipline to put an end to. Pay day comes and 25% of one’s salary goes to paying back the Sherlock or money lending institution and then one has to borrow again to survive the following month. This is a trend that is increasing by the day. It is very easy to borrow and sometimes things can be beyond one’s control, but remember; always borrow responsibly and only when necessary. It is okay to borrow money for a project that can generate money and not for consumption. The best to do to avoid getting small loans every month is to discipline oneself and live within your means and budget according to what you earn.

With the current economic challenges this is not an easy thing to achieve but it is somewhat better than having to pay back small loans every month as this complicates things further.

The finance department would like to welcome Mr William Chikonkolo who has joined Group R as a Junior Accountant.

Written by: Astridah Galanos- Accountant

It is not the size of the dog in the fight that matters, but the size of the fight in the dog.....

~ 9 ~ Twikatane – June 2017

Stores Department

Navigating supply chain challenges

Group R Mining Procurement department have had their ups and downs in the past and had to evolve in a modern day Supply chain to perfect their processes.

We have had to modify our procuring culture for best delivery and Shorter Lead time in Zambia.

Africa presents unique, varied , and continually evolving challenges for supply chains. Even companies with long track records in the region are being forced to find new and creative ways to maintain growth and

extend their reach into new countries and markets. While some of the lessons learned in other emerging regions are also applicable to Africa, it is likely that they will only be part of the solution. The rest will come from unique approaches tailored to specific country’s Markets and consumer groups.

In particular, companies will need to adapt their supply chain solutions in specific ways:

• Service and reliability first, • Then cost.

Establishing a market in Africa requires, first and foremost, that customers have access to your products. Successful companies in Africa have invested significantly to make this happen, accepting higher initial costs in order to capture market share and customer loyalty.

Prepared by: Eddie Anderson- Logistical Supervisor

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Human Resources

What Is Fatigue?

• Fatigue is more than simply feeling tired or drowsy. It is caused by prolonged periods of physical and/or mental exertion without enough time to rest and recover.

• Fatigue is associated with multiple factors which among others include spending long periods of time awake and having an inadequate amount and/or quality of sleep over an extended period.

• Fatigue can significantly affect an individual's capacity to function. Its side-effects include decreased performance and productivity, and increased potential for injuries to occur.

Fatigue management is a responsibility that must be shared between employer and employee - it involves factors that occur both in and outside of the workplace.

Causes of fatigue Human fatigue is multifactorial and from a health and safety perspective, fatigue is most appropriately conceptualised as either work related or non-work related.

Work-related causes Common workplace issues that can cause fatigue include: Work time arrangements; High physical workloads; Temperature extremes; Excessive noise; Work stress; and Poor ergonomic design of workstations and equipment.

Non-work-related causes Non-work-related causes that are variable on an individual level include the following:

• Undiagnosed medical conditions - many diseases and disorders can trigger fatigue, including:

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o Sleep disorders, such as sleep apnoea or restless leg syndrome; chronic fatigue syndrome;

o Tuberculosis; Chronic pain; Heart problems; and HIV. • Living conditions (housing and nutrition). • Alcohol and substance abuse. • Lack of exercise. • Certain medications.

It is the responsibility of employees to inform the employers of any health condition or medication they are on.

• Ensure to sleep and rest enough at home • Ensure to come to work fit and well • Do not sleep on duty

Prepared by: Rudi Strydom

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Birthdays

The following employees celebrated their birthdays in April, May and June 2017. Congratulations to all from Twikatane:

Apologies for omitting Prop Olivier in March 2017 Newsletter. His birthday was on 09 January. Congratulations Prop.

04 Apr Douglas Nguvu 04 Apr David Makumba 07 Apr Joel Zimba 07 Apr Stewart Mwamba 14 Apr Davies Mutale 15 Apr Wellington Bupe 16 Apr Dennis Last 19 Apr Jimmy Chimfwembe 19 Apr Pascal Kunda 19 Apr Micheal Sinyana 23 Apr Lackson Mukabe 24 Apr James Simasiku 27 Apr Mike Mwewa 30 Apr David Kaminya 30 Apr John Kaluba 01 May Benard Tumba 02 May Ben Prinsloo 05 May Jack Kalobwe 05 May Pasco Mulenga 06 May Gladson Longwani 07 May Evans Mutende 09 May Kendrik Pauleti 09 May Lazarous Mpoya 10 May Lloyd Chabala 10 May Henry Kapala 14 May Daniel Ngosa 15 May Rudi Strydom 19 May Penjani Kanyimbo 19 May Nyambe Nyambe 20 May Collins Chansa

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21 May Christo Snyman 22 May Samuel Lindunda 23 May Fredrick Mulenga 25 May Sunday Sichone 25 May Russell Mzondo 26 May Boyd Mwansa 28 May Nic Claassen 01 Jun Luckwell Moundu 04 Jun Brian Lwanga 06 Jun Amos Mushima 06 Jun Albert Mwenda 09 Jun Joseph Zimba 09 Jun Andrew Chama 11 Jun Hein van Staden 12 Jun Jack Chibesa 13 Jun Edward Mwenda 17 Jun Bernard Katongo 19 Jun Gostavias Mwape 21 Jun Owen Lungu 21 Jun Dennis Muwowo 22 Jun Alick Luhanga 26 Jun Titus Mumba 29 Jun Astridah Galanos

Prepared by: Sam Lindunda

New Employees

The management of Group R Mining and Exploration Zambia Limited would like to welcome the following new employees to the company:

v 05 April Pascal Kunda Fitter Assistant v 25 April Penjani Kanyimbo Engineering Planner v 02 May James Mubanga Fitter Assistant v 11 May William Chikonkolo Junior Accountant

Prepared by: Sam Lindunda

~ 14 ~ Twikatane – June 2017

Labour Day – 01 May 2017

On 01 May 2017 6 employees and I attended the Labour Day Celebrations in Kitwe.

• We arrived and registered at 07h30 in Kitwe Square

• Procession was organized and we awaited arrival of the Minister

• Minister arrived at 09h30 and we commenced marching

• The march arrived at Digger’s Rugby Club at 10h30 where each company’s presence was announced publically

• The program commenced at 11h00

Most of the entertainment, speeches and general communication were in Bemba, but the atmosphere was alive and positive.

The main theme of the day was “Ensuring work opportunities to provide Socio-economic Sustainability for all”

We departed at 13h30

Written by: Jan Smit

~ 15 ~ Twikatane – June 2017

New Union

The Mineworkers Union of Zambia was recently elected as the new Union at Group R and therefore a Recognition Agreement was signed between GRM and MUZ.

A new Branch Committee was subsequently elected:

Likezo George – Branch Chairman Kendrik Pauleti – Vice Chairman

Makumba David – Branch Secretary Mutale Joseph – Branch Vice Secretary Mulenga Fredrick – Branch Treasurer Kabwe Angel – Branch Vice Treasurer

Management wish to congratulate them on their election and looking forward to a healthy and cooperative relationship.

Written by: Rudi Strydom

Success starts with setting of goals, Output is the reward

~ 16 ~ Twikatane – June 2017

Disillusionment of a new employee

GROUP R MINING..... - What an adventure? Five months ago, my life took a drastic turn when I joined Group R Mining. I did not realize what I let myself in for when joining the company.

Starting to know management and the work force I realized these people were focused on the good knowledge of their work. They are dedicated and willing to work.

As in any company with different people and different cultures it was clear that there were some obstacles to overcome in order for all to see eye to eye. Keeping everyone happy is impossible as usual.

On the engineering side it was clear that we have great challenges. Challenges ranging from day-to-day breakdowns, the hydraulic breakdowns and even worse, the wear and tear due to fatigue of the “old” machines.

I believe that this engineering team have all the skills it will take to overcome these challenges providing everyone is utilized in their respective position to maximize the results.

In Group R it is evident that employees are treated as people and not just as numbers and

Three lessons I’ve learnt from the Group R people:

1. Always put your trust in our Lord 2. Always be honest – even when it’s tough 3. Whenever a challenge comes up – ATTACK!!!

I am proud to be part of this team.

Written by: Theo Nel – Senior Foreman

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Contributions Twikatane invites all employees to suggest / submit anything worthy of being published. Suggestions towards any changes are also welcome. Contributions or articles you would like to see in future editions must be submitted to the following persons:

Astridah Galanos Site Administrator Cell No: 096 3595 349 E-mail: astridah@grouprmining.com Jan Botha Safety Superintendent Cell No: 096 3303 208 E-mail: jcbotha@grouprmining.com THE NEXT EDITION WILL BE PUBLISHED BY THE END OF SEPTEMBER ’17. MAKE SURE YOU SUBMIT YOUR ARTICLE / STORY BY 10 SEPTEMBER ‘17.

Extra ordinary people are ordinary people

with extra ordinary determination.

This document and attachments are confidential/legally privileged and any unauthorised use, distribution or disclosure thereof, in whatever form, by anyone other than the addressee is prohibited. If you have received this document in error, please destroy it. The views and opinions in this document and attachments may not necessarily be those of GROUP R MINING & EXPLORATION ZAMBIA LTD. The aforementioned does not accept any liability for any damage, loss or expense arising from this document and / or from accessing any attachments.md