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COMPANY PROFILE

Universal Mining &


Chemical industries

Reputation.. Reinvented in Steel!


CONTENTS
Who we are
Our Vision
Our Mission
Our Company Brand
Our Company History
Official Visits
Our Company Structure
Our Plant & Mine Locations
Our Steel Production Scenario
Our Steel Technologies
Our Products
Our Quality Assurance
Our Product Certifications
Safety & Occupational Health
Our People: Our Strength
Our Corporate Responsibility
Marketing & Distribution
Local & Regional Market
Export Market Scenario
Growth Prospects

2 Company Profile
WHO WE ARE

Universal Mining & Chemicals The company is dedicated to Its current and immediate
Industries Ltd. (UMCIL), a wholly the promotion, development and business portfolio is the
Zambian-owned private limited use of Zambian domestic raw manufacture of Iron and Steel
company. Its manufacturing materials in the manufacting Products from Zambian Iron
facility is located in Kafue town, of its goods whenever, and Ore, Manganese Ore and Coal in
Zambia. wherever, possible. an integrated, sustainable and
environmentally friendly way.

3 Company Profile
OUR VISION

To be a global steel
industry benchmark
for value creation and
corporate citizenship

4 Company Profile
OUR MISSION
UMCIL is investing in our customers by providing and supplying
the highest value in our products, services, relationships to
sustain ourselves.

In executing our mission, we believe in these core values:

RESILIENCE: Reflects the company determination, commitment and


perseverance in carrying out the IISP (Integrated Iron & Steel Plant)
project despite all odds during its inception.

INNOVATION: From its inception, UMCIL has devised approaches


to implement the current steel manufacturing facilities with
limited resources at its disposal. In short, innovation is
inscribed in UMCIL.

EFFICIENCY: Turning the UMCIL survival instinct into the


drive to sustain operations by manufacturing quality
steel products efficiently, enabling affordable costs
and enabling superior value to be passed onto
UMCIL customers.

RELIABILITY: Through the provision of consistency in


the quality of the steel products manufactured by
UMCIL. This underline the companies sense of
responsibility and commitment to excellence in
service, the products it supplies and the
satisfaction assurance of all stakeholders.

5 Company Profile
OUR COMPANY BRAND

UMCIL motto: “STEEL IS STEEL” as steel


has been universal in shaping the destiny of
humankind and is yet to fail humans in their
quest for a better world and environment. The
slogan also expresses the dynamics of relying
on one another to make our world a better
environment to live in.

And our brand “UMZ” engraved on our


product and services, embodies our values and
whoever uses UMCIL steel product is assured
of their highest worth.

6 Company Profile
OUR COMPANY HISTORY
Our history brushes the journey so far travelled:
1989 Birth of Universal Mining 2002 - Pre-feasibility and market survey for 2015 • Mine Operation Launch: iron ore mining at Sanje Hill
& Chemical Industries Ltd 2003 steel products in Zambia, Iron Ore Mine, Sibuyunji District.
Conceptualization of a steel products • ZABS Annual Quality Award Product of the year:
1990 1st Project to consider: Manufacture
manufacturing set-up Exporter of the Year
of Copper Oxychloride from Copper
2016 • Declaration on the Establishment of Kafue Iron and
Wastes generated from 2004 Acquisition of a 80 ha plot at Kafue
Steel Economic Zone to be anchored by UMCIL Steel Plant
ZAMEFA copper wire and Feasibility Study for the
• In-house Development, Fabrication and Installation of
establishment of a 250,000 t/year
1991 Acquisition of Kanankatampa Copper Hydraulic Hot Billet Shearing Facility at the Continuous
construction steel plant at Kafue
Deposit in Chongwe, Zambia and Pre- Casting Machine of the Steel Melting Shop
feasibility study conducted by Mpelembe 2005 Environment Impact Assessment for • Launch of Direct Reduction Iron (Sponge Iron) Plant by
Drilling Ltd on the recovery of copper establishment of Kafue Steel Plant His Excellency, the President of the Republic of Zambia,
for the production of copper oxychloride Mr. Edgar Chagwa Lungu
2006 Commencement of the 1st Phase of the
1992 Pilot Plant manufacturing synthetic Integrated Iron and Steel plant at Kafue
2017 • In-house Development, Fabrication and Installation of a
gypsum from United Quarries Ltd high with the erection of an electric arc
Hot Billet Charging System from the Continuous Casting
grade limestone for the production of furnace mini-mill.
Machine to the Reinforced Bar Rolling Mill
plaster of Paris and subsequently
2008 Commissioning of the Kafue Steel Plant • Trial Production of Direct Reduction Iron (DRI) using
plaster board
operation the Coal-based Tunnel Kiln Technology
1995 Birth of Trade Kings Ltd and • Establishment of a 40 tonnes per day Lime plant at
2013 Establishment of a 2,000 tons/month
establishment of Boom detergent paste Sanje Hill Iron Ore Mine
Window section rolling plant.
plant by locally designing and fabricating
the equipment/ machinery Suspension 2018 • Upgrading of the Accreditation of Steel Works from
2014 Commencement of the 2nd Phase of the
of UMCIL activities ISO 9001-2008 to ISO 9001-2015 QMS
Integrated Iron and Steel Plant to
• Best Engineering Innovation Award from the
2000 Reconsideration of UMCIL activities include an opening up of Iron Ore Mine,
Engineering Institute of Zambia
and evaluation of potential projects to haulage road construction between
invest in: copper processing, cement Sanje Mine & Kafue Steel Plant and
2019 • Kaizen National Champion Award on Cost Reduction
manufacture and steel production a Direct Reduction Iron Plant
and Continuous Improvement from Kaizen Institute of
2001 Choice of Steel Manufacturing Zambia
2014 Accreditation of UMCIL as an ISO 9001-
• Envoy to the International Convention on Quality
2008 Quality Management System
hosted by the Union of Japanese Scientists and
(QMS) Entity
Engineers (JUSE), Tokyo, Japan

7 Company Profile
OFFICIAL VISITS
The visits by eminent statesmen and persons tell on UMCIL
achievements so far garnered:
2017 2018
• His Excellency, The President of • His Excellency The Indian High
Zambia, Mr. Edgar Chagwa Commissioner to Zambia,
Lungu’s Launch of the Direct Mr. Shri N.J Gangte
Reduction Iron (DRI) Plant
• His Excellency The President
• Presidential visit of His of the Republic of Angola,
Excellency, The President Mr João Manuel Gonçalves
of Togo, Mr. Faure Essozimna Lourenço
Gnassingbé Eyadéma
• The Angolan Minister
• The Ghana Minister of Foreign of Mineral Resources& Oil,
Affairs, Ms Shirley Ayorkor Mr Diamantino Azevedo President Edgar Chagwa Lungu launched the DRI Plant
Botchway, MP.
• His Excellency The President
of Rwanda, Mr Paul Kagame
• His Excellency The China’s
Ambassador to Zambia,
Mr Yang Youming,
• Her Excellency The Rwanda’s
High Commissioner
to Zambia, Ms Monique
Mukaruliza
• The Africa Development Bank
(AfDB) representative in Zambia, The President of Rwanda The President of Angola Mr João Manuel Gonçalves
Mr Damoni Mtabire Mr Paul Kagame Lourenço visited UMCIL.

8 Company Profile
OUR COMPANY STRUCTURE
UMCIL is part of the Trade Kings Group company, a leading
conglomerate in Zambia which is below illustrated.

• Trade Kings Zambia • Universal Mining


Limited (100%) (100%)

Kafue Steel Corp. UMZ Burundi


SA (100%) (100%)

9 Company Profile
OUR PLANT & MINE SET-UP
UMCIL operates two(2) entities that are a mini-steel works
and an iron ore mine.

KAFUE
PLANT SITE
SANJE HILL
MINE SITE
Steel Melt
Scrap Metal
Shop

Iron Ore
Lime Plant
Rolling Mills Oxygen Plant Mines

Fume Extraction Beneficiation


Direct Reduction Lime Storage
System Site
Iron Plant

Industrial Iron Ore


Coal Gasification Lime Dispatch
Water Storage
Plant
Finished Iron Ore
Quality Goods Dispatch
Assurance

10 Company Profile
STEEL PLANT & MINE LOCATION
Our mini steel works is located at Kafue and sits on a 200 acre land
area by Nitrogen Chemicals of Zambia (NCZ), an ideal location for an
iron and steel production facility: closer to major country transport
arteries, e.g. roads, railway and Kafue waterways and to a Kafue
Hydroelectric stations energy.

Our iron ore mine is located at Sanje Hill 60 km east of our steel
works and 15 km west of the Nampundwe Copper Mine as
illustrated here. It sits on 13 km2 land area.

D
OA
NIR
KE
MA

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STEEL PLANT REQUISITES
Our mini steel works operate sourced ferro-alloys e.g. ferro-
on the consumption of the silicon (FeSi), ferro-manganese Sanje Hill Iron
following: (FeMn), and silico-manganese Ore Deposit
(SiMn), etc.
(i) Iron & steel scrap and Iron
(v) Deoxidizing agents: imported
Ore. The iron ore which is mainly
calcium carbide (CaC2), aluminum
made hematite and magnetite is dross (AI), etc.
mined at our Sanje Hill iron ore
deposit of which the estimated (vi) Imported refractory materials
reserve stands at more than for the lining of the EAF, ladles,
8 million tonnes of ore grading tundish and re-heating furnace in
65% iron. order to contain hot billets. These
material will be locally sourced in
(ii) Coal which is presently sourced the near future.
from Maamba Collieries Ltd.
grades 60% fixed carbon, 18% (vii) Utilities: electricity and water
volatile matter and 20% ashes. – (a) water is presently abstracted
from boreholes within the Kafue
(iii) Fluxing agents: quicklime (CaO) Plant Site; and (b) Zambia Iron and steel scrap
is captively sourced from our Electricity Supply Corporation Ltd
captive lime plant located at Sanje (ZESCO) supplied electricity from
Hill Iron Ore Mine; locally sourced a 900 MW Kafue Gorge hydro-
Fluorspar (CaF2) and silica (SiO2). electric power station located 35
km eastwards from the steel mill.
(iv) Alloying elements: locally

A 3-D view of Sanje


Hill iron ore deposit

12 Company Profile
OUR STEEL PRODUCTION SCENARIO

Our integrated mini steel works has been designed to


produce +200,000 tonnes of steel per year. Here, we are
recording the chronology our steel production since we
started operation in 2008. The slow pace of productions
2018
tell on the challenges UMCIL has been facing being an Awarded Best Engineer-
ing Innovation
infant industry.
2016 Annual Production
98,785 tons
Launch of Direct 2019
2013 Reduction Iron
Annual Production
Kaizen
National
Window
Section Mill 94,329 tons
2017 Champion
Annual Production Established
2010 90,650 tons 2015 Lime Plant
with 40t per
Annual
Production 2014 Sanje Hill
mine started
day output
2008 23,700 tons
2012 Construction
of D.R.I. Kiln
Annual
Production
Annual
Production
Launch of Steel Plant
Trial Production
2011 Annual
Production
Furnace
Annual
94,521tons 96,711 ton

268 tons Annual 76,400 tons


2009
Annual Production
Production
54,500 tons
Production
96,732 tons
11,000 tons

13C o m p a n y Profile
OUR STEEL TECHNOLOGIES
We are producing our steel products by adopting and adapting
different iron and steel technologies that have been integrated to
form the UMCIL IISP entity and these are:
1.) Mountain Top Mining Technology to mine Iron Ore
at the Sanje Hill Iron Ore Mine

2.) Beneficiation Technology that includes gravity and


high intensity magnetic separation to upgrade the
Iron Ore into a concentrate

3.) The Coal based Tunnel Kiln Direct Reduction


Iron process for the reduction of the Sanje Hill iron Coal based Tunnel Kiln Direct Reduction Iron (DRI)
ore concentrate with coal from Maamba into direct
reduced iron (DRI). This technology does also
include coal gasification.

4.) The Electric Arc Furnace Steelmaking


route to (a) melt of DRI and steel scrap 0

above 1600 C in an electric arc furnace;


and (b) refine the molten raw steel in a
ladle furnace with addition of ferro-alloys A 30 t Danieli
and other additives to market Electric Arc
specification. Furnace

14 Company Profile
STEEL TECHNOLOGIES

A Danieli 3 Strand
Continuous Casting Machine
5.) A Danieli 3 Strand Continuous
Casting Machine. Casting of steel
billets in a 3 strand continuous Hot Rolling mill
6.) The Hot Rolling Process to shape
casting machine the steel billets up into various profiles
following their softening in a re-heating
furnace at 1000 to 1100 C.

15 Company Profile
FUME EXTRACTION SYSTEM
To fulfill this quest to sustain a clean environment, UMCIL-
Kafue Steel plant has installed an appropriate state of
the art fume extraction system to address emissions
and waste discharges from the steel making plant and
rolling mills. In addition, trees have been planted along the
site perimeter as a way of maintaining a clean and safe
environment by abating greenhouse gases on site.

UMCI Ltd “Open Door” policy emphasizes partnership


with the Kafue community and other stakeholders to
ensure a sustained clean environment within and around
Kafue through evaluation, monitoring and awareness
campaigns.

The same commitment to the preservation, protection


and conservation of the environment is demanded of all
present and future UMCIL’s stakeholders.

16 Company Profile
OUR STEEL PROCESSING ROUTE
The steel processing route at
UMCIL concerns the following
after mining and beneficiation
of 65% of iron ore into 68%
iron concentrate:
LIMESTONE ROLLING
TUNNEL KILN MILLS
Produces solid, metallic
The manufacture of DRI IRON ORE iron from Iron Ore.
PRODUCTS
in a coal-based tunnel kiln
by reducing the iron ore
concentrate into DRI with
95% metalization;
BILLETS
COAL
The melting of DRI and iron
and steel scrap in an electric
arc furnace into a raw
steel that is subsequently
refined into a steel product
upon addition of ferro-alloys
and fluxes namely lime
and dolomite as to meet ELECTRIC ARC FURNACE STEEL REFINING
specifications set under the RECYCLED STEEL Produces molten steel. FACILITY CONTINUOUS
Zambia Bureau of Standars CASTING:
and SA Bureau of Standards.
The casting of the refined steel into The rolling of either hot billet as casted
either 100 x 100 or 130 x 130 mm or reheated billet into various type of
billets using a continuous casting rolled product.
machine.

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OUR STEEL PRODUCTS
Any projects depends on having the right product
on the right time. UMCIL is focus on providing
any customer with right quality products and
unmatched customer service.

UMCIL is presently the Zambia’s market leader


in merchants and rebar product mainly for the
building and the construction industry.

Our bar product are produced in the modern steel


recycling facility ensuring the highest quality while
creating a sustainable value for the customer.

The range of product UMCIL is currently


manufacturing are:

• Deformed Bars • Channels


• Round Bars • Window Section
• Angle Iron • Flat Bars

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STEEL PRODUCT

BARS
Products Grade Size Ranges Length Ranges
Square MS (1) SANS 920:2011(2) 10/12/16 mm 6/9/12/13 m
Rounds MS SANS 920:2011 10/12/16 mm 6/9/12/13 m
Re-bars (3) High yield strength 8 - 32 mm 6/9/12/13 m
steel SANS 920:2011,

1 MS, mild steel


2 SANS 920:2011 equivalent to BS
4449:2005
3 High yield strength steel: Thermal
mechanically treated (TMT) steel
equivalent to BS 4449:2005 500C

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STEEL PRODUCT

SECTIONS

Parameters PRODUCTS
Equal Angle Channel Flat bar
Size range 20x20x2 – 80x80x8 mm 76x38x4mm 40x3 – 80x 8 mm
100x50x3mm 25x3
20x3
Grade SANS 50025-2:2009(1) 50025-2:2009 50025-2:2009
S275JR S275JR S275JR
Length range 6 m 6 m 6m

1 SANS 50025-2:2009 (formely SANS 1431:2007)


equivalent to EN 10025-2:2004 and CR 10260;

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STEEL PRODUCT

WINDOW SECTION
Product name Product length
L-F7 6 meters
L-T13 6 meters
L-FX7 6 meters
T 6 6 meters
PF7 6 meters
PFX7 6 meters
F4B 6 meters

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OUR QUALITY ASSURANCE
Product quality defines Universal Mining &
Chemical Industries: assurance of product quality

At the heart of UMCIL business sustainability


is our commitment to produce and deliver
quality product as we thrive to build long term
partnership with our customers and industry
peers, creating sustained value for everyone
UMCIL work with.

To ensure product quality UMCIL rigorously Universal


test each raw materials and finished products Testing
to meet customers’ specifications and Machine
requirement in the state-of-the-art laboratory
that harbour LECO glow discharge spectrometer,
PanAnalytical XRF spectrophotometers and
physical metallurgical measurement equipment,
e.g. Universal Testing Machine, Hardness Tester,
Bending Machine, Joiminy Equipment and Impact
Tester, etc.

It is under this quality assurance endeavour


UMCIL is accredited to ISO 9001:2015 and
the range of steel products are certified to LECO GDS 500 Spectrometer
Zambia Bureau of Standards ZS 433:2011
and South African Bureau of Standards Our products meet the required standards for the most arduous and safety-
SANS 920:2011 and SANS 50025:2009. critical applications. Universal Mining & Chemical Industries is accredited to ISO
9001:2008 for our quality management system and is in the process of obtaining
the ISO 14001:2004 for our environmental management system.

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OUR QUALITY POLICY

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OUR STEEL PRODUCT RECOGNITION

The steel products UMCIL manufactures satisfy both the Zambia


and South Africa Bureau of Standards: ZABS 433-2007, SANS
920:2011, SANS 1431:2005 and ISO 9001:2008 respectively.

24 Company Profile
SAFETY & OCCUPATIONAL HEALTH
The motto ‘Routine kills and Expect the Unexpected”
guides everything we do day in, day out as no
everyday is the same.

Safety is a smart business we are investing a lot


of time and money to take care of ourselves in the
execution of our activities and of our customer. In
other words, safety is primary to our business.

Since the inception of the Kafue steel works in


2006, we have partnered with the Occupational
Health & Safety through our voluntary compliance
with government regulation.

25 Company Profile
OUR PEOPLE: OUR STRENGTH
UMCIL is presently +1,000 people strong.

Our people, our workers and the relationships they build are
integral and core to our achievements as a company.

Open and honest communication with clients, contractors,


sub-trades is at the heart of how UMCIL does business.

Our workers work in a demanding, results-focused industry:


our people overcome challenges through collaboration and
teamwork since the company inception.

To sharpen our people skills: UMCIL has recognized the


importance of training through professional development
programs and employing qualified and competent field
personnel to ensure healthy, safe a productive environment..

Besides training and skills development, UMCIL actively


promotes a culture of innovation among our people
for the sustainability of company operations in the
midst of competition arising from the rapidly
evolving technology in the iron and steel industry
both from safety and productivity standpoints,

In short, our people is UMCIL strength

26 Company Profile
CORPORATE SOCIAL RESPONSIBILITY

The steel industry is a job engine for any In addition to the above gains, savings will creation of various clusters to support the
economy as worldwide its “multiplier effect” also accrue from the reduction in steel steel mill and the community;
is well known for job creation within an imports as well as exports, value addition,
economy. For instance, ‘’for every job created acquisition of and development of scientific UMCIL is working with various stakeholders
in the steel mill seven(7) more jobs will be and technological know how, thus contributing to improve the quality of life of not only Kafue
created elsewhere in the Zambian economy. to Zambia money reserves and stability of the residents but of all Zambians.
Zambian Kwacha.
The employment of such a large number It is under this endeavor Universal Mining and
of people means setting up engineering, Other sectors of the economy like housing, Chemical Industries has pledged to commit
manufacturing, transport, utilities and service the hospitality industry, agriculture, 2% of its revenue towards its socio-economic
industries. In short, the real empowerment infrastructure development – roads, railways, and environmental responsibilities.
of Zambians will start to materialize – A schools, health care facilities, etc. will
DREAM INTO REALITY - with the localization somewhat be the indirect beneficiaries from
of secondary means of production and value the Kafue IISP.
addition to domestic raw materials.
UMCIL’s CORPORATE RESPONSIBILITIES:
Other socio-economic benefits, too numerous
to mention here, are on a yearly basis the As a partner in Zambia socio-economic
domestic supply of raw materials, instead of development, UMCIL is committed towards
exporting, electricity and water to the steel revitalizing the Kafue town socio-economic
mill and local transportation of both raw activities through:
feedstock and steel goods; every tonne of
steel from the steel work requires a supply of Assistance in the establishment of a special
at least four (4) tonnes of raw materials. economic zone that promotes “Indigenous
Empowerment” through skills training and

27 Company Profile
MARKETING & DISTRIBUTION
The current use of steel per capita in Zambia stands at 20kg
compared to 400kg per head in Japan and this consumption
translates to +/- 250,000 tonnes annually. Although UMCIL-
Kafue Steel produced +/- 90,000 tonnes per annum as
of December 2018, Zambia still has to import steel to
compensate for the deficit that includes other type and
ranges of steel products.

Building and construction, infrastructure development,


manufacturing and engineering, mining and agriculture
consume the bulk of the steel in Zambia.

28 Company Profile
LOCAL & REGIONAL MARKET
In sub-Saharan Africa, UMCIL counts itself
among the largest steel producers. But it’s
not just our size that sets us apart. What The Common
makes us different is our approach to Market for
business. Eastern and
Southern Africa
As our mission states, wherever any (COMESA)
customer is in the sub-Saharan African
region will enjoy the same highest value of
countries
our product service and experiences. Burundi
Comoros
Since our inception we have been D.R. Congo
supported by our customers in our Djibouti
sub-regions - thanks to our distribution Egypt
network. This enables us to provide the Eritrea
responsive service of a local customer Ethiopia
combined with the resources and Kenya
expertise of a market leader. Libya
Madagascar
In other words, UMCIL steel products Malawi
are not sold only in Zambia but are also Mauritius
exported to neighboring countries of Rwanda
SADC and COMESA economic & trade Seychelles
block as illustrated here. UMCIL has taken Sudan
advantage of its geo-political location to Swaziland
trade with other countries in the region. Uganda
Zambia
Zimbabwe

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EXPORT MARKET SCENARIO
The following export data highlights our steel
trade relationships in the SADC (Southern SOUTHAFRICA
African Development Community): ZIMBABWE
2%
0% 4%
MALAWI
7% 10%
36%
NAMIBIA
14% MOZAMBIQUE
9% 18%
TANZANIA
0% BURUNDI
ANGOLA
2012 2013 2014 BOTSWANA
D R C

2015 2016 2017 2018

30 Company Profile
GROWTH PROSPECTS
• ANCHOR the newly-established Kafue Iron
and Steel Special Economic Zone to be the
‘Hub or Manufacture Engineering Products’
in the region.

• EXPAND and further modernize plant


and machinery to achieve synergies in
efficiencies. Expand to 1 million tonnes
per year and further mordenisation of our
production route

• EXPAND market share in the Central


Africa and the greater sub-Saharan African
region.

• ENTER new markets in East Africa.

• INVEST in aquiring international standards


in safety, environment and product
standards.

31 Company Profile
“Largest Integrated Iron
and Steel Plant in Zambia”

Universal
Mining & Chemical
Industries Ltd.

Plot No. 3944 Chibuku Rd,


Kafue Estates, Kafue
P.O. Box 30824
Lusaka, Zambia

Tel. No: +260 211 286 117 / 27


Fax No: +260 211 288 856
Email: info@umcil.co.zm
www.umcil.co.zm

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