A Zambian success story

The 24-year nationalisation period (1973-1997), during which Zambia’s mining industry was in government hands, has left a noteworthy legacy – a reservoir of high-level mining skills that has served the country well.

One of the crowning achievements of that era was the formation of the University of Zambia’s School of Mines in 1973, which has turned out more than 1 000 graduates in mining engineering, geology, and metallurgy and mineral processing. In addition, the nationalised mining industry under Zambia Consolidated Copper Mines (ZCCM) sent large numbers of Zambians to study at leading universities overseas – not just in mining, but in related fields too. They brought back valuable skills which helped to build a solid intellectual foundation.

“The mining skill level of Zambia improved so much that later, when the mines were re-privatised, the new owners did not need to employ many expatriates,” according to a paper, Copper Mining in Zambia – History and Future, published in the journal of the Southern African Institute of Mining and Metallurgy (June 2016).

A 2014 study by the International Council on Mining and Metals (ICMM) found that the proportion of mining expatriates in Zambia is less than 2% of the industry workforce, compared to 8% in Peru and 17% in Tanzania.

Dr. Osbert Sikazwe, Dean of the School of Mines at the University of Zambia in Lusaka, says academic standards at the institution are high. “Our lecturers have studied at overseas universities. Our graduates hold their own, both in the mining industry and when they pursue post-graduate studies at international universities.”

Graduates of the School of Mines can be found in high-level careers, both in mining and academia, in countries as diverse as Finland, South Africa and Australia. Those prominent in Zambia include Dr. Pius Kasolo, CEO of government’s investment-holding company ZCCM-IH; Emmanuel Mutati, one-time CEO of Mopani Copper Mines; and Keith Kapui, Vice-President at Konkola Copper Mines (KCM).

The skills bequeathed to Zambia by the nationalised mining industry were a good beginning, but there was still much to do because the industry had been starved of investment and innovation for so long. Mining had moved on. The level of technology now coming on stream worldwide – and the higher level of skills needed to operate it – was at a whole different level.

So from 1997 onwards, the new investors in Zambia’s rundown mines poured billions of dollars into expansion, upgrading the technological base and starting new greenfield projects. As a natural consequence, they upgraded the skill base of the industry too. This was done very strategically, and has formed part of an ongoing process which continues to this day.

For example, Barrick Lumwana spends more than $100 000 a year on some 400 school and tertiary scholarships. Since 2007, KCM has offered around 500 scholarships, at school and university level, and has sent many students to top universities in Australia, India, Namibia and South Africa. Since 2005, First Quantum Minerals (FQM) has spent more than $50 million on a broad basket of initiatives which include scholarships, apprenticeships, and the construction and funding of trade schools.

“The focus on skills is a response to the growing sophistication of mining”
And in a bold initiative to train miners at the highest level, Mopani recently opened a $20-million technical training centre in Mufulira. It features world-class technology, including simulators, and will eventually receive students not just from other Zambian mines, but from other countries too. “You can’t just teach miners to pass exams,” says Lourens de Klerk, who heads the centre. “You also need practical, hands-on training where people learn to identify faults and handle unexpected situations. It is this which makes our school unique, even by international standards.”

The Zambian mining industry’s focus on skills is primarily a response to the rapidly advancing technological sophistication of the global industry. Like their international competitors, Zambia’s mines operate some of the world’s most sophisticated – and expensive – machinery and equipment. At FQM’s Sentinel Mine, for example, drivers learn to operate multimillion-dollar, 300-tonne haul trucks in state-of-the-art simulators which are able to mimic all kinds of weather, scenarios and driving conditions.

The growing technological sophistication of mining is one of the first things university graduates encounter. Dr. Sikazwe of the School of Mines explains: “While the intellectual base of our graduates is solid because of the quality of the teaching, they have to spend time on the job learning about the latest mining technology because they haven’t always been exposed to it. We would love to see more students accepted on internships before they graduate.”

Copperbelt University (CBU), in Kitwe, also has a School of Mines and Mineral Sciences, which was established in 2010. It offers not just degree courses, but also diploma programmes in areas such as mine ventilation, surveying and chemical technology.

Perhaps the biggest challenge facing local universities is that they depend on a cash-strapped Zambian government for funding. While this has less of an effect on the quality of teaching, it does affect the standard of laboratory equipment and technology – as well as the infrastructure, much of which is in need of refurbishment.

Outside help is always appreciated. The Dutch government recently funded a new boardroom at the School of Mines in Lusaka, as well as two scholarships at the University of the Witwatersrand in South Africa. Mines such as FQM, Mopani and KCM have financed library facilities, donated books, refurbished rundown infrastructure, sponsored student awards and accepted students on internships. Kagem Mining recently provided full scholarships to two geology undergraduate students, while Barrick Lumwana has been providing one scholarship a year to study mining engineering at Master’s level.

More than 40 years after the first wave of Zambia’s mining engineering students started graduating, the industry’s skill base has grown steadily. Today, it is one of the country’s competitive strengths. The challenges facing Zambia’s mining sector are well documented, but a lack of homegrown skills is not one of them.


Source:

ZCCM-IH To Scale-up its “Clean Water for Zambia” CSR Project

ZCCM Investments Holdings Plc (ZCCM-IH) will continue with the “Clean Water for Zambia” project this year by sinking 18 boreholes in remote areas of the country at a total cost of K1.2 million.

ZCCM-IH owes its continued existence, to the mining industry, where, at the moment, virtually all of its investments are held. As an investment company, majority-owned by Government on behalf of the Zambian people, we believe that our corporate social responsibility (CSR) activities are expected to spurn the entire country.

ZCCM-IH embarked on the “Clean Water for Zambia” project in 2016, focused on sinking a number of boreholes as its core sustainable social corporate investment. The boreholes were earmarked for remote areas of the country with little or no access to clean and safe water. So far, ZCCM-IH sunk two boreholes in Sinda District in two separate communities with approximately eight thousand community members in total.

With access to clean and safe drinking water, water borne diseases subside and living standards improve, among others. Safe and clean water will also greatly improve the health of mothers, infants and children and consequently reduce the maternal neonatal mortality rate in Zambia. There is also a visible correlation between improvement of girls’ education and access to safe clean water as well as the empowerment of women.

Women and girls move long distances to fetch water and end up using a lot of hours in a day on this activity when they could otherwise be engaged in other social economic activities that would improve their livelihoods such as income generating ventures or education.

This project is aimed at contributing to targets under the Sustainable Development Goal (SDG) number six which aims at “Ensuring access to water and sanitation for all”. Statistics indicate that more than one third of Zambia’s population does not have access to clean water.

Misenge constructs Chibalashi Dam in Mansa

The construction of Chibalashi Earth Dam at Chibalashi in Mansa District, Luapula Province at a total cost of about K7.4 million was undertaken by Misenge Environmental and Technical Services Ltd (METS).

Completed in January 2017, the project which was financed by the Zambian Government from a World Bank loan, was awarded to Intergrity Enterprises Limited, of Kabwe, by the Ministry of Water Development, Sanitation and Environmental Protection.

Intergrity subsequently subcontracted METS in 2016 to construct and manage the project in five months with the official contract commencement date of 8th July 2016 and the defects liability period of 12 months.

The scope of works included among other things; site clearing, river diversion works, excavation works for the core trench, the construction of dam embankments, excavation and construction of spillways with their associated structures, irrigation intake structures and canals and laying the low flow pipe.

Due to unfavourable weather conditions the contract was extended for 45 days and the project was finally completed on 17th January 2017.

The construction of Chibalashi dam will significantly boost agriculture and fisheries activities in the area throughout the year.

About Misenge

Misenge Environmental and Technical Services Ltd (METS) is a former Environment Department of the ZCCM Investments Holdings Plc (ZCCM-IH). Following the privatization of ZCCM Ltd and the transformation of the Company into ZCCM-IH the ZCCM Ltd Group Environmental Services (GES) was transformed into an Environmental Department.

In 2012, ZCCM-IH decided to transform the Department into a subsidiary Company – Misenge Environmental and Technical Services Ltd (METS).

METs offers the following services: environmental consultancy, radiation and safety Management, analytical services and engineering services.


METS – Constructs Chibalashi Dam in Mansa

Invitation for Bids | Renovation Works to ZCCM-IH Properties in Lusaka, Ndola, Kitwe and Kalulushi

  1. ZCCM Investments Holdings Plc. has received financing from own sources toward the CAPEX for the 2017/2018 Financial Year, and it intends to apply part of the proceeds of this financing to payments under the Contract for the Renovation Works to ZCCM-IH Properties in Lusaka, Ndola, Kitwe and Kalulushi, Contract No.: ZCCM-IH/019/2017.
  2. ZCCM Investments Holdings Plc now invites sealed bids from eligible and qualified bidders for the Renovation Works to ZCCM-IH Properties in Lusaka, Ndola, Kitwe and Kalulushi as follows:Lot 1 – ZCCM-IH Office Park, Alick Nkhata Road & 30B Kudu Road, Kabulonga in Lusaka (Duration – 12 weeks);
    Lot 2 – Former Oils Conditioning Monitoring Laboratory in Kalulushi (Duration – 12 weeks);
    Lot 3 – Investments House, Kantanta Street in Kitwe (Duration – 10 weeks); and
    Lot 4 – Mining Industry Archives, Arusha Street in Ndola (Duration – 12 weeks).
  3. Bidding will be conducted through the Open National Bidding (ONB) procedures specified in the Public Procurement Act of 2008 and the Public Procurement Regulations of 2011 and is open to all bidders from Eligible Source Countries as defined in the Bidding Documents. The following CEEC preferential treatment shall be applied as part of the evaluation:
    3.1 Citizen-influenced company – 4%
    3.2 Citizen-empowered company – 8%
    3.3 Citizen-owned company – 12%
  4. Interested eligible bidders may obtain further information from the address below and inspect the Bidding Documents at this address from 08:00 – 13:00 and 14:00 – 17:00 local time, Monday to Friday inclusive.
  5. Qualifications requirements include:i) Experience as a prime contractor in the rehabilitation of at least two (02) contracts of a similar nature and scope in the last five (05) years;
    ii) A minimum amount of liquid assets and/or credit facilities as follows:
    Lot 1 – ZMW986,110.00;

    Lot 2 – ZMW533,516.00;

    Lot 3 – ZMW654,890.00;

    Lot 4 – ZMW533,258.00.

    iii) Average Annual Turnover for the past three (03) years as follows:
    Lot 1 – ZMW12,819,440.00;

    Lot 2 – ZMW6,935,709.00;

    Lot 3 – ZMW8,513,579.00;

    Lot 4 – ZMW6,932,357.00.

  6. A complete set of Bidding Documents in English may be purchased by interested bidders ON THE SUBMISSION OF A WRITTEN APPLICATION to the address below and upon payment of a non refundable fee of Zambian Kwacha Five Hundred (ZMW500.00). The method of payment will be either by Cash or Bank Certified Cheque.
  7. The address referred to above is:
    K D Kabwe (Mrs.)
    ZCCM Investments Holdings Plc.
    ZCCM-IH Office Park, Stand No. 16806
    Alick Nkhata Road, Mass Media Area
    Lusaka, Zambia
    Tel: +260-211-228833
    E-mail: kabwekd@zccm-ih.com.zm
  8. Bids must be delivered to the address below at or before 10:00 hours on Thursday, 27th July 2017. Electronic bidding shall not be permitted. Late bids will be rejected. Bids will be opened physically in the presence of the bidders’ representatives who choose to attend in person at the address below immediately after 10:00 hours on 27th July 2017. All bids must be accompanied by a Bid Securing Declaration.
  9. There will be official site visits as follows:
    Lot 1
    Date: Monday, 10th July 2017
    Time: 10:00 hours
    Place: ZCCM-IH Office Park, Stand No. 16806, Alick Nkhata Road, Mass Media Area, LusakaLot 2
    Date: Wednesday, 12th July 2017
    Time: 10:00 hours
    Place: ZCCM-IH, Technical Directorate, Kalulushi.

    Lot 3
    Date: Thursday, 13th July 2017
    Time: 10:00 hours
    Place: ZCCM-IH, Investments House, Kitwe.

    Lot 4
    Date: Friday, 14th July 2017
    Time: 11:00 hours
    Place: ZCCM-IH, Mining Industry Archives, Arusha Street, Ndola.

  10. The address referred to in clause 8 is:
    K D Kabwe (Mrs.)
    ZCCM Investments Holdings Plc.
    ZCCM-IH Office Park, Stand No. 16806
    Alick Nkhata Road, Mass Media Area
    Lusaka, Zambia
    Tel: +260-211-388000
    E-mail: kabwekd@zccm-ih.com.zm

Zambia’s Muchinga Province Capital (Chinsali) in $1billion Gas Powered Electricity Plant Investment Project

Africa’s second largest copper hotspot after DRC, Zambia has taken energy diversification to another level. Zambia has for decades depended on hydro for power generation until 2015-2016 energy poverty years that awakened the nation to power diversification to other sources such as solar and geothermal.

A very unique source of energy generation plant is now being considered in Muchinga Province of the country. In a press release from the Ministry of National Planning, Honorable Lucky Mulusa revealed that district, the state has embarked on a program to diversify the energy sector further by establishing a 400 MegaWatt gas fired and powered plant in Chinsali district the capital of the province at a cost of $900million.

Minister of Development Planning Lucky Mulusa said the establishment of the plant is one of the measures Government has put in place to increase the country’s power generation capacity.

The 400 MegaWatts is projected to propel generation capacity, hence cushioning any deficits the nation may face. The project, he said, will be executed under the Tanzania-Zambia Mafuta (TAZAMA) Pipeline Limited. The gas to power the plant will be sourced from Zambia’s Rift Valley neighbor Tanzania and part of it will come from the Mozambique gas project.

The power generation plant will be located in Chinsali will be supplied with gas from the port of Dar es Salaam via a 36-inch pipeline.The pipeline will be laid alongside the crude oil pipeline in the existing TAZAMA wayleave, with an estimated length of 1,100 km. The plant will have expansion capacity from 400 megawatts to 1,200 megawatts.

The Ministry is yet to advise the mode of capital raising for the project and who will construct the plant.


Zambia Business Times

Maamba Collieries plans to increase generation

MAAMBA Collieries Limited (MCL) is engaging key stakeholders in the mining industry on possibilities of increasing its thermal-generated power plant to 600 megawatts (MW) in view of the growing electricity demand in the country.

Last year, President Edgar Lungu commissioned the 300MW of power at MCL and connected to the national grid through Zesco Limited.

Company corporate affairs senior manager Mayford Chikoya said in an interview on Tuesday that under phase II, the coal-fired power plant will cost around US$850 million.
“We have started discussions with the mines for phase two of the project. A committee has been formed to look at all the necessary documentation for the construction of the phase two project.

“Construction of the phase two of the thermal power plant is expected to start early next year,” Mr Chikoya said.

The committee is composed of officials from MCL, Ministry of Finance, Energy and selected stakeholders that deal in electricity.

He said the company will source for financiers once documentation for the project is finalised soon.

Mr Chikoya said the construction of the power plant will not take long like the first phase because basic infrastructure is already in place.

“We will still use the same power lines running from the thermal power plant to Muzuma, same water pipe line and coal handling plant. The first phase is running smoothly… The project is expected to be commissioned end of this month and hopefully, the power plant will be stable,” he said.

Mr Chikoya, however, said constant supply of power is being affected by Zesco Limited as it is still upgrading its transmission lines from Muzuma power station to Kafue from 220-330 kilovolts.

He said because of the major works being undertaken by Zesco, the power plant is constantly cutting on supply.

Currently, MCL is producing 300MW of power, and 265MW is supplied to Zesco, while the remaining 35 is used for the thermal plant.


Source: Daily Mail

President Lungu launches 2017 to 2021 National Development Plan

The 7th National Development Plan (7NDP) under the theme: ‘Accelerating development efforts towards Vision 2030 without leaving anyone behind’, has been launched today at the Mulungushi international Conference Centre in Lusaka.

Speaking during the launch PRESIDENT EDGAR LUNGU says he is concerned with the huge disparity between the rich and poor in Zambia. President LUNGU said despite the poverty decline between 2006 and 2015 there was need for government to do more as rural poverty remains really high at over 70 percent.

The formulation of the 7NDP has been driven by its mother ministry; The Ministry of National Development Planning with wide and extensive consultation from line ministries.

Other involved were Provinces and Districts, Research Institutions, Think Tanks, Civil Society organizations, United Nations agencies and many Cooperating Partners.

The 7NDP which will cover the period 2017 to 2021 is in 2 parts comprising of Volume I and Volume II. Volume I outlines the aspirations of the development agenda for the next 5 years while Volume II is the clear implementation plan of the 7NDP.

The 7NDP has been classified into 5 Pillars namely:

(I) Economic Diversification and Job Creation

(II) Poverty and Vulnerability Reduction

(III) Reducing Development Inequalities

(IV) Enhancing Human Development

(V) Creating a Conducive Governance Environment for a Diversified and Inclusive Economy

The plan gives a direction of Zambia’s broad parameter of government development agenda in the next four years.

The 7NDP seeks to move away from the sectoral approach to the integrated approach; it also seeks to abandon the silo approach that takes away policy harmonization and policy consistency.

And the Head of State has urged Zambians from all sectors of life to support the implementation of the national development plan. This plan will become the broad framework from which annual fiscal budgets and the corresponding monetary policy decisions will be anchored.


Zambia Business Times

ZCCM-IH | Letter to Shareholders (French Version)

CEO.ZCCM-IH/167/2017

15 juin 2017

Cher Actionnaire,

RAPPORT ANNUEL ET ÉTATS FINANCIERS DE ZCCM INVESTMENTS HOLDINGS PLC POUR L’EXERCICE CLOS LE 31 MARS 2016


En référence à la mention précédente, nous vous prions de trouver ci-joint votre rapport annuel et vos états financiers pour l’exercice clos le 31 mars 2016. Vous trouverez également dans le même envoi, l’avis et l’ordre du jour (“Notice and Agenda”) de la 13ème Assemblée Générale des Actionnaires (AGA) qui aura lieu Le 14 juillet 2017 à Lusaka Zambie à l’hôtel Southern Sun Ridgeway à 10:00 heures.

Cher Actionnaire, vous êtes cordialement invité à assister à la 13ème Assemblée Générale des Actionnaires dont les détails sont fournis ci-dessus et que vous retrouverez dans les documents ci-joints. Au cas où vous ne pourriez pas assister à l’AGA en personne, vous pouvez éventuellement participer à cette AGA par procuration. Vous trouverez le formulaire de procuration en page 15 de la brochure “Notice and Agenda”.

Sinon vous pouvez vous rendre sur le site Web de ZCCM Investments Holdings à l’adresse suivante : https://docs.google.com/file/d/0B7eB_13EKH3_eHhUY3NsaWFrWVk/view?rm=minimal

et accéder à une version numérique du formulaire de procuration.

Nous vous remercions pour votre soutien continu. Nous espérons vous voir, vous ou votre mandataire, à l’Assemblée. Si vous avez besoin de plus amples précisions sur le contenu de ce courrier, n’hésitez pas à nous contacter.

Veuillez agréer, Cher Actionnaire, l’expression de nos sentiments respectueux.

ZCCM INVESTMENTS HOLDINGS PLC

Dr P C Kasolo (pp)
Président Directeur Général

Copie adressée au Secrétaire Général


Letter to Shareholders (French Version)

ZCCM-IH | Letter to Shareholders (English Version)

CEO.ZCCM-IH/162/2017

15 June 2017

Dear Shareholder,

ZCCM INVESTMENTS HOLDINGS PLC – ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016


We refer to the above and enclose herein your Annual Report and Financial Statements for the financial year ended 31 March 2016. You will also find enclosed in the same pack, the Notice and Agenda of the 13th Annual General Meeting (AGM) that will be held on the 14th of July 2017 in Lusaka Zambia at Southern Sun Ridgeway Hotel at 10:00 hours.

Our esteemed shareholder, you are cordially invited to attend the 13th Annual General meeting whose details are provided above and further captured in the enclosed documents. In the event that you are unable to attend the AGM in person, you may still be able to participate during this AGM through a proxy. You will find the hard copy of the proxy form on page 15 of the Notice and Agenda.

Alternatively, you can visit the ZCCM-IH website on the following link: https://docs.google.com/file/d/0B7eB_13EKH3_eHhUY3NsaWFrWVk/view?rm=minimal and access a soft copy of the proxy form.

We thank you for your continued support; we hope to see you or your proxy at the AGM. Should you require further clarification over the contents of this letter, please feel free to contact us.

Yours faithfully,
ZCCM INVESTMENTS HOLDINGS PLC

Dr P C Kasolo
Chief Executive Officer

Cc Company Secretary


Letter to Shareholders English Version

ZCCM-IH | Request for Expressions of Interest – Consultant Services

PROJECT DESCRIPTION: LUFWANYAMA INTEGRATED FARMS ENVIRONMENTAL IMPACT ASSESSMENT

1.0 BACKGROUND

ZCCM Investments Holdings Plc is an investments holding company which has a majority of its investments held in the copper mining sector of Zambia. ZCCM-IH’s majority shareholders are the Industrial Development Corporation (IDC) with 60.3%, Government of the Republic of Zambia (GRZ) with 17.3% shareholding, National Pensions Scheme Authority (NAPSA) with 15% and other shareholders with 7.4%.

The company has a primary listing on the Lusaka Stock Exchange and secondary listings on the New York Stock Exchange, Paris Euronext (Euronext) and London Stock Exchanges under ISIN number ZM0000000037.

The Company intends to diversify into the agriculture and other sectors, the company in 2010 acquired 2000 Ha of virgin land in Lufwanyama District which it intends to develop into an economically viable integrated crop and livestock farming operation. However, in order to proceed with this development, it is law that an Environmental and Social Impact Assessment (EIA) be undertaken in accordance with the Zambia Environmental Protection Act.

In this regard, need has arisen to engage a Consulting Firm to conduct an Environmental and Social Impact Assessment (EIA) for its integrated farming project in Lufwanyama, in accordance with the Zambia Environmental Protection Act.

2.0 PROJECT SUMMARY

In view of the proposed project the consultant will be required to consider the following as the scope of environmental assessment.

  • Assessment of project and identify cumulative environmental effects
  • Consideration of cumulative environmental effects resulting from the project development and long term operation
  • Alternative methods of carrying out activities considered risky to the environmental
  • Develop and Environmental Management Plan (EMP) of how to deal with identified risks
  • Recommendation of monitoring programs to ensure social and environmental sustainability
  • In view of the above, the EIA should consider the impact of the project on the following environmental and social factors;
  • Review of the atmospheric environment including characterization of the existing air quality as well as climate of the area
  • Review of the existing water and wetland resources, its quality and potential pollution risks due to the project
  • Review of existing and anticipated land resource utilization in the area
  • Review of the aquatic environment including characterization of the fish and fish habitat as well as environmental effects of the project
  • Review of the vegetative environment including characterization of existing conditions and possible environmental effects analyses
  • Review of public health and safety issues related to the project
  • Review of labour and economic effects of the project in the area including characterization of existing labour situation
  • Review of existing community services and infrastructure as well as effects of the project
  • Review of existing transport and communication infrastructure and possible effect of the project
  • Identify assets of archaeological/historical interest

The project is expected to take 8 weeks to complete. The expected milestones are as indicated below:

S/N Milestone Deliverable Timeline
1 Inception Inception Report 2 weeks
2 Stakeholder Consultation Stakeholder Consultative Meeting Report 1 week
3 Environmental Impact Assessment Draft Environmental Impact Assessment Report 3 weeks
4 Environmental Impact Assessment Final Environmental and Social Impact Statement 2 weeks

ZCCM-IH now invites Eligible Consulting Firms to indicate their interest in providing the above services. Interested consulting firms must provide information to demonstrate that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions .etc. Consulting firms may associate to enhance their qualifications.

A consultant will be selected using Quality and Cost Based Selection (QCBS) method in accordance with the Zambia Public Procurement Regulations, 2011 (Statutory Instrument No. 63 of 2011).

Interested consulting firms must submit five (05) hard copies of their Expressions of Interest to the address below not later than 16:30 hours on Tuesday, 4th July 2017.

The Procurement Manager
ZCCM-IH Office Park
Stand No.16806
Alick Nkhata Road
Mass Media Complex
P.O. Box 30048
Lusaka.