May 2019

Archived Tenders

Request for EOI for the Provision of Full Valuation of ZCCM-IH Investee Companies

REQUEST FOR EXPRESSIONS OF INTEREST (EOI) FOR THE FULL VALUATION OF ZCCM-IH INVESTEE COMPANIES, CONTRACT NO.: OIB/ZCCM-IH/035/2019

1.0 Background
ZCCM Investments Holdings Plc. (ZCCM-IH) is an investment holding company with diversified interests in mining, energy, banking, property and other sectors of the Zambian economy. The company has a primary listing under ISIN number ZM0000000037on the Lusaka Stock Exchange, and secondary listings on London Stock Exchange and Euronext Stock Exchange in Paris.

The Zambian Government (GRZ) directly holds 17.25% of the shares in ZCCM-IH and 60.28% indirectly through Industrial Development Corporation (IDC), an investment company wholly owned by the Zambian Government. With the remaining 22.47% being held by institutions and individuals. The geographical spread of the minority shareholders, who number around 4300, covers over 29 countries in Europe, Africa, the Caribbean, Australia, Asia and the USA.

ZCCM-IH holds the majority of its investments in the mining sector and has shareholding interest in the undernoted companies:

No. Company Relationship Shareholding % Status
1 Ndola Lime Company Limited Subsidiary 100.00% Active
2 Misenge Environmental and Technical Services Ltd Subsidiary 100.00% Active
3 Nkandabwe Coal Mine Limited Subsidiary 100.00% Inactive
4 Investrust Bank Plc Subsidiary 71.40% Active
5 Kariba Minerals Limited Associates 50.00% Active
6 Maamba Collieries Limited Associates 35.00% Active
7 Konkola Copper Mines Plc Associates 20.60% Active
8 Kansanshi Mining Plc Associates 20.00% Active
9 Copperbelt Energy Corporation Plc Associates 24.10% Active
10 CEC Africa Investments Limited Associates 20.00% Active
11 Lubambe Copper Mine Plc Associates 20.00% Active
12 CNMC Luanshya Copper Mines Plc Associates 20.00% Active
13 NFC Africa Mining Plc Associates 15.00% Active
14 Chibuluma Mines Plc Associates 15.00% Active
15 Chambishi Metals Plc Associates 10.00% Active
16 Mopani Copper Mines Plc Associates 10.00% Active
17 Nkana Alloy Smelting Company Limited Associates 10.00% Inactive

IFRS requires that investments be stated at fair value at every annual reporting period. This requires that a valuation of the investments is conducted every financial year to ascertain their fair values. The fair valuation is conducted by an independent consultant as will be appointed from time to time.

In this respect fair valuation for the preceding financial year was conducted by Imara Corporate Finance.

ZCCM – IH now seeks to appoint a consultant to perform a full fair valuation of ZCCM – IH investments as at 31st December 2019 and a Desktop Valuation as at 31st March, 2020.

2.0 Objective of the assignment
The company is in the process of preparing its Industrial Development Corporation (IDC) reporting for the year ending 31 December 2019 and statutory financial statements for the year ending 31 March 2020 and requires a fair valuation of its investments as per IFRS 13 Fair Value Measurement and IFRS 9: Financial Instruments as at 31st December, 2019 and a desktop review as at 31 March 2020.

3.0 Scope of Work
Perform a full valuation as well as desktop review and provide an independent valuation opinion of ZCCM-IH’s investments in accordance with IFRS 13: Fair Value Measurement and IFRS 9: Financial Instruments.

The valuation will consider the following:

  • The review of historical, projected financial and operating performance of the Investee Companies and material developments.
  • The review of relevant industry, macroeconomic and market related information fundamental to each investment and assess the impact on the valuation of the investments.
  • The appropriate valuation methodology for each investment in consultation with ZCCM – IH’s management and external auditors.
  • Present to ZCCM-IH’s management and external auditors the nature and extent of changes in valuation assumptions and relative valuation result in line with the timelines stipulated.
  • Conduct impairment tests of an investment, where there in an indication of impairment in accordance with IFRS 9 – Financial instruments.
  • Attend to all incidental matters related to performance of fair market valuation

ZCCM-IH now invites eligible consultants to indicate their interest in providing the above services. Interested firms must provide information to demonstrate that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions etc.).

Interested consultants may obtain further information at the address below during office hours between 08:00 – 13:00 hours and between 14:00 – 17:00 hours local time
from Monday to Friday.

A consultant will be selected using Quality and Cost Based Selection (QCBS) method. Interested consultants must submit one (01) original and three (03) hard copies of the Expression of Interest to the address below no later than Friday, 21st June 2019.

Procurement Manager
ZCCM Investments Holdings Plc
ZCCM-IH Office Park
Stand No. 16806, Alick Nkhata Road
Mass Media Complex Area
P.O. Box 30048
Lusaka.
Email: kabwek@zccm-ih.com.zm
Archived Tenders

Request for EOI for the Provision of External Audit Services to ZCCM-IH

Request for Expressions of Interest (EOI) for the Provision of External Audit Services to ZCCM-IH, Contract No.: ZCCM-IH/034/2019

1.0 Background
ZCCM Investments Holdings Plc (ZCCM-IH) is an investments holdings company which is quoted on the Lusaka, London, and Euronext Stock Exchanges, and has the majority of its investments held in the copper mining sector of Zambia. The Government of the Republic of Zambia holds directly about 17.25% shares and its 60.28% shares is held through the Industrial development Corporation (IDC) in Zambia, with the remaining 22.47% held by institutional and private individual shareholders.

ZCCM-IH currently has an investment portfolio of 17 companies, including mines such as Kansanshi Mining Plc, Mopani Copper Mines Plc and Konkola Copper Mines Plc. Its shareholding in the 17 companies ranges from 10% to 100%, with commodities and services that are diversified in nature, including copper, gold, cobalt, coal and power, telecommunication, limestone, mining consultancy, financial services and gemstones.

ZCCM-IH wishes to engage Group External Auditors to provide external audit services to ZCCM-IH and its Subsidiaries.

2.0 Objective
The objective of the external Audit is to express an opinion in accordance with International Auditing Standards (ISA) on whether the Financial Statements of the Group and its Subsidiary Companies are presented fairly and in all material respects in accordance with International Financial Reporting Standards (IFRS) and the requirements of the Companies Act of Zambia for the year ending 31 December 2019 and 31 March 2020. The external Auditor will also report on whether the required accounting records, other records and registers have been properly kept in accordance with the Act.

3.0 Scope of Work
a) The audit will be carried out in accordance with ISA as stated above and will include such tests and verification procedures as the auditors consider necessary.
b) Review the Internal Control environment so as to have sufficient knowledge of the systems and procedures of the organization.
c) Carry out tests so as to have an understanding of the accounting system and assess its adequacy as a basis of preparation of financial statements.
d) Confirm that although responsibility for fraud and irregularity remains with Directors, the audit has been planned so as to have reasonable expectation of detecting material misstatements.
e) Review of Significant Investments.
f) Consultation on any other matters that may arise during the contract period.

No. Company Relationship Shareholding % Status
1 Ndola Lime Company Limited Subsidiary 100.00 Active
2 Misenge Environmental and Technical Services Ltd Subsidiary 100.00 Active
3 Nkandabwe Coal Mine Limited Subsidiary 100.00 Inactive
4 Investrust Bank Plc Subsidiary 71.40 Active
5 Kariba Minerals Limited Associates 50.00% Active
6 Maamba Collieries Limited Associates 35.00% Active
7 Konkola Copper Mines Plc Associates 20.60% Active
8 Kansanshi Mining Plc Associates 20.00% Active
9 Copperbelt Energy Corporation Plc Associates 24.10% Active
10 CEC Africa Investments Limited Associates 20.00% Active
11 Lubambe Copper Mine Plc Associates 20.00% Active
12 CNMC Luanshya Copper Mines Plc Associates 20.00% Active
13 NFC Africa Mining Plc Associates 15.00% Active
14 Chibuluma Mines Plc Associates 15.00% Active
15 Chambishi Metals Plc Associates 10.00% Active
16 Mopani Copper Mines Plc Associates 10.00% Active
17 Nkana Alloy Smelting Company Limited Associates 10.00% Inactive

ZCCM-IH now invites eligible consultants to indicate their interest in providing the above services. Interested firms must provide information to demonstrate that they are qualified to perform the services (e.g. brochures, description of similar assignments, experience in similar conditions etc.).

Interested consultants may obtain further information at the address below during office hours between 08:00 – 13:00 hours and between 14:00 – 17:00 hours local time
from Monday to Friday.

A consultant will be selected using Quality and Cost Based Selection (QCBS) method. Interested consultants must submit one (01) original and three (03) hard copies of the Expression of Interest to the address below not later than Friday, 21st June 2019.

Procurement Manager
ZCCM Investments Holdings Plc
ZCCM-IH Office Park
Stand No. 16806, Alick Nkhata Road
Mass Media Complex Area
P.O. Box 30048
Lusaka.
Email: kabwek@zccm-ih.com.zm
Investee Company News

Let’s Plan for Load-Shedding

FOLLOWING a dry spell which has adversely affected almost half of the country in the 2018-2019 rainy season, it has become necessary for power utility firm Zesco to ration the supply of power to its domestic and industrial clients.
Erratic rains have resulted in low water levels at Zesco’s hydropower plants such as Kariba Dam and Itezhi Tezhi.
Cutting back on electricity supply to households and industries will certainly have a negative impact on the economy.
However, it has become inevitable in view of the dry spell. If Zesco had a way, it would not resort to cutting back on electricity supply because this will eat into the power utility’s revenue base.
But this is the consequence of climate change which the country did not bargain for, but should now be planning ahead for. Plans that are already in place must be accelerated.
Now, households, businesses – small, medium and big – will have to come to terms with power rationing otherwise known as load-shedding.
When calamities such as droughts hit us, it reminds the country of the sad reality about the country’s over-dependence on hydropower.
Hydropower generation, despite being the country’s mainstay of electricity, is a risky undertaking due to its vulnerability to climate change.
In 2015, the country experienced a severe energy deficit and crisis on account of low water levels resulting in inadequate power generation.
The country’s hydropower resource potential is estimated at over 6,000 MW. Currently, the installed capacity stands at about 2,700 MW.
Of this, small- and medium-sized power generation accounts for less than two percent.
The country has rich potential in renewable energy resources such as biomass, solar, wind and geothermal, which are currently under-utilised.
That is why there has been emphasis of late for the country to seriously consider having a rich mix of energy sources.
Progress has been made with the thermal plant at Maamba Collieries Limited, built at over US$840 million and generating 300 megawatts which is fed into the national grid.
With the help of the International Finance Corporation and the World Bank Group, Government is putting up several solar power projects around the country.
The recent commissioning of the completion of the solar photovoltaic plant for the Bangweulu Power Company Limited in Lusaka South Multi-Facility Economic Zone is one of the perfect examples of Government efforts in embracing renewable energy.
There are also a couple of other projects in the pipeline.
However, the task of diversifying sources of energy cannot be left to Government alone. The private sector, too, should come on board if the country is to keep pace with economic growth.
At household level, families and individuals should consider switching to gas stoves as well as installing solar panels to ensure their critical gadgets are operational.
Zesco, on the other hand, should publicise the load-shedding schedule so that all power consumers are aware when they are going to be affected.
The power utility should also ensure that the power rationing should not hamper production levels in industries, farms as well as small and medium businesses remaining in business during the load-shedding period.
Zesco should come up with a win-win situation with industry by ensuring that industry is given power at the agreed time so that there is maximisation of limited resources.
Investee Company News

ZCCM-IH | Cautionary Announcement

In accordance with the requirements of the Lusaka Securities Exchange Listings Rules (“LuSE Listings Rules” or the ”Rules”), shareholders of ZCCM Investments Holdings Plc (“ZCCM-IH” or the “Company”) are advised that ZCCM-IH has on 21 May 2019 filed a petition in the High Court of Zambia for the winding up of Konkola Copper Mines Plc. ZCCM-IH has filed the said petition pursuant to section 56 (1) (c) of the Corporate Insolvency Act No. 9 of 2017. By Order of the Court, Mr Milingo Lungu of Lungu Simwanza & Company has been appointed as provisional liquidator.

Shareholders of ZCCM-IH are accordingly advised to exercise caution when dealing in securities of the Company until further information is published.

By Order of the Board

Chabby Chabala
Company Secretary

Issued in Lusaka, Zambia on 23 May 2019

Lusaka Securities Exchange Sponsoring Broker
T | +260-211-232456
E | advisory@sbz.com.zm
W | www.sbz.com.zm
Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on 23 May 2019
Corporate Social Investment, ZCCM-IH News

Chitulungu Basic School in Mungwi District of Northern Province Receives a Water Borehole Sunk by ZCCM-IH.

Drilled at a cost of K80,000, the water borehole sunk at Chitulungu Basic School in Mungwi District of Northern Province is one of the many ZCCM-IH has handed over to Zambian residents in remote areas with little or no access to clean drinking water. This water borehole, expected to provide clean drinking water to over 2,000 residents, is part of the ZCCM-IH ‘Clean Water for Zambia’ Corporate Social Investment (CSI) campaign. The event was graced by His Royal Highness, Paramount Chief Chitimukulu of the Bemba people.

Investee Company News

Mopani digs in

MOPANI Copper Mines (MCM) has assured Government that it is in the country for a long haul, allaying fears of the mine stopping its operations in the country.
The mine made the assurance to President Edgar Lungu yesterday when chief executive officer Chris Vermuellen and directors Moses Chilangwa and Emmanuel Mutati met the President during a closed-door meeting at the Bank of Zambia (BoZ) guesthouse in Ndola.https://epaper.daily-mail.co.zm/
Investee Company News

Nava Bharat Ventures Ltd. – Update On Maamba Collieries Ltd., Our Zambian Step Down Subsidiary

..70% Receivables realized and Debt down by 25%..

The following perspective is in response to certain enquiries from the investors concerning our step down subsidiary, Maamba Collieries Limited, Zambia (MCL).

MCL has been operating an integrated 300 MW (2X150 MW) coal-fired power plant and selling power under a long term Availability Based Power Purchase Agreement (PPA) with ZESCO, the local Utility.

ZESCO has been effecting part payments on a monthly basis and bulk payments at different intervals, against power purchase from MCL and Investors will be pleased to know that as on March 31, 2019, MCL has already realized over 70% of the total amounts billed since synchronization of the power plant with the Grid.

We are also glad to inform you that MCL is up to date on all its debt service obligations and the long term debt is down by 25%.

Pdf Link: Nava Bharat Ventures Ltd. – Update On Maamba Collieries Ltd., Our Zambian Step Down Subsidiary
Investee Company News

Lubambe Mine stimulating Keep Chililabombwe clean campaign-Mayor

Chililabombwe Mayor Christabel Mulala says Lubambe Copper Mines (LCM) is spurring the ‘Keep Chililabombwe Clean Green and Health’ campaign.

Speaking during the cleaning exercise facilitated LCM in Konkola today, Ms Mulala said the Council wants to work with like-minded corporate entities in ensuring the surroundings are clean, green and health.

She said cleaning is the exercise in which every resident must be get involved because cleanliness is life.

The Mayor said LCM promised to make the wheelbarrows, rakes and all cleaning equipment available during the monthly cleaning exercise which happens every last Saturday of the month.

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Speaking earlier LCM Chief Executive Officer Nick Bowen said the mining firm was adhering to the Presidential directive of the ‘Keep Zambia Clean, Green and Health’ campaign.

Mr Bowen said the cleaning exercise which incorporated pupils from Konkola Primary School was a good move because it will inculcate the cleanliness attitude in pupils from tender age.

Mr Bowen later donated assorted items to Konkola Primary school, among them the textbooks, paints, cleaning equipment and agents plus plants.

Konkola Head Teacher Joseph Chaila received the donation on behalf of the school.

And in a vote of thanks Esther Chulu one of the pupils applauded LCM for the donation of the textbooks saying it will be easier for pupils to pass well.

She said LCM has been a partner of the school which sponsors pupils to Grade 10 when they do well.

Source: The Independent Observer
Industry News

Electric Car Era Will Boost Demand for Zambia’s Battery Metals

The advent of the electric car is causing positive impact in the base metal market manifesting in uptick in demand for copper, cobalt and nickel. The likes of BMW, Ford and Tesla will be looking to buy metals in the forward to stock up on inventory to meet future demand. Permanent Secretary in the Mines Ministry in Africa’s copper producer Paul Chanda said Zambia’s mining sector still presents immense investment opportunities despite the current global uncertainty and the macro-backdrop.

Speaking on the sidelines of the Mines and Money conference in New York, Chanda said the sector is poised for growth considering the expression of interest from various investors to invest in other minerals such as manganese, cobalt, and vanadium among others.

ZCCM-IH Acting Chief Executive Officer – Mabvuto Chipata listens to delegates at the
Mines and Money New York’s event.

“Zambia can leverage on and benefit from the growth and development being experienced in the electric car industry. We already have copper, and also battery metals such as manganese and cobalt, and investors have been coming to look for investment opportunities in such”, said Chanda.

Acting CEO of the state mining investment vehicle ZCCM-IH Mabvuto Chipata said the company was exhibiting and participating at the leading international event series for mining investment and capital raising in an effort to position the Company at the center of the mining deals marketplace in New York.

Speaking during a Company spotlight presentation to conference delegates at the event, Mr. Chipata called on potential investors to look to ZCCM-IH as a strategic partner for new mining investments in Zambia.

“Given the current enabling investment climate in the country, we strongly believe that any investor can only stand to leverage and benefit from partnering with ZCCM-IH due to its advantageous and strategic positioning in the mining sector”, Chipata said.

And Permanent Representative of the Republic of Zambia to the United Nations His Excellency, Ambassador Lazarous Kapembwa has called on Zambia to invest in outer space technology in order to enhance mineral exploration, particularly geological mapping of minerals through satellite technology.

The Mines and Money New York’s event is a premier mining investment forum now in its third year, and has brought together more than 300 decision makers, mining executives, investors, financial service providers and mining firms including ZCCM- IH from over 20 countries.

Source: The Business Telegraph
Investee Company News

Investrust Bank Plc | Appointment of Director

In accordance with Section 3.59 of the Lusaka Securities Exchange Listing Rules, the Board of Investrust Bank Plc (“the Board”) wishes to announce the appointment of Mr Peter Hillam Banda as a non-executive Director of the board with effect from 25th April, 2019.

Mr Banda holds a Bachelor of Arts in Economics from the University of Zambia (“UNZA”) and a master’s degree in Economics from New Mexico State University in the United States of America. He is an Economist and Banking professional with over 30 years of experience.

The Board would like to congratulate Mr Banda on his appointment to the Board and wishes him the best in his new role.

By Order of the Board

Brian Msidi
Company Secretary

Issued in Lusaka, Zambia on 02 May 2019

Lusaka Securities Exchange Sponsoring Broker
T | +260-211-232456
E | advisory@sbz.com.zm
W | www.sbz.com.zm
Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on 02 May 2019