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Maamba Collieries Limited 2017-02-28T07:16:16+00:00

Maamba Collieries Limited (MCL) is the largest coal mining company in Zambia. MCL adopts modern, eco-friendly mining and processing methods. To add substantial value to the mining operations, MCL is setting up initially a 300 MW mine-mouth, coal fired power plant at Maamba. This will cater to the growing demand for power and contribute to economic development of the nation. Maamba Collieries limited is situated in the mid-Zambezi valley at 17 0 21’ South and 270 11’ East with an altitude of approximately 700 meters above sea level.

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History

Coal mining operation in Zambia was initially started way back in 1966 at Nkandabwe area approximately 34 km North – East of present Maamba Collieries limited mine site. Nkandabwe mine was operating in the name of National Coal Board of Zambia (NCBZ).

In the year 1967 operations at Nkandabwe mine were abandoned due to complex geological faulting, steep inclination of coal seams and inundation of the mine pit by underground water. There after the initial works on development of the new coal mine at Maamba began.

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Corporate Social Responsibility

MCL strongly believes in development of communities around its operations as a key factor for its sustainable growth. It follows a well-defined Community Development Programme aimed at addressing the needs of these communities.

The Company has established Maamba Development Trust to spearhead social and economic development in Maamba, Sinazongwe district as a whole and in other areas where Maamba Collieries Limited conducts its business, with particular emphasis on health, education and livelihood development activities.

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Extract from 2015 annual report

Maamba Collieries Limited (MCL) reported total revenue of K94.5 million (2014: K76.3 million- restated) and had a loss after tax of K503 million (2014: K194.1 million loss – restated) for the year ended 31 March 2015. The company’s current liabilities exceeded its current assets by K1, 682.8 million as at 31 March 2015 (2014: K739 million). The company has accumulated losses amounting to K1, 136.4 million (2014: K633.4 million).

In 2012 the company signed an agreement with the Zambia Electricity Supply Corporation (ZESCO) for the construction of a power plant. The project is expected to produce 300MW. The project cost has been estimated at a total cost of US$830 million. The project has been financed by a combination of debt as well as contributions from shareholders. The first phase of the project is expected to be commissioned in June 2016 with the second phase coming on in July/ August 2016.

The power generation project is expected to generate revenues of up to US$20 million each month from sales to ZESCO. ZESCO will in turn sell the power to its consumer base. This project is expected to improve the profitability position of the company.

There were no dividends declared during the year under review (2014: Nil).

Extract from 2014 annual report

Maamba Collieries Limited (MCL) reported a total revenue of K77.2 million (2013: K15.1 million) and had a loss after tax of K80.8 million (2013: K55.5 million loss) for the year ended 31 March 2014. Power generation using thermal grade coal remains the strategic focus of MCL to add value to the mining function as a path to long term viability.

MCL retained ABSA Capital Consortium (ABSA) as the mandated lead arranger to arrange long term limited recourse project debt of up to US$525 million through international commercial banks against Export Credit Agency (ECA) Insurance Cover and Development Financial Institutions (DFIs) to part finance the integrated coal mine revamping and 300 MW power plant. The total project cost is US$750 million and MCL is negotiating the Common Term Agreement and other finance options with the lenders.

The ordering of equipment by the EPC Contractors (the main contractors) has been completed and large equipment erection is already underway at Maamba giving the project an overall progress of 65% as at 31 March 2014. Simultaneously works on the power evacuation system and water reticulation system have gained momentum. MCL expects to commission the Power Project early 2015.

MCL has continued to pursue the Corporate Social Responsibility activities specifically in education, health and community development in and around Maamba through the Maamba Development Trust.

There were no dividends declared during the year (2013:Nil).

Energy & Coal

Significant investment in the power sector through a Company that supplies power to all the major mines in Zambia.