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Maamba Collieries Limited 2017-06-29T11:43:27+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 2016 annual report

Maamba Collieries Limited (MCL) reported total revenue of K121.9 million (US$12.3 million) for the year ended 31 March 2016 (2015: K94.5 million (US$14.6 million) and had profit after tax of K52.9 million (US$5.4 million) (2015: Loss K503 million (US$0.069 million)). The company’s current assets exceeded its liabilities by K1,180 million (US$105.6 million) as at 31 March 2016 (2015: US$103.7 million). Additionally, the company has accumulated losses amounting to K999.5 million (US$89.4 million) (2015: K1,136.4 million (US$95.2 million).

MCL’s 300-megawatt fully integrated coal-fired power plant reached Financial Closure on 28th July 2015. The peak funding of the project was capped at US$843 million and funded on a debt/equity ratio of 70:30. ZCCM-IH and Nava Bharat (Singapore) Pte Limited (Nava Bharat) have contributed US$253 million toward the project, and US$590 million is debt in form of long term loans from Development Financial Institutions and Commercial Banks.

The power plant is the first private power project in the Sub-Saharan region to receive Export Credit Agency insurance cover from China Export and Credit Insurance Corporation (Sinosure).

MCL signed a 20-year power purchase agreement to supply 100% of the power plant’s output to ZESCO.

In May 2015, ZCCM-IH issued a letter of credit (LC) of US$8.75 million, through Standard Chartered Bank Zambia as a contingent equity support for the thermal power plant at Maamba. In support of the LC, the funds were placed as a fixed term deposit at a Kwacha interest rate of 14% and fxed exchange rate of K7.385/US$.

Subsequent to year-end, the first 150 MW was commissioned on 7th August 2016 and the next 150 MW was commissioned in November 2016 where after Nava Bharat will be responsible for the operation and maintenance of the power plant.

There were no dividends declared during the year under review (2015: nil).

Download 2016 Annual Report

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).

Download 2015 Annual Report

Energy & Coal

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