|Relations with Government|
ZCCM Investments Holdings plc (ZCCM-IH) is a successor company to Zambia Consolidated Copper Mines Limited (ZCCM) in which the Government of the Republic of Zambia (GRZ) holds 87.6% of the shares, with the remaining 12.4% being held by private investors. The Company is listed on the London, Paris Euronext and Lusaka Stock Exchanges. Until 31 March 2000, ZCCM was a 60.3% state-owned mining company in which Zambia Copper Investments Limited (ZCI), an associate company of Anglo American Plc held 27.3% of shares with the balance of 12.4% of shares held by private investors.
GRZ is the majority shareholder of ZCCM-IH and therefore the Company has strong links with the government. The Company recorgnises that as an investments holding company at the forefront of public-private sector partnerships (PPPs), it occupies a unique position in Zambia. GRZ is currently promoting PPPs as a vehicle for social and economic development and therefore, has envisages to play a leading role in this respect.
Through its shareholding in mining associate companies, ZCCM-IH serves as an entity holding the government's minority interests in the privatised mining companies and other new investors in the mining industry.
Since inception in March 2000, ZCCM-IH has been involved in the resolution
of historic liabilities arising from the predecessor company ZCCM Limited. The Government, for example, has been charged the Company with the responsibility of mitigating the negative environmental impact resulting from historical mining operations prior to privatisation (2001).
Therefore in line with the Government's objective to mitigate the existence of mining pollutants from the past, present and future, the ZCCM-IH with the assistance of GRZ has been provided grants by the World Bank and the Nordic Development Fund towards the implementation of environmental management projects. This is undertaken by the Environmental Department of ZCCM-IH under a project called Copperbelt Environmental Project.
It is worth noting that whilst beneficial to the environment, the utilisation of the aforementioned grants/funds are on non-financial return activities, hence the Company's emphasis on securing grant funding as opposed to
loan financing to enable the execution of environmental objectives.
The Government and ZCCM-IH have jointly undertaken to fund the ZCCM Trust Fund for employees’ liabilities arising from service held in trust. The Trust was formed for purposes of facilitating payments of moneys to eligible ZCCM Ltd employees whose service was held in Trust at the time of privatisation of Zambia Consolidated Copper Mines Ltd.
The Technical Department of ZCCM-IH has been and continues to work closely with Government appointed negotiating teams on privatisation transaction agreements and subsequent development agreements with new investors in the mining industry.
The Company has close linkages with three Government ministries namely, Ministry of Mines and Minerals Development, Ministry of Finance and National Planning, Ministry of Energy and Water Development. All the three ministries have representation on the Board of ZCCM-IH.
ZCCM-IH also maintains a close relationship with Government through representatives of some autonomous agencies on the Board of ZCCM-IH namely the Zambia Revenue Authority and the Bank of Zambia (central bank).
Whilst focused on the core function of portfolio value enhancement, ZCCM-IH has alongside Government been disposed to the achievement of equitable terms by which the entry of new strategic equity partners shall be entertained in parastatal organisations that need revitalising.
Mukuba Pensions Hse,
Dedan Kimathi Road,
P O Box 30048
Lusaka, Zambia. 10101.
260 (01) 221023, 220351, 228833
260 (01) 221057, 220449, 220727
P O Box 20172
Kitwe, 10101 ZAMBIA
260 (212) 227225
260 (212) 222638, 222639, 222640