Shareholders of ZCCM Investments Holdings (ZCCM-IH) and the market are advised of the following on-going developments relating to the Company.
1. The Proposed Joint Venture for the setting up of a Cement Manufacturing Company
As part of ZCCM-IH’s strategy to diversify its portfolio, the Company is progressing towards the finalising a Joint Venture partnership which will culminate into the setting up of a Cement Manufacturing Company. Shareholders will be aware that His Excellency, the President of the Republic of Zambia, Mr. Edgar C. Lungu, graced the groundbreaking ceremony on 7 July 2017, for the Cement Project in Masaiti district located in the Copperbelt province of Zambia.
ZCCM-IH intends to hold 35% of the shares while its Chinese Partner will have 65%. The planned production capacity of the Plant will be 5000 tonnes per day of Clinker with a two (2) by twenty-five (25) MW Thermal Power Plant. It is expected that the Plant will take 3 years to construct and employ over 1000 people during construction. Once completed, the plant is expected to employ about 400 people.
Commencement of construction is conditional upon financial closure.
2. Disposal of ARM & Vale’s indirect interest in Lubambe Copper Mine Ltd (Lubambe)
ZCCM-IH Plc shareholders are advised that African Rainbow Minerals (ARM) and Vale International SA (Vale) have concluded an agreement to dispose ARM and Vale’s combined 80% beneficial interest in Lubambe to EMR Capital Limited (EMR). The 80% beneficial interest in Lubambe, which is held in equal shares by ARM and Vale, includes the equity holding in Lubambe as well as loans to Lubambe. Lubambe is owned 40% by ARM and 40% by VALE, both as beneficial owners and 20% by ZCCM-IH.
The purchase consideration for the Disposal is US$97.10 million and will be settled in cash. The final amount receivable is subject to, amongst others, the following adjustments which will be finalised on completion of the Disposal:
- Settlement of Lubambe general banking facility; and
- Additional funding provided to Lubambe by ARM and Vale between 1 May 2017 and the completion date.
Completion of the Disposal is subject to the fulfilment of agreed conditions precedent.
EMR is a specialist resources private equity management firm with a proven investment track record spanning over 20 years. It manages investments of more than US$2 billion.
Prospective investors are urged to exercise caution in dealing in securities that, by their nature, are volatile and subject to price fluctuation.
By Order of the Board
Issued in Lusaka, Zambia on Monday, 16th October 2017
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First Issued on Monday, 16th October 2017