Mines didn’t declare dividends – ZCCM-IH

MINING companies did not declare dividends to ZCCM -Investment Holding (IH) last year due to low copper price on the international market that paralysed the sector, chief executive officer Pius Kasolo has disclosed.

Dr Kasolo said in an interview recently that falling commodity prices on the global market the past months made it impossible for mining companies to declare dividends to ZCCM-IH, which holds shares in the mining companies on behalf of Government.

He is, however, upbeat that with the price of copper slowly rebounding on the international market, mining companies will start posting profits. “ZCCM-IH has not received dividends from mining companies because they declared losses due to turbulences on the global market .With China, which is the off-taker of copper, beginning to start buying copper, we expect prices to rebound and this will positively impact on the mining sector,” he said.

On the outlook of the mining industry, Dr Kasolo said the current global shocks are temporary and commodity prices will soon rebound.

He said expansion projects by mining companies will also generate jobs. “It is sad that people are losing jobs due to economic shocks but prices will rebound and jobs will be restored. The sinking of three shafts by Mopani Copper Mines will also create jobs,” he said.

Source: Daily Mail

ZCCM plans cement and power investment

Zambia-based ZCCM Investments Holdings is expected to develop a cement plant and 52MW thermal power and Ndola as part of the company’s diversification programme.

ZCCM-IH will team up with private investors for the projects, and it is also collaborating with local and international financial institutions on the financing of the projects, according to local press.

Pius Kasolo, CEO of ZCCM-IH, told journalists on Monday that the power plant will provide 30-35MW of reliable electricity supply to the cement plant, while the remainder will be sold to state-owned power company Zesco.

ZCCM-IH, a shareholder in Ndola Lime, said construction of the cement plant is expected to start by the end of next month. “We are going to invest in the cement plant that will be located near Ndola Lime, and we are going to use the waste material from the Ndola Lime plant to manufacture cement,” the Zambia Daily Mail quoted him as saying.

Source: CemNet

ZCCM-IH seeks agro-partner

ZCCM-Investments Holding (ZCCM-IH) is seeking to partner with the private sector in the development of a mixed agriculture and value chain project in Lufwanyama. This is part of ZCCM-IH’s diversification programme from mining.

ZCCM-IH chief executive officer Pius Kasolo said the company has since acquired 2,000 hectares of land to grow various crops under irrigation and rear livestock which will be processed and sold locally and exported within the region.

“We will sale produce in raw form; pork will be processed into beacon and ham and we will not only feed the Copperbelt but, targeting Angola and Democratic Republic of Congo markets,” Dr Kasolo said in an interview last week.

He said the projects earmarked for next year, will be done in partnership with the private sector following a number of international agricultural firms that have expressed interest in the project. “During the just ended mining indaba in Cape Town, South Africa, we showcased our projects, including the agriculture project and large-scale agricultural firms expressed interest to co-venture,” he said.

ZCCM-IH, which holds shares in mining companies on behalf of Government and is also owned by the Industrial Development Corporation (IDC), has embarked on ambitious programmes aimed at diversifying in various sectors including energy, real estate and agriculture.

Recently, the company invested about US$8 million in the acquisition of Trinity House in Lusaka as it ventures in real estate. Dr Kasolo said the property will house the ZCCM-IH offices while the rest of the building will be leased as office space.

Source: Daily Mail

Mopani Coppers mines is to create more than 4 000 jobs

Mopani Coppers mines is to create more than four thousand jobs once the sinking of three shafts at a cost of one point one billion United States dollars are completed.

Meanwhile, Mopani Chief Executive Officer Johan Jensen says the mining firm has designed the WAY strategy to enhance efficiency and profitability.

ZNBC’s Musenge Mulimba reports that the one point one billion United States dollars shafts are being built in Kitwe at Mindola, Synclinorium and Mufulira deep.

Chief Government Spokesperson Chishimba Kambwili says the one point one billion united states dollars project is a clear demonstration of the confidence that Glencore has in the Zambian economy under the leadership of president Edgar Lungu.

Mr. Kambwili was speaking in Kitwe during the launch of the Mopani way industrial theatre presentation at the little theater.

And Mopani has invested about seventy thousand US Dollars in renovating the Kitwe little theatre.

Mr. Kambwili urged all stakeholders mainly the employees, union leaders and contractors to support Mopani Copper mines.

Meanwhile, Mopani Copper Mine Chief Executive Officer Johan Jensen said the Mopani Ways is the strategy the company intends to employ to overcome the current challenges being faced.

Source: Lusaka Times

Konkola Copper Mines announces the death of Mr Fighton Simukonda, the Head Coach of Nchanga Rangers Football Club (NRFC)

HINGOLA, 17 February 2015, it is with deep sorrow that Konkola Copper Mines announces the death of Mr Fighton Simukonda, the Head Coach of Nchanga Rangers Football Club (NRFC).

The late Mr Simukonda died at about 06:00 hours on 15 February 2015, at the Konkola Mine Hospital in Chililabombwe, after an illness. The funeral will be held at House Number 68, 8th Street, Nchanga South in Chingola.

KCM Management and staff pass their heartfelt condolences to the bereaved family. The company wishes the family God’s comfort, strength and guidance during this difficult moment.

The deceased was appointed Head Coach of Nchanga Rangers in 2012, after coaching stints with several top Zambian clubs.

During his spell with Nchanga Rangers, he brought stability to the club and raised several young players, who are now with various youth national teams and the Chipolopolo national team.

We join the rest of the nation in mourning our deceased football icon – one of Zambia’s most decorated football players and coaches.

Opening remarks by Dr. Pius C. Kasolo at the Inaugural Launch Workshop on “Towards Demand Driven Teaching in Uganda & Zambia”

Opening remarks by Dr. Pius C. Kasolo, Chief Executive Officer, ZCCM Investments Holdings Plc, at the Inaugural Launch Workshop on “Towards Demand Driven Teaching in Uganda & Zambia”, at the Cresta Golf View Hotel, Lusaka on 16 February 2016

  • The Honorable Minister of Higher Education, Science & Vocational Training, Dr Michael Kaingu
  • Your Excellency Ambassador Bernd Finke, Germany High Commissioner to Zambia
  • The Acting Vice Chancellor, Prof. Enala Mwase
  • The ZACCI President, Mr Geofrey Sakulanda
  • The University of Siegen Representative, Prof. Hubert Roth
  • Distinguished invited guests, ladies and gentlemen

I am pleased to be invited to this very important inaugural workshop of the programme “towards demand driven teaching in Uganda and Zambia”, which will run for four years from this year 2016.

I understand a number of strides closely related to the programme have been made since 2012 such as the establishment of a business university partnership between Zambia and Germany and the setting up of a link desk at the Zambian Association of Chamber of Commerce and Industry.

As ZCCM-IH we will be delighted to be part of, and contribute to such an initiative with efforts aimed at better satisfying the requirements of the job market in the country, particularly, the extractive industry.

Just a bit about ZCCM IH, we have a portfolio of 15 Companies; our exposure to mining forms about 80% to 90% of our portfolio.

Allow me to play a short clip that explains what ZCCM Investments Holdings is about.

(CLIP Duration 3 Minutes 11 Seconds)
You notice from the video that we are ZCCM Investments Holdings Plc, and not “Zambia Consolidated Copper Mines limited” as it were before privatization.

ZCCM is not an acronym, we are an investment holding company and not a mining company.

Ladies and gentlemen,

ZCCM Investments Holdings Plc owes its continued existence, to the mining industry, where, at the moment, virtually all of its investments are held.

Under our corporate social investments, it is the intention of the Company to provide support to such initiatives.

We acknowledge that the shortage of skilled manpower in the mining sector, no doubt has a telling effect on the industry as this may result in losing out on the opportunity of creating a mass of skilled labour that can drive the industrialisation process of the country.

Ladies and gentlemen,

For Zambia to remain and continue being competitive and contribute to economic development, it requires adequate skills that are responsive to job markets.

We therefore see the Germany-Zambia universities partnership as being complementary to efforts aimed at addressing these skills needs, which require industry and training institutions to work together in many ways including curriculum development, provision of student industry placements and other relevant aspects of skill training.

As such, I would like to reiterate ZCCM-IH’s participation in this initiative through making ZCCM-IH experts available to provide the necessary inputs into the development of the curriculum, student attachments at our wholly owned technical subsidiaries, Misenge Environmental and technical services limited in Kitwe, Mawe Exploration and Technical Services Limited in Kalulushi and Ndola Lime Company.

ZCCM-IH will also consider providing financial support towards the universities’ efforts in initiating the establishment of a business technology incubator centre during this programme.

We acknowledge that this intervention will help address the current skills mis-match in the labour market, particularly, the extractive industry.

Ladies and gentlemen,

Thank you for listening.

Government partners with mining houses to devise consistent sector policies

GOVERNMENT says it is engaging mining companies to consider different options so that the two parties could come up with consistent and predictable policies for the mining sector.

And mining houses in Zambia have hailed the Zambian Government for its continued commitment to finding lasting solutions facing the sector.

Gemfields Plc, 75% owners of Kagem Mine, and Vedanta Resources Plc, owners of Konkola Copper Mines (KCM) have said that they appreciated the openness with which Government was approaching the various efforts that have been tabled so far in order for the parties to arrive at a mutually beneficial set of policies.

Vedanta Resources Plc Chief Executive Officer, Mr. Tom Albanese, said during a ‘Country Case Study’ on Zambia at the on-going Mining Conference in Cape Town today that his company was proud of what the negotiating team had achieved with the Zambian Government in getting round the challenges facing the sector.

He said KCM respected the “owners of the resources in Zambia” because they realised the pivotal role that the company played in the lives of Zambians.

Germfields Plc Chief Executive Officer, Mr. Ian Harebottle said his company had all the confidence in the Zambian Government which had continued making the country “an excellent investment destination.”

The two were part of a panel discussion which also comprised Zambia’s Minister of Mines and Minerals Development Mr. Christopher Yaluma, Deputy Finance Minister Mr. Christopher Mvunga and ZCCM-IH Holdings Chief Executive Officer Dr. Pius Kasolo.

The session was also attended by Deputy Minister for Mines and Minerals Development Mr. Richard Musukwa, Zambia’s High Commissioner to South Africa His Excellency Mr. Emmanuel Mwamba, several multi-national mining investors, and business executives from various sectors.

And Mr. Albanese disclosed that KCM has made tremendous progress in repositioning itself in the last two years and could comfortably say that it was now able to withstand the current low copper prices.

“We are hopeful that there will be positive trends soon and the copper business will start coming round this year although this will not be in the range of 6 to US$8, 000 per tonne.”

He said Vedanta Resources understood the current problems, such as the energy shortage, that the Zambian Government was grappling with and would like to be part of the solutions.

On the developing consistent policies to guide the mining sector, Mr. Mvunga said Government was alive to the fact that mining was a long term investment for which owners needed to be able to plan ahead without difficulties.

“We are in constant dialogue with the mines to arrive at a consistent and predictable tax regime. We realise that there is need for a certain form of certainty as these are long term investments,” he said.

Mr. Mvunga said Government, just like many other players in the sector, realised that mining had moments of “troughs and crests”. He said Government was glad that there was still a show of optimism from the mining houses themselves.

He reminded mining companies to look at the ‘Remission rule’ governing the operations of mines in Zambia so that they could put it to use in troubled times as the current scenario.

Dr. Kasolo pointed out that trends in the mining business were of cyclical nature and that these occurrences were beyond the control of any government.

And responding to a question from the audience, Mr. Yaluma assured the mining sector that Government was not considering reintroduction of the Windfall Tax until such a time when conditions dictated so.

Mr. Yaluma said Zambia had been through a period of depressed metal prices and that Government was confident that the country would emerge out of the current one victoriously.

He said Government, the industry and all other stakeholders had their roles to play in order to reverse the downturn.
The Minister told the audience that in order to ensure growth and sustainability of the mining industry during all financial scenarios, a clear and articulate policy that sought to create a competitive, thriving and sustainable mining industry had been adopted.

Mr. Yaluma noted that Government had also adopted the revised Mines and Minerals Development Act of 2015 which was enacted to bring the law in line with international best practices.

The new law addresses among other things; the unnecessary bureaucracy in the issuance of mining rights; inadequate tenure of mineral processing licences; Mineral royalty rates, and promoting good governance, transparency, adherence to the rule of law and regular dialogue with stakeholders.

Source: Lusaka Times

Country case study discussion: ZAMBIA, remarks by Dr. Pius C. KasoloCM IH, at the African Mining Indaba 2016, Capetown, South Africa

Country case study discussion: ZAMBIA, remarks by Dr. Pius C. Kasolo, Chief Executive Officer, ZCCM IH, at the African Mining Indaba 2016, Capetown, South Africa, on 10 February 2016

  • The Honorable Minister of Mines and Minerals Development in Zambia, Mr Christopher Yaluma
  • Your Excellency Mr Emmanuel Mwamba, Zambia’s High Commissioner to South Africa
  • The Mines Deputy Minister, Mr. Richard Musukwa
  • The Finance Deputy Minister, Mr. Christopher Mvunga
  • The Chief Executive Officer, Vedanta Resources PLC, Mr Tom Albanese
  • The Chief Executive Officer, Gemfields Plc
  • Senior officials from the Ministry of Mines
  • Distinguished invited guests, ladies and gentlemen

Thank you for taking time to come and be part of this discussion.

The Honourable Minister of Mines and minerals development, Mr Yaluma has spoken at length on what the Zambian government is doing to ensure the growth of a vibrant and sustainable mining industry beyond the cycles in Zambia.

The call to investing beyond mining cycles has been the main thread running through most of the discourses here at the Indaba.

ZCCM-IH has a portfolio of 16 Companies; our exposure to mining forms about 80% to 90% of our portfolio.

Going forward, ZCCM Investments Holdings’ strategy is to diversify our investments into other sectors of the economy like Agriculture, Energy and Manufacturing.

Before I say much on this, let me just play a clip about ZCCM investments holdings.

(CLIP Duration 3 Minutes 11 Seconds)
You notice from the video that ZCCM-IH is an Investment holding Company and not a mining company. Most people still call us “Zambia Consolidated Copper Mines limited”, and that is why we are trying to raise awareness on our rebrand as an investment holdings company.

Ladies and gentlemen,

We feel ZCCM-IH occupies a very unique and strategically advantageous position as Zambia’s biggest investments holding company, as it holds interests across the mining industry in Zambia.

In as much as this exposes us to the cyclical nature of the extractive industry, particularly copper mining, as ZCCM-IH we remain confident about the fundamentals of the mining industry in general and those of copper in particular.

The cyclical nature of the commodities sector will reward those who are well positioned and ZCCM-IH is uniquely well positioned.

Added to this, we want to continue maximizing shareholder value, which underpins ZCCM IH operations.

Hence, we will continue to grow our portfolio beyond mining and will further increase our foothold in the energy, manufacturing, agriculture and real estate sectors.

The Company has identified value-adding projects in these sectors and will seek strategic partners to bring these projects to fruition.

Come and be part of the journey to success.

Thank you.

Copper loses its shine, for now

Plunging copper prices have pushed the copper industry into a quandary, with global demand deteriorating to an even worse extent than many people realise, Bernstein senior research analyst Paul Gait told delegates at the 2016 Investing in African Mining Indaba this week.

Gait noted, however, that copper was fundamentally scarce in an economic sense, as it was becoming harder to explore for copper and develop a mine. “The average lead time in finding copper is 30 years. It used to take 10 to 15 years. Copper mining is getting harder, not easier,” he stated. He said the dramatic increase in mining productivity seen in the 1970s to the 1990s had run its course, as it was getting increasingly hard to overcome the effects of geological complexity.

He added that it was unlikely that the copper industry would see a repeat of either the US in the early 1900s or Chile in the 1970s – the golden eras for copper exploration. “Grade declines are a fact of life, yet demand will continue to grow.” ZCCM Investment Holdings CEO Pius Chilufya Kasolo, meanwhile, pointed out that most of the mines in Zambia were not making money.

The Zambia economy, which has relied heavily on the copper industry over the years, is facing turbulent times, as its currency, the kwacha, has tumbled in tune with the problems experienced in the copper industry. But Kasolo said he feared that putting a hold on copper exploration because of a need to save money, could count against Zambia in the long run. “With a shortage of copper, the price may go up and the guys will wake up and it will be too late.” Gait concurred.

“At the moment the problem is oversupply but we know that oversupply will unwind itself.” Panelists participating in a special session on Africa’s Copper Potential suggested that South America may be a more abundant region for copper reserves than Africa; however, Kasolo believed “the last frontier for copper is in Africa”.

“I hear reports that only 20% of the world’s copper is in Africa, but I think there’s far more. Apart from Zambia, there’s more in the Democratic Republic of Congo.” Kasolo said the problem in Zambia was that the cost or production was high, owing to Zambia being a landlocked country and electricity supply challenges. Zambia has been struggling with electricity shortages, owing to the impact of a drought on hydropower plants.

Source: Mining News Zambia

Commodity downturn could get worse in 2016, warns Anglo American CEO

Anglo American CEO Mark Cutifani expected 2016 to be the most challenging year for the mining industry, stressing in a copy of a speech delivered at the Investing in Africa Mining Indaba, in Cape Town, on Monday, that things could get worse before getting better.

He noted that the depth and length of the commodity downturn was forcing mining companies to look at themselves in a different light and to respond accordingly.

He added that the mining industry had itself to blame for the oversupply in the market and cautioned that miners should not rely on a reversal of the commodities price slump anytime soon.

“Adjusting supply to align with decreasing demand growth may not make sense as companies seek to maintain market share and drive competitors out of business. This strategy generally has a net negative effect,” he said.

He stated that Anglo would exit a number of its mines in several countries around the world this year to ensure the company was able to retain its long-term competitive edge and build a more resilient investment platform.

“Transforming the operational performance of the company, while also taking the hard but necessary choices about some of our assets, has been an essential part of turning around the ship in what I have always said would be a five-year exercise,” he said.

Meanwhile, Cutifani stated that South Africa, like many other countries, was experiencing the fall-out from the global economic pressures and the effects of the downturn in commodity markets.

However, he lauded the South African mining industry for putting its weight behind government’s Opertion Phakisa initiative, showing an appreciation for government’s recognition of what needed to be tackled urgently – from broadband constraints, to agricultural reform, to the competitiveness of the mining industry – “it is a global market, not only for mining, and South Africa must be in a position to compete.”

Source: Mining News Zambia