Invitation – Investor Day: ZCCM-IH’s shareholders on Euronext Paris Stock Exchange

Dear Esteemed Investor,

You are cordially invited for the Investor Day interaction meeting to be held on Friday, 02 December, 2016, from 1400 hours to 1800 hours. The venue is at the SERVCORP CENTRE DE CONFERENCES EDOUARD VII – PARIS OPERA (23 square Edouard VII 75009 Paris, France T +33 1 53 43 91 00, in the Sydney amphitheater.

This interaction event is a component of ZCCM Investment Holdings Plc’s overall investment communications program and will discuss the company’s general affairs already in the public domain. The event will also provide an opportunity to hear from the investors.

In attendance will be the Chief Executive Officer & Executive Board Director – Dr. Pius C. Kasolo, Chief Financial Officer – Mr. Mabvuto Chipata, Chief Corporate Services Officer/Company Secretary – Mr. Chabby Chabala and Non-Executive Board Director – Mr Philippe Taussac.

Please kindly confirm your attendance to me at

Yours Faithfully,
ZCCM Investments Holdings Plc

Loisa Mbatha-Kakoma
Public Relations Officer

Invitation à la Journée Investisseurs faites pour les actionnaires de ZCCM-IH sur Euronext Paris

Cher et estimé investisseur,

Vous êtes cordialement invité à participer à la Journée Investisseurs qui se tiendra le vendredi 2 Décembre 2016 de 1400 heures à 1800 heures. La réunion se déroulera au Centre de Conférences Edouard VII (23 square Edouard VII – Paris 9ème – Tel +33 1 53 43 91 00 – dans l’amphithéâtre Sydney.

Cet événement interactif est une composante du programme global de communication de ZCCM Investments Holdings Plc concernant les investissements et traitera des affaires générales de la société qui sont déjà dans le domaine public. Cet événement sera également l’occasion d’écouter les investisseurs.

Seront présents le Dr. Pius C. KASOLO Directeur Général et membre du Conseil d’Administration, M. Mabvuto CHIPATA Directeur Financier, M. Chabby CHABALA Directeur des Services Généraux et Secrétaire Général, et M. Philippe TAUSSAC membre du Conseil d’Administration.

Merci de bien vouloir me confirmer votre présence à l’adresse

ZCCM Investments Holdings Plc

Loisa Mbatha-Kakoma
Chargé de Relation Publiques

First Quantum Faces $1.4 Billion Claim From Zambian Firm

ZCCM Investments Holdings, the state-controlled Zambian company that holds minority stakes in most of the country’s copper mines, plans to claim as much $1.4 billion from First Quantum Minerals Ltd. after accusing the Vancouver-based company of fraud. The Canadian company’s stock fell.

The claim includes $228 million in interest on $2.3 billion of loans that ZCCM-IH said First Quantum wrongly borrowed from the Kansanshi copper mine, as well as 20 percent of the principal amount, or $570 million, according to an internal company presentation, dated Nov. 4, obtained by Bloomberg.

The company is also seeking $260 million as part of a tax liability the Zambia Revenue Authority said Kansanshi owed it, as well as the cost of the mine borrowing money commercially that ZCCM-IH said could have been avoided.

ZCCM-IH, in which the Zambian government has a 77 percent stake, said in papers filed in the Lusaka High Court on Oct. 28 that First Quantum used the money as cheap financing for its other operations. ZCCM-IH also last month filed a notice of arbitration against Kansanshi in London over the same matter. ZCCM-IH owns 20 percent of Kansanshi. No figure was mentioned in the court filings.

First Quantum says the claims are “inflammatory, vexatious and untrue,” and that the loans were at fair market rate. First Quantum is in talks with Zambian government representatives to resolve the matter, it said in a Nov. 11 statement. It declined to comment on Monday.

The company’s shares fell 4.6 percent to C$13.57 by Tuesday’s close in Toronto.

FQM, as the company is known, is disregarding the rights of minority owners in ZCCM-IH in dealing directly with government, Philippe Bibard, a spokesman for a minority shareholder group based in France, said by phone Nov. 11.

Source: Bloomberg

CEC proposes demerger of CEC Africa from the CEC Group


In compliance with the Listings Requirements of the Lusaka Securities Exchange (“LuSE”), shareholders are advised that on 28 October 2016, the Board of Directors of Copperbelt Energy Corporation Plc (“CEC Plc” or the “CEC Group”) has proposed, subject to shareholder approval and lender consent the restructuring of the CEC Group by means of a distribution, via a dividend in specie, of ordinary shares in CEC Africa Investments Limited (“CEC Africa”) to shareholders of CEC Plc in the ratio of one (1) ordinary share in CEC Africa for every CEC Plc share held on the “Proposed Demerger”), being the record date of the Proposed Demerger (“Proposed Demerger Record Date”).


In 2013, CEC Plc established CEC Africa as an investment platform through which it could channel its investments in the power sector across Sub-Saharan Africa. CEC Africa was capitalized with USD100 million, being seed capital for its operations, and received a further injection of circa USD50 million through shareholder loans. The original strategy for CEC Africa was for it to be an investment platform through which investors could access power infrastructure assets that were well diversified by region and technology.

In 2016, various factors have adversely affected the value of CEC Africa, including but not
limited to:

  • Low power generation in Nigeria compared to Multi Year Tariff Order forecast;
  • Liquidity challenges facing the Nigerian energy sector;
  • The effect of the depreciation of the Naira on CEC Africa’s USD debt obligations; and
  • Limited enforcement of the Nigerian power sector regulatory regime due to various factors.

These and other general matters have significantly impacted the fair value of CEC Plc’s investment in CEC Africa…


Download the full announcement below.

Copper eyes biggest weekly rally in 35 years as demand view shifts

London copper was on track for its biggest weekly rally in over 35 years on Friday as hopes of U.S. infrastructure spending on Donald Trump’s election win and firming demand from China drag metals out of a years-long bear market.

Copper was trading up 3 percent in late Asian trade, rising for a seventh straight session and up more than 15 percent for the week, on track for its biggest weekly rise since 1980, according to Reuters data.

Copper has been pushed higher by a surge in China steel and coal prices, as well as a view emerging before Trump’s surprise electoral victory that the metal’s outlook for 2017 will be rosier than thought. Trump’s comments in his acceptance speech on increased infrastructure spending fueled further buying.

After looking set to end the year flat just three weeks ago, London Metal Exchange copper prices have rallied by a quarter to more than $5,800 a ton, the highest since July 2015.

“I think we’re out of a bear market and into a bull market for copper. I turned bullish about a month ago,” said UBS analyst Daniel Morgan in Sydney.

The pace of gains has been amplified by momentum-based fund buying, much of it from China, after prices this week smashed through a key chart resistance that has tracked copper’s downtrend over the past five years, traders said.

“When you break such a downtrend, especially on a weekly chart that has been in place for years, it’s significant,” said a trader in Singapore.

Demand for copper from China, the world’s biggest users, has turned out stronger than expected after a first-quarter credit infusion that stoked its property and construction sectors.

“Views on China improved compared with expectations at the start of the year as demand surprised to the upside,” Citi said this month, putting industry estimates of Chinese demand in 2016 at 5-7 percent, from 0-3 percent at the start of the year.

Copper demand from China’s power grid sector, which accounts for nearly half its consumption, surged 33 percent in the first eight months of the year.

Analysts are also revising down expectations of mine supply for 2017, after January’s price slump to six-year lows forced some high-cost mines to shut, and with new supply from Peru largely complete.

“Consensus estimates suggest little copper oversupply in 2016 to overhang the market next year,” Citi said, supporting the surge in the copper price.

“It represents a shift in expectations around where the market sees demand over the course of 2017,” said strategist Daniel Hynes of ANZ in Sydney. “Fundamentals have not been as bad as the market has priced in.”

Source: Reuters

World Bank rolls out $65m for environmental project

THE World Bank is expected to roll out a US$65 million mining and environmental remediation improvement project aimed at reducing environmental health risks in four mining towns.

Under the project, the World Bank is targeting Kitwe, Mufulira, Chingola and Kabwe.

Both World Bank country manager Ina Ruthenberg and senior mining specialist Martin Lokanc disclosed yesterday that the project that targets at mitigating mining pollution is next month expected to be presented to the World Bank Group for proposal approval.

“The World Bank through the previous Copperbelt Project supported the clean-up of polluted mining areas and helped strengthen environmental governance. We are taking up this agenda again following a request by the government because we all believe it is a major challenge for Zambia and impacts many livelihoods,” Ms Ruthenberg.
She said once implemented, the project will result in the treatment and nutritional supplements for over 30,000 children in Kabwe who have been impacted by lead pollution.

Lead impacts the cognitive capacity and thus is particularly harmful to children.

The project will also reduce the impact of sulphur dioxide on soil quality and improve agricultural productivity, a move that is expected to benefit about 1,000 farmers in Mufulira.

“Overall this project shall demonstrate how environmental clean-up can be designed and replicated,” she said.
Mr Lokanc also explained that the five-year project will, among other interventions be securing tailing dumps as they pose as a risk to the environment and personal safety.

Meanwhile, the World Bank with the support from German Development Cooperation and other stakeholders has launched a Zambia Mining Investment and Governance Review report aimed at strengthening the mining sector’s governance, investment environment and development impact.

Mr Lokanc also said the mining sector in Zambia is of significant national importance and makes an important contribution to the national economy.

“Given the significant resource potential and long life of mines, the sector is likely to remain important for the significant future. Investment has slowed down, partly due to prices,” he said.

Source: Daily Mail

ZCCM-IH | Cautionary update

Further to the two Cautionary Announcements regarding the change of Directorate issued on 15th September 2016 and the delay in the issuance of the audited Annual Financial Statements for the year ended 31st March, 2016 that was issued on 12th September 2016, ZCCM-IH wishes to advise its shareholders that the appointment of new Directors has not yet been concluded and consequently the Company still does not have a quorate Board.

The Company further wishes to advise that it has prepared provisional annual financial statements for the year ended 31 March 2016 as required by the Lusaka Securities Exchange (LuSE) Listing Requirements and the issuance of these awaits Board approval once a quorate Board is appointed.

Accordingly, shareholders are advised to continue exercising caution when dealing in ZCCM-IH securities until the Company has a quorate Board.

C Chabala
Company Secretary

Issued in Lusaka, Zambia on 7 November 2016

Lusaka Securities Exchange Sponsoring Broker
T | +260-211-232456
E |
W |
Stockbrokers Zambia Limited (SBZ) is a founder member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

ZCCM-IH | Cautionary announcement

ZCCM Investments Holdings PLC (“ZCCM-IH”) Files a Notice of Arbitration against Kansanshi Holdings Limited and Kansanshi Mining PLC and Legal Proceedings against First Quantum Limited, FQM Finance Limited, Philip K.R. Pascall, Arthur Mathias Pascall, Clive Newall, Martin R. Rowley and Kansanshi Mining PLC.

In compliance with the requirements of the Securities Act, Cap 354 of the Laws of Zambia and the General Obligations of Disclosure under the Continuing Obligations of the Listings Requirements of the Lusaka Securities Exchange, shareholders are informed that on 26th October 2016, ZCCM-IH filed a Notice of Arbitration in London against Kansanshi Holdings Limited and Kansanshi Mining PLC. Further, on 28th October 2016 ZCCM-IH commenced Legal Proceedings in Lusaka against First Quantum Limited, FQM Finance Limited, Philip K.R. Pascall, Arthur Mathias Pascall, Clive Newall, Martin R. Rowley and Kansanshi Mining PLC for various Claims arising from transactions between Kansanshi Mining Plc and FQM Finance Limited.

Shareholders of ZCCM-IH are accordingly advised to exercise caution when dealing in securities of the Company until further information is published.

Issued by ZCCM-IH Management

Lusaka Securities Exchange Sponsoring Broker
T | +260-211-232456
E |
W |
Stockbrokers Zambia Limited (SBZ) is a founder member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia