Message from the CEO
It is with great pleasure that I present you with this very first edition of ZCCM Investments Holdings Plc (ZCCM-IH) corporate newsletter. The purpose of this newsletter is to provide you with updates on recent developments, advancements and various other activities happening within the Company.
ZCCM-IH TRANSFORMED from being a mining conglomerate that operated all mines in Zambia prior to privatization in 2000, into an investment holding company with diversified interests in commodities such as copper, cobalt, gold, coal, gemstones, energy and limestone, among others. We have a vision to contribute towards the economic growth of the country through industrialization and diversification.
Because of the cyclical nature of the mining industry, ZCCM-IH is actively pursuing investment opportunities beyond mining, in order to diversify into other sectors.
I am confident that ZCCM-IH is on the right track towards creating and maximizing shareholder value through our diversification efforts. These efforts lay the foundation by which we as a Company can build wealth and create opportunities for the benefit of our shareholders and the country at large.
We have taken specific steps to achieve this, the latest being the inauguration of the Maamba Collieries Thermal Power Plant (TPP) Unit 1 (150MW) of 300 megawatts (MW), which was synchronized to the national grid in July 2016. Together with our partners, we have invested close to USD $850 million in this project, that will go a long way in reducing the Country’s power deficit of over 1, 000 MW. The remaining unit – 150MW of the TPP, will also be put on line by end of this year.
I must hasten to say that these are challenging times for ZCCM-IH, as Copper mining represents more than 90% of our investment assets. As you may be aware, the past few years have been very difficult for the extractive industry, particularly the mining sector. We have witnessed low copper prices in the sector, slumping by about 30% at the beginning of 2015, dropping to six-and-a-half year low. This, coupled with the power deficit depressed the industry further.
Because of the cyclical nature of the mining industry, ZCCM-IH is actively pursuing investment opportunities beyond mining, in order to diversify into other sectors such as energy, agriculture and real estate, so that the Company can create and maximize shareholder value. For us, a multi-sector approach is an important part of our resilience, and we believe this approach presents ZCCM-IH as an investment gateway not only into Zambia’s mining sector, but into other sectors as well…