Mining is in ZCCM IH’s DNA. Many have heard the folklore of the once biggest mining conglomerate of Southern Africa. Fraught with mixed fortunes and family silver sold, the investment group we know as one of Zambia’s leading investment vehicles, remains a beacon of hope for all future investments in the sector. Here is why.
Current shareholding mining companies
At present, ZCCM IH has shareholdings in the following 12 mines
- Nkandabwe Coal Mine Limited 100.00%
- Kariba Minerals Limited 50.00%
- Maamba Collieries Limited 35.00%
- Konkola Copper Mines Plc 20.60%
- Kansanshi Mining Plc 20.00%
- Lubambe Copper Mine Plc 20.00%
- CNMC Luanshya Copper Mines Plc 20.00%
- NFC Africa Mining Plc 15.00%
- Chibuluma Mines Plc 15.00%
- Chambishi Metals Plc 10.00%
- Mopani Copper Mines Plc 10.00%
- Nkana Alloy Smelting Company Limited 10.00%
Like with all investment companies, the shareholder in each of these mines allows ZCCM IH to hold a seat in the board room where strategy within the mining sector is discussed.
What is ZCCM IH Focus going forward in mining?
According to their 2019 Annual Report, the Company has the majority of its investments held in the copper mining sector of Zambia. The Company’s focus going forward will include the following:
- Developing and implementing investments strategies and aligning company operations towards maximizing of shareholder value in key economic sectors including mining among other sectors;
- Monitoring the performance of mining investee companies to ensure they consistently declare reasonable dividends and ensure Company growth;
- Ensuring effective representation on the boards of the mining investee companies;
- Establishing and securing joint venture partnerships for projects assessed to be viable;
- Establishing a Royalty model to maximize shareholder value; and
- Supply chain participation (including management contracts), where expertise in the Technical Directorate will be applied to leverage this line of business.
However, mining as a holding company is not enough
In July 2020, Industrial Development Corporation Group CEO Mr Mateyo Kaluba announced that ZCCM-IH will take up a more active role as an investor in the mining sector rather than being a holding company for the Government’s minority shares.
“What we have asked ZCCM-IH to do is to seek its own mines, do explorations and develop mining operations,” Mateyo Kaluba, chief executive of IDC, said in a statement that was published on copperbeltkatangamining.com.
This important strategic statement was made when the IDC maestro was touring the new manganese mine – Kabundi Resources – owned by ZCCM-IH in central Zambia.
It is clear from a strategic lens, that ZCCM IH, through its past involvement in various stages of the mining value chain, is capable of managing controlling interests in mining assets. Therefore, as the entity evolves, its strategy becomes more clear by its pursuits. ZCCM IH is desirous for more.