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Annual Report Summaries, Investee Companies

Konkola Copper Mines Plc Extract from 2021 Annual Report

KCM’s challenges continued during the year as the fundamental problems surrounding the 

underdevelopment of the Konkola Deep Mining Project (KDMP) remained unresolved, resulting 

in the Company relying on third-party copper concentrates to feed its Smelter and therefore 

low production volumes. 

ZCCM-IH was successfully granted a court order to appoint a provisional Liquidator to have 

full control over the operations of the mine. A key mandate of the Provisional Liquidator was to 

source working Capital for sustenance of operations for KCM. The liquidator on behalf of KCM 

engaged ZCCM- IH as a shareholder to help find and source working capital for sustenance of 

operations, out of which KCM signed a metal Prepayment Agreement with Trafigura, one of 

the largest copper traders in the world, where Trafigura was to pay KCM US$100 million upfront, 

which would be repaid by way of copper deliveries to Trafigura. The transaction was guaranteed 

by ZCCM-IH. 

KCM’s revenue for the year ended 31 December 2021 was ZMW27.32 billion (US$1.388 billion), 

[2020: ZMW19.21 billion) (US$1.031 billion)] compared to budget of ZMW18.67 billion (US$948.5 

million). The Company recorded a loss of ZMW9.83 billion (US$499.33 million, [2020: ZMW3.595 

billion net loss (US$193 million)]. 

There were no dividends declared during the year under review (2020: Nil). 

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