ZCCM-IH | Update to shareholders based in France regarding the refund of Withholding Tax of 15% on the ZCCM-IH dividend

Introduction

At the ZCCM-IH Annual General Meeting held on 29 June 2018, the shareholders of the Company approved a Final Dividend of K0.84 per share for the financial year ended 31 March 2017.

Subsequently, Dividend payments were made from Monday, 30 July 2018. For shareholders whose shares are listed on Paris Euronext, dividend payments were made from 28 August 2018.

Shareholders based in France could be exempted from paying withholding tax of 15% on the strength of the provisions of the Double Tax Agreement (DTA) of 1950 signed between Zambia and France…


Download the full announcement here…

ZCCM-IH, Chinese firm sign agreement

ZCCM-Investment Holdings (IH) has signed a shareholders’ agreement with China Machinery Construction Group (SinoConst) for the development of a US$480 million cement plant in Masaiti.

The plant will be under the incorporated JVC, Central Africa Cement (CAC) Limited.

Company chief executive officer Pius Kasolo said under the shareholders’ agreement signed last month, ZCCM-IH will hold 35 percent of the shares in CAC while SinoConst will hold the remaining 65 percent.

This is contained in a statement issued on Friday by Stockbroker Zambia Limited, as a sponsoring broker on the Lusaka Securities Exchange.

And ZCCM-IH says the construction of the cement plant, will also include a thermal power plant, expected to start this year.

In an interview at the ongoing Agricultural and Commercial Show, ZCCM-IH public relations manager Loisa Kakoma said the project will create about 1,000 jobs with a production capacity of about 2.1 million tonnes of cement annually.


Source: Zambia Daily Mail

ZCCM-IH pays USD$5million dividend to NAPSA and Ministry of Finance

Minister of Finance, Honorable Margaret Mwanakatwe has since called on state owned enterprises (SOEs) to improve their operations and to pay dividends to the government. She was speaking when she received a cheque of K3.6million from Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) to its major shareholder National NAPSA and the Ministry of Finance. Mrs. Mwanakatwe said that the dividends will help government meet some of its financial obligations.

Earlier ZCCMIH Chief Executive Officer Dr Pius Kasolo said K20.3million has been paid to NAPSA representing 15% shareholding while K23.3million has been availed to the Ministry of Finance. Dr. Kasolo said ZCCMIH will continue to pay dividends to the government as a way of contributing to the growth of the economy. NAPSA Board chairperson Marian Munyima said dividends will help the authority to grow its investment portfolio which now stands at K25billion.

“We have had some tough challenges with our partners but things have been sorted and we appreciate the support that the Minister has given ZCCM -IH and in terms of the way forward, my team and I are hoping that things will only get better through the copper prices going up and the economy price going up. We hope that most of the mining companies will be involved in these situations, so that they can also declare dividends accordingly,” Dr. Pius Kasolo said.

“It’s pleasing that a company grows it’s profit after tax by 125% coming from a loss of K2.2billion to a profit of K728million, that is not a small achievement and I want to encourage you to count on my support in ensuring that you can continue to bring about these dividends because you are working in a sector that is the largest part of this economy. And when we do not see dividends, we wonder why you are still a shareholder in these mining companies,” Mwanakatwe said.

“We are working in close co-operation with the executive management to oversee all investments, ensuring that they are in accordance with investment protocols and requirements. We have even gained support from the government to which we are grateful that they provided an environment to which we can execute our mandate and ensure that we continue to report positive gains on the fund as can be evidenced by the growth of the investment portfolio which now stands at K25billion and we expect it to end the year 2018 at K27billion,” NAPSA Board Chairperson Marian Munyinda said.

Zambia’s Head of State earlier issued a directive to the Industrial Development Corporation to work towards having all stated owned parastatals listed on the local bourse.

Lusaka Securities Exchange – LuSE listed ZCCM-IH is a state owned mining investment vehicle that manages the states stake in mining companies in Africa’s second largest copper producer, Zambia. As at 2pm ZCCM-IH shares were trading for K38 per share.


Source: Zambia Business Times

ZCCM-IH | New partnership in two onshore Zambian oil blocks

ZCCM Investments Holdings Plc (“ZCCM-IH” or “the Company”) is delighted to announce that the Company has been granted two onshore Oil and Gas exploration licenses by the Ministry of Mines and Minerals Development of Zambia (“MoMMD”). The two licensed oil blocks are situated in the Western and Muchinga provinces of Zambia. The granting of this license by the MoMMD is in line with ZCCM-IH’s strategy to undertake mining related diversification particularly in the energy sector.

In order to undertake exploration works on the license area, ZCCM-IH has partnered with Oranto Petroleum (“Oranto”) a Nigerian based and the largest privately-owned oil exploration and production company in Africa. Oranto will own a 90% stake in this project while ZCCM-IH will retain 10%. Oranto will provide funding and technical support for the project. The technical support will include the provision of training to ZCCM-IH Technical Staff in oil and gas exploration and production.

Dr P C Kasolo
Chief Executive Officer
Issued in Lusaka, Zambia on Tuesday, 10th July 2018

Lusaka Securities Exchange Sponsoring Broker
T | +260-211-232456
E | advisory@sbz.com.zm
W | www.sbz.com.zm
Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on Tuesday, 10th July 2018

ZCCM – IH | Advance of a loan to the IDC

1. INTRODUCTION
Industrial Development Corporation Limited (“IDC”) is the majority shareholder in ZCCM Investments Holdings Plc (“ZCCM-IH”), holding 60.28% of the total issued share capital of ZCCM-IH.

IDC requested bridge financing from ZCCM-IH. The Board of ZCCM-IH considered and approved IDC’s request on 29 March 2018. Therefore, ZCCM-IH has advanced a loan to IDC at commercial terms (“the Transaction”).

2. TRANSACTION DETAILS
In line with the Listings Requirements of the Lusaka Securities Exchange (“LuSE”), this announcement sets out the major salient details of the Transaction, amongst others, as follows:

Lender: ZCCM Investments Holdings Plc (“ZCCM-IH”)
Borrower: Industrial Development Corporation Limited (“IDC”)
Principle Amount: USD 19,000,000.00.
Interest: Interest accrued is payable at maturity of the facility agreement.
Maturity Date: 12 months from the date of issuance
Use of Proceeds: The purpose of the loan is to secure financing for investments purposes.
Security: 360,937,534 ordinary shares in Zambia National Commercial Bank Plc (“ZANACO”).
Fair and Reasonable
Opinion on the Transaction:
The Independent Expert (“Expert”) conducted an analysis on the terms of the Transaction to ascertain the extent to which the terms of the Transaction are fair and reasonable as far as the minority shareholders of ZCCM-IH are concerned. The Expert has declared that the Transaction is Fair and Reasonable, and the fairness opinion will be available for inspection by shareholders at the ZCCM-IH offices for a period of 28 days from Friday, 15th June 2018.

3. CATEGORISATION OF THE TRANSACTION
The nature of the Transaction is classified as a Small-Related-Party Category 2 Transaction and is not subject to regulatory and Shareholder approval according to Section 10.7 of the Lusaka Securities Exchange Listings Rules.

By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on Friday, 15th June 2018

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

First Issued on Friday, 15th June 2018

ZCCM-IH increases dividends to 35%

ZCCM-IH has increased its dividend policy to 35 per cent of net profit after tax from 20 per cent as part of the company’s strategic plan for the next five years following a substantial increase in copper prices.

According to ZCCM-IH’s 2017 Annual Report Presentation issued last week, ZCCM-IH has increased its dividends policy to 35 per cent of net profit after tax, from 20 per cent, as part of the strategic plan for the next five years.

ZCCM-IH chief executive officer, Dr Pius Kasolo, said the increment had been effected following a substantial increase in copper prices on the international market, which have averaged over US $6,000 per metric tonne since last year.

“As you can see from the financial highlights, the performance of the company has been positive, both at Group and at Company levels, compared to the previous year 2016. The latter part highlighted the economic fundamentals, both at country and global level, and my assignment for now is to state how, as a company we are positioning for the future by taking advantage of these fundamentals. We have put in place a Strategic Plan for the next five years from 2018 to 2023, which is an embodiment of the vision and strategic goals that will provide the thrust for ZCCM-IH Plc to achieve its full potential in returning value to its shareholders as well as becoming a useful corporate citizen to the other stakeholders. Increase shareholder value; increasing revenue and profits is our goal and diversifying into growth priority sectors is our winning strategy. Earlier on in the presentation, you saw that we have also increased our dividend policy from 20 per cent to 35 per cent of net profit after tax,” Dr Kasolo announced during a media briefing in Lusaka.

“In its 2018-2023 Strategy, ZCCM-IH has prioritized the generation of consistent and predictable income. New measures will be put in place to extract value from legacy and post-legacy portfolio companies. Further, as mentioned earlier on, growth priority sectors have been identified that will drive diversification and de-risking of the portfolio, providing additional revenue income streams. These include the energy, manufacturing and value addition sectors. A number of Greenfield and brownfield projects have been identified and lined up. ZCCM-IH will seek strategic partnerships to develop and exploit these opportunities to achieve above market returns. For the 2018-2023 planning period, we will embark on strategic internal income-generating ventures that will continue to drive business to profitability and returns across the portfolio of assets. ZCCM-IH intends to invest in available opportunities in mineral beneficiation and value-addition, while realizing optimal and tangible returns for its shareholders. Moving forward, we will continue focusing development activities in several key sectors that are intended to give ZCCM-IH diversification benefits whilst continuing to participate in the mining sector.”

And data in the Report reveals that the share of ZCCM-IH’s losses reduced by 91 per cent during its financial year under review despite low production that year.

“Despite low production in 2017, there was an improvement in the performance of the investee companies due to improved copper prices. The share of loss reduced by 91 per cent. Reversal of impairment of price participation receivable (that was considered irrecoverable previously) of K719 million contributed to the profit recorded during the financial year. The impairment of the Ndola Lime Plant (as a result of continued poor performance over the years) of K861 million negatively affected both the group profit and total assets. With a good future outlook, the fair value of the investee companies increased and positively contributed to the profit of both the group and company,” stated the Report.


Source: News Diggers

ZCCM-IH | Appointment of Board Chairman

In accordance with Section 3.59 of the Lusaka Securities Exchange Listings Requirements, ZCCM Investments Holding Plc (ZCCM-IH) is pleased to announce the appointment of Mr. Eric Suwilanji Silwamba, SC as Board Chairman of the Company effective 6 March 2018.

Mr Silwamba is the Principal Partner at Messrs Eric Silwamba, Jalasi and Linyama Legal Practitioners. He holds a Bachelor of Laws Degree with Merit (LL.B) from the University of Zambia. Mr Silwamba is an Advocate of the High Court of Zambia enjoying the rank and dignity of State Counsel. He has over 30 years’ extensive experience in both private and public practice. Mr Silwamba was elected Member of Parliament for Ndola Central Parliamentary Constituency in October 1991 and was re-elected in 1996 and 2001. He served in very senior positions in government including as former Deputy Minister of Information and Broadcasting Services, Deputy Minister (Special Duties) Office of the President, Minister of Presidential Affairs and Minister of Justice and Government Chief Whip. Mr. Silwamba has had the opportunity of handling some of the most complex and high-profile litigation in Zambia that relate to mining, commercial law, tax, administrative, criminal and constitutional law. He is also a member of the Chartered Institute of Arbitrators of the United Kingdom and a qualified legal draftsperson.

By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on Thursday, 29th March 2018

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

First Issued on Thursday, 29th March 2018

Invitation for Bids (IFB) | Retender for the Provision of Security Services to ZCCM Investments Holdings (ZCCM-IH)

ONB No.: ZCCM-IH/047/2017

  1. ZCCM Investments Holdings Plc. has received financing from own sources for the 2017/2018 Financial Year, and intends to apply part of the funds to cover eligible payments under the Contract for the Provision of Security Services to ZCCM-IH, Contract No.: ZCCM-IH/047/2017.
  2. ZCCM-IH now invites sealed bids from eligible bidders for the Provision of Security Services to ZCCM-IH as follows:
    Lot 1 – ZCCM-IH Office Park, Alick Nkhata Road, Lusaka & 30B Kudu Road, Kabulonga, Lusaka;
    Lot 2 – Investments House, Kantanta Street, Kitwe; Technical Library and Mawe House, Kalulushi;
    Lot 3 – Kabwe Offices and Laboratory, Kabwe; and
    Lot 4 – Cash In-Transit Services, Lusaka.
    The contract duration will be 12 months subject to renewal depending on satisfactory performance during the initial 12 months.
  3. Bidding will be conducted through the Open National Bidding (ONB) procedures specified in the Public Procurement Act of 2008 and the Public Procurement Regulations of 2011 and is restricted to firms registered in Zambia. The following CEEC preferential treatment shall be applied as part of the evaluation:
    3.1 Citizen-influenced company – 4%
    3.2 Citizen-empowered company – 8%
    3.3 Citizen-owned company – 12%
  4. Interested eligible bidders may obtain further information from the address below and inspect the Bidding Documents at this address from 08:00 – 13:00 and 14:00 – 17:00 local time, Monday to Friday inclusive.
  5. Qualifications requirements include:i) Experience as the main service provider in at least two (02) contracts of a similar nature and scope in the last five (05) years;
    ii) A minimum amount of liquid assets and/or credit facilities per lot as follows:
    Lot 1 – ZMW56,100.00;
    Lot 2 – ZMW188,700.00;
    Lot 3 – ZMW30,600.00; and
    Lot 4 – ZMW10,000.00

    iii) Average Annual Turnover in any of the last ten (10) years per lot as follows:
    Lot 1 – ZMW673,200.00;
    Lot 2 – ZMW2,264,400.00;
    Lot 3 – ZMW367,200.00; and
    Lot 4 – ZMW122,496.00.
  6. A complete set of Bidding Documents in English may be purchased by interested bidders ON THE SUBMISSION OF A WRITTEN APPLICATION to the address below and upon payment of a non-refundable fee of Zambian Kwacha Five Hundred (ZMW500.00). The method of payment will be Cash or Bank Certified Cheque.
  7. Bids shall be valid for a period of 90 days after Bid closing and shall be delivered to the address below at or before 10:00 hours on Thursday, 28th December 2017. Electronic bidding shall not be permitted. Late bids will be rejected. Bids will be opened physically in the presence of bidders’ representatives who choose to attend in person at the address below immediately after 10:00 hours on 28th December 2017. All bids must be accompanied by a Bid Securing Declaration.
  8. There will be official site visits as follows:
    Lot 1 & 4 – Lusaka; Friday, 15th December 2017. All Bidders to meet at ZCCM-IH Office Park, along Alick Nkhata Road, Lusaka at 09:00 hours;
    Lot 2.1 & 2.2 – Kalulushi; Tuesday, 12th December 2017. All bidders to meet at Catholic University in Kalulushi at 10:00 hours; and
    Lot 2.3 – Kitwe; Wednesday, 13th December 2017. All bidders to meet at Investments House along Kantanta Street in Kitwe at 10:00 hours; and
    Lot 3 – Kabwe; Monday, 11th December 2017. All bidders to meet at Kabwe Offices at 11:00 hours.
  9. The address referred to above is:
    ZCCM Investments Holdings Plc.
    ZCCM-IH Office Park
    Stand No. 16806, Alick Nkhata Road
    Mass Media Complex Area
    Lusaka, Zambia
    Tel: +260-211-388000
    E-mail: kabwekd@zccm-ih.com.zm

Invitation for Bids | Supply, Delivery, Installation and Commissioning of Digitisation Solution at Mining Industry Archives in Ndola

ONB No.: ZCCM-IH/056/2017

  1. ZCCM Investments Holdings Plc. has received financing from own sources for the 2017/2018 Financial Year, and intends to apply part of the funds to cover eligible payments under the Contract for the Supply, Delivery, Installation and Commissioning of Digitisation Solution at Mining Industry Archives in Ndola, Contract No.: ZCCM-IH/056/2017.
  2. ZCCM-IH now invites sealed bids from eligible bidders for the Supply, Delivery, Installation and Commissioning of Digitisation Solution at Mining Industry Archives in Ndola.
  3. Bidding will be conducted through the Open National Bidding (ONB) procedures specified in the Public Procurement Act of 2008 and the Public Procurement Regulations of 2011 and is restricted to firms registered in Zambia. The following CEEC preferential treatment shall be applied as part of the evaluation:
    3.1 Citizen-influenced company – 4%
    3.2 Citizen-empowered company – 8%
    3.3 Citizen-owned company – 12%
    3.4 Domestically manufactured goods by citizen-influenced company, citizen-empowered or citizen-owned company – 15%.
  4. Interested eligible bidders may obtain further information from the address below and inspect the Bidding Documents at this address from 08:00 – 13:00 and 14:00 – 17:00 local time, Monday to Friday inclusive.
  5. Qualifications requirements include:
    i) Experience as the main supplier in at least two (02) contracts of a similar nature and scope in the last five (05) years;
    ii) A minimum amount of liquid assets and/or credit facilities of ZMW360,000.00.
  6. A complete set of Bidding Documents in English may be purchased by interested bidders ON THE SUBMISSION OF A WRITTEN APPLICATION to the address below and upon payment of a non-refundable fee of Zambian Kwacha Five Hundred (ZMW500.00). The method of payment will be Cash or Bank Certified Cheque.
  7. Bids shall be valid for a period of 90 days after Bid closing and shall be delivered to the address below at or before 10:00 hours on Thursday, 4th January 2018. Electronic bidding shall not be permitted. Late bids will be rejected. Bids will be opened physically in the presence of bidders’ representatives who choose to attend in person at the address below immediately after 10:00 hours on 4th January 2018. All bids must be accompanied by a Bid Securing Declaration.
  8. There will be a pre-bid conference on Tuesday, 19th December 2017 at ZCCM-IH Office Park, Stand No. 16806, Alick Nkhata Road, Mass Media Complex Area, Lusaka at 10:00 hours.
  9. The address referred to above is:
    ZCCM Investments Holdings Plc.
    ZCCM-IH Office Park
    Stand No. 16806, Alick Nkhata Road
    Mass Media Complex Area
    Lusaka, Zambia
    Tel: +260-211-388000
    E-mail: kabwekd@zccm-ih.com.zm

ZCCM First Cautionary – Sell-Down

The Board of ZCCM-IH (“the Board”) wishes to advise Shareholders and the market that in order to comply with the Lusaka Securities Exchange (“LuSE”) free-float requirement, the Government of the Republic of Zambia (“GRZ”) has requested ZCCM-IH to commence the process of selling 27,961,237 (17.3%) class B shares held by GRZ on its behalf.

Accordingly, pending completion of the sale of the Government’s 17.3% B Class shareholding in ZCCM-IH, shareholders are advised to exercise caution when dealing in the Company’s securities.

By Order of the Board
Chabby Chabala
Company Secretary

Issued in Lusaka, Zambia on 24 November 2017

Lusaka Securities Exchange Sponsoring Broker
T | +260-211-232456
E | advisory@sbz.com.zm
W | www.sbz.com.zm
Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on 24 November 2017