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Investee Companies, Investee Company News

1kg of gold now fetching K1.2m – ZCCM IH

Zambia Consolidated Copper Mines Investments Holdings (ZCCM-IH) says it is currently offering a very competitive price for buying gold in the country at K1,150 per gram (about K1.2m for 1kg of gold), which is in line with global gold prices.

ZCCM-IH public relations manager Loisa Mbatha-Kakoma told the Zambian Business Times – ZBT that ZCCM-IH’s pricing has been competitive considering its presence in the market since it started and has raised the prices from the previous prices of about K250 per gram to have more market reflective pricing.

“Our pricing has actually been competitive considering our presence in the market since we started; we raised the prices from the previous unofficial exploitative ones of K250 per gram to have more market reflective pricing. We reached as high as K1,150 per gram from December 2020 to early this year,” she said.

Meanwhile, the price of gold being offered on the black market or by private buyers is currently K1,100 per gram.

Mbatha-Kakoma said in addition, ZCCM-IH does not charge any tax when buying the gold as it pays the tax on behalf of the artisanal small-scale miners.

“We do not charge any tax when buying the gold, as a matter of fact; we actually pay the tax on their behalf. Therefore, our pricing still remains competitive on the market and reflective of the global prices,” she reiterated.

Mbatha-Kakoma said the buying programme of gold is ongoing, and that ZCCM-IH has continued undertaking stakeholder awareness and engagement on the program. She said further, the company has so far set up gold-buying centres in strategic panning areas such as Lumezi, Vubwi and Rufunsa districts.

She also disclosed that from June 2020 to March 2021, the Zambia Gold Company, which is part of ZCCM-IH, has produced cumulative of 91 kilograms (KGs) of gold. Mbatha-Kakoma said that monthly production of gold varies depending on the availability of ore material.

She said in terms of formalizing artisanal small scale miners, ZCCM-IH’s role is working with licensed artisanal miners. Mbatha-Kakoma said so far, it was working with registered and licensed cooperatives in Rufunsa, Vubwi and Lumezi.

In March 2020, ZCCM-IH started buying gold from artisanal and small-scale miners in the country. However, some artisanal gold miners had complained to ZBT stating that the black market prices were more attractive, leading to most Gold not being mopped up by the formal market.

Source: https://zambianbusinesstimes.com/local-gold-prices-now-very-attractive-zccm-ih/
Annual Report Summaries, Investee Companies

Mushe Milling Company Limited Extract from 2021 Annual Report

Mushe Milling Limited (MML) earned a total of ZMW38.15 million in revenue for the year ended 31 

December 2021 (2020: ZMW106.46 million). MML recorded a net loss of ZMW48.14 million (2020: 

ZMW19.65 million loss). 

The Company remained undercapitalised with a negative equity position and current liabilities in 

excess of ZMW45 million. Due to its consistent weak financial position, only minimal debt amounts 

could be settled by the Company during the period and operations were temporarily halted 

due to MML’s inability to purchase its own maize stock. ZCCM-IH intervened by entering into a 

maize supply agency agreement with MML in order to revive operations in Q1 of 2021. 

There were no dividends declared during the period under review (2020: Nil). 
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Misenge Environmental and Technical Services – Procurement Plan (2021)

Please find the attached Misenge Environmental and Technical Services Procurement Plan for the year 2021.

You can download the full document here:

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Misenge Environmental and Technical Services - Procurement Plan (2021)

Investee Companies, Investee Company News

STATE PRIORITISES GOLD PROCESSING

GOVERNMENT has engaged ZCCM-IH Gold Mining Company to start processing and grading gold from all mining sites in the country, Ministry of Mines and Mineral Development director of mines, Fred Banda has said.

Mr Banda said that gold processing was a very important part of the gold value chain and hence the government’s resolve to prioritise the venture.

He said ZCCM-IH Gold would work with the gold mining cooperatives and ensure that the gold was processed and graded for sale to the Bank of Zambia

Mr Banda said that the gold mining company would not fix the price, but this would be done in liaison with the cooperatives who were a key stakeholder in the gold mining value chain.

He urged all gold mining cooperatives to work with the gold mining company incorporated by ZCCM-IH to be responsible for processing of the gold.

Mr Banda assured the cooperatives that the government would ensure that they get value for their input.

“We will ensure that they get a good price for their gold,” he said.

Mr. Banda also urged the miners not to trade with illegal buyers, but only do business with ZCCM-IH who were the government buyer for the commodity.

And Rufunsa’s Chimwetu Gold Mining Cooperative chairman, Emmanuel Tembo thanked the government for the support to the small-scale miners.

Meanwhile, Pokela Gold Mining Cooperative vice chairman, Josias Malunga assured the government that the cooperatives would process and sell their gold to the Zambia Consolidated Gold Mining Company so as to ensure that they got the best out of their mining activities.

Source: https://dailynationzambia.com/2021/05/12/state-prioritises-gold-processing/
Investee Companies, Investee Company News

Government Implored to Institute Initiative to Plug Gold Leakages

The small scale miners association of Zambia is calling for the setting up of inspection mechanisms under the ministry of mines and minerals aimed at identifying sites countrywide that produce gold which is not being accounted for.

Association president, Kunda Chani notes that Zambia has a lot of gold sites where gold is being produced but is not being accounted for.

Chani explained that so far, the country is on the right trajectory in terms of gold production.

He added that putting in place an inspection mechanism will enable the zambia consolidated copper mine investment holding –ZCCM-IH- to account for every gold being produced in the country for the benefit of Zambians. -PHOENIX NEWS

 

Source: https://zambianeye.com/government-implored-to-institute-initiative-to-plug-gold-leakages/

 
Annual Report Summaries, Investee Companies

CNMC Luanshya Copper Mines Plc (CLM) Extract from 2021 Annual Report

For the year ended 31 December 2021, CLM recorded revenue of ZMW 10.17 billion (US$516.69 million), [2020: ZMW6.4 billion (US$345.45 million)] compared to the budget of US$329.40 million for the financial year of 2021. This was due to favourable copper prices for the year. CLM produced a total of 32,369 tonnes of copper cathodes for the year under review compared to copper output of 55,976 tonnes produced in the 2020 financial year. 

For the year ended 31 December 2021, the Company recorded a profit of ZMW2.83 billion (US$143.71 million), [(2020: ZMW7.97 million (US$42.13 million)]. Due to this improved performance and positive equity position, the Company declared an interim dividend of US$40 million with US$8 million payable to ZCCM-IH which went to clear most of the amount due under the Dividend Advance Agreement signed in October 2020. 
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ZCCM-IH advised to take good care of miners

National Union for Miners and Allied Workers ( NMAWU ) has appealed to Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH), new owners of Mopani Copper Mine, to ensure that it takes a good care of the mine employees when operations of the company resumes.

ZANIS reports that NMAWU president James Chansa in an interview in Ndola today said that ZCCM-IH as the new mine owners need to realize that workers are key in operations of the mine hence the need for them to look into the plight of the employees.

“The mining sector can only improve if the workers are taken care of by giving them incentives such as increased salaries and allowances,” he said.

Mr. Chansa also echoed on the need for MCM to quickly give miners their terminal benefits.

He added that miners are eager to get their benefits as MCM resumes its operations as soon as ZCCM-IH finds partners to work with.

He observed that although MCM is fully owned by Zambia, miners need to be paid their dues urgently.

Mr. Chansa has since called on all mining companies in the country to start doing more corporate social responsibilities (CSR ) following the rise in Copper prices on the international market.

Communities where mines operate from can only benefit from the country`s minerals if companies give back to the community through working on some developmental projects such roads, he said.

Government, recently completed the 100% acquisition of Mopani Copper Mines (MCM) following its negotiations with Glencore Corporation.

In April 2020, Glencore Corporation had announced its intention to place the mine under care and maintenance sighting the impact of the COVID-19 pandemic and low copper prices.

However, this was rebutted by Government because it would have resulted in the loss of employment for 15,000 employees.

 

Source: https://www.lusakatimes.com/2021/04/22/zccm-ih-advised-to-take-good-care-of-miners/
Annual Report Summaries, Investee Companies

Kabundi Resources Limited Extract from 2021 Annual Report

For the year ended 31 December 2021, Kabundi Resources Limited (KRL) reported total revenues (royalty charges) of ZMW5.58 million (2020: ZMW0.91 million) with a net loss of ZMW1.95 million (2020: ZMW0.958 million). 

Kabundi Resources Limited (KRL) began washing manganese in September 2020 with a 100tpd wash plant. A total of 8,896 tonnes of manganese was produced during the four months of operations in 2020.

In first quarter of 2021, a second and larger wash plant was constructed with processing capacity of 10,000tpd. Kabundi resources produced and sold 52,443t of manganese yielding ZMW9.45 million of which ZMW3.92 million was paid to ZRA as mineral royalty tax. 

In the period under review, Kabundi made progress with phase 2 and phase 3 of its development which include starting own mining and setting up a ferro-alloy plant respectively. 

During the period under review KRL continued its mining activities on one site namely “Kabundi B” where the first open pit had been established. Total manganese sold for the current year was recorded at 61,339 tonnes (2020: 12,000 tonnes).

During the year under review KRL acquired another mining license in the Ntenge area where mining activities are yet to commence. Going forward in 2022 the Company’s focus will be to undertake its own mining activities on this mining license.

In its 2022 budget the Company plans to acquire additional mining equipment to be able to commence its mining operations at Ntenge. Kabundi paid management fees totalling ZMW31,750 to ZCCM-IH in the period under review. 

There were no dividends declared during the period under review (December 2020: Nil). 
Investee Companies

Continued Stakeholder Engagement Key to the Success of Mopani-ZCCM

ZCCM Investments Holdings (ZCCM-IH) has continued to engage various stakeholders past the close of the Transaction on 31st March 2021 to acquire the 90% shares in Mopani Copper Mines.

One of the key stakeholders engaged is the Association of Mine Suppliers and Contractors.

During a meeting held in Lusaka the Association of Mine Suppliers and Contractors President Augustine Mubanga praised ZCCM-IH for taking a bold step in acquiring the 90% shares on behalf of the Zambians.

Mr Mubanga said that the move has immense economic and social benefits for the country as the mine is still viable, and believes ZCCM-IH will help drive mineral beneficiation, industrialization and actualize the local content implementation for the greater benefit for citizens.

He also presented a number of key issues that ZCCM-IH working with the Mopani Board and management need to look into, to ensure transparency in the procurement process at Mopani.

And ZCCM-IH Chief Executive Officer Mabvuto Chipata has reiterated the Company’s commitment to ensure that the procurement process is reviewed and that all key stakeholders will be engaged in this process.

Mr Chipata siad that priority for now is to ensure operations at Mopani are stabilized and production is increased.

 

Source: https://tiozambia.com/continued-stakeholder-engagement-key-to-the-success-of-mopani-zccm/

 
 
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Zambia: Continued Stakeholder Engagement Key to the Success of Mopani Copper Mines Plc.

ZCCM Investments Holdings Plc (ZCCM-IH) has continued to engage various stakeholders past the close of the Transaction on 31stMarch 2021 to acquire the 90% shares in Mopani Copper Mines Plc (Mopani) previously held by Carlisa on behalf of Glencore and First Quantum Minerals. One of the key stakeholders engaged is the Association of Mine Suppliers and Contractors.

During a meeting held in Lusaka yesterday, the Association of Mine Suppliers and Contractors President Augustine Mubanga praised ZCCM-IH for taking a bold step in acquiring the 90% shares on behalf of the Zambians. Mr. Mubanga states that the move has immense economic and social benefits for the country as the mine is still viable, and believes ZCCM-IH will help drive mineral beneficiation, industrialisation and actualise the local content implementation for the greater benefit for citizens.

He further presented a number of key issues that ZCCM-IH working with the Mopani Board and management need to look into, to ensure transparency in the procurement process at Mopani.

In response, ZCCM-IH Chief Executive Officer Mabvuto Chipata has reiterated the Company’s commitment to ensure that the procurement process is reviewed and that all key stakeholders will be engaged in this process. Mr Chipata states that priority for now is to ensure operations at Mopani are stabilised and production is increased.

Left to right: Brian Musonda, ZCCM-IH Chief Investments Officer; Augustine Mubanga Association of Mine Suppliers and Contractors President; Mabvuto Chipata, ZCCM-IH Chief Executive Officer and George Jere General Secretary of the Association

Source: https://miningconstruction-sadc.com/zambia-continued-stakeholder-engagement-key-to-the-success-of-mopani-copper-mines-plc/