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ZCCM to garner shareholder approval for Mopani takeover on March 30

Zambia’s mining investment arm ZCCM Investment Holdings will hold an extraordinary general meeting on March 30 for shareholders to vote on the company’s intended acquisition of Mopani Copper Mines.

ZCCM in December announced it interest in acquiring 90% of Mopani’s issued shares from Carlisa Investment Corporation, as represented by its majority owner international miner Glencore.

Carlisa in 2020 wanted to place Mopani on care and maintenance, which led ZCCM, which then held a 10% interest in Mopani, to intervene.

Mopani is one of the longest running and largest copper and cobalt mining operations in Zambia.

Mopani has historically been funded by shareholder loans from Carlisa and other members of the Glencore group. Pursuant to this transaction, ZCCM and Carlisa have agreed that Mopani’s $1.5-billion debt bill will be taken over by ZCCM.

Should shareholders approve the transaction, Glencore and Mopani will enter into offtake agreements, whereby Glencore will acquire up to 100% of Mopani’s production of copper cathodes and copper anode slimes materials at market rates.

Some of this production will be allocated for sale to domestic Zambian value-adding customers.

ZCCM CEO Mabvuto Chipata notes that, as the global energy transition shifts away from hydrocarbons toward renewables, and development in electric vehicles drives copper demand and prices, ZCCM is in a good position as it prepares to officially assume ownership of this asset and mine this critical metal.

The mines owned and operated by Mopani – Nkana and Mufulira – are considered key Zambian assets.

A competent persons report completed by consultancy SRK in January confirmed a total resource of 255-million tonnes at a grade of 2.03% total copper for Nkana and 76.6-million tonnes at 2.2% total copper at Mufulira.

Further development has increased the mine life by 25 years through the integration of new infrastructure, as well as the implementation of an expansion programme over five targets, and three shaft sinking projects, in addition to building a new concentrator capable of a throughput of 4.2-million tonnes a year and recoveries of 94%.

The refinery’s design capacity is 225 000 t/y of copper cathode, placing it among the largest in Africa and one of four major smelters in Zambia.

 

Source : https://www.miningweekly.com/article/zccm-to-garner-shareholder-approval-for-mopani-takeover-on-march-30-2021-03-10
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Update on arbitration proceedings against ZCCM-IH and Kansanshi Mining Plc (“KMP”) by Kansanshi Holdings Limited (“KHL”)

Further to the cautionary announcement dated 25 November 2020, the Board of ZCCM Investments Holdings Plc (“ZCCM-IH” or “the Company” or “the Board”) hereby wishes to inform shareholders and the market that arbitration proceedings against ZCCM-IH and Kansanshi Mining Plc (“KMP”) by Kansanshi Holdings Limited (“KHL”) have progressed.

The arbitration tribunal has issued a Partial Final Award (dated 29 January 2021) in the arbitration, pursuant to which ZCCM-IH’s defence has been successful and various declarations have been granted in ZCCM-IH’s favour.

Certain matters remain outstanding and will be addressed by the tribunal in the Final Award.

Therefore, shareholders are advised that the matter is still on-going and may still have a material effect on the price of the Company’s securities. Shareholders will be updated as the case progresses.
Accordingly, shareholders of ZCCM-IH are advised to exercise caution when dealing in securities of the Company until further information is published.

By Order of the Board
Chabby Chabala
Company Secretary

Source : http://fizambia.com/?p=9978
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Job Advertisement: Investments Manager, Investments Analyst Positions.

ZAMBIA GOLD COMPANY LIMITED

Zambia Gold Company Limited (Zambia Gold) was incorporated on 10 January 2020. Zambia Gold (the ‘Company’) is co-owned by ZCCM Investments Holdings Plc with a 51% stake and the Ministry of Finance owning the remaining 49% stake. Zambia Gold is mandated to lead the development of the gold sector in Zambia by undertaking commercial activities for the benefit of all stakeholders. In order to achieve this objective, Zambia Gold Company will broadly undertake the following activities:

i) Acquire exploration licences and carry out mineral exploration with a focus on gold (either directly or in partnership with other entities)
ii) Develop and operate mines for gold and other precious minerals
iii) Refining, grading, producing, cutting and processing of gold and other precious minerals
iv) Buying and selling of gold and other minerals
v) Support artisanal mining operations and transforming these into commercially viable activities
vi) Pursue value addition opportunities in the precious metals sector

In order to achieve this mission, the Company invites applications from suitably qualified and experienced individuals who are innovative, energetic and performance driven to fill the following positions:

  1. Investments Manager X 1
    Location: Lusaka
    Department: Investments and Markets
    Report to: Head Investments and Markets

    Job Purpose
    To lead the business development team within ZGCL, as well as having overall responsibility for business growth, developing stakeholder’s awareness of ZGCL’s products and services and identifying new business partners.

    Main duties
    a. Grows new markets for ZGCL as well as continued expansion of the existing ones
    b. Executes expansion techniques and meets fiscal targets that will help ZGCL to grow and become successful in achieving its mandated objective.
    c. Acquires an extensive comprehension of present and anticipated market trends and developments, focusing on the key factors that impact the price of gold, other precious metals and base metals on the global market.
    d. Develops strategic ideas or proposals to make ZGCL successful and increase revenue and optimise overall commercial and social returns for the company’s stakeholders.
    e. Identifies resources required and opportunities to expand product usage and develops strategies for achieving accelerated growth in business.
    f. Networks with prospective investors to identify the relevant value propositions and potential areas of synergy consequential to onboarding the prospective investors or strategic partners.
    g. Actively monitors and evaluates the performance of the company’s product, active projects and asset portfolio (including, but not limited to, mining tenements, associates and subsidiaries) and recommends the relevant course action to be taken where applicable.
    h. Undertakes research studies that indicate both tailwinds and headwinds/challenges faced by the industry at present and in the future and illustrates knowledge of the operational attention to detail that will be required to succeed within the industry.
    i. Develops investment grade project proposals across the mineral value chain (from exploration to mining to processing to marketing and trading) in order to realise feasible and viable investment proposals.
    j. Makes the appropriate and cost-effective commercial and financial or investment banking deals.
    k. Drafts, negotiates and closes on all key commercial terms for all brokered deals.
    l. Develop strategies and structures to effectively optimise the participation of artisanal and small-scale miners (ASMs).
    m. Formulation and review of investment guidelines, policies and procedures for monitoring and evaluation of existing projects and investments as well as the identification and onboarding of new projects and investment opportunities.

    Qualifications and experience
    a) Professional Qualifications
    Full Grade 12 Certificate;
    Bachelor’s Degree (or its equivalent) in Investments, Finance, Banking, Mining Economics or related fields.
    A Masters Degree or Professional Qualification (e.g. CFA, CIMA, FRM, ACCA) is an added advantage
    b) Minimum Relevant Pre-Job Experience:
    8 years work experience in financial analysis, corporate finance, investment banking and related fields.

    c) Skill Specifications:
    Negotiation skills
    Communication skills
    Computer skills

    d) Other Attributes (Personality Traits)
    Persuasive and Pleasant
    e) Valid Driver’ s license

  2. Investments Analyst X 1

    Location: Lusaka
    Department: Investments and Markets
    Report to: Investments Manager

    Job Purpose
    To ensure the competitiveness of Zambia Gold Company Limited by devising strategies and investment plans and prevailing conditions in the gold mining and financial sector industry, to ensure that the Company remains a leader within its defined sector.

    Main duties
    a) Continuously collects and interprets data, such as company financial statements, price developments, currency adjustments, and yield fluctuations as it relates to gold mining
    b) Perform financial due diligence, analysis and other actions as outlined with the company’s investment policies, processes and procedures on prospective projects and recommend an investment decision to the Investments Manager.
    c) Actively participate in any feasibility study exercises in relation to developing a greenfield mining opportunity exercise or mineral processing infrastructure projects.
    d) Conducting market research on the gold mining and value chain industry and gather market intelligence to enhance management of various gold projects.
    e) Write research reports that will form a key input to business proposals.
    f) Creating financial and commercial structures that enhance return on investment of projects and financial planning.
    g) Analysing company accounts and financial projections and advise the company on how to best position its investments
    h) Maintain up-to-date information on the latest economic trend in the country, latest and any updates in the financial markets as it impacts on gold mining industry
    i) Provide updates on financial market activities to assess and correctly position the company in the local and the global market.
    j) Closely monitor performance of the company’s product existing and asset portfolio and assess any key (upside or downside) risks thereto.
    k) Provide advice to the Investments Manager on all investment compliance regulations
    l) Draft initial business proposals for presentation to the Investments Manager
    m) Monitor the financial news using specialist media sources
    n) Assist in implementing of company strategic plan to enhance Investment and Trade.
    o) Continuous liaison and interaction with artisanal and small-scale miners (ASMs) to identify key gaps and areas in which ZGC can provide technical assistance.
    p) Tracks all rights and obligations of existing business and financial relationships or agreements to which ZGC is party to ensure that there are no lapses at any given time that could negatively impact company value.

    Qualifications and experience
    a. Professional Qualifications
    Full Grade 12 Certificate
    Bachelor’s Degree Economics, Commerce, Finance, Business Administration or its equivalent. Master Degree and or Chartered Financial Analyst (CFA) level 1 in a relevant field will be an added advantage.

    b. Minimum Relevant Pre-Job Experience:
    4 years experience in a similar position.

    c. Skill Specifications:
    Negotiation skills
    Communication skills
    Computer skills

    d) Other Attributes (Personality Traits)
    Persuasive and Pleasant

    e) Valid Driver’ s license

Zambia Gold Company Limited provides equal employment opportunities to all Zambians on merit without discrimination on the basis of age, gender, colour, tribe, disability, or religion.

Interested, suitably qualified and experienced persons should send their application together with certified copies of Academic and Professional certificates; a detailed Curriculum Vitae with traceable references and copy of the NRC should reach the undersigned not later than Friday, 5th March, 2021.

Only shortlisted candidates will be responded to.

Head Human Resources and Administration
Zambia Gold Company Limited
Subdivision F/377a/30/B
Kudu Road, Kabulonga
LUSAKA

Email: jobs@zccmnew.wpenginepowered.com

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job advertisement for Investments Manager and Investments Analyst positions

 
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First Quantum sees no ‘contagion’ risk in Zambia after Mopani deal – COO

 First Quantum Minerals FM.TO sees no risk of nationalization in Zambia following the sale last month of Mopani Copper Mines to the country’s mining investment arm ZCCM-IH, the Canadian miner’s chief operating officer, Tristan Pascall, said on Wednesday.

“We don’t see any contagion or any element or risk in that more broadly in Zambia,” he said on a call.

Zambia became Africa’s first pandemic-era sovereign default in November, but ZCCM-IH in January agreed to take on $1.5 billion in debt for Glencore’s GLEN.L Mopani stake, making it the sole owner of the mine.

ZCCM-IH ZCCM.LZ has said it expects to find a new investor for Mopani by the end of the year as it looks to boost copper output from a little more than 34,000 tonnes to 150,000 tonnes.

First Quantum, which previously held 16.9% of Mopani, operates the Kansanshi and Sentinel mines in the country.

The miner aims to resolve talks with the Zambian government over expansion of the smelter at Kansanshi before August elections, Pascall said. First Quantum wants a deal that allows it to deduct royalties from costs, he said.

He said efforts to sell minority stakes in the Zambia mines continue, but the company has to take rising copper prices into account.

“That’s the challenge for copper producers looking to embark in M&A,” he said.

 

Source : https://www.nasdaq.com/articles/first-quantum-sees-no-contagion-risk-in-zambia-after-mopani-deal-coo-2021-02-17
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CBU Students Back Govt Move On Mines

Collins CHAMA-THE Copperbelt University Students Union-COBUSU has hailed Government’s decision to acquire the majority stake in Mopani Copper Mines-MCM.
COBUSU President LAWRENCE KASONDE says the decision would NOT have come at a better time than NOW.

Mr. KASONDE was speaking during the launch of the ‘Zambia for Zambians Campaign’. He said Government has again demonstrated patriotism by ensuring that the mine is handed back to Zambians, through ZCCM-IH.

Mr. KASONDE said the newly launched organisation will engage stakeholders such as the Mine Workers Union of Zambia -MUZ, the National Union of Miners and Allied Workers-NUMAW and the Ministry of Mines over the takeover of the mine.  He said the country has a pool of competent human resource that can successfully run and manage the mine profitably.

Mr. KASONDE said there is NO need for the country to engage expatriates in fields where locals are ably qualified.
Government recently acquired ninety percent shares in Mopani Copper Mines-MCM through ZCCM-IH, a move that has been applauded by a cross section of society.

 

Sources : https://www.znbc.co.zm/news/cbu-students-back-govt-move-on-mines/
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Chingola Constituency endorses President Lungu

The Patriotic Front in Chingola Constituency has endorsed the candidature of President Edgar Lungu as the sole Presidential candidate for PF this year.

The PF executive has equally endorsed Chingola Member of Parliament (MP) Matthew Nkhuwa as their preferred parliamentary candidate for Chingola in the August 12, 2021 general elections.

Meanwhile, th PF has congratulated ZCCM-IH and Provisional Liquidator Milingo Lungu for wining the court case against Vedanta Mineral Resources.

Speaking at Chikola Secondary School yesterday, Chingola Constituency Chairperson Francis Chileshe said the constituency has endorsed President Lungu because of the numerous infrastructure developmental projects in Chingola.

 

Mr Chileshe said that Chingola roads were an eyesore but President Lungu working with Mr Nkhuwa had transformed the face of the town.

He said the cost of doing business for motorists and travel time for residents has reduced because of the perfect road netowrk spearheaded by President Lungu and his Member of Parliament Mr Nkhuwa.

He said all the wards in the Constituency had endorsed the President Lungu and Mr Nkhuwa because they have seen the hardwork and want to see continuity of development.

And Mr Chileshe said Mr Nkhuwa has worked well in his constituency and derseves another term for the continuity of development.

He said Mr Nkhuwa has delivered various projects among school infrastructure, maternity annex, police posts and various empowerment projects.

He reiterated that no Member of Parliament of Chingola Constituency has delivered like Mr Nkhuwa in his first term.

He has urged the member of his Constituency to be peaceful and unite as one in order to return the Presidency and the parliamentary seat.

Mr Chileshe said Chingola Constituency is politically intact as evidenced by the turnout.

Out of the 79 leaders in the Constituency from all the wards, 76 were present.

Regarding, the take over of KCM by ZCCM-IH, Mr Chileshe said the President had delivered to the people of Chingola and the miners what many cries for for a long time.

He said the take over means Zambians will be working freely without intimidating.

Mr Chileshe thanked the PF district leaders who were in attendance for support the constuency in organising the event.

 

Source : https://tiozambia.com/chingola-constituency-endorses-president-lungu/
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ZCCM-IH Seeks Listing Advisor

ZCCM-IH has put out an expression of interest (EOI) inviting bids for advisory services to successfully upgrade its Euronext listing.

According to the EOI, ZCCM-IH has a secondary listing on Paris’ Euronext Exchange since 1970 in the Access Tier which it now wishes to upgrade to the Growth Tier as a way of restructuring its listings to enhance shareholder value, increase its visibility and trading activity on its secondary listings, which include the London Stock Exchange.

The company, whose primary listing is on the Lusaka Securities Exchange (LuSE), states that currently, its share activity on all three exchanges has been plagued with illiquidity and a decreasing or stagnant stock price, despite a positive turnaround in the Company’s earnings. Hence, the restructuring.

The key objectives the advisory firm is expected to meet are to advise on the listing upgrade methodology and to actualize the listing upgrade “in a manner consistent with all applicable rules and regulations.”

The EOI states that currently, 6.6% (10,619,577) of ZCCM-IH shares are listed on Euronext and that significant share trading takes place thereon.

ZCCM-IH is owned 17.25% directly by the government of Zambia and 60.28% indirectly through an investment company wholly owned by the government, the Industrial Development Corporation. The remainder 22.47% is held by institutional and individual investors.

ZCCM-IH has lately been pushing an expansionist agenda seemingly in tandem with heightened political and government rhetoric on increased local participation in the economy, particularly in the extractive sector.

 

Source : https://zambiandigest.com/2021/02/zccm-ih-seeks-listing-advisor/
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The minority shareholders of ZCCM-IH have full confidence in the ZCCM-IH Management and the Mopani teams

The minority shareholders of ZCCM-IH have gradually learned the terms of the takeover of Mopani Copper Mine Plc. The financial scheme for the acquisition seems satisfactory to us
insofar as the repayment of the installments can be modulated from 10 to 17 years depending on the price of copper and the production of the mine.

We read and hear doubts about the ability of ZCCM-IH to manage the mine with reference to the former ZCCM that was asphyxiated and ruined by a copper price that fell to $1500 per tonne
in the 1990s. Today, the situation is different with a different Management, a copper price around $8,000 and a return to the highest according to experts. Furthermore, the calamitous operation and management of the Mopani mine by Carlisa Investments and its parent company Glencore can only improve, given the reserves and grade of the ore.

As investor shareholders of ZCCM-IH, committed to the development and future of our company, free from any controversial or political considerations, we have full confidence in the
Management of ZCCM-IH, which has a proven track record in bringing the Kasenseli gold mine and the Serenje manganese mine into operation. This had not happened for almost twenty
years, the unfortunate Kasolo years are now behind us… The feasibility studies and audits concerning Mopani had to be conducted with the necessary seriousness and professionalism.

After having suffered from so-called partners who have been financially stifling us for years,becoming a MAJORITY mining operator again was an absolute objective and necessity. Our
only regret is that after all these infamous and bitter experiences, a strategic partnership is once again being considered.

The minority shareholders of ZCCM-IH are convinced that this great project, this great challenge,the acquisition of a world class asset like MCM, will lead up to the return of ZCCM-IH as a leading mining operator thanks to the Management and the miners of Mopani, with the supervision of the teams of our CEO Mabvuto Chipata.

The conditions are right for ZCCM-IH to once again become Zambia’s mining flagship and once again be the pride of the country.

Issued by:
Thierry CHARLES
Spokesperson of Minority Shareholders of ZCCM-IH

 

Source : https://www.lusakatimes.com/2021/02/03/the-minority-shareholders-of-zccm-ih-have-full-confidence-in-the-zccm-ih-management-and-the-mopani-teams/
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Zambian court denies Vedanta attempt to halt Konkola Copper Mines split

(The Southern African Times) – A Zambian court on Monday dismissed a motion by miner Vedanta Resources’ seeking to stop a state-appointed provisional liquidator from splitting up its Konkola Copper Mines (KCM) unit and selling the assets. 

The ruling is a blow to the Indian-owned mining company which has said it would fight any attempt by Zambia to sell KCM to third parties.

Vedanta has been locked in a protracted dispute with the Zambian government since May 2019, when the Zambian government, which owns 20% of KCM through state mining investment firm ZCCM-IH, handed control of the mine to a liquidator.

Judge Winnie Sithole-Mwenda discharged a Jan. 18 injunction order which Vedanta had sought to restrain Provisional Liquidator Milingo Lungu from splitting KCM and selling the assets. Lungu has previously said asset disposal is KCM’s last remaining option 

Vedanta Resources declined to comment on the ruling. 

The provisional liquidator said: “As KCM we welcome the ruling.”

Lungu said the order that instated him as provisional liquidator set out powers including the ability to split and sell the company. 

In a restructuring announced in December, Lungu said KCM would be split into two subsidiary companies: KCM SmelterCo Limited and Konkola Mineral Resources Limited, effective Feb. 1. 

While the split was delayed by Vedanta’s injunction order, Lungu on Monday told Reuters he is confident the two entities will begin to operate soon.

Sithole-Mwenda cited procedural reasons in dismissing the order.

“The ex parte Order of Injunction dated 18th January 2021 is, accordingly, discharged forthwith,” she wrote in the ruling. 

The ruling awarded costs to the defendants (the provisional liquidator and KCM) and denied leave to appeal. 

Vedanta and Zambia are still in arbitration proceedings in London over the KCM dispute, which began when the government accused Vedanta of failing to honour licence conditions, including promised investment. 

Vedanta has previously denied that KCM broke the terms of its licence.

Zambia’s Court of Appeal in November ordered a halt to KCM liquidation proceedings, to allow Vedanta and ZCCM-IH to proceed to arbitration. ZCCM-IH is appealing that ruling.

 

Source : https://thesouthernafricantimes.com/zambian-court-denies-vedanta-attempt-to-halt-konkola-copper-mines-split