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Maamba Collieries in Zambia Sets Record Straight on Load-Shedding

Maamba Collieries in Zambia needs ZESCO to clear outstanding debts owed to the company so it can maintain efficient operations at its 300 MW coal-fired power plant.

Due to a continued shortfall in monthly payments of its power bills by ZESCO, Maamba Collieries (MCL) has not been able to keep up a robust maintenance programme at its modern eco-friendly thermal power plant – which has been contributing significantly to the energy balance of the country.

Read more about mining for coal

The cash flow shortage has resulted in the company being unable to sustain quality proactive maintenance to the 300 MW facility, and the recent forced shutdown of one of its two generation units, halving its power supplied to the national grid of Zambia to 130 MW.

“Maamba Collieries makes a significant contribution to the national grid and provides a vital diversification from the reliance on hydropower that has proved so vulnerable to climate change.

“We stand ready, willing and able to supply significant base load power to Zambia,” says Maamba Collieries CEO, Rear Admiral Venkat Shankar.

“But without payment from ZESCO – our sole source of revenue – we have insufficient funds to pay for costly spare parts and maintenance as also the project dues to our principal equipment supplier whose expertise we depend on, which is not a desirable situation in these times of energy crisis that the country is facing and may face over the next couple of years.”

The company confirmed that one of its two units was forced to shut down on October 17, 2019 owing to technical fault and requires extensive consultations with the equipment supplier.

A statement from ZESCO on October 18, 2019, attributed an additional three hours of load-shedding to the Maamba shutdown.

Typical of the state-of-the-art technology, the power plant requires intensive regular maintenance involving high expenditure for spares, support services from the equipment manufacturers and other maintenance activities.

However, since commencing supplying power in August 2016, there has been a continuous shortfall in monthly payments received from ZESCO against Maamba Collieries’ power bills, explained Rear Admiral Shankar.

The company has not disclosed the amount of funds owed but explained that the payment shortfall has left it with inadequate cash for conduct of operations and maintenance activities. 

“Maamba Collieries considers the emerging situation as being largely attributable to non-receipt of full payments from ZESCO, leading to MCL being cash strapped, which is increasingly beginning to impact the continued running of the plant and its machinery, and its ability to undertake repairs and proactive maintenance.

Under these conditions we are unable to confirm the timeline for resumption of operations of the unit that is shut down or guarantee continued availability of the second unit currently operating,” says Rear Admiral Shankar.

“We are hopeful of ZESCO’s cooperation in meeting our monthly payments, which would ensure that Maamba Collieries will be able to run its plant at full capacity in these difficult times of acute power shortage,” he added.
Investee Company News

Kansanshi Flags Off 2019/2020 Farming Season

Kansanshi Mining Plc has flagged off the 2019/2020 farming season by releasing farming inputs to more than 7,400 farmers in Solwezi and the surrounding areas in North-Western Province.

Solwezi District Commissioner Rosemary Kamalonga, who flagged off the 2019/2020 farming season, said government recognized the importance that Kansanshi Mining Plc attached to uplifting people’s living standards.

She said it was relieving to note that Kansanshi Mining Plc, which had trained more than 36,000 farmers under its Conservation Farming Programme, had continued to distribute farming inputs to farmers supported by the mine’s Corporate Social Responsibility (CSR) wing.

“Government is happy with its current partnership with Kansanshi Mining Plc in the crusade to improve food security through concerted efforts to ensure that agriculture assumes its rightful position as an alternative to mining and that Solwezi alone can be a food basket for Zambia,” Kamalonga said.

She added that the government equally recognized the mining company’s efforts to meet various community needs and extend social services to the people.

Kamalonga expressed government’s gratitude to what Kansanshi Mining Plc had done to empower residents in Solwezi and surrounding areas.

Kansanshi Foundation Supervisor Maximillian Katanga explained that 12,600 bags each of D Compound, Urea and seed respectively were ready for distribution to local farmers.

“Farmers pay K425 towards the inputs comprising a 50Kg bag of Urea, a 50Kg bag of D Compound and 10Kg bag maize seed to which Kansanshi adds the balance for each farmer so that they can manage to complete one lima of crops. 300 tonnes of lime has also been distributed to farmers, free of charge, with a view to boosting their yields,” explained Katanga.

Solwezi District Agriculture Coordinating Officer (DACO) Muyobo Shimabale also expressed gratitude for being part of the programme and thanked Kansanshi Mining Plc for supplementing what the Ministry of Agriculture was doing.

“I wish to encourage farmers to continue practicing conversation farming as it is in tune with climate change. When conversation farming is practiced, even in low rainfall periods, farmers are able to get the best results,” Shimabale said.

One of the beneficiaries of the farming inputs, Victoria Musumali, who produced 48 bags of maize from one lima during the 2018/2019 farming season, thanked Kansanshi Mine for the input support because she was able to feed her family and sell surplus maize to the Food Reserve Agency (FRA) and pay for her children’s school fees, among other needs for the family.

Kansanshi Mine provides training in farming’s best practice to farmers, farming input loans and close monitoring of the farmers’ activities to ensure maximum returns from their farming projects.

The model applied in the farming practices strictly observed sustainable permaculture rotation of maize, soya and groundnuts with minimum tillage, the use of mulch and early planting.
Investee Company News

CEC, 3 Other Firms Strike Solar Power Deal

THE Copperbelt Energy Corporation (CEC) has forged partnerships with three private companies in establishing solar-powered plants estimated to cost US$340 million that will be generating 230 megawatts (MW) of electricity.
CEC has formed a consortium with a French company in implementing the GET Fit programme, a government programme aimed at enhancing the use of renewable energy in the country.https://epaper.daily-mail.co.zm/
Investee Company News

Govt Nods CEC Power Deal

GOVERNMENT has granted the Copperbelt Energy Corporation (CEC) approval to import about 200 megawatts (MW) of power from the Southern Africa Power Pool (SAPP) to mitigate the supply deficit in the wake of the power shortfall being experienced in the country.
SAPP is a cooperation of the national electricity companies in Southern Africa under the auspices of the Southern African Development Community (SADC).
CEC supplies power to the mines on the Copperbelt and in the Democratic Republic of Congo (DRC), some which is sourced locally from Zesco Limited through the bulk power supply agreement. 
Investee Company News

CEC Donates Car to Kitwe Police

he Copperbelt Energy Corporation (CEC) has donated a motor vehicle to the Zambia Police Service in Kitwe to enhance security of strategic power installations on the Copperbelt.

The Motor vehicle valued at US $40,000 was received by Home Affairs Minister Stephen Kampyongo who was accompanied by Copperbelt Provincial Minister Japhen Mwakalombe and Inspector General of Police Kakoma Kanganja.

Speaking at the handover ceremony that was held at the CEC offices in Kitwe today, Home Affairs Minister Stephen Kampyongo said the donation has come at the right and critical time when mobility of the police officers is most important in the maintenance of law and order and protection of strategic infrastructure.

“We cannot as a country afford vandalism to our essential energy infrastructure at a time when the country is stressed by inadequate production of electricity due to the inadequate rainfall received in the southern half of the country, ” Mr Kampyongo charged.

He said while government is committed to providing necessary tools and equipment to the police officers, they were yet to be fully equipment to curb crime and vandalism of critical economic infrastructure.

He said the donation will enhance the Ministry’s resolve to discharge its mandate of protecting property and people.

Kampyongo further appealed to other corporate entities on the Copperbelt and the country as a whole to emulate CEC in supporting the police.

And CEC Board Chairman, London Mwafulilwa said the company has been experiencing a heightened spate of infringements to its electrical installations ranging from vandalism and theft of transmission lines for copper conductors.
Mwafulilwa said these have resulted in the monetary losses as well as disruptions in service delivery to productive sectors of the economy reliant on power.

He stated that this year alone, the company has recorded 10 cases of theft and three of vandalism where about 1, 505 metres of its overhead copper conductors have been cut off and stolen from the system on the Copperbelt.

He noted that arresting the market for copper conductors would help curb the problem.

Mwafulilwa further proposed that the police considers deploying dedicated officers to work on anti-theft involving conductors and other components of electrical systems containing copper for the benefit of all power utilities in the country.

And Copperbelt Police Commissioner Charity Katanga said the donated vehicle will enhance the operations of the police in curbing crimes targeted at CEC power installations.
Investee Company News

Mopani Backfills Sinkhole

Mopani Copper Mines has commenced the process of backfilling the sinkhole near the South Ore Body (SOB) Shaft in Kitwe.

Public Relations Manager Nebert Mulenga said the move is a safety precaution in line with mine safety regulations.

He said backfilling exercise has already started and will go on until the process is completed.

“Mopani Copper Mines Plc is working closely with the Mines Safety Department (MSD), Zambia Police Service and other relevant authorities during this operation,” Mulenga said.

He said the sinkhole is a two-hectare caving area within Mopani Copper Mines Plc’s mining rights area and was a safety hazard to the informal miners invading it.

Last week, the mining giant had illegal miners to contend with immediately an announcement was made that the area would be closed, a move that sparked riots in Kitwe’s Wusakile Township.
Investee Company News

Negotiations with potential KCM buyers haven’t yet started – Musukwa

Mines Minister Richard Musukwa says government has not started any negotiations with any potential buyer of Konkola Copper Mine (KCM) Plc’s assets.

Musukwa explained that there had been no steps to invite effective bids of the sale of KCM’s assets as the process would be done after the pending court clearance.

The Minister said this in Parliament, Tuesday, when he responded to a written question from Nchanga PF member of parliament Chali Chilombo, who wanted to know whether government was aware that the residents of Chililabombwe and Chingola were extremely anxious over the liquidation of KCM and if so, how far government had gone with the potential buyers of KCM’s assets.

“Madam Speaker, in recognizing the guidance and sanctity of the Judiciary, who are handling the matters concerning the liquidation process of Konkola Copper Mine, government has not started any negotiations with any potential buyer of KCM assets. However, KCM has been visited by several sections of international and local entities expressing interest following the announcement of the divorce process by Konkola Copper Mine and ZCCM-IH. There has been no steps to invite effective bids of the sale of the assets. This process will be done and has been reserved awaiting clearance from the courts of law, which we respect. The House may wish to know that the liquidation process is basically the first process before resolving the issues surrounding KCM. We have taken advice to ensure that the sale is done within the confines of the law and pursuant to a court order,” Musukwa said.

He insisted that there was no sale that would take place at KCM, which would undermine the integrity of the court process.

“In that regard, no sale will be undertaken that undermines the integrity of the court process, and as government, we understand that the due process of the law has to be followed and respected and we are committed to that effect. Madam Speaker, to this effect, I wish to state that the High Court proceedings, which are currently going on, are matters that the Government of the Republic of Zambia continues to respect because we are a government of laws,” Musukwa said.

And Musukwa said the decision to offload KCM was made on account of the deteriorating social and economic situation caused by Vedanta Resources’ mismanagement.

“Government is fully aware of the anxieties of residents of Chililabombwe and Chingola over the future of KCM. The House may wish to know that residents of Chingola and Chililabombwe started raising concerns over the future of KCM way before the commencement of the liquidation process. The action Zambia Consolidated Investment ZCCM-IH took was on account of deteriorating social and economic situation caused by mismanagement of KCM by Vedanta. If left unchecked, it would have spelt catastrophe for the residents of Chililabombwe and Chingola and the entire Copperbelt,” said Musukwa.

“Government also has a duty to safeguard its citizens and the actions were taken in that context. The ultimate aim of ZCCM-IH instituting the liquidation process was to secure an investor who would develop the mine to its full potential guaranteeing the much-needed jobs and business opportunities on the Copperbelt in particular, Chingola, Chililabombwe and other peripheral areas.”
Investee Company News

ZCCM -IH: Konkola Copper Mines Plc Further Cautionary Announcement

Shareholders of ZCCM Investments Holdings Plc (“ZCCM-IH” or “the Company”) are referred to the announcement dated Wednesday 23rd May 2019, in which they were advised that ZCCM-IH filed a petition in the High Court of Zambia for the winding up of Konkola Copper Mines Plc on 21st May 2019. ZCCM-IH filed the said petition pursuant to section 56 (1) (c) of the Corporate Insolvency Act No. 9 of 2017. By Order of the Court, Mr. Milingo Lungu of Lungu Simwanza & Company was appointed as provisional liquidator.

On 3 July 2019, Vedanta Resources Limited (“Vedanta”) obtained an Order of Court to commence legal proceedings against ZCCM-IH in the High Court of South Africa. By Notice of Motion dated 3 July 2019, Vedanta seeks to stay the liquidation proceedings in Zambia and to have the powers of the liquidator discharged.

ZCCM-IH will provide details of these proceedings in due course.

In the meantime, 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

Issued in Lusaka, Zambia on 15th July 2019
Investee Company News

ZCCM -IH | Konkola Copper Mines Plc Further Cautionary Announcement

Shareholders of ZCCM Investments Holdings Plc (“ZCCM-IH” or “the Company”) are referred to the announcement dated Wednesday 23rd May 2019, in which they were advised that ZCCM-IH filed a petition in the High Court of Zambia for the winding up of Konkola Copper Mines Plc on 21st May 2019. ZCCM-IH filed the said petition pursuant to section 56 (1) (c) of the Corporate Insolvency Act No. 9 of 2017. By Order of the Court, Mr. Milingo Lungu of Lungu Simwanza & Company was appointed as provisional liquidator.

On 3 July 2019, Vedanta Resources Limited (“Vedanta”) obtained an Order of Court to commence legal proceedings against ZCCM-IH in the High Court of South Africa. By Notice of Motion dated 3 July 2019, Vedanta seeks to stay the liquidation proceedings in Zambia and to have the powers of the liquidator discharged.

ZCCM-IH will provide details of these proceedings in due course.

In the meantime, 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

Issued in Lusaka, Zambia on 15th July 2019

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First Issued on 23 May 2019