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Misenge constructs Chibalashi Dam in Mansa

The construction of Chibalashi Earth Dam at Chibalashi in Mansa District, Luapula Province at a total cost of about K7.4 million was undertaken by Misenge Environmental and Technical Services Ltd (METS).

Completed in January 2017, the project which was financed by the Zambian Government from a World Bank loan, was awarded to Intergrity Enterprises Limited, of Kabwe, by the Ministry of Water Development, Sanitation and Environmental Protection.

Intergrity subsequently subcontracted METS in 2016 to construct and manage the project in five months with the official contract commencement date of 8th July 2016 and the defects liability period of 12 months.

The scope of works included among other things; site clearing, river diversion works, excavation works for the core trench, the construction of dam embankments, excavation and construction of spillways with their associated structures, irrigation intake structures and canals and laying the low flow pipe.

Due to unfavourable weather conditions the contract was extended for 45 days and the project was finally completed on 17th January 2017.

The construction of Chibalashi dam will significantly boost agriculture and fisheries activities in the area throughout the year.

About Misenge

Misenge Environmental and Technical Services Ltd (METS) is a former Environment Department of the ZCCM Investments Holdings Plc (ZCCM-IH). Following the privatization of ZCCM Ltd and the transformation of the Company into ZCCM-IH the ZCCM Ltd Group Environmental Services (GES) was transformed into an Environmental Department.

In 2012, ZCCM-IH decided to transform the Department into a subsidiary Company – Misenge Environmental and Technical Services Ltd (METS).

METs offers the following services: environmental consultancy, radiation and safety Management, analytical services and engineering services.

METS – Constructs Chibalashi Dam in Mansa
Investee Company News

Maamba Collieries plans to increase generation

MAAMBA Collieries Limited (MCL) is engaging key stakeholders in the mining industry on possibilities of increasing its thermal-generated power plant to 600 megawatts (MW) in view of the growing electricity demand in the country.

Last year, President Edgar Lungu commissioned the 300MW of power at MCL and connected to the national grid through Zesco Limited.

Company corporate affairs senior manager Mayford Chikoya said in an interview on Tuesday that under phase II, the coal-fired power plant will cost around US$850 million.
“We have started discussions with the mines for phase two of the project. A committee has been formed to look at all the necessary documentation for the construction of the phase two project.

“Construction of the phase two of the thermal power plant is expected to start early next year,” Mr Chikoya said.

The committee is composed of officials from MCL, Ministry of Finance, Energy and selected stakeholders that deal in electricity.

He said the company will source for financiers once documentation for the project is finalised soon.

Mr Chikoya said the construction of the power plant will not take long like the first phase because basic infrastructure is already in place.

“We will still use the same power lines running from the thermal power plant to Muzuma, same water pipe line and coal handling plant. The first phase is running smoothly… The project is expected to be commissioned end of this month and hopefully, the power plant will be stable,” he said.

Mr Chikoya, however, said constant supply of power is being affected by Zesco Limited as it is still upgrading its transmission lines from Muzuma power station to Kafue from 220-330 kilovolts.

He said because of the major works being undertaken by Zesco, the power plant is constantly cutting on supply.

Currently, MCL is producing 300MW of power, and 265MW is supplied to Zesco, while the remaining 35 is used for the thermal plant.

Source: Daily Mail
Investee Company News, ZCCM-IH News

KCM pays ZCCM-IH $100 million

ZCCM-INVESTMENT Holdings (IH) has todate received US$47 million in payments to recover over US$100 million owed by Konkola Copper Mines (KCM). Last year, ZCCM-IH commenced legal proceedings against KCM Plc in the London Courts to recover over US$ 100 million it was owed after the court’s ruling that the latter pays ZCCM-IH.

ZCCM-IH chief executive officer Pius Kasolo said the two organisations which, continue to enjoy a cordial relationship, agreed on a payment plan and has been making payments from January to April.

“KCM paid US$20 million, US$22 million in February US$2.5 million in March and another US$2.5 million in April.

“Subsequent to the judgment ZCCM-IH and KCM agreed on a payment plan favourable for both parties in the interest of the business. KCM has since been making payments as agreed, and I must say we continue to work together as partners,” he said.

Dr Kasolo said ZCCM-IH remains committed to work closely with mining companies as they are partners in the development of the country and is confident about the fundamentals of the mining industry in general and those of copper.

“Overall, we will continue to grow our portfolio beyond mining and will further increase our foothold in the energy sector, agriculture sector and real estate so that the company continues to maximise shareholder value.

“We are focused on driving sustainable long-term growth and value creation in our investment portfolio,” Dr Kasolo said.

Source: Daily Mail

Investee Company News

Konkola Copper Mines Kicks Off Ambitious Bio Diesel Project

CHINGOLA, APRIL 4, 2017 – Konkola Copper Mines (KCM) today took a major step towards the coming to life of a bio-diesel project, which will be a first for a tailing storage facility in Zambia and for elite Pongamia Pinnata trees to be used in mine rehabilitation.

KCM teamed-up with the Minister of Works and Supply and Chingola MP Honourable Matthew Nkhuwa and other local leaders to plant 500 elite Pongamia trees on a four-hectare overburden site to bring to 2,000, trees planted all as part of the pilot programme to determine the viability of producing bio-diesel from the trees.

The project has the potential to create 500 direct jobs and 1,000 indirect jobs for the youths in agro-forestry, farming, bio-energy processing, and energy service delivery. The commercial project is targeted for 650 hectares of land with 400,000 trees to be planted at an estimated cost of US$7 million.

Mr Nkhuwa noted that, “the government is spending huge amounts of money to import fuel into the country every month. With projects such as this, the burden on the government will be lighter and resources will be channeled to other areas for holistic development.” He added that, “The government is creating an enabling environment for public private partnerships such as this one in order to foster development.”

KCM Chief Executive Officer Steven Din said during the event that the project attested to the company’s commitment to invest in clean energy as an integral part of the KCM vision for sustainable development. “The trees we have planted here will revegetate a disused dump site, suck-up impurities and fix back nitrogen to the soil, improving its fertility.

In addition to all this, employment will be created for the local people,’’ Mr Din noted. The company is working in partnership with Better World Energy on the project seeking to re-fertilise bare land which KCM currently cannot use for agriculture purposes.

In addition, the project will provide a cheap and environmental-friendly source of energy for KCM. Pongamia is an ideal plant for recovering a variety of waste burdens such as saline soil reclamation. It brings soils back to life as the nitrogen and carbon feed rich soil microbial communities enabling other plants to grow on previously dead soil. Virtually, every part of the Pongamia tree is useful, with the seeds producing biodiesel and seedcake from the trees used to make briquettes for cooking and cattle feed after removing toxins.

The slurry can be used as a fertilizer, and because the tree is repulsive to animals naturally, bio-pesticides can be made from it.

Source: kcm.co.zm
Annual Report Summaries

METS Extract from 2017 Annual Report

Misenge Environmental and Technical Services Limited (METS) earned a total of K8.80 million as revenue for the year ended 31st March 2017 (2016: K6.22 million).

K2.63 million of the total revenue, was realised from recurring services to ZCCM-IH (2016: K5.15 million) and K6.17 million was from non-ZCCM-IH sources (2016: K1.10 million). METS recorded a loss before tax of K1.25 million (2016: K2.90 million loss).

During the year under review, ZCCM-IH advertised for the purchase of Fume extractors and Dust extractors to be installed at the Kabwe Analytical Laboratory. When the remaining works at the laboratory are complete, METS will be in a position to provide more analytical services at the laboratory and increase revenue.

There were no dividends declared during the year under review (2016: Nil).
Annual Report Summaries

CEC Extract from 2017 Annual Report

The Company continued to be listed on the LuSE and has 50% direct shareholding in CEC Liquid Telecommunications Limited, a joint venture company registered and domiciled in Zambia. CEC Liquid Telecom wholly owns Hai Telecommunications Limited.

During the financial year ending 31st December 2016, adjusted EBITDA was K888.12 million (US$90 million) compared to K520.35 million (US$80 million) the previous period posting an increase of 12.5% average. The increase in adjusted EBITDA is attributed to increased power trading income and the aggressive cost management initiatives, which impacted positively on the results.

Revenue at K3,503.14 million (US$355 million) was equivalent to the revenue in 2015 despite a drop of about 15% in domestic power supplies which had an equivalent reduction in domestic power sales from K2,743.3 million (US$278 million) to K2,180.83 (US$221 million.)

The increase in power trading supplies resulted in an overall increase of 86% in power trading revenue, which compensated for the drop in domestic power sales. Overall, domestic power sales remain the prime revenue source contributing 62% of the total revenue down from 78% the previous year, with power trading revenue increasing from 18% the previous year to 34% of total revenue.

The demand for electricity is expected to increase following plans to ramp up production on account of NFCA’s South East body project, MCM’s Synclinorium and KCM’s Konkola Deep Mining Project.

CEC Liquid Telecom continues to outperform past financial and operational results. Revenue at K207.23 (US$21 million) grew at 17% while gross margin and EBITDA increased by 10% and 33% respectively. The above financials are based on consolidated results of CEC Liquid Telecom incorporating Hai. The company, during the year, secured long term funding to support its expansion projects; mainly new backhaul bandwidth fibre connecting Zambia to Botswana and Namibia. This enables the creation of a robust network, reinforcing the strategy of operating the Zambian network as a regional hub. Further, the business commissioned its first investment in LTE spectrum, a wireless solution for provision of connectivity solutions as an alternative to fibre solution. Further investments are planned in this area to grow the business and realize the expected market disruption.

Effective 30th December 2016, CEC Africa was separated from the CEC Group and is now a sister company to CEC Plc rather than its wholly owned subsidiary. At an EGM held on 9th December 2016, the shareholders, on the proposal of the board, resolved to dividend out CEC Africa as a distribution to the shareholders of CEC. Hence, a dividend in specie of CEC Africa from CEC Plc to its shareholders was made. The effect of that transaction is that both CEC Plc and CEC Africa are now held by the same shareholders. The action was premised on the assumption that shareholders must be allowed to measure the performance of the two entities separate from each other as they face very different risks, and to enable the shareholders retain any upside that may occur in CEC Africa in the future.

The future business outlook for CEC Plc is positive, with growth expected to be derived from the increase in local power supply demand arising from the commissioning of new mine projects currently under construction.

The positive outlook in the copper price demand forecast has further ignited mining activities in Zambia and the DRC, creating an opportunity for increased demand. Lastly, growth is expected to come from the strategy around power trading and focus on the DRC mining supplies market in addition to the support for industry-wide cost reflective tariffs.

During the year, the Company paid out two dividends to its ordinary shareholders, the first being a cash dividend of K161.84 million (US$16.4 million) paid in the first quarter of 2016. The second dividend was a dividend in specie of CEC Africa of K9.68 (US$1). This dividend was paid on 30th December 2016.

The CEC Board on Tuesday, 7th February 2017 recommended an interim dividend of US Cents 1.29 per ordinary share, which translates to 12.80 Ngwee (K0.1280) per share, using the Bank of Zambia mid-rate applicable on the date of declaration. The dividend was paid to the shareholders registered in the share register of the Company at the close of business on Friday, 3rd March 2017.

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Annual Report Summaries

NFC Africa Mining Plc Extract from 2017 Annual Report

NFC Africa Mining Plc (NFCA) recorded a turnover of K1,716.05 million (US$173.9 million) for the financial year
ending 31st December 2016 (2015: K677.11 million (US$104.1 million) as a result of increased sales volumes.

NFCA recorded a loss after tax of US$31.1 million (2015: K45.8 million loss).

NFCA continues to work on the development of the South East Ore Body project. The company reported project expenditure of K2,666.33 million (US$270.2 million) as at 31st December 2016. Total planned project investment is K8,537.65 (US$832 million). Once completed, the project is expected to extend the life of the mine for 20 years. The design and annual capacity at full production is estimated at 3.3 million tonnes of ore containing 60 000 tonnes of copper.

There were no dividends paid during the year ended 31st December 2016 (2015: Nil).
Annual Report Summaries

Ndola Lime Company Ltd Extract from 2017 Annual Report

Ndola Lime Company Limited (NLC) reported total revenues for the financial year ended 31st March 2017 of K89.6 million (2016: K196.6 million) and a loss before tax of K1,163 million (2016: K82.3 million loss).

Major contributors to the loss was lower sales of 75.7% (K279.4 million) below budget, impairment of the plant amounting to K861 million, finance costs and penalties on overdue Zambia Revenue Authority (ZRA) tax obligations totalling K93.7 million.

Ndola Lime Company (“NLC”) has been working on optimizing a second vertical kiln (“VK-2”) to be powered by coal that will result in additional capacity of 500 tonnes per day. The primary objectives of the VK2 is to substitute the inefficient and out-dated operations of the Rotary Kiln and reduce operational expenses attributable to the use of Heavy Fuel Oil (“HFO”) through the use of coal. Following the perennial escalation in costs related to the Recapitalization Project (RP) and adverse financial performance from the latter half of 2013 onwards, owing to a myriad of factors including significant escalations in the price of HFO, loss of market share, ZCCM-IH resolved to finance the completion of the RP which has cost about $105 million to date. The hot commissioning of the project started in December 2015. However, the commissioning of the project has been met with a lot of challenges.

There were no dividends declared during the year under review (2016: Nil).
Annual Report Summaries

Mopani Copper Mines Plc Extract from 2017 Annual Report

During the financial year ending 31st December 2016, Mopani Copper Mines (MCM) recorded net revenue of
K2, 519.99 million (US$255.37 million) (2015: K7, 291.43 million (US$1,121 million). The net loss was at K1, 776.14 million (US$179.99 million) (2015: K1, 853.75) US$285 million net loss).

During the year ending 31st December 2016, MCM produced a total of 41,100tonnes of copper from own sources (2015: 92,100 tonnes). The 55% lower production figures in 2016 compared to 2015 were driven by the partial suspension of production, which were aimed at improving MCM’s operations and cost reduction. Progress was made in the upgrading as MCM’s Synclinorium Shaft at Nkana was commissioned and started to hoist ore at the end of 2016.

During the year under review, Mopani produced 41,100 tonnes of copper from own sources and this was 51,000 tonnes (55%) lower than the previous year due to the partial suspension of production while the major upgrade projects are being completed.

There were no dividends paid during the financial year ended 31st December 2016 (2015: Nil).