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Arbitrator in the “end game” of Kansanshi case with ZCCM-IH

Shareholders in Zambia’s largest mining investment firm have been advised that the arbitration case involving one of its investee companies has continued to progress and is nearing an end, according to a statement from ZCCM IH.

“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”, read the latest statement on the matter from Company Secretary Chabby Chabala on 23 June 2021. “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”.

The matter in question relates to “the arbitration proceedings that followed a criminal complaint made by ZCCM-IH with allegations of an unauthorised transfer of money by Kansanshi Mining to First Quantum’s local subsidiary”, according to Reuters in 2019.

Shareholders will recall the Reuters article that covered the story which disclosed the interdependency of “a separate case that ZCCM-IH began action in October 2016 to sue First Quantum for $1.4 billion over claims that the Canadian company borrowed $2.3 billion from its Zambian copper mining subsidiary Kansanshi without informing ZCCM-IH, a minority shareholder”.

In their latest statement, ZCCM IH indicates that “certain matters remain outstanding and will be addressed by the tribunal in the Final Award”.

Despite this signaling a favorable arbitrational journey, “shareholders were still advised that the matter is still on-going and may still have a material effect on the price of the Company’s securities. This is why ZCCM IH will continue to update Shareholders as the case progresses.

Source: http://fizambia.com/arbitrator-in-the-end-game-of-kansanshi-case-with-zccm-ih/
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Increasing production & not finding equity partner for Mopani is our focus – ZCCM IH

ZCCM Investments Holdings (ZCCM-IH) has dispelled assertions that they are more focused on finding an equity partner than driving production and keeping Mopani Copper Mines in local Zambian hands.

ZCCM IH acquired Mopani Copper Mines from Glencore and FQM. The move received wide ranging support from the mining unions, suppliers and communities on the Copperbelt and accross the country as it was seen as a move to have a wholly owned Zambian Coppper mine. But comcerns have been raised after indications from the mines ministry that that foreign equity partners have expressed interest in taking over the mines.

However, ZCCM IH which is the holding company has told the Zambian Business Times – ZBT that they are currently focusing on ensuring the development and growth of Mopani Copper Mine Plc’s production to generate more revenue for the company. ZCCM-IH Public Relations Manager Loisa Mbatha-Kakoma said the focus for Mopani Coper Mine was on mining and producing copper to ensure more revenue was generated for both current and future operations.

When asked on how far plans have gone to get onboard an equity partner and if the move confirmed fears that a local Zambian management cannot run the large copper mine, Mbatha-Kakoma said, “As you can understand, this is a high quality asset of which there are not many out there in the world. “Therefore it is not surprising that we were approached by several interested parties.

“Our focus for now is to ensure the development and growth of the mine in terms of production by the current Mopani management team who have so far had a provided a good track record,” she said. Mbatha-Kakoma said post deal closure, Mopani has continued operating normally and able to meet its operational needs.

She said all jobs have been retained with a new collective agreement concluded in record time. Mbatha-Kakoma said the Company is currently using its sales revenue to sustain its operations.

“Both Mining and Processing have continued without disruptions and the focus now is on mining and producing Copper so that more revenue is generated for both current and future operations,” he said. Government through ZCCM-IH acquired a majority stake in Mopani Copper Mine following a conclusion in negotiations with Glencore recently.

Source: https://zambianbusinesstimes.com/increasing-production-not-finding-equity-partner-for-mopani-is-our-focus-zccm-ih/
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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/
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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)

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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/
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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/

 
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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/
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/
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ZCCM IH Signals Intention to continue with KCM Appeal Process

ZCCM IH has advised shareholders that it intends to appeal against the decision of the Court of Appeal and to stay the judgment in the matter relating to KCM, according to a statement from the Company.

According to the statement, “Shareholders of ZCCM Investments Holdings Plc (“ZCCM-IH”) are referred to the announcement dated 23 May 2019 concerning the following:

  • ZCCM-IH filed a petition in the High Court of Zambia for the winding up of Konkola Copper Mines PLC (“KCM”) on 21 May 2019 (the “Petition”), the appointment by the Court of Mr Milingo Lungu as provisional liquidator of KCM (the “Provisional Liquidator”).
  • The legal proceedings commenced on 2 July 2019 in the High Court of South Africa and applications made to the Zambian High Court by Vedanta Resources Limited and Vedanta Resources Holdings Limited (together “Vedanta”) to stay the liquidation proceedings and refer the matter to arbitration.

Shareholders are informed that the High Court of Zambia ruled against Vedanta on 7 August 2019. On 13 August 2019 Vedanta appealed to the Court of Appeal of Zambia against the decision of the High Court of Zambia which denied them their application to stay the liquidation proceedings and refer the matter to arbitration. The Court of Appeal on 20 November 2020 ruled in favour of Vedanta and stayed the liquidation proceedings and referred the matter to arbitration.

The statement issued by ZCCM IH Company Secretary Chabby Chabala further stated that “ZCCM-IH will provide details on this matter, as it progresses, in due course”.

Source: http://fizambia.com/zccm-ih-signals-intention-to-continue-with-kcm-appeal-process/