All Posts

Annual Report Summaries

Kansanshi Mining Plc Extract from 2016 Annual Report

Kansanshi Mining Plc (KMP) had sales revenue of K15, 699 million (US$1, 586.1 million) (2015: K10, 204.4 million (US$1, 568.7 million) for the financial year ended 31st March 2016. The net loss for the year was at K5, 110.9 million (US$517.4 million) (2015: Profit of K4,169.6 million (US$792.7 million). Total copper production was down 14% at 226,674 tonnes (2015: 262,287 tonnes) due to lower oxide and sulphide throughput during the first half of the year.

KMP intentionally reduced throughput in order to match KMP’s acid consumption with the smelter’s ramp-up to commercial production, while gold production was 12% lower at 136,257 ounces (2014: 154, 431 ounces) due to lower concentrate production and lower head grade. The lower sales volumes were offset by the introduction of the KMP smelter in 2015 that recorded revenue of US$403 million.

In 2015, KMP completed the copper smelter well ahead of schedule and commercial production was declared on 1st July 2015. KMP’s smelter processed 709,188 tonnes of concentrate in 2015 and produced a total of 150, 292 tonnes of copper anode and 645,000 tonnes of sulphuric acid. The KMP smelter achieved an overall copper recovery of 98%.

Subsequent to year end, ZCCM-IH filed a Notice of Arbitration on 26th October 2016 in London (UK) against Kansanshi Holdings Limited and Kansanshi Mining PLC. Further, on 28th October 2016 ZCCM-IH commenced legal proceedings in Lusaka, Zambia, against First Quantum Limited, FQM Finance Limited, Philip K.R. Pascal, Arthur Mathias Pascal, Clive Newall, Martin R. Rowley and Kansanshi Mining PLC for various claims arising from transactions between Kansanshi Mining Plc and FQM Finance Limited.

Total dividends paid during the period under review amounted to K59.3 million (US$8 million) (2015: K113 million (US$18 million). The amount payable to ZCCM-IH was K11.9 million (US$1.6 million) (2015: K22.6 million (US$3.6 million).
Annual Report Summaries

CNMC Luanshya Copper Mines Extract from 2016 Annual Report

CNMC Luanshya Copper Mines plc (CNMC) recorded a turnover of K1,867.7 million (US189.1 million) for the year ended 31st March 2016 (2015: K1, 741.1 million (US$267.7 million). The loss after tax was K1, 052.1 million (US$106.5 million) (2014:K72.2 million (US$11.1 million) profit).

CNMC planned to produce 46,000t of copper metal which included 16,000t copper in concentrate from Baluba Mine and 30,000t of copper cathode from Muliashi Mine. By the end of 31 December 2015, Baluba Mine and Muliashi Mine produced 11,371t and 33,101t of copper metal respectively. Thus in 2015 the total copper production was 44,472t, representing 96.68% of the annual plan. As noted, Muliashi Mine exceeded its annual production target for 2015 whilst Baluba Mine did not achieve its annual production target.

The failure by Baluba mine to meet its target is attributed to the difficulty in mining the gently inclined thin ore body with its variable structure and the increasing reclaimed tonnage and decreasing geological grade and also the fact that the mine had been put on Care and Maintenance since September 2015 because of power shortages.

There were no dividends paid during the year ended 31st December 2015 (2014: nil).
Annual Report Summaries

Chibuluma Mines Extract from 2016 Annual Report

Net revenue for the financial year ended 31st December 2015 was K656.9 million (US$66.5 million) (2014: K691.4 (US$106.3 million)). Net loss over the same period was K312.2 million (US$31.6 million) (2014: K144.4 million (US$22.2 million profit)). Chibuluma Mines Plc’s (CMP) cash position reduced to US$0.056 million as at 31st December 2014 (2014: US$8 million). The loss was mainly due to the low copper prices and an impairment loss of US$13.4 million on property, plant and equipment.

Production was negatively affected by the poor availability of mine equipment, which, coupled with low copper prices led to constrained cash flow at the company. Consequently, CMP embarked on cost saving measures and a survival plan with emphasis on reduced and targeted mining and processing activities at the mine.

As mine reserves get exhausted CMP has been exploring the Chifupu project for the last two years to extend the life of mine and have been actively exploring new mining activities. However, due to cash flow constraints, works on the Chifupu project have reduced and CMP is evaluating the option of starting production early at the Chifupu project to recover some of the investments incurred on the project. No dividends were paid for the financial year ended 31st December 2015 (2014: US$10.8 million).
Annual Report Summaries

Chambishi Metals Extract from 2016 Annual Report

During the financial year ended 31st December 2015, Chambishi Metals Plc (Chambishi) generated total revenues of K2,015.3 million (US$204 million) (2014: K1, 883 million (US$289.50 million). The net loss was at K396.1 million (US$40.1 million) (2014: K88.5 million (US$13.6 million).

ZCCM-IH has been engaging with Chambishi on the perennial losses and it was agreed that Chambishi would have to scale up production to be able to generate enough gross profits to cover all its operational costs and to generate profits. This would necessitate creating further capacity particularly for copper beyond the current capacity of 55,000 tonnes. A study is being undertaken to assess the financial implications of this proposal.

During the period under review, Chambishi commenced a research project to improve revenue at the plant. The research involves plant optimization, improved technology at the plant to improve recoveries and a global market study to identify suitable concentrates from which high value metals such as gold and silver can be extracted.

Industry News

Zambia’s 2016, 2017 copper output seen flat at 700,000t

LUSAKA – Zambia’s copper production will be around 700 000 t this year and next year before rising to one-million tonnes in 2018, a top government official said on Monday.

Copper production in Africa’s second-biggest producer of the metal inched higher to 711 515 t in 2015 from 708 000 t the previous year mainly due to a new mine owned by Canada’s First Quantum Minerals.

“We are likely be in the same level as last year because the pricing of copper has been consistently low and some mines have frozen production,” Mining ministry permanent secretary Paul Chanda told Reuters.

Chanda said Zambia’s copper production would jump to about one-million tonnes in 2018 when prices of the metal were expected to start rising.

Zambia also launched a pilot project for introduction of a new system under which mining companies would be required to report their production electronically.

Zambia Revenue Authority Commissioner of Customs Dingani Banda said during the launch that the new system would improve accuracy in reporting of mineral quantities and quality by mining companies.

“Overall we expect that these measures will enhance collection of revenue,” Banda said.

Banda said the new system would start with Chambishi, Launshya and Lubambe mines before rolling it out later this year.

Other mining companies operating in Zambia include Glencore, Vedanta Resources and Barrick Gold.

Source: Mining News Zambia

ZCCM-IH News

Mines didn’t declare dividends – ZCCM-IH

MINING companies did not declare dividends to ZCCM -Investment Holding (IH) last year due to low copper price on the international market that paralysed the sector, chief executive officer Pius Kasolo has disclosed.

Dr Kasolo said in an interview recently that falling commodity prices on the global market the past months made it impossible for mining companies to declare dividends to ZCCM-IH, which holds shares in the mining companies on behalf of Government.

He is, however, upbeat that with the price of copper slowly rebounding on the international market, mining companies will start posting profits. “ZCCM-IH has not received dividends from mining companies because they declared losses due to turbulences on the global market .With China, which is the off-taker of copper, beginning to start buying copper, we expect prices to rebound and this will positively impact on the mining sector,” he said.

On the outlook of the mining industry, Dr Kasolo said the current global shocks are temporary and commodity prices will soon rebound.

He said expansion projects by mining companies will also generate jobs. “It is sad that people are losing jobs due to economic shocks but prices will rebound and jobs will be restored. The sinking of three shafts by Mopani Copper Mines will also create jobs,” he said.

Source: Daily Mail

ZCCM-IH News

ZCCM plans cement and power investment

Zambia-based ZCCM Investments Holdings is expected to develop a cement plant and 52MW thermal power and Ndola as part of the company’s diversification programme.

ZCCM-IH will team up with private investors for the projects, and it is also collaborating with local and international financial institutions on the financing of the projects, according to local press.

Pius Kasolo, CEO of ZCCM-IH, told journalists on Monday that the power plant will provide 30-35MW of reliable electricity supply to the cement plant, while the remainder will be sold to state-owned power company Zesco.

ZCCM-IH, a shareholder in Ndola Lime, said construction of the cement plant is expected to start by the end of next month. “We are going to invest in the cement plant that will be located near Ndola Lime, and we are going to use the waste material from the Ndola Lime plant to manufacture cement,” the Zambia Daily Mail quoted him as saying.

Source: CemNet

ZCCM-IH News

ZCCM-IH seeks agro-partner

ZCCM-Investments Holding (ZCCM-IH) is seeking to partner with the private sector in the development of a mixed agriculture and value chain project in Lufwanyama. This is part of ZCCM-IH’s diversification programme from mining.

ZCCM-IH chief executive officer Pius Kasolo said the company has since acquired 2,000 hectares of land to grow various crops under irrigation and rear livestock which will be processed and sold locally and exported within the region.

“We will sale produce in raw form; pork will be processed into beacon and ham and we will not only feed the Copperbelt but, targeting Angola and Democratic Republic of Congo markets,” Dr Kasolo said in an interview last week.

He said the projects earmarked for next year, will be done in partnership with the private sector following a number of international agricultural firms that have expressed interest in the project. “During the just ended mining indaba in Cape Town, South Africa, we showcased our projects, including the agriculture project and large-scale agricultural firms expressed interest to co-venture,” he said.

ZCCM-IH, which holds shares in mining companies on behalf of Government and is also owned by the Industrial Development Corporation (IDC), has embarked on ambitious programmes aimed at diversifying in various sectors including energy, real estate and agriculture.

Recently, the company invested about US$8 million in the acquisition of Trinity House in Lusaka as it ventures in real estate. Dr Kasolo said the property will house the ZCCM-IH offices while the rest of the building will be leased as office space.

Source: Daily Mail
Investee Company News

Mopani Coppers mines is to create more than 4 000 jobs

Mopani Coppers mines is to create more than four thousand jobs once the sinking of three shafts at a cost of one point one billion United States dollars are completed.

Meanwhile, Mopani Chief Executive Officer Johan Jensen says the mining firm has designed the WAY strategy to enhance efficiency and profitability.

ZNBC’s Musenge Mulimba reports that the one point one billion United States dollars shafts are being built in Kitwe at Mindola, Synclinorium and Mufulira deep.

Chief Government Spokesperson Chishimba Kambwili says the one point one billion united states dollars project is a clear demonstration of the confidence that Glencore has in the Zambian economy under the leadership of president Edgar Lungu.

Mr. Kambwili was speaking in Kitwe during the launch of the Mopani way industrial theatre presentation at the little theater.

And Mopani has invested about seventy thousand US Dollars in renovating the Kitwe little theatre.

Mr. Kambwili urged all stakeholders mainly the employees, union leaders and contractors to support Mopani Copper mines.

Meanwhile, Mopani Copper Mine Chief Executive Officer Johan Jensen said the Mopani Ways is the strategy the company intends to employ to overcome the current challenges being faced.

Source: Lusaka Times
Investee Company News

Konkola Copper Mines announces the death of Mr Fighton Simukonda, the Head Coach of Nchanga Rangers Football Club (NRFC)

HINGOLA, 17 February 2015, it is with deep sorrow that Konkola Copper Mines announces the death of Mr Fighton Simukonda, the Head Coach of Nchanga Rangers Football Club (NRFC).

The late Mr Simukonda died at about 06:00 hours on 15 February 2015, at the Konkola Mine Hospital in Chililabombwe, after an illness. The funeral will be held at House Number 68, 8th Street, Nchanga South in Chingola.

KCM Management and staff pass their heartfelt condolences to the bereaved family. The company wishes the family God’s comfort, strength and guidance during this difficult moment.

The deceased was appointed Head Coach of Nchanga Rangers in 2012, after coaching stints with several top Zambian clubs.

During his spell with Nchanga Rangers, he brought stability to the club and raised several young players, who are now with various youth national teams and the Chipolopolo national team.

We join the rest of the nation in mourning our deceased football icon – one of Zambia’s most decorated football players and coaches.