Copper Mining companies mull over listing of shares on Zambian bourse

Other than Kansanshi Copper Mines Plc which has sought to dual list its shares in Zambia and abroad, most of the multinational companies with operations in the country are undecided whether to partially list shares in Africa’s leading copper producer to defray costs of raising capital for projects.

Recently, Commerce minister Emmanuel Chenda appealed to mining companies to consider listing on Lusaka stock exchange and a cheaper and nearest source of raising capital for their financial obligations while operating in Zambia.

Presently, only Kansanshi Copper Mines, the world’s eighth largest copper producer and a unit of First Quantum Minerals Limited, listed on the Australian bourse, has sought to open its shareholding to the public.

Others, including Vedanta Resources Plc’s Konkola Copper Mines and Mopani Copper Mines, a unit of Glencore International AG of Switzerland, among others remain outside the local bourse.

With the reluctance by most mining companies to dual or partial list on the Lusaka Stock Exchange, despite its 20-years of operations as a local capital market, regulators and managers of the capital market are using “moral suasion” to excite the foreign multinationals to consider, says Security and Exchange Commission Secretary and Chief Executive, Wala Chabala.

“We have tried to persuade them to consider coming to the LuSe and list their shares for easy access to cheaper finances but we are still talking,” he said in Lusaka today on the sidelines of the briefing of the media on the stock market’s performance in the last quarter of 2013.

LuSE chief executive Officer, Brian Tembo said it has been the desire of the capital market in Zambia with 21 listed companies, to entice mining companies for access to cheaper capital to meet their project needs but many of them have remained silent despite the Government’s desire to embrace them locally.

Two years ago Konkola Copper Mines (KCM) had indicated its desire to dual list on the London Metal Exchange as well as Lusaka’s capital market but reversed its intentions citing market forces at play.

The Toronto, London and Lusaka Stock Exchange listed copper miner is owned by first quantum minerals and is one of Zambia’s most tax compliant companies.
It had by the end of 2012 since its inception in 2006 paid the government about US$1.6 billion in form of taxes.

It had planned to also spend about $16 million or K80 billion kwacha by the end of 2012 under its corporate social responsibility programme, said its spokesperson, Godfrey M’siska recently.

Kansanshi mine has a labour force of about 6000 people and is the largest tax payer in the country as it pays about $1.5 million daily to the Government treasury.

By the end of 2010, it had produced about 231,000 tons of copper and 110 tons of gold which it exported outside the country.

Kansanshi Mining plc operates one of the largest copper mines in Africa. It is 20 percent owned by ZCCM-IH and 80 percent by First Quantum Minerals.
Currently, Kansanshi has capacity to produce 250,000 tonnes of copper up from 100,000 when the mine opened, the company said on its website.

The multi-stage expansion project, when operational, will ramp up copper production to 400,000 tonnes and will also significantly increase the gold output. The project is expected to be completed by 2015.


Source: Mining News Zambia

ZCCM-IH | Notice of 10th Annual General Meeting

NOTICE IS HEREBY given that the Tenth Annual General Meeting of members of ZCCM Investments Holdings Plc will be held on Monday, 30 December 2013 at 10:00 hours at Southern Sun Ridgeway Hotel, corner of Church Road and Independence Avenue, Lusaka, Zambia to transact the following business:

  1. To consider and adopt the minutes of the 9th Annual General Meeting held on 13 December 2012.
  2. To consider and adopt the minutes of the Extraordinary General Meeting held on 17 May 2013.
  3. To receive and adopt the audited Financial Statements for the year ended 31 March 2013, together with the Reports of the Directors and the Auditors thereon.
  4. To consider and adopt the recommendation to appoint Auditors for the ensuing year to 31 March 2014, and to authorise the Directors to fix their remuneration.
  5. To transact such other business as may properly be transacted at an Annual General Meeting.

A member entitled to attend and vote at the meeting is entitled to appoint one or more proxies to attend and, on a poll, to vote in his/her stead. The proxy need not be a member of the Company. A proxy form is enclosed and must be deposited at the office of the Company Secretary not less than 48 hours before the time appointed for holding the meeting.

By Order of the Board

Chabby Chabala

Company Secretary

ZCCM-IH | Market update and further cautionary announcement

MARKET UPDATE ON THE INTERNAL
RESTRUCTURING AND REPOSITIONING STRATEGY
AND
FURTHER CAUTIONARY ANNOUNCEMENT

Further to the cautionary announcement issued on 12 December 2012, shareholders and the market are advised of the following further and on-going developments relating to the Company and are advised to continue exercising caution when dealing in ZCCM­IH shares…


Download the full Market Update and Cautionary Statement below:

Market Update and Cautionary Statement

ZCCM-IH | Director’s Half Year Summary to 31 March 2013

In compliance with the requirements of the “Securities Act, Cap 354 of the Laws of Zambia” and the Listing Rules of the Lusaka Stock Exchange, ZCCM Investments Holdings Plc announces the unaudited results for the six months period ended 31st March 2013.

The Group achieved a turnover of ZMW141.5 million during the six month period ended 31 March 2013 which was 13% above the turnover of ZMW 124.9 million for the six months to 31 March 2012. The turnover for Ndola Lime Company Limited (NLC) increased by 16% to ZMW107.5 million (2012: ZMW 92.5 million) The increase in turnover was as a result of improved production levels following the successful repair of the electrostatic precipitator at the beginning of 2012.

Total Dividend income earned was ZMW 8.9 million (2012:ZMW23.3 million). Dividends were earned from Chibuluma Mines Plc (ZMW 5.5 million) and Copperbelt Energy Corporation Plc (ZMW 3.4 million).


Download the full Directors’ interim summary for the six months ended 31 March 2013 below:

Directors’ interim summary for the six months ended 31 March 2013

ZCCM-IH | Notice of Extraordinary General Meeting

NOTICE IS HEREBY given that an Extraordinary General Meeting of the members of ZCCM Investments Holdings Plc will be held on Friday, 17th May 2013 at 10:00 hours at Southern Sun Ridgeway Hotel, corner of Church Road and Independence Avenue, Lusaka, Zambia for the following business:

  1. To receive and adopt the audited Financial Statements of the Group for the year ended 31st March 2012, together with the Reports of the Directors and the Auditors to the Shareholders.
  2. To ratify the appointment of Directors.
  3. To ratify the appointment of Auditors for the financial year ended 31st March 2013 and to authorise Directors to fix their remuneration thereof.

A member entitled to attend and vote at the meeting is entitled to appoint one or more proxies to attend and, on a poll, to vote in his/her stead. The proxy need not be a member of the Company. The instrument appointing a proxy must be deposited at the office of the Company Secretary not less than 48 hours before the time appointed for holding the meeting.

By Order of the Board


Download the full notice and agenda of the meeting below:

Notice and Agenda of the Extraordinary General Meeting

ZCCM-IH | Settlement Agreement Announcement

The market and shareholders are advised of the following new
developments relating to the Company.

PRICE PARTICIPATION SETTLEMENT AGREEMENT
WITH KONKOLA COPPER MINES PLC

ZCCM Investment Holdings Plc (“ZCCM-IH“) and Konkola Copper Mines (“KCM“) announce that they have entered into an agreement (the “Settlement Agreement“) pursuant to which certain outstanding payments owed by KCM to ZCCM-IH and certain other contingent amounts payable, in each case, under existing price participation arrangements (the “Price Participation Agreements“) which date back to March 2000 have been settled on the terms summarised below

Concurrently with the entry into the Settlement Agreement on 11 February 2013, the Price Participation Agreements dated 31 March 2000 were terminated.

The Price Participation Agreements were put in place at the time of the privatisation of Zambia’s copper mining industry as part of the consideration and were designed to allow ZCCM-IH to benefit from an increase in the price of copper over the long term.

Due to the complex mechanics for calculating the amount due and payable under the Price Participation Agreements and the contingent nature of payments likely to arise in the remaining life of the Price Participation Agreements, the parties have worked to put in place a new agreement with an unconditional and clear payment plan.

Under the Settlement Agreement, US$46,324,655 is required to be paid by KCM (via installments) to ZCCM-IH on or before 31 August 2013, and a further US$73,420,000 (via installments) on or before 30 September 2016.

The total amount payable under the Settlement Agreement remains broadly unchanged (in dollar amount terms) from the amounts that were due and would likely have become payable under the Price Participation Agreements over time. However, ZCCM-IH considers the increased certainty of the payment obligations as additional cash-flow benefits that will assist ZCCM-IH in its day-to-day business operations and future investment plans.

Contact

For further information, please contact:
Mr. Chabby Chabala,
Company Secretary
Telephone: + 260 211 221023 / 220540
Email: cchabala@zccm-ih.com.zm

08 April 2013

Lusaka – Zambia

ZCCM-IH | Appointments

Ms Mutale Chanda is the new Chief Operating Officer of ZCCM-IH Plc. Ms Chanda’s career started at Barclays Bank Zambia Limited where she worked to the position of Priority Banking Manager before leaving for the United Kingdom to pursue her studies. Whilst in the United Kingdom she obtained a Bachelor of Financial Services Degree and an MBA. After completing her studies, Ms Chanda worked in various organizations as a Financial Accountant before becoming Assistant Financial Controller for Associated Spring, a UK based subsidiary company of Barnes – a NYSE listed company. Before coming back to Zambia Ms Chanda worked as Head of Financial Accounts for the NHS.

Mr Joseph Lungu is the new Investor Relations Officer. He has a BEng in Mechanical Engineering from Manchester University and while in the UK he worked in various roles for News Corporation Plc, Royal Mail, Virgin Media Plc and Sage Plc  in Customer Services and Finance. Before joining ZCCM-IH Plc he worked as an Investment Advisor and Securities Trader at Intermarket Securities Ltd.

By Management

ZCCM Investments Holdings

ZCCM-IH | Director’s Half Year Summary to 30 September 2012

In compliance with the requirements of the “Securities Act, Cap 354 of the Laws of Zambia” and the Listing Rules of the Lusaka Stock Exchange, ZCCM Investments Holdings Plc announces the unaudited results for the six months period ended 30th September 2012.

The Group achieved a turnover of K375,833 million during the six month period ended 30th September 2012 which was 58% below the turnover of K891,764 million for the six months to 30th September 2011. During the six months period ended 30th September 2011 the high turnover was influenced by the sale of ZCCM‐IH shares in Equinox Minerals Limited (Equinox) which transaction resulted in a capital gain of K699, 137 million.

However, turnover for Ndola Lime Company Limited increased by 17% to K111,120 million for the period ended 30th September 2012 from K95, 136 million achieved at the end of 30th September 2011. The increase in turnover was as a result of improved production levels following the successful repair of the electrostatic precipitator at the beginning of 2012.


Download the full Directors’ interim summary for the six months ended 30 September 2012 below:

Directors’ interim summary for the six months ended 30 September 2012

ZCCM-IH | Status of appointment of a director to represent minority shareholders on the ZCCM-IH Board

Status of appointment of a director to represent minority shareholders on the ZCCM-IH Board.

The company has been in discussions with the Government of the Republic of Zambia (GRZ) over loans that ZCCM-IH owes GRZ amounting to K2,139 billion as reflected in the 2011 Annual Report. Recently GRZ accepted proposals to convert all or part of the loans to equity through a rights issue.

Following the impending debt-equity conversion via a rights issue referred to above, the Board of ZCCM-IH resolved that the appointment of a director to represent minority shareholders on the ZCCM-IH Board be deferred awaiting the conclusion of this transaction and further consultation with GRZ. Shareholders are therefore informed that this matter will await the completion of consultations with GRZ concerning the GRZ debt-equity conversion via a rights issue.

By Order of the Board

C Chabala

Company Secretary

ZCCM | Market update and further cautionary announcement

Further to the cautionary announcement issued on 12 December 2012, shareholders and the market are advised of the following further and on – going developments relating to the Company and are advised to continue exercising caution when dealing in ZCCM-IH shares.

INTRODUCTION
ZCCM Investments Holdings PLC (“ZCCM-IH”) is an investments holdings company with diversified interests in metals,mining, power and other sectors of the Zambian economy. The Company has a primary listing on the Lusaka Stock Exchange(“LuSE”) in Zambia and a currently non active secondary listing on the London Stock Exchange and some shares are traded on the Euronext stock exchange in Paris.

ZCCM-IH is the privatized entity formerly known as Zambia Consolidated Copper Mines Limited (“ZCCM”). In 2000 ZCCM was privatized by the Government of the Republic of Zambia(“GRZ”). ZCCM-IH emerged from the privatization of ZCCM as an investments holdings company with equity stakes of between 10 to 20.6% in the new companies that were formed from the unbundling of ZCCM…


Download the full market update below:

Market update on the internal restructuring and repositioning strategy and further cautionary announcement