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ZCCM-IH News

1,000 get house offers

KWETO MFULA, Chingola
CHINGOLA residents have been offered to buy 1,000 former ZCCM-Investment Holding (ZCCM-IH) housing units at a cost of K1,337 per unit.

The houses will be offered to sitting tenants in line with Government’s home empowerment policy.

This came to light when Nchanga member of Parliament Wilbur Simuusa and Chingola town clerk George Mulenga met prospective beneficiaries at Banda Market in Nchanga-North yesterday.

Mr Mulenga told sitting tenants that the Ministry of Lands has since prepared letters of invitation of treaty to 500 of them, while the other 500 letters will be done at a later stage.

He said beneficiaries have been given 90 days in which to pay the required amount in full.
Investee Company News

Nationwide power outage impacts KCM operations

HINGOLA, 11TH December 2015, Konkola Copper Mines (KCM) operations and production have been affected by a countrywide power blackout which occurred from about 10:35 PM on Thursday, 10th December, 2015.

Following the power outage, KCM was able to bring on line 16MW of power using its own emergency diesel generator set at Konkola mine supported by another 40MW in emergency power supplied by the CEC from its gas turbines. This power allowed KCM to continue to pump water and withdraw its employees in a planned and disciplined manner. All employees at both the Nchanga and Konkola underground mines were withdrawn without injury or incident.

However, around 04:30 AM on Friday, KCM lost the emergency power supply after the national power system tripped as attempts were being made to reconnect the company to the national grid. Full supply of power was finally restored to KCM at about 09:40AM today. Production was suspended during the power outage.

Consequently, it will take KCM about 16 hours to restart operations at its Nchanga smelter in Chingola. The company will also suffer some slight loss of production at Konkola while pumping out of water continues from the deeper sections of the mine.

The rest of the operations are being systematically returned to production following full safety and environmental checks.

Shapi Shachinda

Manager Public Relations & Communications

Mobile: 0978 871958
Investee Company News

First lady says KCM is trusted development partner

Zambia’s First Lady Esther Lungu has said Konkola Copper Mines (KCM) is a trusted development partner for the country following its expansive social investments in the last 11 years.

The first lady said this when she addressed hundreds of residents of Shimulala, Helen and Kakosa settlements on the outskirts of Chingola, where the company’s corporate head office is located. She visited sites of KCM’s corporate social responsibility (CSR) programmes.

Mrs Lungu commissioned the new Helen Bridge which was constructed by KCM at a cost of Zk877,635.00 (US$82,640.00). She also laid a foundation stone for an Out-Grower project seeking to empower local farmers and toured other KCM-funded CSR projects.

The newly constructed Helen Bridge has eased movements of over 4,000 people living in the area as they carry produce and other goods to markets in Chingola and beyond. It also connects people to health and education facilities outside of their settlements.

The Nabona out-growers programme targets to provide about 500 small and medium scale farmers with access to markets in an organised way to ensure quality and planned production.

I want to urge the community to continue to work closely with Konkola Copper Mines (KCM) because this is your trusted partner. KCMhas stood by you in good and difficult times,

she said.

“I must commend KCM for providing 22 hectares of land on lease to proprietors of Nabona as this will create employment for farmers and the young people,” Mrs Lungu said.

Mrs Lungu also paid glowing tribute to KCM for empowering women with life-saving skills in cattle rearing, tailoring and farming.

“I want to attest that it is evident that KCM has spent US$160 million in communities over the last 11 years,” Mrs Lungu told residents after touring some CSR projects, including the cattle restocking project.

I have seen some of the key projects where these funds have been spent.

She said it was heartening that the company was focusing on four corporate social responsibility pillars, namely education, health, sustainable livelihoods and sport.

The first lady encouraged KCM to continue uplifting the lives of people in its areas of operations. KCM has given out over 596 cattle in Chingola, Chililabombwe and Nampundwe and also provided 2,327 goats to 26 self-help groups.

Mrs Lungu said social investments by KCM fitted into President Edgar Chagwa Lungu’s vision for a public private partnership models for diversifying the economy and shoring up growth.
Investee Company News

Konkola Copper Mines here to stay

hingola, 4th November 2015 – Konkola Copper Mines (KCM)has reaffirmed its commitment towards Zambia’s development agenda despite the current challenges it is facing that have affected its operations.

KCM Chief Executive Officer Steven Din says the company’s investment in the mines amounting to $3 billion dollars over the last eleven (11 years) is a clear demonstration of its commitment to this development agenda.

Mr. Din has said this in a statement in commemoration of the company’s 11th anniversary which falls today.

Mr. Din notes that despite the current challenges KCM is facing such as low copper prices and power deficits, the company’s 50 year vision will ensure that KCM still remains in operation for a long time to come through enhanced sustainable operations of its mines.

He adds that to achieve this agenda KCM is examining local economic development opportunities aimed building up the economic capacity of the communities around KCM’s operations to improve their economic futures and the quality of life for all.

He also highlighted the company’s commitment to its CSR programmes in the areas of rural livelihoods, education, health and sports. KCM has spent more than $160million on its CSR projects since Vedanta acquired its interests in the company.

Hesays the company aspires to use the KCM assets as a catalyst to secure economic activity in the Copperbelt and surrounding areas for the next fifty years and beyond, long after KCM has ceased mining.

KCM is working a 50 year vision but this vision depends on the Copperbelt realizing its potential as an economic hub. Mining alone will not achieve this. Agriculture, tourism, logistics, services and trade will all need to make a contribution,

Mr. Din said.

The CEO is confident that with the right strategy, carefully executed in partnership with government, donors and civil society groups, KCM can add substantially to additional economic activity per year in non-mining sectors and create many jobs.

He further notes that generating employment beyond the life of the mines will be the single greatest economic legacy of KCM in the Copperbelt.
ZCCM-IH News

Copper mining will rebound – ZCCM-IH

KOMBO KACHEMBA, Kitwe
THE Zambia Consolidated Copper Mines-Investment Holdings (ZCCM-IH) says the challenges facing the mining sector are temporary and they arise from changes in the supply and demand chain on the international market.

ZCCM-IH chief executive officer Pius Kasolo said the slump in copper prices on the international market is a routine economic trait which is not permanent but comes as a result of changes in the demand and supply chain.

What happens is that if China is not buying our copper, the mines reduce on production. At a certain point, when all the copper on the market is consumed, there will be high demand for the commodity and the prices will definitely go up. So what is happening in the mining sector in Zambia is temporary,

Dr Kasolo said.

He was speaking in an interview in Kitwe on Tuesday during a ZCCM-IH discussion forum dubbed ‘Share sale down promotion’.

ZCCM-IH is selling shares to members of the public at a share price of K38 per capital share.

Dr Kasolo projected that the price of copper on the international market is likely to improve in the next six months and appealed to Zambians to have confidence in the mining sector.

He said the mining sector still remains viable with mining activities still taking place in the North-Western Province.

Dr Kasolo said Zambia has plenty of copper ore deposits which are yet to be explored by investors willing to invest in the mining sector.

The North-Western Province will soon become the Copperbelt of Zambia. There are exploration works that are currently taking place here in Zambia for other minerals as well including gold, so our mines are still viable,

he said.

Dr Kasolo also said ZCCM-IH is capable of managing the mining sector should Government decide to take ownership of the mines.

He, however, said if ZCCM-IH has to take over the operations of the mines, it means the investment holding has to also inherit the huge debts accrued by the mine owners.

If President Lungu today tells me to be in charge of the mines, I can manage to run them, after all these mines are managed by Zambians,

he said.
Dr Kasolo said ZCCM-IH has the skills and expertise required to operate the mines effectively for the Zambian people.

And speaking during the forum, Dr Kasolo appealed to Zambians to buy shares in ZCCM-IH because it is diversifying its activities to include the agriculture and energy sectors.

He also assured Zambians that their investments will be protected should they choose to buy shares in ZCCM-IH.

Dr Kasolo said priority in buying shares has been given to Zambians for ZCCM-IH to be locally owned.
He appealed to Zambians to quickly buy ZCCM-IH shares before the promotion ends on November 30 this year.

And KELVIN CHONGO reports that mining expert Matheus Mphande has urged Government to consider value addition to copper as a way of protecting jobs in the mining sector.

“The only way we can develop the country is to get into processing of copper into copper wires, pipes and manufacturing of motor vehicle parts,” he said.
“With these plans in place even when copper prices fall at the London Metal Exchange, the economy will still remain strong,” he said.

Dr Mphande said many countries have no copper deposits and that Zambia must take advantage by getting into cooperation with countries like China, India or South Africa to set up a copper processing plant.

Dr Mphande said even South Africa, which manufactures cars such as Isuzu and Toyota, has no copper deposits and it would be appropriate for Zambia to enter into an agreement to supply finished copper products specifically for vehicle manufacturing.

Dr Mphande also said mine owners should stop importing lime but buy the locally produced one.

Copper at the London Metal Exchange was trading at US$4,525 per tonne yesterday.

Investee Company News

Zambians urged to buy ZCCM-IH shares

KABANDA CHULU, Lusaka
ZCCM Investments Holdings Plc has engaged the Ministry of Foreign Affairs to ensure that information is circulated to Zambians living in the diaspora participate in the buying of the 28 million government shares being sold on the Lusaka Stock Exchange.

ZCCM-IH chief executive officer Pius Kasolo said President Lungu directed that all Zambians living locally and abroad be engaged to participate in the running of the mining industry through shares, which are being sold at K38 per share.

“We have started working with the Ministry of Foreign Affairs to ensure that information about the sale down is disseminated to Zambians wherever they can be found and use all channels available to reach them.

“Generally, the response was slow at first but there is an improvement, and it is time Zambians get exposed to owning shares. In other countries, people in bars and clubs talk about shares they own and this is the culture which should be embedded in our society,” Dr Kasolo said.

When asked if the response will be good considering the low copper price on the international market, Dr Kasolo said ZCCM-IH is not worried.

“People buy shares when they are down and when things improve, you rise up together”, he said.

Dr Kasolo also urged companies to take advantage of the share offer which ends on November 30.
ZCCM-IH News

Buy shares in ZCCM Holdings, citizens urged

SYLVESTER CHISHIMBA, Lusaka
ZCCM Investments Holding has implored Zambians to take advantage and buy shares floated by the company on the market.

During a ZCCM-IH share sale-down interactive meeting at Mulungushi International Conference Centre on Friday, ZCCM-IH chief financial officer Mabvuto Chipata said his company, through the share sale-down, intends to increase participation of Zambians in economic development.

We want to ensure a broad distribution of shares in order to increase the liquidity and trading of ZCCM-IH shares on the LuSE [Lusaka Stock Exchange]. We want to comply with LuSE listings requirements regarding the minimum percentage of shareholding available to the public, implement GRZ’s initial intention of the second phase of privatisation and also raise revenue for the treasury,

he said.

Mr Chipata said ZCCM-IH has put up 27,961,237 shares for sale at an offer of K38 and K40 as market price.

The preferred applicants, who are Zambian companies or the local people, will not pay any transaction fees but foreign nationals or companies will pay a transaction fee of 1.37 percent,

he said.

Mr Chipata said the share sale-down which has a percentage offer of 17.4 percent, closes on November 30, 2015, adding that the results of offer will be announced on December 14.

“We extended the period of offer for another two months in order to provide more opportunity to every Zambian within the country to know about the offer.We do not want to have at the end of the day people saying they did not hear about the offer,” he said.
ZCCM-IH News

ZCCM-IH share sale deferred

THE sale of ZCCM-IH shares to the public has been extended to November 30, 2015, due to lack of adequate information on the preferential market offer.

This is in compliance with the listing rules of the Lusaka Stock Exchange (LuSE), and an announcement made by ZCCM-IH on Friday August 7, 2015, detailing the salient terms of the preferential secondary market offer.

The investing public has been advised that the period for the preferential offer has been extended to Monday, November 30, 2015.

According to information posted on the Industrial Development Corporation (IDC) website, the preferential offer was targeted to close on Friday, October 2, 2015, but ZCCM-IH has noted that most members of the public have not been able to access adequate information on the preferential offer due to the delayed availability of the information supplement.

“The company has decided to extend the offer period to Monday, November 30, 2015. The revised time line for the offer is shown under the revised salient dates,” the announcement reads.

Investee Company News

First Quantum Minerals reports stable power supply to its Zambian operations

Zambia – First Quantum Minerals said on Monday that the Zambian power situation is stabalising enough that it anticipates its Sentinel copper mine, in Zambia’s North Western province to begin commercial-level production by the end of the year.

Sentinel, which has been in construction by First Quantum Minerals since June 2012, will produce between 280 000 and 300 000 tpa of copper at full production from a large low-grade ore body containing 0.51% copper.

Sentinel’s ramp-up to date has been affected by the limited power supply. Despite this, good progress has been made. One power line, supplying 55 MW is currently connected and supplying power to the Sentinel mine while construction of the second power line connecting Sentinel to Lusaka West is complete and scheduled to be energized shortly.

Once the second power line is connected and energized, Sentinel will be entitled to its full power requirement of 160MW. This will allow for the mine to ramp-up towards commercial-level production expected by the end of 2015.

Further, full power of 153 MW is currently being provided to First Quantum Minerals’ other Zambian operation – the Kansanshi mine and smelter.

ZESCO, the state-run power company, has requested the mining industry to use supplementary power for 30% of their requirements. Discussions are currently underway regarding the related tariffs for this supplementary power. First Quantum Minerals expects full production at both Kansanshi and Sentinel through the purchase and sharing of this power.

It is also expected that the country’s generating capacity will improve following the rainy season starting in November. In addition, approximately 400 MW of new power generation capacity is expected online in Zambia in 2016 from projects nearing completion – which includes 300 MW thermal and 100MW hydro power.

Meanwhile, in response to low commodity prices, market volatility and power shortages to its Zambian operations, First Quantum Minerals has taken steps to protect itself in the current market conditions, says First Quantum Minerals Chairman and CEO Philip Pascall.

“Our focus has been clear. It is first to ensure that profitability and cash flow from our mining operations are maximized and protected in these volatile market conditions and sustained lower commodity prices and second, that cash outflows are limited to essential and economically attractive projects so that our balance sheet integrity is maintained.

“Additional initiatives to further strengthen the balance sheet are being prioritized and are under active review.
ZCCM-IH News

ZCCM-IH shares unbundled

ZAMBIAN public shareholders have bought 11,792,337 shares out of the 27,961,237 Class B shares advertised by the ZCCM-IH this year.

In the 2015 National Budget address delivered in October 2014, the Government announced intention to sell all its Class B shares held in ZCCM-IH to members of the public.

As at October 10, 2014, the Government held 87.5 per cent of shareholding in ZCCM-IH through the minister of Finance, made up of 96,926,966 as Class A shares, representing 60.3 per cent shareholding in ZCCM-IH and 43,811,866 Class B shares, representing 27.2 per cent shareholding in ZCCM-IH.

The primary motivation for the sale down of the GRZ B shares held in ZCCM-IH was because Lusaka Stock Exchange (LuSE) listing requirements stipulate that no single shareholder should control more than 75 per cent of the equity in any company.

This is to ensure that more of the citizens participate in the capital markets.

To comply with the listing requirements, the Government would reduce its shareholding in ZCCM Investments Holdings Plc to 60 per cent from 87 per cent.
The 27 per cent shares were to be sold to Zambian citizens as a way of entrenching economic independence of the people.

In this regard, ZCCM-IH management was mandated by the Government, through the minister of Finance, to sell all the Class B shares held by the Government to the Zambian public and eligible Zambian institutions.

The process of selling the 43,811,868 Class B shares initially held by GRZ has begun and to date a total of 15,850,631 shares, representing 9.9 per cent of the shareholding in ZCCM-IH, have been sold to the National Pension Scheme Authority (NAPSA).

On July 30, 2015, ZCCM-IH issued an Information Supplement regarding the GRZ Preferential Secondary Market Offer on the remaining balance of 27,961,237 shares (17.4 per cent shareholding in ZCCM-IH) to be sold to the Zambian citizens and eligible Zambian institutions.

According to the ZCCM-IH statement for this month, as at close of business on August 23, 2015, the Government held 77.7 per cent shareholding in ZCCM-IH, through the minister of Finance, made up of 96,926,669 as Class A shares and 27,961,237 as Class“B” shares.

On August 24, 2015, GRZ transferred to the IDC all the 96,926,669 Class A shares, representing 60.3 per cent shareholding in ZCCM-IH,

the statement reads.

The 27,961,237 Class B shares, representing 17.4 per cent shareholding in ZCCM-IH, have not been transferred to the IDC at this stage and are currently being sold to the Zambian public under a Preferential Secondary Market Offer.

The shares transferred to the IDC represent 60.3 per cent of the shares while those for NAPSA represent 15.0 per cent and for the rest of the shareholders they represent 7.3 per cent.
Currently, ZCCM-IH is operating under the 2012-2016 Strategic Plan which includes such sectors as real estate and agriculture.

The strategy to diversify the portfolio whose aim is to maximise shareholder value is currently ongoing,

the organisation said.

The ZCCM-IH mission will continue to be one of maximising shareholder value for all its shareholders, which now includes the IDC. The shareholders own the company and management will continue to engage with its shareholders as it executes its mission.—Times of Zambia