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SP ZCCM Abridged 2020-2026

Executive Summary

Overview

Our vision for the next six years is to transform ZCCM-IH into a competitive world-class mining investment holding company that takes into account the interests of Zambians and all stakeholders. The focus for ZCCM-IH in this new strategic plan is directed to mining and mining-related investments and emphasizes the need for ZCCM-IH to drive the development and growth of the mining sector in Zambia.

This new strategic plan continues to reinforce our collective values to operate in a business environment where innovation is cultivated and ensures that our systems and resources are strong enough to be a much bigger player in mining investment. We have revised our Vision to challenge ourselves to excel in ensuring high-quality investments (with a significant socio-economic impact. Over the past two years of implementing our 2018-2023 strategic plan, we made some notable achievements which include the following:

1. Consistent dividend pay-outs to shareholders;
2. Portfolio Return above the set benchmark;
3. Increased shareholding in CEC Plc;
4. Diversified into Manganese exploration and mining through Kabundi Resources Ltd;
5. Increased to 100% shareholding in Kariba Minerals Limited;
6. Recapitalisation of Investrust Bank Plc through the injection of ZMW286 million as Tier 1 Capital;
7. Began implementation of the mandate to develop the gold sub-sector in the country;
8. Commenced discussions with our partners in the mining companies for the introduction of a more reliable and predictable revenue stream in form of royalties, metal streams, and management fees; and,
9. Implementation of a new performance management system.

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SP ZCCM Abridged 2020-2026

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CBU Students Back Govt Move On Mines

Collins CHAMA-THE Copperbelt University Students Union-COBUSU has hailed Government’s decision to acquire the majority stake in Mopani Copper Mines-MCM.
COBUSU President LAWRENCE KASONDE says the decision would NOT have come at a better time than NOW.

Mr. KASONDE was speaking during the launch of the ‘Zambia for Zambians Campaign’. He said Government has again demonstrated patriotism by ensuring that the mine is handed back to Zambians, through ZCCM-IH.

Mr. KASONDE said the newly launched organisation will engage stakeholders such as the Mine Workers Union of Zambia -MUZ, the National Union of Miners and Allied Workers-NUMAW and the Ministry of Mines over the takeover of the mine.  He said the country has a pool of competent human resource that can successfully run and manage the mine profitably.

Mr. KASONDE said there is NO need for the country to engage expatriates in fields where locals are ably qualified.
Government recently acquired ninety percent shares in Mopani Copper Mines-MCM through ZCCM-IH, a move that has been applauded by a cross section of society.

 

Sources : https://www.znbc.co.zm/news/cbu-students-back-govt-move-on-mines/
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Chingola Constituency endorses President Lungu

The Patriotic Front in Chingola Constituency has endorsed the candidature of President Edgar Lungu as the sole Presidential candidate for PF this year.

The PF executive has equally endorsed Chingola Member of Parliament (MP) Matthew Nkhuwa as their preferred parliamentary candidate for Chingola in the August 12, 2021 general elections.

Meanwhile, th PF has congratulated ZCCM-IH and Provisional Liquidator Milingo Lungu for wining the court case against Vedanta Mineral Resources.

Speaking at Chikola Secondary School yesterday, Chingola Constituency Chairperson Francis Chileshe said the constituency has endorsed President Lungu because of the numerous infrastructure developmental projects in Chingola.

 

Mr Chileshe said that Chingola roads were an eyesore but President Lungu working with Mr Nkhuwa had transformed the face of the town.

He said the cost of doing business for motorists and travel time for residents has reduced because of the perfect road netowrk spearheaded by President Lungu and his Member of Parliament Mr Nkhuwa.

He said all the wards in the Constituency had endorsed the President Lungu and Mr Nkhuwa because they have seen the hardwork and want to see continuity of development.

And Mr Chileshe said Mr Nkhuwa has worked well in his constituency and derseves another term for the continuity of development.

He said Mr Nkhuwa has delivered various projects among school infrastructure, maternity annex, police posts and various empowerment projects.

He reiterated that no Member of Parliament of Chingola Constituency has delivered like Mr Nkhuwa in his first term.

He has urged the member of his Constituency to be peaceful and unite as one in order to return the Presidency and the parliamentary seat.

Mr Chileshe said Chingola Constituency is politically intact as evidenced by the turnout.

Out of the 79 leaders in the Constituency from all the wards, 76 were present.

Regarding, the take over of KCM by ZCCM-IH, Mr Chileshe said the President had delivered to the people of Chingola and the miners what many cries for for a long time.

He said the take over means Zambians will be working freely without intimidating.

Mr Chileshe thanked the PF district leaders who were in attendance for support the constuency in organising the event.

 

Source : https://tiozambia.com/chingola-constituency-endorses-president-lungu/
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ZCCM-IH Seeks Listing Advisor

ZCCM-IH has put out an expression of interest (EOI) inviting bids for advisory services to successfully upgrade its Euronext listing.

According to the EOI, ZCCM-IH has a secondary listing on Paris’ Euronext Exchange since 1970 in the Access Tier which it now wishes to upgrade to the Growth Tier as a way of restructuring its listings to enhance shareholder value, increase its visibility and trading activity on its secondary listings, which include the London Stock Exchange.

The company, whose primary listing is on the Lusaka Securities Exchange (LuSE), states that currently, its share activity on all three exchanges has been plagued with illiquidity and a decreasing or stagnant stock price, despite a positive turnaround in the Company’s earnings. Hence, the restructuring.

The key objectives the advisory firm is expected to meet are to advise on the listing upgrade methodology and to actualize the listing upgrade “in a manner consistent with all applicable rules and regulations.”

The EOI states that currently, 6.6% (10,619,577) of ZCCM-IH shares are listed on Euronext and that significant share trading takes place thereon.

ZCCM-IH is owned 17.25% directly by the government of Zambia and 60.28% indirectly through an investment company wholly owned by the government, the Industrial Development Corporation. The remainder 22.47% is held by institutional and individual investors.

ZCCM-IH has lately been pushing an expansionist agenda seemingly in tandem with heightened political and government rhetoric on increased local participation in the economy, particularly in the extractive sector.

 

Source : https://zambiandigest.com/2021/02/zccm-ih-seeks-listing-advisor/
Archived Tenders, ZCCM-IH

Cancellation – Request for Expressions of Interest (EOI) for the Valuation of Limestone Resources Limited – Tender No.: ZCCM-IH/010/2021

  1. This serves to inform all Prospective Consultants on the Cancellation of the Request for Expressions of Interest (EOI) for the Valuation of Limestone Resources Limited – Tender No.: ZCCM-IH/010/2021
  2. In accordance with the Public Procurement Regulations (PPR No.63 of 2011) Section 24 Sub Section 1, (A procuring entity shall avoid the cancellation of procurement proceedings whenever possible, but cancellation may be approved by the approvals authority where:(c) There is a significant change in the required technical details, Bidding Conditions, conditions of the contract or other details, such that the recommencement of the procurement proceedings is necessary.

K D Kabwe (Mrs.)
ZCCM Investments Holdings Plc.
ZCCM-IH Office Park, Stand No. 16806
Alick Nkhata Road, Mass Media Complex Area
Lusaka, Zambia
Tel: +260-211-388000
E-mail: kabwek@zccmnew.wpenginepowered.com;

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Tender Cancellation- Expressions of Interest Limestone Resources

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The minority shareholders of ZCCM-IH have full confidence in the ZCCM-IH Management and the Mopani teams

The minority shareholders of ZCCM-IH have gradually learned the terms of the takeover of Mopani Copper Mine Plc. The financial scheme for the acquisition seems satisfactory to us
insofar as the repayment of the installments can be modulated from 10 to 17 years depending on the price of copper and the production of the mine.

We read and hear doubts about the ability of ZCCM-IH to manage the mine with reference to the former ZCCM that was asphyxiated and ruined by a copper price that fell to $1500 per tonne
in the 1990s. Today, the situation is different with a different Management, a copper price around $8,000 and a return to the highest according to experts. Furthermore, the calamitous operation and management of the Mopani mine by Carlisa Investments and its parent company Glencore can only improve, given the reserves and grade of the ore.

As investor shareholders of ZCCM-IH, committed to the development and future of our company, free from any controversial or political considerations, we have full confidence in the
Management of ZCCM-IH, which has a proven track record in bringing the Kasenseli gold mine and the Serenje manganese mine into operation. This had not happened for almost twenty
years, the unfortunate Kasolo years are now behind us… The feasibility studies and audits concerning Mopani had to be conducted with the necessary seriousness and professionalism.

After having suffered from so-called partners who have been financially stifling us for years,becoming a MAJORITY mining operator again was an absolute objective and necessity. Our
only regret is that after all these infamous and bitter experiences, a strategic partnership is once again being considered.

The minority shareholders of ZCCM-IH are convinced that this great project, this great challenge,the acquisition of a world class asset like MCM, will lead up to the return of ZCCM-IH as a leading mining operator thanks to the Management and the miners of Mopani, with the supervision of the teams of our CEO Mabvuto Chipata.

The conditions are right for ZCCM-IH to once again become Zambia’s mining flagship and once again be the pride of the country.

Issued by:
Thierry CHARLES
Spokesperson of Minority Shareholders of ZCCM-IH

 

Source : https://www.lusakatimes.com/2021/02/03/the-minority-shareholders-of-zccm-ih-have-full-confidence-in-the-zccm-ih-management-and-the-mopani-teams/
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Zambian court denies Vedanta attempt to halt Konkola Copper Mines split

(The Southern African Times) – A Zambian court on Monday dismissed a motion by miner Vedanta Resources’ seeking to stop a state-appointed provisional liquidator from splitting up its Konkola Copper Mines (KCM) unit and selling the assets. 

The ruling is a blow to the Indian-owned mining company which has said it would fight any attempt by Zambia to sell KCM to third parties.

Vedanta has been locked in a protracted dispute with the Zambian government since May 2019, when the Zambian government, which owns 20% of KCM through state mining investment firm ZCCM-IH, handed control of the mine to a liquidator.

Judge Winnie Sithole-Mwenda discharged a Jan. 18 injunction order which Vedanta had sought to restrain Provisional Liquidator Milingo Lungu from splitting KCM and selling the assets. Lungu has previously said asset disposal is KCM’s last remaining option 

Vedanta Resources declined to comment on the ruling. 

The provisional liquidator said: “As KCM we welcome the ruling.”

Lungu said the order that instated him as provisional liquidator set out powers including the ability to split and sell the company. 

In a restructuring announced in December, Lungu said KCM would be split into two subsidiary companies: KCM SmelterCo Limited and Konkola Mineral Resources Limited, effective Feb. 1. 

While the split was delayed by Vedanta’s injunction order, Lungu on Monday told Reuters he is confident the two entities will begin to operate soon.

Sithole-Mwenda cited procedural reasons in dismissing the order.

“The ex parte Order of Injunction dated 18th January 2021 is, accordingly, discharged forthwith,” she wrote in the ruling. 

The ruling awarded costs to the defendants (the provisional liquidator and KCM) and denied leave to appeal. 

Vedanta and Zambia are still in arbitration proceedings in London over the KCM dispute, which began when the government accused Vedanta of failing to honour licence conditions, including promised investment. 

Vedanta has previously denied that KCM broke the terms of its licence.

Zambia’s Court of Appeal in November ordered a halt to KCM liquidation proceedings, to allow Vedanta and ZCCM-IH to proceed to arbitration. ZCCM-IH is appealing that ruling.

 

Source : https://thesouthernafricantimes.com/zambian-court-denies-vedanta-attempt-to-halt-konkola-copper-mines-split
All Posts, ZCCM-IH, ZCCM-IH News

CONSULTANT URGES GOVT TO TAKE UP SHARES IN PRIVATE MINES

A business consultant has advised government to take up shares in mines that are still in private hands.

Mr. Thomas Shikulu said the country has been lagging behind in terms of revenue collection from the mining sector and needs a pragmatic approach in which the mining sector is to be dealt with.

“We have also seen a change in the previous years…mining companies in the Copperbelt would also invest in a number of public goods like construction of roads, schools and hospitals; but with the mining companies of today this has gone down,”

Mr. Shikulu.

He added that this has led to low revenue collection for government which is supposed to use to invest in those particular goods.

The consultant further said government can increase stake in the mining sector which will lead to more decision making and increase their voice on board meetings, as they will encourage the sector to invest more in public goods.

Mr. shikulu explained that the strain on the government resource base will be reduced drastically and in turn fill up more resources for government to invest in other priority areas.

Meanwhile, business consultant Mubamba Sichilongo said the 90 percent sell by Glencore to ZCCM now has 100 percent ownership of Mopani Copper Mines.

“Would this be able to generate more revenue for the country from the mining sector? Perhaps before that, the question we need to ask is do we have sufficient capacity in terms of re-investment in the mines to reap the desired benefits,”

Mr. Sichilongo.

The consultant said a balance needs to be found to what extent foreign investors should be allowed to have their own shares.

 

Source : https://lusakastar.com/business/consultant-urges-govt-to-take-up-shares-in-private-mines
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Zambian court denies Vedanta attempt to halt Konkola Copper Mines split

LUSAKA (Reuters) – A Zambian court on Monday dismissed a motion by miner Vedanta Resources’ seeking to stop a state-appointed provisional liquidator from splitting up its Konkola Copper Mines (KCM) unit and selling the assets. The ruling is a blow to the Indian-owned mining company which has said it would fight any attempt by Zambia to sell KCM to third parties.

Vedanta has been locked in a protracted dispute with the Zambian government since May 2019, when the Zambian government, which owns 20% of KCM through state mining investment firm ZCCM-IH, handed control of the mine to a liquidator.

Judge Winnie Sithole-Mwenda discharged a Jan. 18 injunction order which Vedanta had sought to restrain Provisional Liquidator Milingo Lungu from splitting KCM and selling the assets. Lungu has previously said asset disposal is KCM’s last remaining option

Vedanta Resources declined to comment on the ruling. The provisional liquidator said: “As KCM we welcome the ruling.” Lungu said the order that instated him as provisional liquidator set out powers including the ability to split and sell the company.

In a restructuring announced in December, Lungu said KCM would be split into two subsidiary companies: KCM SmelterCo Limited and Konkola Mineral Resources Limited, effective Feb. 1. While the split was delayed by Vedanta’s injunction order, Lungu on Monday told Reuters he is confident the two entities will begin to operate soon.

Sithole-Mwenda cited procedural reasons in dismissing the order.  “The ex parte Order of Injunction dated 18th January 2021 is, accordingly, discharged forthwith,” she wrote in the ruling.

Source: https://www.reuters.com/article/us-zambia-mining-vedanta-idUSKBN2A12IO
Annual Report Summaries, Investee Companies

Copperbelt Energy Corporation Plc (CEC) Extract from 2021 Annual Report

During the year ended 31 December 2021, CEC reported total revenue of ZMW6.7 billion 

(US$342.52 million), [2020: ZMW6.9 billion (US$370.93 million)] and profit after tax of ZMW1.01 

billion (US$51.25 million), [2020: ZMW104.50 million (US$5.61 million)]. 

The Bulk Supply Agreement between CEC and ZESCO that expired on 31 March 2020 was 

renewed after the year end on 7 April 2022. This delay negatively impacted the business’ margins 

and performance. Nonetheless, CEC proved to be a resilient business and continued to thrive 

and diversify its operations in spite of the challenges faced. 

Further, CEC successfully contested Statutory Instrument (SI) No.57 of 2020 that declared its 

transmission and distribution lines common carrier. This declaration was quashed by the High 

Court but was later replaced by SI No. 24 of 2021. The court did not pronounce itself on the said 

SI, as the new government took the decision to repeal the SI number 24 of 2021, this action has 

fully restored CEC property and commercial rights over its power infrastructure. 

For the year under review, the CEC share price opened at ZMW1.10 per share and closed 

at ZMW1.95. The Company declared and paid a dividend of US$37.375 million with ZCCM-IH 

receiving US$9 million (2020: US$8.2 million).