All Posts

All Posts, Industry News, ZCCM-IH News

Central Bank on a gold binge; ZCCM IH becomes ‘Gold Dore Bars’ supplier

Following the Zambian Government’s declaration of gold as a strategic resource, the Central Bank has now signed a deal with the investment group that has been bestowed the honor and responsibility of consolidating gold mining efforts in Zambia, according to an announcement from the Bank of Zambia.

The Golden Deal. Central Bank Governor Christopher Mvunga and ZCCM IH CEO Mabvuto Chipata sign historic deal

“The Bank of Zambia agreed on Friday to purchase gold from locally-listed miner ZCCM-IH”, read a report published by Reuters on Friday 11 December. This was confirmed by a tweet from the central bank posted earlier in the day. “The Bank of Zambia has this morning signed a Gold Purchase Agreement with the Zambia Gold Company Limited, a subsidiary of ZCCM Investments Holdings (ZCCM-IH)”.

According to the Central Bank, “this Agreement will take the Bank’s efforts to build the country’s gold reserves a step further”.

Governor Mvunga is keen on seeing stability through the preservation of value through gold

What now appears to have been a busy day for the new Governor of the Central Bank, the reserve bank had signed a deal with First Quantum Minerals to secure more gold bullion. “The Bank of Zambia will begin buying gold from Canadian miner First Quantum Minerals and the state mining firm as it resumes holding the precious metal as part of its foreign reserves”, the central bank governor said on Friday as reported by mining weekly.

CEO Mabvuto Chipata has done his part in securing gold from artisanal miners, he now becomes a supplier of that gold to the Central Bank

“During periods of market stress – when assets would be losing value – gold would be adding value, thereby shielding the whole portfolio from large losses,” Bank of Zambia Governor Christopher Mvunga said as reported by mining weekly. The report further indicated that “under the agreement signed between the central bank and First Quantum, a Toronto-listed copper miner, Zambia will buy gold produced as a by-product of the company’s Kansanshi copper mine.

Gold is considered a safe investment. Furthermore, it has long been considered a durable store of value and a hedge against inflation. It is supposed to act as a safety net when markets are in decline since the price of gold doesn’t typically move with market prices. Therefore, it’s no wonder that the central bank is seeking to build up its gold reserves following a sovereign default as alluded to by the central bank governor.

Source: 
Industry News, ZCCM-IH, ZCCM-IH News

Bank of Zambia agrees to buy gold from ZCCM-IH

LUSAKA, Dec 11 (Reuters) – The Bank of Zambia agreed on Friday to purchase gold from locally-listed miner ZCCM-IH as it seeks to build up its gold reserves following a sovereign default, the central bank governor and a company executive said.

The agreement follows a similar deal which the Bank of Zambia signed with Canadian copper miner First Quantum Minerals earlier in the day. (Reporting by Chris Mfula Writing by Joe Bavier Editing by Helen Reid)

Source: https://www.reuters.com/article/zambia-economy-zccm-ih/bank-of-zambia-agrees-to-buy-gold-from-zccm-ih-idUSJ8N29L00O
All Posts, Industry News, ZCCM-IH, ZCCM-IH News

ZCCM-IH SIGNS MOU WITH BOZ FOR THE SALE OF GOLD

The Bank of Zambia has signed a Gold Purchase Agreement with both Kansanshi Mining, a subsidiary of First Quantum Minerals and the Zambia Gold Company Limited, a subsidiary of ZCCM Investments Holdings.

Central Bank Governor Christopher Mvunga, signed the agreement on behalf of the Bank while, Director of Operations at First Quantum Minerals Rudi Badenhorst, signed on behalf of Kansanshi Mining PLC and Chief Executive Officer of ZCCM-IH, Mabvuto Chipata, signed on behalf of Zambia Gold Company Limited respectively.

Mr. Mvunga said the two agreements are an important milestone in the Bank’s efforts to resume the holding of gold as part of the country’s foreign exchange reserves adding that the agreements would further take the Bank’s efforts to build the country’s gold reserves a step further.

He is hopeful that the implementation of the agreement would also enhance market confidence in the Bank’s ability to fulfill its mandate of price and financial system stability.

Meanwhile, President Edgar Lungu has expressed confidence that the signed MOU will lead to the growth of gold mining in Zambia.

President Lungu adds that the agreement is progressive as gold produced from the Kasenseli gold mine will be legally sold to the Bank of Zambia.

Zambia Gold Company, owned 51% by ZCCM-IH and the Ministry of Finance 49%, is solely responsible for developing and running the Kasenseli gold project.

Zambia Gold Company has reported that they have since produced 74 kgs worth approximately K84 million.

Source: https://zambiareports.com/2020/12/11/zccm-ih-signs-mou-boz-sale-gold/
All Posts, Archived Tenders, ZCCM-IH

Invitation for Bids (IFB) Construction of Low-Cost Houses, Houses, Rural Health Centre and Drilling of a Borehole in Kasenseli in Mwinilunga District

Construction of Low-Cost Houses, Rural Health Centre and Drilling of a Borehole in Kasenseli in Mwinilunga District
ONB No.: ZCCM-IH/115/2020

  1. ZCCM Investments Holdings Plc. has received financing from own sources toward the CAPEX for the 2020 Financial Year, and it intends to apply part of the proceeds of this financing to payments under the Contract for the Construction Works in Kasenseli, Mwinilunga District; Contract No.: ZCCM-IH/115/2020.
  2. ZCCM Investments Holdings Plc now invites sealed bids from eligible and qualified bidders for the Construction Works in Kasenseli, Mwinilunga:

    Lot 1 – Construction of Two (02) x 3-Bedroomed Low-Cost Houses in Kasenseli, Mwinilunga District (Duration – 16 weeks);
    Lot 2 – Construction of a Rural Health Centre in Kasenseli, Mwinilunga District (Duration – 16 weeks); and
    Lot 3 – Siting, Drilling, and Equipping of a Borehole at the Rural Health Centre in Kasenseli, in Mwinilunga District (Duration – 6 weeks).

  3. Bidding will be conducted through the Open National Bidding (ONB) procedures specified in the Public Procurement Act of 2008 and the Public Procurement Regulations of 2011 and is open to all bidders from Eligible Source Countries as defined in the Bidding Documents. The following CEEC preferential treatment shall be applied as part of the evaluation:
    1. Citizen-influenced company – 4%
    2. Citizen-empowered company – 8%
    3. Citizen-owned company – 12%
  4. Interested eligible bidders may obtain further information from the address below and inspect the Bidding Documents at this address from 08:00 – 13:00 and 14:00 – 17:00 local time, Monday to Friday inclusive.
  5. Qualifications requirements include:
    i) Experience as a prime contractor in at least two (02) contracts of a similar nature and scope in the last five (05) years;
    ii) A minimum amount of liquid assets and/or credit facilities as follows:
    Lot 1 – ZMW338,536;
    Lot 2 – ZMW320,248; and
    Lot 3 – ZMW196,000.
    iii) Average Annual Turnover for the past three (03) years as follows:
    Lot 1 – ZMW5,501,120;
    Lot 2 – ZMW5,204,030; and
    Lot 3 – ZMW6,361,244.

  6. A complete set of Bidding Documents in English may be purchased by interested bidders ON THE SUBMISSION OF A WRITTEN APPLICATION to the address below and upon payment of a non-refundable fee of Zambian Kwacha Five Hundred (ZMW500.00).

  7. Due to the COVID-19 pandemic, ZCCM-IH is requesting all potential bidders to deposit the non-refundable fee of Zambian Kwacha Five Hundred (ZMW500.00) stated in item 6 above into the following ZCCM-IH Account:
    BANK: STANDARD CHARTERED BANK
    BRANCH: Main Branch
    ACCOUNT NAME: ZCCM INVESTMENTS HOLDINGS PLC
    ACCOUNT NUMBER: 0100110001501
    Currency: ZMW or USD equivalent.

  8. Bids must be delivered to the address below at or before 10:00 hours on Friday, 8th January 2021. Electronic bidding shall not be permitted. Late bids will be rejected. Bids will be opened physically in the presence of the bidders’ representatives who choose to attend in person at the address below immediately after 10:00 hours on 8th January 2021. All bids must be accompanied by a Bid Securing Declaration.
  9. There will be mandatory site visits and pre-bid conferences as follows:
    Lot 1 – Construction of Two (02) 3-Bedroomed Low-Cost Houses in Kasenseli, Mwinilunga District on Tuesday, 29th December 2020 at 14:00 hours.
    Lot 2 – Construction of a Rural Health Centre in Kasenseli, Mwinilunga district on Tuesday, 29th December 2020 at 14:00 hours; and
    Lot 3 – Siting, Drilling, and Equipping of a Borehole at the Rural Health Centre in Kasenseli, in Mwinilunga District on Tuesday, 29th December 2020 at 14:00 hours.
    Bidders to meet at the District Commissioner’s Office in Mwinilunga at 13:00 hours.
  10. The address referred to above is:

    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; and temboc@zccmnew.wpenginepowered.com

Download full document here:

Icon

Construction of Low Cost Houses, Rural Health Centre and Drilling of a Borehole in Kasenseli in Mwinilunga District

All Posts, Investee Companies, ZCCM-IH News

Illegal Miners Invade Kasenseli Gold Mine

A group of illegal miners in Mwinilunga District have brought down a parameter fence covering Kasenseli Gold Mine.

And the group has allegedly stolen undisclosed quantities of alluvial gold after invading the mining premises.

Mwinilunga District Commissioner Anolt Mapulanga who confirmed the incident has expressed disappointment with the recent developments.

Mr. Mapulanga said those behind the behaviour need to realise that the infrastructure they are destroying belongs to Zambians and their act is irresponsible.

He stated that the Zambia Police has been directed to step up its security to ensure installations are not tempered with.

Mr. Mapulanga added that his office will not watch criminal elements disregard the law with impunity and engage in retrogressive activities.

“Government will sit down and allow criminality, the installation by ZCCM Gold is being done on behalf of all Zambians and it is it sad to see the same zambians vandalising the infrastructure.

Source: https://zambiareports.com/2020/12/03/illegal-miners-invade-kasenseli-gold-mine/
Industry News, ZCCM-IH News

ZCCM IH reduces appetite for banking and milling

Finance, ZCCM-Investment Holdings Plc

Written by 

During the last six months of the 2020 financial half-year of ZCCM IH, a proposal was tabled that would see the investment group reduce its stake in banking and milling.

According to sources close to the matter, ZCCM IH has been in the process of recrafting their strategic plan. This refinement in strategy comes with the blessings of IDC who are the parents of the investment group.

“Industrial Development Corporation (IDC) Group CEO Mr Mateyo Kaluba has said ZCCM-IH will take up a more active role as an investor in the mining sector rather than being a holding company for the Government’s minority shares”, read a statement published on the ZCCM IH website after the IDC CEO toured Kabundi Resources Limited mine, ZCCM-IH’s manganese mining operation in Serenje district.

This was a very strong signal that indicated that IDC along with ZCCM IH would seek out a strategic path that would see IDC increase its investment umbrella by snapping up ZCCM IH’s banking and milling interests.

According to a SENS announcement published on 1st October 2020, through the IDC Reorganization Transaction initiative, the Board of ZCCM-IH considered and approved the proposed IDC/ZCCM-IH Group reorganization exercise whereby:

  1. IDC transfers its 25% equity stake in Kagem Mining Limited, at fair market value, to ZCCM IH;
  2. ZCCM-IH transfers its 71.4% equity stake in Investrust Bank PLC, at fair market value to IDC; and
  • iii) ZCCM-IH transfers its 100% stake in Mushe Milling Limited to IDC at fair market value.

These 3 corporate actions listed above will be undertaken simultaneously as a corporate group reorganization exercise involving IDC and ZCCM-IH and constitute the proposed Group Portfolio Rationalization and Reorganization.

Based on the IDC CEO’s statement, it can be deduced that the stars are being aligned for ZCCM IH to increase its focus on mining whilst reducing its arm of influence over sectors that have potential to be a distraction. What this entails is ZCCM IH seeking out a healthier chunk in shareholding for mining assets that become available over the near and long term.

No doubt CEO Mabvuto Chipata will be aligning his charges and ensure that they apply their skills sets on the refined strategic mandate that is beginning to unfold.
Investee Companies, Investee Company News, ZCCM-IH, ZCCM-IH News

ZCCM-IH to appeal court decision asking it to enter arbitration with Vedanta

ZAMBIAN mines minister, Richard Musukwa, said the country’s government remained steadfast in its desire to find a buyer for control of Konkola Copper Mines (KCM), currently owned by Vedanta Resources.

“It is still the government’s wish to find a new equity investor with technical and financial capacity to recapitalise the mine and operate it effectively,” Musukwa said after the state mining arm ZCCM-IH signalled its intention to appeal a court ruling in favour of Vedanta.

Earlier this month, a Court of Appeal ruled that ZCCM-IH should go into arbitration with Vedanta regarding disputes related to KCM. Vedanta owns 80% of KCM with ZCCM-IH owning the balance. Musukwa, however, said the country wanted KCM to be put into liquidation proceedings.

In 2019, Zambia accused Vedanta of failing to live up to its investment and dividend promises and barred the Indian company from accessing KCM assets. Vedanta argued that any dispute between shareholders should be negotiated in terms of their agreement.

“ZCCM-IH has already indicated that they are appealing because they are not happy with the court judgment,” Musukwa told Zambia’s parliament on Thursday.

Potential buyers of KCM were awaiting a resolution to the dispute, Musukwa said, adding that steps taken by the government should not be “considered as nationalism”.

Vedanta was not immediately available for comment, said Reuters.

Source: miningmx
Investee Companies, Investee Company News

UPDATE 1-Zambia to appeal court ruling backing Vedanta in KCM mine dispute

LUSAKA, Nov 26 (Reuters) – Zambia’s state mining arm ZCCM-IH plans to appeal a court ruling in favour of Vedanta , which has sought arbitration in a dispute over its jointly owned copper mine that is facing liquidation, the mining minister said.

India-based Vedanta has been locked in a protracted dispute with the Zambian government since May 2019, when Lusaka appointed a liquidator for the mine.

 

“ZCCM-IH has already indicated that they are appealing because they are not happy with the court judgment,” Mining Minister Richard Musukwa told parliament on Thursday.

Last week, a Zambian court ordered a halt to liquidation proceedings for Konkola Copper Mines (KCM) to allow Vedanta and ZCCM-IH, which owns 20% of the operation, to proceed to arbitration.

Potential buyers of KCM were awaiting a resolution to the dispute, Musukwa said, adding that steps taken by the government should not be “considered as nationalism”.

“It is still the government’s wish to find a new equity investor with technical and financial capacity to recapitalise the mine and operate it effectively,” he said.

Vedanta was not immediately available for comment. (Reporting by Chris Mfula; Writing by Zandi Shabalala; Editing by Edmund Blair)

Source: Reuters 
Industry News, ZCCM-IH, ZCCM-IH News

Kansanshi Holdings Limited Commences Confidential Arbitration Proceedings Against ZCCM Investments Holdings Plc

In compliance with the requirements of the Securities Act No 41 of 2016 and the Lusaka Securities Exchange (“LuSE”) Listings Requirements (the “Rules”), shareholders are informed that on 11 November 2019, KHL filed a Request for Arbitration in London against ZCCM-IH (as Respondent) and KMP (as Nominal Respondent). These Arbitration proceedings are strictly confidential as between the parties. The Arbitration proceedings follow a criminal complaint made by ZCCM-IH against the allegedly unauthorised transfer by KMP of KMP monies to a KHL related party/affiliate.

The matter is yet to be determined and may have a material effect on the price of the Company’s securities.

Shareholders will be updated as the case progresses.

Accordingly, shareholders of ZCCM-IH are accordingly advised to exercise caution when dealing in securities of the Company until further information is published.

By Order of the Board
Chabby Chabala
Company Secretary

Issued in Lusaka, Zambia on Wednesday, 25 November 2020

Source: Financial Insights
Industry News, ZCCM-IH News

Zambia’s copper output increases amid foreign debt default

Zambia, Africa’s second-largest copper miner, produced 646,111 tonnes of the metal in the first nine months of 2020, up from 590,321 tonnes in the same period last year, official figures show.

The country’s mines and minerals ministry attributed the 9.45% rise to increased mine output. He said the in southern African nation now expects total production for the year to reach 820,000 tonnes, driven by rising copper prices.

This comes as good news to Zambia, which missed a $42.5 million interest payment on part of its international debt last week, becoming Africa’s first bond default during the coronavirus pandemic.

ZAMBIA’S MINING ASSETS HAVE BEEN IN THE SPOTLIGHT AS THE COUNTRY’S FINANCIAL SITUATION DETERIORATED THIS YEAR AND THE PANDEMIC PROMPTED GLENCORE TO SHUT ITS MOPANI COPPER MINES

Pesident Edgar Lungu’s government, which is battling for re-election next year, has blamed covid-19 for problems managing the country’s $12 billion debt.

While it seeks a compromise with bondholders, the government has announced it has no plans to sell its shares in mining companies it has stakes in to raise cash.

Zambia’s mining assets have been in the spotlight as the country’s financial situation deteriorated this year and the pandemic prompted Glencore (LON: GLEN), one of the biggest miners operating in the country, to shut its Mopani Copper Mines (MCM).

The move angered the government, which threatened to revoke Mopani’s mining licenses and temporarily blocked its chief executive officer Nathan Bullock from leaving the country. 

Glencore reacted by putting its 73.1% stake in the operation on the table, hoping to reach a deal with authorities.

No plans to sell mining stakes

Zambia said earlier this week that negotiations with Glencore about increasing the government’s stake in Mopani were nearing a conclusion, although no information about the size of the stake that state-owned ZCCM Investments Holdings is trying to acquire was given.

The government, which was in arbitration over mining assets it seized last year from billionaire Anil Agarwal’s Vedanta Resources, lost an important battle in the case on Friday.

A local court ordered a halt to liquidation proceedings KCM to allow owners Vedanta and ZCCM-IH to proceed to arbitration.

The ruling hands a significant win to Vedanta, which is seeking the removal of the liquidator appointed by ZCCM-IH — which owns 20% of KCM on the government’s behalf — to run the company.

Other copper miners have halted $2 billion of planned investments because of a dispute over royalty taxes.

Zambia has promised to address the issue at a mining conference later this year.

– With files from Reuters and Bloomberg

Source: Mining.com