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Annual Report Summaries, Investee Companies

Maamba Collieries Limited (MCL) Extract from 2020 Annual Report

Maamba Collieries Limited (MCL) reported total revenue of ZMW4,392.69 million (US$ 235,781million) for the period under review [2019: ZMW2,140.07 million (US$160.97 million)] and had profit after tax of ZMW1,466.08 million (US$78.69 million), [(2019: ZMW601.06 million (US$45.12 million)].  

During the period under review, MCL continued to experience liquidity challenges because of late receipts of payments from ZESCO. Due to liquidity constraints, the company was negatively impacted on its ability to undertake repairs and proactive maintenance of the Thermal Power Plant. Consequently, the company shut-down one of its two plants temporary during the period under review. Power production was thus negatively impacted due to lower plant availability. However, MCL recorded higher profits during the year under review because MCL recorded a net tax credit of US$2.31 million compared to net tax expenses of US$45.00 million in 2019.  

However, it is expected that the company will have a positive outlook in the medium to long-term once the issue 

of non-receipt of payments from ZESCO is resolved.  

There were no dividends declared during the year under review (31 Dec 2019: Nil).  
Archived Jobs, Investee Companies

APPLICATIONS FOR APPOINTMENT AS ZCCM-IH’S REPRESENTATIVE DIRECTORS ON BOARDS OF INVESTEE COMPANIES

 ZCCM Investments Holdings Plc.

ZCCM Investments Holdings plc (ZCCM-IH or the Company) is an investments holdings company with a primary listing on the Lusaka Securities Exchange and secondary listings on the London and Euronext (Paris) Stock Exchanges. The Company has the majority of its investments held in the copper mining sector of Zambia. ZCCM-IH’s shareholders are the Industrial Development Corporation (IDC) holding 60.3% of the shares, Government of the Republic of Zambia (GRZ) with 17.3%, National Pension Scheme Authority (NAPSA) holding 15% and private investors holding the remaining 7.4%.

ZCCM-IH holds equity investments ranging from 10% to 100% in 22 companies in Zambia. The Company is entitled to appoint persons to the Boards of the companies in which it holds shares (Investee Companies) as indicated below:

Count Investee Company Shareholding percentage No. of Board seats for ZCCM-IH
1. Chambishi Metals Plc 10.0 1
2. Mopani Copper Mines Plc 10.0 1
3. NFCA Africa Mining Plc 15.0 1
4. Chibuluma Mines Plc 15.0 1
5. Copper Tree Minerals Limited 15.6 1
6. CNMC Luanshya Copper Mines Plc 20.0 2
7. Kansanshi Mining Plc 20.0 2
8. Lubambe Copper Mine Plc 20.0 1
9. Konkola Copper Mines Plc 20.6 2
10. Copperbelt Energy Corporation Plc 24.1 2
11. Maamba Collieries Limited 35 2
12. Consolidated Gold Company Ltd 45.0 2
13. Central African Cement Ltd 49.0 2
14. Rembrandt Properties Ltd 49.0 2
15. Zambia Gold Company Ltd 51.0 2
16. Investrust Bank Plc 71.4 6
17. Limestone Resources Ltd 100.0 4
18. Misenge Environmental and Technical Services Ltd 100.0 4
19. Kariba Minerals Ltd 100.0 4
20. Kabundi Resources Ltd 100.0 3
21. Mushe Milling Ltd 100.0 3

ZCCM-IH has, available for immediate occupation, non-executive Board seats in majority of its Investee Companies. The Company invites applications from suitably qualified and experienced professionals and business practitioners to be considered for appointment as non-executive Representative Directors of ZCCM-IH on Investee Companies.
Summary of Duties and Obligations of Representative Directors

  1. The Representative Directors will be expected to exercise their business judgement to act in what they reasonably believe to be in the best interest of the Investee Company and ZCCM-IH and specifically to ensure ZCCM-IH’s investment value is enhanced and protected.
  2. In discharging this duty and obligation, the Representative Directors will be expected to rely on the honesty and integrity of the Company’s senior executives, its outside advisors, auditors and also on their own experience and analysis of core business.
  3. Representative Directors will be expected to attend Board and Committee meetings and to spend the necessary time needed to discharge their responsibilities. The Representative Directors will be expected to cause the receipt of the Board Packs in due time before the date of the meetings to facilitate adequate preparation.
  4. The Representative Directors will submit reports of the meetings and events attended pertaining to the Investee Company, highlighting the critical issues, outcomes, resolutions and any proposals deemed necessary.

Qualifications, Experience and General Competences of Representative Directors

The requirements for one to be considered for appointment as a Representative Director include the following:

  1. At least an undergraduate degree or equivalent from a respected university/qualifications body. A post graduate qualification will be an added advantage.
  2. These educational criteria will not exclude exceptional candidates who do not meet them but have other demonstrated capabilities such as setting up and running successful companies of their own or other visible accomplishments which will add great value to ZCCM-IH;
  3. Over seven years extensive business management experience at a senior level such as Chief Executive Officer, Chief Operating Officer, Chief Financial Officer or such other senior levels.
  4. Exposure in an international environment will be an added advantage;
  5. Ability to read, understand and offer suggestions and comments on financial statements;
  6. Demonstrate competences in strategic planning and business leadership;
  7. Self-starter with visible leadership skills and the ability to be persuasive and persevering under, sometimes, trying circumstances;
  8. Knowledge of the mining sector will be an added advantage;
  9. Have no material relationship and or conflict of interest with the Company or any of its Investee Companies;
  10. Sufficient applicable experience to understand fully the legal and other responsibilities of an independent director of a company based in Zambia.

Suitably qualified women candidates are urged to apply as due consideration will be given to them in an effort to improve representation of women on the Boards.

Duration of appointment and remuneration
The appointment will be for a period of three years. Continued representation will purely be based on results of the annual assessments of performance of the Representative Director against goals and objectives agreed with ZCCM-IH.
The Representative Director will be remunerated according to the fee structure existing at the Investee Company on whose Board he/she is appointed.

Submission of applications
Interested professionals and business practitioners should submit signed applications with detailed curriculum vitae indicating contact telephone number or e-mail address, together with names and contact address of three traceable referees and copies of educational and professional qualifications to the underlisted on or before 25/11/2020.
The Company Secretary

ZCCM Investments Holdings Plc
ZCCM-IH Office Park
Stand No. 16806, Alick Nkhata Road – Mass Media
P.O BOX 30048
Lusaka

Phone:3888000
Email:corporate@zccmnew.wpenginepowered.com
Website: www.zccmnew.wpenginepowered.com

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APPLICATIONS FOR APPOINTMENT AS ZCCM-IH’S REPRESENTATIVE DIRECTORS ON BOARDS OF INVESTEE COMPANIES

Corporate Social Investment, Industry News

ZCCM-IH Meets its Resettlement Action Plan Obligations in Kampumbu, Serenje

ZCCM-IH through its wholly owned manganese mine Kabundi Resources Limited (KRL) on 7th November 2020 handed over various infrastructure and items to fulfil its Resettlement Action Plan (RAP) obligations.

Valued at K4.5 million, the items and infrastructure handed over included:

  • Nine-by-three bedroomed houses for the relocation of the Project Affected families in Kampumbu Resettlement area;
  • Tools and farming inputs to accompany each house handed over;
  • Monetary compensation for three of the eleven families relocated that opted to receive cash rather than one of the three bedroomed houses constructed;
  • A new rural health centre and a house for a medical staff at Kampumbu; and
  • An additional one-by-two classroom block at Kampumbu Primary School, as well as teacher’s house.

The event was graced by the Minister of Mines and Minerals Development Hon. Richard Musukwa, whom was accompanied by Serenje Member of Parliament Hon. Maxwell Kabanda, Central Province Permanent Secretary Mr. Bernard Chomba, Serenje District Commissioner and Council Mayor, as well as various senior government officials. Also in attendance were the ZCCM-IH CEO, and several ZCCM-IH Board of Directors.
ZCCM-IH, ZCCM-IH News

FQM posts 211,000 tonnes of copper production in the third quarter

FIRST Quantum Minerals (FQM) Limited posted record quarterly copper production of over 211,000 metric tonnes in the third quarter of this year, up 10% from the same period last year, mainly driven by its unit Sentinel mining company based in Kalumbila.

And the FQM says it is working to manage the logistical challenges posed by closing trade borders in response to the coronavirus pandemic using other avenues where possible.

In a statement announcing its financial results for the third quarter of 2020, the FQM posted a total of 211,396 tonnes of copper during the period ending September 30, up from 192,510 tonnes produced during the period. corresponding last year, mainly driven by the increase in productive production at the Sentinel copper mine, among other units.

“211,396 tonnes of total copper production in the quarter, up 10% from the same period in 2019, due to record production at Sentinel and Cobre Panama. Sentinel performed exceptionally well during the quarter, achieving its strongest quarterly production on record of 70,829 tonnes and record cash costs. Increased throughput and rising grades resulted in a 25% increase in copper production compared to the same period in 2019, while lower maintenance costs, lower fuel prices and depreciation of currency have resulted in improved unit costs, ”the FQM said in a statement.

“Performance at Cobre Panama was strong as it went from preservation and safety maintenance in July to full production levels in August, slightly above expectations. Copper production during the quarter amounted to 62,055 tonnes, which is significantly higher than the same period in 2019. Kansanshi performed steadily during the quarter. Copper production of 54,430 tonnes was slightly lower than in the third quarter of 2019 due to lower grades and recoveries despite increased throughput. Treasury costs were lower due to currency depreciation and lower fuel costs. Production forecasts for 2020 have been updated. Total copper production forecast for 2020 has been increased to between 750,000 and 785,000 tonnes; gold production is now expected to be between 245,000 and 260,000 ounces and the forecast for nickel production has been reduced to 13,000 – 15,000 tonnes.

In contrast, sales revenue jumped 42% to over US $ 1.4 billion in the period ending September 30 from the corresponding period a year earlier, in part due to the increase in sales volumes of its Solwezi-based kansanshi Mining unit.

“Sales revenue for the quarter of $ 1,402 million, up 42% from the comparable period of 2019, was primarily attributable to Cobre Panama’s commercial copper and gold sales volumes,”

volumes in Kansanshi and higher metal prices, ”he said.

And the FQM said it was working to manage the logistical challenges posed by closing trade borders in response to the coronavirus pandemic using other avenues when possible.

“COVID-19 has had a direct impact in Cobre Panama where the operation was placed on preservation and security maintenance from April 7, 2020, following the Panamanian government restrictions related to COVID-19. The company’s other operations have not been significantly affected by the restrictions stemming from COVID-19. The company has not experienced any significant disruption to supply chains and product shipments since the start of the pandemic. The company is working to manage the logistical challenges of closing trade borders, using alternate routes where possible. The border restrictions, if ongoing, could cause delays in the supply chain, ”said the FQM.

Source: Tradings At
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ZCCM IH expresses grief at the passing of former CEO

Finance, ZCCM-Investment Holdings Plc

Written by 

ZCCM IH has conveyed a message of condolences to the family of its former Chairman and Chief Executive Francis Kaunda, according to a statement from the group.

“The Board, Management and Staff of ZCCM Investments Holdings Plc convey their heartfelt condolences to the Kaunda and Shipoka family on the passing on of Mr. Francis H. Kaunda”, read the statement issued by ZCCM IH Public Relations.

Francis Kaunda published “Selling the family silver” in which the former CEO chronicles his tenure as CEO of one of Africa’s biggest mining conglomerates at the time. At present, the group has shareholdings in a number of mines. Most recently, the group has been seeking a controlling stake in Glencore subsidiary Mopani Copper Mines, according to Zambia’s mines minister and reported by Reuters, after a disagreement over Glencore’s plan to halt production. Furthermore, the group’s ambitions in gold are nostalgic of a return the Francis Kaunda era when ZCCM dominated and consolidated all the mining efforts of Zambia.

Source: Financial Insight
Industry News, ZCCM-IH News

Francis Herbert Kaunda, renowned former ZCCM-IH CEO, has passed

Francis Kaunda can best be remembered as an industrialist who managed ZCCM at the height of its capabilities. He was known as one of the greatest minds of his generation. A softly spoken but confident leader who socialized with freedom fighters in his youth. He spent almost 30 years running one of the biggest mining companies in the world and in his later years dedicated his time to writing his memoirs.
Francis Kaunda
History 
Having completed his initial studies at Munali Secondary School, he was admitted to the school of medicine at the University of Ghana (1961). He was then convinced by a young Kenneth Kaunda that he should transfer into social sciences as the young revolutionary needed more people with administrative skills for his first government. He was educated at Howard University in the United States and also regularly attended the summer school at Georgetown University. Georgetown was known for taking in promising young African leaders at the time. He graduated with a degree in Economics and Political Science in 1966.
His education instigated his relationship with various civil rights and independence movement leaders across the world. In his autobiography: ‘Things to remember Not to forget’, he recollects that his time in Ghana was spent socializing with the young intellectuals of the time who would go on to be great leaders with Nelson Mandela, Amilcar Cabral, Sam Nujoma and Eduardo Mondlane. During his time at Howard he was able to meet Martin Luther King Jr, Malcolm X, Stockley Carmicheal and James Meredith. He details how  his time as a young student was spent with hard study followed by walking everyday from Mount Makulu to Freedom House to seek the advice of his close friend and freedom fighter Dr Kenneth Kaunda. Dr Kaunda was always fond of the young and intelligent Mr Kaunda and was a mentor to him for much of his young career.
 
Employment 
 
He was then employed as a secretary of cabinet under the pupilage of the late Valentine Musakanya. Shortly thereafter he joined Roan Selection Trust (RST), one of two privately owned mining companies at the time. During his time there the company revenues rose steadily from  around $140 million per year to $165 million with a profit of around $16 million. While he was still an employee at RST Kaunda announced the Nationalisation of the mining corporations. This catapulted him to be the head of the newly established Metal Marketing Cooperation (Momaco). Shortly after he took over from Wilson Chakulya as the head of Nchanga Consolidated Copper Mines Limited (NCCM). David Phiri was at the time head of Roan Consolidated Mines (formerly RST) and the two companies merged in 1981 to create ZCCM.
 
According to the World Bank records, under his leadership ZCCM accounted for 85% of foreign exchange earnings ($1billion per year at the time), 15% of the country’s total GDP and 30% of the government’s revenue ($250 million at the time). The average production of copper was around 430,000 tonnes per year (based on 1975-1985 numbers). The company had 67,000 employees and the company was known for building schools, medical services and housing for the general public.
 
Quote on the Future of Zambian Mining 
 
Currently, the country is in a position where we are receiving 5 cents for every $1 of copper that is being produced in the country. While receiving a lifetime achievement  award for his career in 2017 he had this to say:
 
“It should be realised that we, Zambians, are the owners of the resources and we should get a fair return for our people, while also taking into account that the mining investors should have a return on their investment because they have put in money and technical know-how. So, a lot  of responsibility is needed and that is where a win-win situation is expected.”
 
He serves as an inspiration to many young Zambians and his legacy throughout Africa will be remembered for a long time to come.
 
Archived Tenders, ZCCM-IH

REQUEST FOR EXPRESSIONS OF INTEREST (EOI) FOR A CONSULTANT TO CONDUCT A FEASIBILITY STUDY INTO SETTING UP A PRECIOUS METALS PLANT

REQUEST FOR EXPRESSIONS OF INTEREST (EOI) FOR A CONSULTANT TO CONDUCT A FEASIBILITY STUDY INTO SETTING UP A PRECIOUS METALS PLANT

1.0 BACKGROUND
ZCCM Investments Holdings Plc (ZCCM-IH) is an investments holding company which has a majority of its investments held in the copper mining sector of Zambia. ZCCM-IH’s majority shareholders are the Industrial Development Corporation (IDC) with 60.3%, Government of the Republic of Zambia (GRZ) with 17.3% shareholding, National Pensions Scheme Authority (NAPSA) with 15% and other shareholders with 7.4%.

The company has a primary listing on the Lusaka Stock Exchange and secondary listings on the New York Stock Exchange, Paris Euronext (Euronext) and London Stock Exchanges.
ZCCM-IH has been mandated by the GRZ to spearhead the development of the gold sector in Zambia. This will be achieved in four (4) ways:

  1.  ZCCM-IH opening up and operating its own gold mines under the dedicated subsidiary company, Zambia Gold Company (ZGC);
  2. ZCCM-IH entering into joint venture partnerships for mining and processing of gold;
  3. Formalization of the informal Artisanal and Small Scale Gold Mining (ASGM) sector, including purchases from the ASGM sector; and
  4. Re-establishment of a local Precious Metals Plant (PMP) to refine the gold and associated Precious Metals (PMs).

2.0 PROJECT RATIONALE
The Feasibility Study (FS) that ZCCM-IH plans to undertake is one that focuses on the re-establishment of a local PMP, whose principal feed is Anode Slimes from the Electro-Refineries (ERs) in the country. The PMP should, however, also make a provision for processing of other sources of gold, which includes:

  •  ZGC Gold production;
  • Production from joint venture operations;
  • Third party producers, including the ASGM sector; and
  • Dore anode produced by Kansanshi Mine plc (KMP), which is currently refined abroad.

The Zambian copper mining industry produces anode slimes (slimes) from the refining of Smelter anodes. These slimes were previously processed within the country from 1977 to 2004 at the Ndola Copper Refinery – Precious Metals Plant (NCR – PMP).

Zambia Consolidated Copper Mines Ltd. (ZCCM Limited) operated the NCR – PMP from 1982 to 2000, when it was privatized and ownership passed to Minerva (Zambia) Limited, a subsidiary of the Binani group. Minerva operated the NCR – PMP from 2000 until 2004, when the plant was shut down.

Subsequent to that, the slimes and other semi-processed precious metals such as the Dore anode produced by KMP have been shipped offshore for processing into final products.
The NCR – PMP produced the following products:

  • Gold, in bullion form;
  • Silver, in bullion form;
  • Platinum, Palladium and other PGMs such as rhodium, “platinum salts” form for further processing offshore;
  • Selenium, in flake form; and
  • Copper, in copper sulphate form, which was sent to the Leach plants for electro winning.

ZCCM-IH now invites eligible firms to indicate their interest in providing the above services. Interested firms must provide information to demonstrate that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions etc.).

Interested firms may obtain further information at the address below during office hours between 08:00 – 13:00 hours and between 14:00 – 17:00 hours local time from Monday to Friday.

A firm will be selected using the Quality and Cost Based Selection (QCBS) method. Interested firms must submit one (01) original and three (03) hard copies of the Expression of Interest to the address below not later than Tuesday, 10th November 2020.

Procurement Manager
ZCCM Investments Holdings Plc
ZCCM-IH Office Park
Stand No. 16806, Alick Nkhata Road
Mass Media Complex Area
P.O. Box 30048
Lusaka.
Email: kabwek@zccmnew.wpenginepowered.com

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Establishment of a Precious Metals Plant (Manual)

Industry News, ZCCM-IH, ZCCM-IH News

Gold mining game-changer

NANCY MWAPE, Lusaka
IN TODAY’s contemporary world, gold does not just imply affluence, material wealth and extravagance but it also gives an expression of style and elegance.
The price of the precious metal on the international market has since reached dizzying heights.
On the London Metal Exchange, gold is fetching around US$1,900 per ounce.
Realising that gold mining and export could play significant role in diversifying Zambia’s economy, job creation and economic development, Government has declared gold as a strategic mineral.
However, despite Zambia reporting an increase in gold occurrences, the sector is mainly dominated by artisanal and small-scale miners who in most instances, operate illegally.
The precious metal is smuggled out of the country mostly by foreigners.
To strategise on a comprehensive mechanism to formalise gold mining and trading in Zambia, Rufunsa district has become a serene ambiance for most of Government’s initiatives aimed at formalising the sector.
Rufunsa’s Chintimbwi area councillor Josias Malunga is confident that with Government formalising gold trading in Zambia, the sector will create jobs for the unemployed youths.
“Gold mining is a game- changer. If well managed, it would translate into improved living standards among our people, job creation and families graduating from thatched homes to bricked houses,” Mr Malunga said.
ZCCM-Investments Holdings (IH) chief executive officer Mabvuto Chipata said the formalisation of the sector will ensure activities are undertaken in a sustainable manner that complies with various international standards and CLICK TO READ MORE
Industry News, ZCCM-IH, ZCCM-IH News

Alluvial gold price soars

THE price of alluvial gold in Zambia has risen to K1,000 per kilogramme from K600 following Government’s decision to formalise the open market by establishing pilot gold trading lines in four districts.
Currently, pilot gold trading is conducted in Rufunsa in Lusaka Province, and Vubwi, Lumezi and Lusangazi districts in Eastern Province.
ZCCM-Investments Holdings (IH) chief executive officer Mabvuto Chipata said: “With the establishment of pilot gold trading lines, miners are no longer exploited as it was before ZCCM-IH went into the market.”
Mr Chipata said the sector has immense potential to create wealth and jobs for local communities.
“We have also seen an increase in the realisation by the miners to be compliant and CLICK TO READ MORE

Source: Daily Mail