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50KGs Of Gold Worth $3 Million Produced At Kasenseli

Minister of Mines and Minerals Development Mr Richard Musukwa has expressed happiness with the progress made at Kasenseli Gold Mine project in Mwinilunga District.

The project being developed by Zambia Gold Company Ltd (ZGC) owned by ZCCM-IH (51%) and Ministry of Finance (49%) has so far produced 50 kilograms of gold worth USD $3 million.

The mining and processing of near surface gold ore material commenced end of June 2020 following the granting of a mining licence to ZGC by the Ministry of Mines.

During the tour and site visit of the gold project, Mr Musukwa said he was elated with the progress, and that Zambian mining professionals were at the forefront of developing the project.

The first phase of diamond drilling for primary gold that commenced in April 2020 has been finalised and samples currently being prepared for lab analysis.

Production and processing capacity will be increased in the coming months once the laboratory results are received and analysed.

The Covid-19 pandemic has affected the importation of the processing equipment and other machinery required to increase capacity.

Over 200 locals have been employed during the development of the project in exploration, fencing, mining and processing.

59% of fencing 50 hectares of the active licence area, covering 3km has been done so far and scheduled to be completed by end of October 2020.

In addition, 13 cassava fields belonging to 9 households covering approximately 5 hectares of land in total, and located in the licence area have been valued by the Ministry of Agriculture, and compensation is currently in progress.

ZGC has also undertaken corporate social responsibility initiatives such as sinking of a water borehole, solar powered with 10, 000 litres tank capacity and 3 water collection points in Kasenseli.

Further, corporate social investment initiatives such as working on the main roads and building a health post are currently underway.

The Minister’s entourage during the mine visit included Ministry of Mines Permanent Secretary Mr. Barnaby Mulenga, Northwestern Province Permanent Secretary Mr Willie Manjimela, ZCCM-IH CEO Mr. Mabvuto Chipata, and ZCCM-IH Board Directors.

Source: 
Investee Companies, Investee Company News

COME CLEAR ON MOPANI…why is Mopani’s Glencore exiting Zambia

SEAN Tembo is asking the PF government to state measures it has put in place to avert a catastrophe should Mopani Copper Mines shut down operations.

The Patriots for Economic Progress (PeP) leader notes that the macroeconomic objectives for 2021, as contained in the national budget, are not ambitious enough.

Tembo noted that finance minister Bwalya Ng’andu acknowledged, when he presented the 2021 budget to Parliament last Friday, that copper prices on the world market have significantly risen to peak at about US $6,840 per metric tonne in September.

“However, the minister failed to explain why, with copper prices being that high, Mopani Copper Mines Plc is still insisting to suspend its operations in Kitwe and Mufulira? Given the fact that Mopani is one of the key players in the mining sector in Zambia today, and their decision to shut down operations will obviously have dire consequences on the Copperbelt Province in particular and the nation at large, the Minister should have addressed this issue in his 2021 national budget address,” he said. “The Minister should have shared with the nation, what measures his government has put in place or intends to put in place to mitigate this impending catastrophe. The only mention of the Mopani issue by the Minister is in paragraph 53, and even then, he only talks about the fact that Glencore, the major shareholders of Mopani have offered to sale their shareholding to government. However, what is of importance is why Glencore wants to exit the market. What policy challenges have they been facing which has compelled them to exit? It is important to do a proper diagnosis here because if we do not, other mining houses will soon follow the footsteps of Glencore and exit our market.”

In his budget speech, Dr Ng’andu said, “With regard to Mopani Copper Mines, government has been offered to acquire additional shares in the mine through ZCCM-IH. Further, government is in the process of negotiating with Glencore on the terms of purchase of the shares. To this end, the nation will be updated on the progress made in due course.”

Tembo noted that developing a national budget in the midst of multiple economic challenges, including the downturn in the global economy due to the COVID-19 pandemic, could not have been an easy task.

He said the 2021 budget theme, “Stimulate Economic Recovery and Build Resilience to Safeguard Livelihoods and Protect the Vulnerable”, acknowledges the fact that Zambia was in a recession and that something needs to be done to recover from “where we currently are”.

“And that while we are doing all that, we need to pay special attention to the livelihoods of the most vulnerable in our society. Having put such an appropriate theme in place, the only question that now remains to be determined is whether the rest of the 2021 national budget actually lives up to its own theme,” Tembo said.

He stressed that the macroeconomic objectives for 2021 were not ambitious enough.

“An objective is supposed to be reasonably ambitious, otherwise it loses its purpose of driving performance. A GDP growth rate target of 1.8 per cent for 2021 is too low by any standards. Equally, a target of increasing the Gross Foreign Reserves from the current 2.3 months of import cover to 2.5 months of import cover in 2021 lacks any ambition on the part of the minister,” Tembo said. “Similarly, targeting a tax-revenue to GDP ratio of 18 per cent for 2021 from the current 17.8 per cent, is a display of total lack of ambition on the part of the Minister of Finance, especially given the fact that Zambia’s tax-revenue to GDP ratio is the lowest in the region. South Africa’s tax-revenue to GDP ratio has averaged 25 per cent in the past five years, whereas that of Zimbabwe is 23 per cent, Botswana 26 per cent, Namibia 27 per cent and Lesotho 24 per cent. Under these circumstances, we would have expected the Minister to set a tax-revenue to GDP ratio target of at least 20 per cent for 2021.”

The PeP also noted the lack of consistency by the minister in the cut-off dates that were used in his review of the 2020 budget performance.

“With regard to expenditure to date, the minister uses a cut-off date of August 2020. With regard to the balance of our Gross Foreign Reserves, the Minister uses a cut-off date of July 2020. With regard to the exchange rate between the kwacha and the US dollar, the minister uses a cut-off date of September 2020. With regard to our stock of foreign debt, the minister uses a cut-off date of June 2020. With regard to our stock of domestic debt, the minister uses a cut-off date of August 2020,” Tembo noted. “This haphazard approach in assessing different economic variables in measuring the 2020 budget performance, makes it difficult if not impossible to draw any meaningful conclusions. In the next budget presentation, the minister is advised to pick one cut-off date against which all economic variables will be measured.”

He said the 2021 budget lacks the gravitas necessary to stimulate economic recovery and build resilience to safeguard livelihoods and protect the vulnerable.

“In other words, the content of the budget falls far short of its own theme,” Tembo said.

He said PeP would present to the nation its alternative budget on October 21.
“It is worth mentioning that we are happy as a party that government saw it fit to adopt two of our recommendations in last year’s PeP Alternative national budget. These were to increase the threshold of the tax exempt portion of the monthly salary from K3,300 to K4,000 as contained on page 17 of the PeP 2020 alternative national budget,” said Tembo. “Additionally, government saw it fit to adopt our recommendation to increase the tax rate on the gross proceeds of gambling from the current 10 per cent to 25 per cent, as outlined on page 19 of the PeP 2020 alternative national budget.”

Source: Themastonline.com
Industry News, ZCCM-IH, ZCCM-IH News

DMMU To Empower Ex-Roan Antelope Miners

Disaster Management and Mitigation Unit national coordinator Chanda Kabwe says the Government will empower ex-Roan Antelope Copper mine Limited retrenched miners and dozens of displaced residents of Luanshya as a way of alleviating their suffering.

And the DMMU has donated 50,000 facemasks to Luanshya District with a call on residents to adhere to total compliance to Coronavirus regulations and the Public Health Act to prevent the spread of the deadly respiratory disease.

Speaking when he paid a courtesy call on Luanshya Mayor Nathan Chanda at the Civic Centre, Mr Kabwe said the Government was aware of the ex-miners’ suffering after the privatisation of the copper mine by their former employer, RAMCOZ.

He announced that plans were underway to empower the families who have been displaced in Luanshya’s Kawama area and those whose houses collapsed during  the last rainy season in Roan’s Pama Church area, with building materials, cement and roofing sheets.

Mr Kabwe explained that the DMMU was working in close collaboration with the Offices of the Mayor and District Commissioner in Luanshya to come up with a mechanism which will see to it that the ex-miners, who did not benefit from land were assisted and that the displaced and those who had their homes collapse were assisted with building materials to construct new homes in the quickest possible way.

Mr Kabwe, who also handed over assorted facemasks to the Office of the Mayor and DC at the Civic Centre, said the Government was determined to see to it that all Zambians, regardless of their status in society, were reached and helped in preventing Coronavirus.

Luanshya Mayor Nathan Chanda thanked the DMMU for the timely intervention aimed at addressing the plight of the displaced Kawama Township residents who became homeless after someone emerged and claimed ownership of their land on which they had built their houses.

He said some Roan residents whose houses collapsed during the rainy season were assisted with land to build their houses by the Luanshya Municipal Council but most of them lacked building materials.

Mr Chanda said the move by the DMMU to work with the the authorities in Luanshya  to empower  the remaining former miners who were left out on the list of  the Government  donated farm land in Luanshya and other towns  Copperbelt towns was commendable.

He explained that the people of Luanshya were among the most affected victims of the mismanaged privatisation of the country’s mining sector.

Meanwhile, Luanshya District Commissioner Patrick Maipambe said government workers in Luanshya were committed to see to it that the issuance of National Registration Cards target of 18,000 NRC is met.
So far, 10,000 new NRCs have been issued in Luanshya.

This is according to a statement issued by Luanshya Municipal Council
Public Relations officer Mr. Gideon Thole.
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ZCCM-IH’s planned Mopani takeover will involve business partner to run mine

MINES Minister Richard Musukwa says government will ensure that workers at Mopani Copper Mine are protected as discussions for its eventual takeover are expected to be concluded in the shortest possible time.

And Musukwa says the purpose of ZCCM-IH increasing its shareholding in Mopani is to have controlling stake, but it will later look for a business partner to operate the mine.

Musukwa was responding to various issues raised by the Mineworkers’ Union, who stressed the need for workers to go through a fresh employment process so that they could access benefits for the work done for Glencore.

The Union equally expressed concern over the owning of shares by workers in Mopani as Glencore proceeded to sell off its shares to ZCCM-IH, among other would-be investors.

“We do not want the new company or the new entity to move into the platform with liabilities. We would like that all those issues will be addressed and it applies to the issues of KCM. We want to ensure that all the issues surrounding workers, workers’ conditions of service, especially those who have worked in the past, are addressed so that as people go to another platform, they go on a clean slate. But tell bashi mine, not ukwamba ukukongola ngabaya pa zero mileage (tell the miners not to start getting credit because they have reached zero mileage); getting credits on benefits that they have not yet seen. They must use this money that they have worked for many years to invest in some sustainable future processes that should be able to help them when they retire,” Musukwa said.

“What we are just careful, as government and the negotiating team is that, we don’t want us to get into the story of KCM, which was sold for US $25 million and the following day, we were told that money was recovered. We don’t want to be a laughing stock of the negotiating process that’s why we want to ensure that key professionals undertake the process. That’s why ZCCM-IH has appointed a transaction advisor, who is actually also trying to run through all things once they are done. So, we would like to assure the workers at Mopani that as we negotiate out of this difficult challenge, we are very confident that we will come out of this process in the shortest possible time, and that that all the issues that you have raised are being tackled so that we create a full package for everyone.”

He added that the negotiation team had made progress with conclusions expected at the earliest convenience.

“I also want to assure you that the technical team negotiating this process has made very good progress, in fact, that is how now we have ensured that the unions are part of the negotiations so that we are able to send the information across to the public and the people out there so that there is no gap in terms of information. I can assure that we are looking at concluding these discussions at the earliest convenience and must commend Glencore that they have been extremely very forthright coming in terms of ensuring that we conclude these processes,” Musukwa said.

And he explained that the purpose of ZCCM-IH increasing its shareholding in Mopani was to have controlling stake, but it would later look for a business partner to operate the mine.

“Now, I know that there has been issues from several entities, including politicians, as regards the competence of ZCCM-IH to run and operate Mopani. We have firmly indicated that ZCCM-IH’s expression of interest to grow the shareholding is meant to have controlling shares. In this instance, Glencore has said they do not want to continue operating or investing in Mopani, what are we supposed to do? To force Glencore to continue? Government is an option of the last resort in this case and that’s why we have allowed ZCCM-IH to proceed on this trajectory as a platform merely as a platform for offloading these shares and then you know very well that our directive to ZCCM-IH is to ensure they operate as a business, then they are going to look for a business partner to operate the mine,” Musukwa explained.

“ZCCM-IH is not mobilising resources from government, they will mobilise resources from international platforms in terms of partners. In brief, just to help the ‘doubting Nichodemus,’ ZCCM-IH will find partners; they can find any partner and structure a model in terms of shareholding. If you [workers] are coming on board to be shareholders, that will be good because we want this to run at an economic platform, and for a long time, the people of Zambia have not had an opportunity to be real shareholders in the mining industry, which commands 80 per cent of our economic performance. What we are looking forward to is also indigenous Zambians should come and be part of the shareholding.”

Meanwhile, the minister said the government would ensure a credible investor takes over KCM’s operations from Vedanta to guarantee continued operations at the mine.

“I know that the liquidation process for KCM has taken extremely long, but there is no case that lasts forever. We were frustrated with several court processes. As a law abiding government, we have been religiously following these processes and we know that these issues are now nearing conclusion and we think that government will move in to ensure that a credible investor comes on-board and ensures that we guarantee the operations of KCM. What KCM requires is fresh injection of capital in order to ensure that ramping up takes effect and the project, especially KDMP projects, becomes a reality and guarantees the future,” Musukwa said.

“We feel that the resource that lies at KCM is the future of Zambia, the resource that lies at Mopani is the future of Zambia and we feel that put together, the mining industry still remains buoyant and will create huge employment and contribute to our economic trajectory.”

The Chililabombwe PF member of parliament further disclosed that four companies had expressed interest in taking over Chambishi Metals.

“We have told our colleagues at Chambishi that after the 30 days expired, we have actually received expressions of interest from various entities that want to take over the operation and invest. So, we have started the process because we cannot continue with business as usual. The same operation we have had presentations from four different companies that have given us a serious projection of how they can restart the operations so we have asked our colleagues that this is the process that we are embarking to ensure that we guarantee job security and also the economic trajectory in our areas, especially Chambeshi, Kitwe,” said Musukwa.

Glencore Plc is facilitating the offloading of 90 per cent shareholding in Mopani to ZCCM-IH.

The Swiss-based commodity and mining company had earlier this year announced its intention to place Mopani on care and maintenance, signalling its desire to exit the Zambian mining sector amid its huge operational costs.

Source: Diggers News
Annual Report Summaries, Investee Companies

Chibuluma Mines Plc Extract from 2020 Annual Report

Following the sale of Chibuluma South Crown Pillar Mine, Chibuluma Mines could not sustain operations with ore from Chifupu Underground Mine alone. Therefore, the Chibuluma Mines Plc Board, Metorex Executive Committee and Jinchuan Group Limited, jointly resolved to place the operations of Chibuluma Mine Plc under care and maintenance with effect from 1 July 2020. All Chibuluma Mine employees were consequently declared redundant with only a few re-employed on short-term contracts for the care and maintenance period.  

In September 2020, in order to assess the viability of re-opening Chifupu Mine, Chibuluma Mines engaged Integrated Geological Solutions of South Africa (IGS) to conduct an evaluation of the Chifupu Mine resources and reserves.  

This indicated that the current resources amount to 3,118,000 tonnes of Copper Ore, with an average Grade of 2%, containing 65,478 tonnes of Copper metal. And recoverable reserves of 1.346 million tonnes of Copper Ore, with an average grade of 1.83%, containing 24,592 tonnes of Copper metal. Subsequently, Chibuluma Mines in conjunction with Metorex (Pty) Limited engaged the services of Ernest and Young (EY) to conduct a valuation of Chibuluma Mines Plc including the reserves at Chifupu Mine and the assets at the processing plant.  

The EY valuation report indicated that based on current mining costs and current (forecast) Copper prices, re-opening Chifupu Mine operations would result in an overall loss of USD 28 million over the 5-year period to 2025.  

No dividends were paid for the financial year ended 31st December 2020 (December 2019: nil).  
Industry News, ZCCM-IH, ZCCM-IH News

IDC, ZCCM-IH to swap stakes

INDUSTRIAL Development Corporation (IDC) and ZCCM-Investments Holdings (IH) are expected to swap stakes in some entities to achieve optimisation of operations and unlock opportunities for synergy within the group.
In a market announcement entitled proposed group portfolio rationalisation and re-organisation, IDC intends to transfer its 25 percent equity stake in Kagem Mining Limited to ZCCM-IH.
On the other hand, ZCCM-IH will transfer its 71.4 percent equity stake in Investrust Bank Plc at fair market value.
ZCCM-IH will also transfer its 100 percent stake in Mushe Milling Limited to IDC at fair market value, which will be determined by the evaluators.
The planned transfers are, however, subject to approval by relevant statutory regulatory authorities and CLICK TO READ MORE
ZCCM-IH, ZCCM-IH News

Canada’s First Quantum eyes operations expansion at Zambia mine

(Reuters) – Canadian miner First Quantum Minerals Ltd FM.TO said on Monday it plans to expand operations at the Kansanshi mine in Zambia, Africa’s biggest copper mine.

In a technical report, the company said it plans to expand the sulphide ore processing facility at the Kansanshi mine by 25 million tonnes per annum (mtpa), which will boost annual throughout to 52 mtpa.

First Quantum expects to spend nearly $650 million for the expansion in about two years, starting in the second half of 2023. This expansion plan will continue to be further refined before project approval is sought, the company added.

Reuters had reported earlier in January that the Canadian miner was weighing an investment of around $1 billion to lift output at the Kansanshi copper mine, despite a feud with state miner ZCCM-IH over project funding.

Reporting by Shradha Singh in Bengaluru; Editing by Krishna Chandra Eluri

Our Standards: The Thomson Reuters Trust Principles.
Industry News, ZCCM-IH, ZCCM-IH News

ZCCM-IH proposes reorganisation transaction to optimise efficiency

ZCCM-IH has approved a reorganisation of its portfolio with the Industrial Development Corporation (IDC) where both entities will transfer their equity held in three corporate entities to the other to achieve optimisation of operations within the IDC/ZCCM-IH Group.

In a market announcement, Friday, ZCCM-IH stated that it was reorganising its portfolio with the IDC, which would see the transfer of their equity held in three separate corporate entities to the IDC, and vice versa, subject to shareholder and regulatory approvals.

Following board approval, ZCCM-IH will transfer its 71.4 per cent equity stake in Investrust Bank Plc to the IDC, and transfer its 100 per cent stake in Mushe Milling Limited to the IDC both at fair market value.

On the other hand, the IDC would transfer its 25 per cent equity stake in Kagem Mining Limited, at fair market value, to ZCCM-IH all in an effort to achieve optimisation of operations and unlock opportunities for synergy within the IDC/ZCCM-IH Group.

“These three corporate actions listed above will be undertaken simultaneously as a corporate group reorganisation exercise involving IDC and ZCCM-IH and constitute the proposed Group Portfolio Rationalisation and Reorganisation,” stated ZCCM-IH via its sponsoring broker, Stockbrokers Zambia Limited.

“Rationale for the Proposed Group Reorganisation: The Board considers that the proposed Group Reorganisation will enhance and improve operational efficiency and performance of ZCCM-IH by realigning and streamlining management oversight on its investments portfolio to support and sustain Company growth and unlock value for its shareholders going forward.”

The IDC portfolio currently includes companies in the banking sector, specifically: Zanaco Plc, Indo-Zambia Bank and the Zambia Industrial and Commercial Bank, and Superior Milling Limited in the maize meal milling industry.

It was established in 2014 to spearhead the development of Zambia’s domestic industrial capacity, and play a major role in job creation, while ZCCM-IH on the other hand, is an investments holding company with diversified interests in mining, energy, banking, property and other sectors of the Zambian economy.
Annual Report Summaries, Investee Companies

Lubambe Copper Mine Limited Extract from 2020 Annual Report

Lubambe Copper Mine Limited (Lubambe) reported total revenue of ZMW2,145.18 million (US$115.15 million) for the year ended 31 December 2020 [December 2019: ZMW997.12 million (US$ 74.85 million)]. The loss for the year was at ZMW1,580.03 million (US$84.81 million) US$28.34 million [2019: ZMW871.68 million (US$65.44 million)]  

During the year under review, ZCCM-IH continued to engage with Morgan Stanley regarding EMR’s intention to offer some equity to new partners. The ZCCM-IH Board approved Lubambe’s additional US$25 million loan from Trafigura, bringing Lubambe’s total indebtedness to $75 million.  

Dividends declared and paid during the year amounted to nil (December 2019: nil).
Industry News, ZCCM-IH, ZCCM-IH News

ZCCM IH CEO’s speech at the public procurement training workshop

  • Speech delivered  by ZCCM IH Mabvuto Chipata

A significant percentage of our Company budget expenditure goes through the procurement unit that contracts suppliers of various goods and services.

ZCCM IH CEO delivering his speech

These goods and services are particularly administrative and investment-related, from hiring machinery for projects, undertaking of environmental project briefs, exploration services, consultancy services, supply of branding collaterals to supply of cleaning services among others.

We are currently redefining our business strategy, from being passive holders of minority stakes in the mines, to being active operators in mining projects in the country.

As such, the effective and efficient management of both the revenue and the cost side of the business is key with this renewed strategic focus.

Cost management for instance in operations and acquiring of various equipment and other services is necessary for us to achieve the set revenue targets.

It is with this background that the issue of procurement becomes paramount in managing the cost side of the business.  

I therefore have no doubt that the introduction of an electronic procurement system within our procurement unit will lead to increased efficiencies and transparency that will result in:

  • Reduced costs;
  • Increased productivity;
  • Smooth interface between the company and the suppliers;
  • Controlled monitoring of contracts;
  • Increased transaction speed; and,
  • Reduced errors.

We want to leverage on such benefits of the e-procurement system to deliver on projects efficiently and drive company growth. 

As such, this training workshop has been prompted by the need for ZCCM-IH to migrate to this Electronic-Government Procurement (E-GP) system, which is timely for us to move and adapt to the changing business environment.

We are working towards the integration and migration of our internal systems to digital platforms, and this system is one of the tools to help us deliver on projects effectively.  

I would like to thank the ZPPA team, through the Director General Mr Christopher Chichoni for responding favorably to come and facilitate this training for us. 

I urge all the ZCCM-IH staff being trained to embrace this change as it will add value to the ZCCM-IH procurement cycle.

I would like to invite the ZPPA Director General Mr Chichoni, to give his remarks and officially open this training workshop.

Thank you and God bless!