All Posts

Investee Company News

Government Restarts Negotiations with Mopani Copper Mines to Prevent the Closure

Minister of Finance Bwalya Ng’andu has said that the government has restarted negotiations with Mopani Copper Mines Plc to find a solution that will avoid the mine being placed under care and maintenance.

Dr Ng’andu said that it is not the desire of the government to close the mine but find solutions to sustain operations beyond 90 days.

The Minister is leading a delegation which includes Minister of Mines and Minerals Development Richard Musukwa, Minister of Labour Joyce Simukoko, Minister of Energy Mathew Nkhuwa, and Copperbelt Minister Japhen Mwakalombe.

Speaking when he met Mine Unions and Mopani Copper Mines officials, Dr. Ng’andu said President Edgar Lungu has sent the team to discuss how best operations can continue running while being mindful of the challenges the mining firm is going through.

He is hopeful that discussions will center around continuing operations beyond 90 days as applied for by Mopani Copper Mines Plc to place the mine on care and maintenance.

Meanwhile, Mr. Musukwa said the government wants Mopani to structure a surviving model and engage local contractors as opposed to foreigners with a top cost profile.

Mr. Musukwa said engaging local contractors will help Mopani to deal with some of its challenges adding that the government remains open to dialogue to find a win-win situation.

And Mineworkers Union of Zambia President Joseph Chewe said Unions will not allow Glencore to close the mine and should they decide to do so they should be asked to leave.

Mopani Copper Mines Plc Acting Chief Executive Officer Charles Sakanya said the mine is faced with challenges among them VAT refunds.

The delegation is on the Copperbelt to find solutions to the challenges at Mopani Copper Mines Plc, Chambishi Metals, NFCA, Copperbelt Energy Corporation CEC, and Lubambe.

Source: https://www.lusakatimes.com/2020/05/18/283199/
Investee Company News

Chibuluma to go on care and maintenance

METOREX Limited a company running Chibuluma Copper Mines has informed government of its intentions to place its operations on care and maintenance.

Mines Minister Richard Musukwa confirmed this in Kitwe, but said Government would not allow the mine to send people on the streets.

He said the reasons given by Metorex had nothing to do with the Covid-19 but with its depleted resources.

“Yes Metorex has informed government. But the reasons for placing the mine on care and maintenance have nothing to do with covid-19, but something to do with depleted resources. As government we have opened discussions with Metorex to avoid sending people on the streets,” said Musukwa.

And over 400 miners at Lubambe Copper Mines in Chililabombwe have lost their jobs after the mine terminated the contract of Redpath.

But Musukwa asked Lubambe Copper Mines to put the interest of the workers first before its dispute with Redpath.

“Lubambe as a parent company should protect the interest of the workers while they have a dispute with Redpath. In this critical time mining companies are reducing the cost profile not workers. We don’t want the mines to use workers as the sweeping rock under these critical times. Lubambe, Metorex and Mopani should protect the workers,” he said.

Musukwa said the decision by Mopani to place its Kitwe and Mufulira mines on care and maintenance was an illegality.

He added that the 90 days notice given by Mopani Copper Mines is not meant to stop operations.

“We have noted that the mine had intended to put its mines on care and maintenance. But government takes great exception to such moves. We need to sit down and dialogue and provide a sustainable way of doing (things) during this critical time and ensure that the workers on the Copperbelt and North Western that their jobs are guaranteed and protected and ensure that Mines are sustained.”

“So the Ministers of Finance, Mines and Labour will be on the Copperbelt to ensure that this is done well. We also welcome Zambians that will come on board with information that will help the sector navigate during this time are welcome to provide information. What we want as government is to be inclusive and allow a broad spectrum of Zambians to be involved as we structure forward during this critical time,” said Musukwa.

“One key element is to ensure that Mopani reduce its operating cost. We would like to speak survival modes and it is to use local contractors who are at low cost. The 90 days notice is not meant to stop operations. It is meant to ensure that a survival mode is structured, that is in the spirit of the law.”

Source: https://diggers.news/business/2020/05/18/chibuluma-to-go-on-care-and-maintenance/
Investee Company News

Govt Restarts Mopani Negotiations

Minister of Finance Bwalya Ng’andu says government has restarted negotiations with Mopani Copper Mines Plc to find a solution that will avoid the mine being placed under care and maintenance.

Dr Ng’andu says it is not the desire of government to close the mine but find solutions to sustain operations beyond 90 days.

The Minister is leading a delegation who include Minister of Mines and Minerals Development Richard Musukwa, Minister of Labour Joyce Simukoko, Minister of Energy Mathew Nkhuwa and Copperbelt Minister Japhen Mwakalombe.

Speaking when he met mine unions and Mopani Copper Mines officials, Dr Ng’andu said President Edgar Lungu has sent the team to discuss how best operations can continue running while being mindful of the challenges the mining firm is going through.

He is hopeful that discussions will center around continuing operations beyond 90 days as applied for by Mopani Copper Mines Plc to place the mine on care and maintenance.

Meanwhile, Mr. Musukwa said government wants Mopani to structure a surviving model and engage local contractors as opposed to foreigners with a top cost profile.

Mr. Musukwa said engaging local contractors will help Mopani to deal with some of its challenges adding that government remains open to dialogue to find a win-win situation.

And Mineworkers Union of Zambia President Joseph Chewe said Unions will not allow Glencore to close the mine and should they decide to do so they should be asked to leave.

Mopani Copper Mines Plc Acting Chief Executive Officer Charles Sakanya said the mine is faced with challenges among them VAT refunds.

The delegation is on the Copperbelt to find solutions to the challenges at Mopani Copper Mines Plc, Chambishi Metals, NFCA, Copperbelt Energy Corporation CEC, and Lubambe Mine.

Source: https://www.znbc.co.zm/news/govt-restarts-mopani-negotiations/
ZCCM-IH News

Zambia: State JV starts processing gold from informal miners

The Zambian government’s majority-owned ZCCM Investments Holdings PLC has started 10 gold milling plants with a combined processing capacity of 30 tonnes per day, targeting average monthly output for 7.5 kilograms of gold.

The milling plants are part of phase one of the company’s gold processing project in Rufunsa under its 45%-owned joint venture, Consolidated Gold Co. Ltd.

About US$3.5 million will be spent on the Rufunsa project, the company said May 13.

Consolidated Gold CEO Faisal Keer said that the business model involves giving various artisanal and small-scale gold miners access to the milling plants to boost gold production.

Reuters reported the same day that Zambia is looking to formalize artisanal and small-scale miners in a bid to tackle informal gold mining and diversify from copper.

The state mining investment company is targeting production of 40,000 kilograms of gold in 2020 from primary as well as secondary sources, the news wire added.

ZCCM approved a proposal in early-January to enter a joint venture to develop a gold processing and trading operation in Zambia with local gold processor Karma Mining Services and Rural Development Co., which holds the remaining 55% stake.

The company noted that next stage of the first phase is also underway, which involves setting up the gold vat leaching plant to chemically process gold stock piles from two old gold mines, and concentrates from the gold milling plants.

The vat leaching plant will have a processing capacity of 8,000 tonnes of ore material per leach and will target gold monthly output of 17.5 kilograms. Completion is scheduled by June and official launch of the project is scheduled for July following production of a few gold dore bars.

The milling and vat leaching plants are expected to produce 25 kilograms per month.

Phase two of the project will involve setting up the same model in Mumbwa district, and is expected to start before year-end.

Zambian Ministry of Mines Permanent Secretary Barnaby Mulenga said in December 2019 that the country aims to boost revenue from gold production by accounting more thoroughly for volumes of the precious metal produced as a byproduct of copper operations, Reuters reported.

Source: https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/zambia-state-jv-starts-processing-gold-from-informal-miners-58619951
ZCCM-IH News

Gold Mining Commences in Rufunsa

Consolidated Gold Company Ltd Commences Phase One Of The Gold Processing Project In Rufunsa.

The Phase involves ten (10) gold milling plants with a processing capacity of 30 tonnes of ore per day, and a targeted average of 7.5 kilograms gold production per month.
The next stage of the Phase is also underway which involves the setting up of the gold vat leaching plant in Rufunsa. The plant is aimed at chemically processing the gold stock piles from two old gold mines, and concentrates from the gold milling plants.

The vat leaching plant which is scheduled to be completed by June 2020 will have a processing capacity of 8,000 tonnes of ore material per leach, and a targeted gold production of 17.5 kilograms per month.

The total targeted gold production envisaged is 25 kilograms per month from both the milling and the vat leaching plants.
A total of approximately $3.15 million has been injected in these two production lines, following the successful completion and launch of a gold laboratory set at a total cost of $250,000 in Lusaka in March 2020.

A total of approximately $3.5 million will be spent on the Rufunsa project.

Source: https://zambiareports.com/2020/05/14/gold-mining-commences-rufunsa/
ZCCM-IH News

Zambia to begin processing artisanal gold

Gold US$1,717/oz vs US$1,703/oz yesterday – Zambia to begin processing artisanal gold 

Zambia has built 10 milling plants to process gold produced by informal miners, in attempt to diversify from copper mining- according to the state mining investment company ZCCM-IH. 

The project is being undertaken by Consolidated Gold Company and ZCCM-IH, and is part of a continent-wide push to tackle informal mining of gold which deprives African states of revenue. 

Zambia aims to produce 40,000kg of gold in 2020 from primary and secondary sources, and intend to complete a gold leaching plant with a targeted gold production of 17.5kg per month by June (Reuters). 

The ten milling plants will have a combined processing capacity of 30 tonnes of ore per day and a targeted average of 7.5kg gold production per month (Zambia Daily Mail). 

Source: proactiveinvestors.co.uk/companies/news/919584/morning-view—gold-prices-continue-to-rise-on-second-covid-19-wave-fears-919584.html

 
ZCCM-IH News

Gold company starts processing project in Rufunsa

PHASE one of the Consolidated Gold Company Limited (CGCZ) gold processing project in Rufunsa District has commenced, which will see the establishment of 10 milling plants to produce an average of 7.5Kg of gold per month.

In a statement, Wednesday, ZCCM-IH public relations manager Loisa Mbatha-Kakoma announced that the establishment of the CGCZ gold processing project was underway in Rufunsa following the launch of the state-of-the-art gold testing laboratory in Lusaka in March, this year, established to ascertain the quantity and quality of gold mineral around the country.

The lab, built at a total cost of US $250,000, designed to process about 30 samples per day, is targeted at CGCZ’s operations, starting with Rufunsa, where the company is working with small-scale and artisanal miners.

“Phase one of the CGCZ gold processing project in Rufunsa has commenced. The phase involves 10 gold milling plants with a processing capacity of 30 tonnes of ore per day, and a targeted average of 7.5 kilograms gold production per month. The next stage of the phase is also underway, which involves the setting up of the gold Vat Leaching Plant in Rufunsa. The plant is aimed at chemically processing the gold stock piles from two old gold mines, and concentrates from the gold milling plants. The Vat Leaching Plant, which is scheduled to be completed by June, 2020, will have a processing capacity of 8,000 tonnes of ore material per leach, and a targeted gold production of 17.5 kilograms per month,” read the statement.

“A total of approximately US $3.15 million has been injected in these two production lines, following the successful completion and launch of a gold laboratory. A total of approximately US $3.5 million will be spent on the Rufunsa project.”

According to the statement, ZCCM-IH chief executive officer Mabvuto Chipata undertook a site visit earlier this month to check on progress of the project, and expressed satisfaction that the project was on course, despite a few delays in bringing in the required equipment from manufacturers outside the country due to the COVID-19 pandemic.

ZCCM-IH looks to officially launch the project after next month once a few gold bars are produced, according to Chipata.

CGCZ chief executive officer Faisal Keer, who accompanied Chipata during the site visit, stated that the business model involved working with various artisanal and small-scale gold miners in providing access to the milling plants, with the view to increase their gold production.

He added that CGCZ was also helping licensed small-scale gold miners with mining technical expertise and safety, and also providing access to earth-moving machinery to increase gold ore production that was subsequently processed using the milling plants.

And phase two of the project, which will involve setting-up the same model in Mumbwa District, is expected to start before the end of the year.

CGCZ is a gold processing and trading joint venture partnership between Karma Mining Services and Rural Development (55 per cent) and ZCCM-IH (45 per cent).

ZCCM-IH has started buying gold from artisanal and small-scale gold miners as one of the steps towards the formalisation of gold mining and trading activities.

ZCCM-IH’s national target for gold from both primary and secondary sources is 40 tonnes or 40,000Kgs, and will be offering a competitive price for gold from the local market, pegged at a starting price of K550 per gram.

 Sources: https://diggers.news/business/2020/05/14/gold-company-starts-processing-project-in-rufunsa/
Investee Company News

Investrust Bank seeks to raise approximately K400 million in rights issue

Investrust Bank Plc has announced that it will be calling for an Emergency General Meeting (EGM) in Q2 2020 for the sole purpose of approving an approximately K400.40 million through a Rights Issue, according to a statement from the bank.

The EGM is scheduled for Friday 5th June 2020 commencing at 10:00 hours with the purpose of “considering the passing of resolutions to approve the raising of capital in the sum of ZMW 400,497,909.75 (Four Hundred Million Four Hundred Ninety-Seven Thousand Nine Hundred Nine Kwacha Seventy-Five Ngwee) through a 5 for 1 Renounceable Rights Offer by the issuance of 40,825,475 (Forty Million Eight Hundred Twenty-Five Thousand Four Hundred Seventy-Five) ordinary shares of ZMW 1.00 par value each at an Offer price of ZMW 9.81 (Nine Kwacha Eighty-One Ngwee) per share to Shareholders on Record Date (“the Rights Offer”)”, according to a statement issued by the Bank’s Company Secretary Brian Msidi on 13 May 2020.

A rights offering (rights issue) is a group of rights offered to existing shareholders to purchase additional stock shares, known as subscription warrants, in proportion to their existing holdings. These are considered to be a type of option since it gives a bank’s stockholders the right, but not the obligation, to purchase additional shares in the company.

The last time the bank was involved in a capital raising through a rights issue involved its majority shareholder, ZCCM-IH, in 2016. “The Renounceable Rights Offer of 3,499,563 (Three Million Four Hundred and Ninety-Nine Thousand Five Hundred and Sixty-Three) Rights Offer Shares of ZMW 1.00 (one Zambian Kwacha) par value each in the share capital of Investrust, at a subscription price of ZMW 11.44 (Eleven Kwacha Forty-Four Ngwee) per Rights Offer Share, on the basis of 3 new Rights Offer Shares for every 4 Ordinary Shares already held at the Record Date, payable in full on acceptance” , according to a circular issued by the Bank in collaboration with ZCCM-IH in February 2019,

In a rights offering, the subscription price at which each share may be purchased is generally discounted relative to the current market price. Rights are often transferable, allowing the holder to sell them in the open market. With the latest rights issue, Subject to the adoption of the Special Resolution, it is envisaged that the Rights Offer Circular will be posted on or about 10 July 2020 to shareholders. This will provide the details that investors (current shareholders and external investors) that they need to make the investment decision.

Source:  https://fizambia.com/?p=6874
ZCCM-IH News

Zambia, in diversification push, starts processing artisanal gold

LUSAKA, May 13 (Reuters) – Zambia has built 10 milling plants to process gold in a drive to formalise artisanal and small-scale miners and diversify from copper mining, state mining investment company ZCCM-IH said on Wednesday.

The project is being undertaken by Consolidated Gold Company Ltd (CGCZ), a gold processing and trading joint venture between Karma Mining Services and Rural Development and ZCCM-IH.

Zambia’s efforts are part of a continent-wide push to tackle informal mining of gold, which is driven by poverty and unemployment, poses health and environmental risks and deprives states of revenue when the metal is smuggled across borders.

Africa’s second-largest copper producer, Zambia aims to produce 40,000 kg of gold in 2020 from primary and secondary sources including gold bought from artisanal and small-scale miners at government-controlled buying centres.

The milling plants have a combined processing capacity of 30 tonnes of ore per day and a targeted average of 7.5 kilograms gold production per month, ZCCM-IH said.

A gold leaching plant with a processing capacity of 8,000 tonnes of ore material per leach, and a targeted gold production of 17.5 kilograms per month will be completed by June, it said.

“The plant is aimed at chemically processing the gold stock piles from two old gold mines, and concentrates from the gold milling plants,” the statement said.

The project aims to reach gold production of 25 kg per month from the milling and leaching plants by the end of 2020, ZCCM-IH said.

In March, ZCCM-IH started buying gold from artisanal and small-scale miners whose ranks have swelled worldwide as gold prices soar.

ZCCM-IH is now buying gold for at least 600 kwacha ($33.33) per gram, with prices increasing according to purity – a competitive option compared to prices of around 500 kwacha in the open market, a spokeswoman said.

The ZCCM-IH price still represents a significant discount to the price of gold on the world market, which has ranged between around $58 and $61 a gram over the past month.

Disruptions to supply chains due to the COVID-19 pandemic have depressed local gold prices, hurting subsistence miners all over the world.

As the state seeks to benefit more from large-scale mining too, Zambia in December said it plans to make copper mining companies account for the gold they produce as a by-product of the copper mining process.

First Quantum Minerals’ Kansanshi Mine, the only mine that has been declaring its gold production, produced 4,200 kg of gold in 2018. ($1 = 18.0000 Zambian kwachas) (Reporting by Chris Mfula; Editing by Helen Reid and William Maclean)

Source: https://af.reuters.com/article/zambiaNews/idAFL8N2CV2UE
ZCCM-IH News

Zambia targets 40,000 kg of gold in 2020 as attempts to formalise artisanal mining sector

Zambia is hoping to produce 40,000 kilograms (about 1.4 million ounces) of gold a year from primary and secondary or artisanal and small-scale producers, said Reuters citing a statement by ZCCM-IH, the state-owned copper miner.

ZCCM-IH has overseen the construction of 10 milling plants that will firstly formalise the artisanal gold sector and, secondly, help diversify the southern Africa country’s economy away from copper.

The project is being undertaken by Consolidated Gold Company Ltd (CGCZ), a gold processing and trading joint venture between Karma Mining Services and Rural Development and ZCCM-IH, said Reuters.

 

The push to formalise the secondary production is part of a continent-wide push to tackle the risks associated with artisanal mining, regarded for unsafe mining practices and law-breaking. In its plan, gold will be bought from artisanal and small-scale miners at government-controlled buying centres.

The milling plants have a combined processing capacity of 30 tons of ore per day and a targeted average of 7.5kg gold production per month, ZCCM-IH said. A gold leaching plant with a processing capacity of 8,000 tons of ore material per leach, and a targeted gold production of 17.5 kilograms per month will be completed by June, it said.

“The plant is aimed at chemically processing the gold stock piles from two old gold mines, and concentrates from the gold milling plants,” ZCCM-IH’s statement said.

First Quantum Minerals’ Kansanshi Mine, the only mine that has been declaring its gold production, produced 4,200 kg of gold in 2018, said Reuters.

Source: https://www.miningmx.com/news/gold/41831-zambia-targets-40000-kg-of-gold-in-2020-as-attempts-to-formalise-artisanal-mining-sector/