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METALS-Copper steady; zinc rises on demand boost ahead of Phase 1 trade deal

London copper prices steadied on Monday after falling sharply in the previous session, while zinc hit a two-week high as the soon-to-be signed Phase 1 trade deal between the United States and China boosted prospects of higher demand.

A Chinese delegation is planning to travel to Washington on Jan. 13 for the signing of the U.S.-China Phase 1 trade deal, the South China Morning Post reported on Sunday.

Monetary policy easing by Beijing and a better-than-expected manufacturing performance from China in December were also creating a favourable backdrop for copper, Argonaut Securities said in a note.

FUNDAMENTALS
* COPPER: Three-month copper on the London Metal Exchange was flat at $6,129 a tonne by 0740 GMT, after shedding 1% on Friday. The most-traded March copper contract on the Shanghai Futures Exchange closed down 0.6% on 48,760 yuan ($6,990.58) a tonne.

* ZINC: The metal used to galvanise steel rose as much as much as 1.4% to $2,339 a tonne, its highest since Dec. 23 on concerns about falling stocks MZN-STOCKS, which stand at just 51,125 tonnes in LME-registered warehouses. ShFE zinc closed up 1.5% on 18,110 yuan a tonne.

* ZINC SPREAD: The premium of cash LME zinc over the three-month contract CMZNo-3 stood at $14.75 a tonne on Friday, the highest since Dec. 2, indicating tight near-term supply.

* COPPER: Canadian miner First Quantum Minerals Ltd is weighing investment of around $1 billion to lift output at Africa’s biggest copper mine in Zambia despite a feud with state miner ZCCM-IH over project funding.

* OTHER METALS: The LME complex was mixed, with aluminium slipping 0.4% and lead losing 0.5%. Nickel edged up 0.2& while added 0.3%.

* ALUMINIUM: Aluminium stocks held at three major Japanese ports AL-STK-JPPRT at the end of November were up 0.9% at 321,200 tonnes from the previous month, Marubeni Corp said.

MARKETS NEWS
* Tensions in the Middle East after the killing of a top Iranian general by the United States pushed an index of Asian shares off an 18-month high as investors pushed safe-haven gold near a seven-year high, and oil jumped to four-month peaks.

PRICES    
 BASE METALS PRICES                     0740 GMT
 Three month LME copper                   6128.5
 Most active ShFE copper                   48760
 Three month LME aluminium                1816.5
 Most active ShFE aluminium                14105
 Three month LME zinc                       2327
 Most active ShFE zinc                     18110
 Three month LME lead                       1910
 Most active ShFE lead                     14755
 Three month LME nickel                    13790
 Most active ShFE nickel                  108190
 Three month LME tin                       16850
 Most active ShFE tin                     134570
                                                
 BASE METALS ARBITRAGE                          
 LME/SHFE COPPER             LMESHFCUc     519.8
                             3          
 LME/SHFE ALUMINIUM          LMESHFALc   -396.08
                             3          
 LME/SHFE ZINC               LMESHFZNc   -422.09
                             3          
 LME/SHFE LEAD               LMESHFPBc   -710.97
                             3          
 LME/SHFE NICKEL             LMESHFNIc  -2748.14
                             3          

($1 = 6.9751 Chinese yuan renminbi)

Source: Hellenic Shipping news world wide
Investee Company News

ZESCO’s Termination of CEC Bulk Supply Questionable – Energy Experts

A GROUP of energy experts has questioned Zesco’s motive behind the refusal to renew a Bulk Supply Agreement it entered into with the Copperbelt Energy Corporation (CEC) over 22 years ago.

On November 21, 1997, Zesco Limited and CEC entered into an agreement where the former was supplying power to the latter at wholesale, a deal that comes to an end on March 31 this year.

Since then, CEC has been supplying power to mining companies on the Copperbelt, as well as most mining residential areas.

The company is also the major financier of the Zambian premier league side Power Dynamos Football Club.

Last Friday, CEC informed its shareholders that energy minister Mathew Nkhuwa had notified management that the agreement would not be extended once it expires at the end of March.

Responding to the government’s decision, the Energy Advisory and Solicitation Institute (EASI) argued that CEC was already proven to be a responsible stakeholder in the energy sector.

EASI chairperson Chisakula Kaputu said the motive behind the government’s refusal to renew the agreement with CEC was highly questionable.

“Zesco has since the post 2000 commercialisation narrative still remained in the doldrums of a social enterprise with very little to show of a financially sustainable business model existing,” he said in a statement yesterday.
“…EASI believes that we have an energy sector at crossroads with pertinent issues of cost reflective tariffs, Electricity Supply Industry (ESI) sustainability and viability, reform uncertainty, legacy PPAs and BSAs, energy security, etc at the fore, as such transparency and good intent is demanded of all the energy sector players/stakeholders.”

Kaputu demanded clarification from the PF government on what he termed as an ambiguous statement.
He stated that both Zesco and CEC were key stakeholders in the energy sector, hence the need for the government to reflect on the decision.

“The energy sector needs CEC as an already proven key stakeholder and only second to Zesco in functional responsibility in the power generation, transmission, distribution and supply portfolios. The energy sector needs Zesco the most as sole owner of 66 per cent of national installed capacity and over 30,000 km of transmission and distribution national grid as well as custodian of [the] National Control Centre/systems operator functionality,” stated Kaputu. “Government’s decision on the nearing expiring ZESCO – CEC BSA must be taken in the best interest of the country and energy sector above all else. Ambiguity around the bold statement that the ZESCO-CEC BSA ‘will not be renewed’ after it expires on 31st March 2020 needs to be clarified at the earliest opportunity. In order to calm the anxiety of the mining load owners and Copperbelt Province energy users in general, the discussion/negotiation around the ZESCO-CEC BSA issue needs to be expedited with resolution made way ahead of the expiry date of 31st March 2020.”

According to a notice to shareholders, the government, through Nkhuwa and Zesco, had notified CEC that the Bulk Supply Agreement would not be renewed once it expired.

“In accordance with Section 81(1) of the Securities Act No. 41 of 2016, the Board of Directors of Copperbelt Energy Corporation Plc (“CEC” or “the Company”) advises the Company’s shareholders, and the market, that the power purchase agreement or Bulk Supply Agreement (“BSA”) between CEC and ZESCO Limited (“ZESCO”), entered into on 21 November 1997 is expected to come to an end on 31 March 2020,” company secretary Julia Chaila stated. “The Government of the Republic of Zambia (“GRZ”), through the Minister of Energy, and Zesco have notified CEC of their position that the BSA will expire on the date stated above and will not be renewed. GRZ and Zesco have expressed to CEC their commitment to continue facilitating an efficient and economic supply of power to consumers on the Copperbelt both during the validity of and post the BSA. CEC wishes to emphasise its unwavering commitment to use its infrastructure and capabilities in ensuring continued and seamless supply of power to all consumers on the Copperbelt now and after the BSA.”

Source: The Mast
All Posts, ZCCM-IH News

ZCCM-IH partners with Aussie firm

KALONDE NYATI, Lusaka
ZAMBIA Consolidated Copper Mines – Investment Holdings (IH) has partnered with Instinct Energy Limited, an Australian company, to carry out exploration of coal bed methane (CBM) in Southern Province.
The investment holding company has also set aside K20 million for exploration of various minerals, oil and gas across the country.
ZCCM-IH chief executive officer Mabvuto Chipata said in an interview in Lusaka yesterday that CBM, which is a form of natural gas found in coal deposits and CLICK TO READ MORE

Source: Daily Mail
Investee Company News

Agarwal Mining Group Hit by Commodity Price Slump

Anil Agarwal’s mining group has reported a drop in half-year profits due to lower commodity prices.

Vedanta Resources, which was taken private by the Indian tycoon in 2018, said that earnings before interest, depreciation, taxation and amortisation fell 19 per cent to $1.4 billion in the six months to September. Revenues fell 5 per cent to $6.1 billion, mainly because of lower prices.

Vedanta Resources has operations in India, Africa and Australia, employing 65,000 people. It listed in London in 2003 but remained controlled by Mr Agarwal, 65. In 2018 Volcan Investments, his family trust, bought back the listed third of its shares.

Vedanta said that profits in its largest business, zinc, fell by 20 per cent to $479 million in the six months to…

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Source: The Times (UK)
Investee Company News

Kansanshi Miners in Pay Rise

KALONDE NYATI, Lusaka
UNIONISED workers at Kansanshi Mining Plc have been awarded a seven percent salary increment effective today.
Kansanshi Mining Plc human resources manager Maimbo Silimi said the increment will go a long way in cushioning the cost of living.
Speaking during the signing ceremony in Lusaka yesterday, Mr Silimi said the increment has been awarded despite the operational challenges affecting the mining firm  CLICK TO READ MORE 

Source: Zambia Daily Mail
Investee Company News, ZCCM-IH News

Serenje Set for Manganese Mining

KALONDE NYATI, Lusaka
MINING of manganese at Kabundi Mining Resources Limited will get underway soon after approval around community resettlement is concluded by the Zambia Environmental Management Agency (ZEMA), Zambia Consolidated Copper Mines -Investment Holdings (IH) said.
The K70 million project located in Serenje, and is a subsidiary of ZCCM-IH, will help to unlock the manganese potential thus enable the country to benefit from the increasing global demand for the commodity used in steel production and batteries CLICK TO READ MORE 

Source: Zambia Daily Mail
ZCCM-IH News

Bank of Zambia to Buy 40,000 Kilos of Gold in 2020

Government, through the Bank of Zambia (BoZ), will buy and collect more than 40,000 kilogrammes of gold from primary and secondary sources, including artisanal and small-scale gold miners, Mines Permanent Secretary Barnaby Mulenga has announced.

And ZCCM-IH chief executive officer Mabvuto Chipata has disclosed that the institution has embarked on a programme to set up gold-buying centres in strategic panning areas.

Speaking during a press briefing in Lusaka, Thursday, Mulenga said the government was in dire need of liquid cash and that as such, gold mining licenses of companies that had not yet commenced operations would be revoked.

“The information generated will facilitate delineation of areas into gold panning, artisanal, small or large-scale. Large-scale areas will be reserved for government to license. On the other hand, reserves and river beds will be allocated or licensed to panners and artisan miners. Revoking non-compliant licenses in the targeted areas in public interest pursuant to section 72 (l) (i) of the Mines and Minerals Development Act of 2015. We need the money, as government, so what are they waiting for? Those who have not commenced operations will lose their licences,” Mulenga cautioned.

“Compelling existing small and large-scale mining companies to account for the gold from their mining operations, implementing measures to curb illegal exploitation of gold and means of accounting for the gold to raise revenue for the government. Other measures include: sensitization of local communities to ensure success of the strategy. The strategy requires a multi-sectoral approach to ensure that all ministries cooperate to account for the gold. The target amount of gold to be collected, as we’ve said by 2020, is 40,000Kgs. And this will come from primary sources and secondary sources that include artisanal and small-scale gold miners. And this is achievable through a well-coordinated approach; that is why we have mandated ZCCM-IH to drive this strategy, working with various partners and stakeholders.”

He said Zambia currently had more than 21 districts with deposits of gold at varying quantities.

“There are currently 21 districts with active gold mining activities, which include: Solwezi; Mwinilunga; Kasempa; Mumbwa; Kabwe; Chisamba; Senga Hills; Mpika; Chilanga; Chadiza; Chirundu; Kazungula; Lundazi; Chongwe; Petauke; Lusangazi; Vubwi; Luano; Rufunsa; Chipata; Mkushi and Serenje. More and more districts are discovering that there is gold in their areas because Zambia is not full or 100 per cent geologically mapped, but rather stands at about 62 per cent,” said Mulenga.

“Computation of estimates of the gold that could be bought off/collected can only be realized with an aggressive approach towards harnessing the artisanal miners in Zambia. We also want our people to derive value from their hard work and not the manner in which they are being exploited by unscrupulous people. This approach will help uplift the living standards of our people, who are currently panning for gold, and improve their local economies in a sustainable and environmentally friendly manner. And that’s where ZCCM-IH comes in.”

And Chipata said the institution was in the process of forming a Special Purpose Vehicle (SPV) that would oversee the operations of all gold-related operations.

He outlined that ZCCM-IH had since embarked on a programme to set up gold-buying centres in strategic panning areas.

“We are in the process of forming a Special Purpose Vehicle that will oversee and undertake all gold-related projects. The name of this vehicle is yet to be announced. Once these results are out, we will continue with the exploration programme, particularly for the primary source of the gold in Kasenseli. This exploration for primary gold source will be happening in tandem with preparatory works for us to commence mining within 2020 once statutory approvals are finalized. Second, as one of the steps towards the formalization of the artisanal and small-scale gold miners. ZCCM-IH has embarked on a programme to set-up gold buying centres in strategic gold panning areas. We have since obtained a mineral trading permit to this effect to enable us carry out this programme. The initial sites include: Rufunsa; Vubwi; Luano; Petauke; Senga Hill and Mumbwa, and will be rolled out to other areas in the country with gold occurrences,” Chipata explained.

He added that ZCCM-IH was working in collaboration with the Ministry of Mines to formalize artisanal gold mines with the objective of curbing illegal mining activities.

“The main objective is to curb the smuggling of gold out of the country; provide an open market and competitive prices for the artisanal gold miners, and ultimately, take stock of the gold output from artisanal miners. Third, aside from this gold-buying programme, we are also working towards formalization of artisanal gold miners in collaboration with the Ministry of Mines and other stakeholders…So far, cooperatives have been registered in some areas such as Rufunsa and Petauke, and these will be given artisanal licences within the licence areas to be granted and managed by ZCCM-IH. As you have witnessed already, there has been a lot of environmental damage in gold panning and mining areas. So, the first step will be to undertake some environmental remediation exercise and this will be done through our environmental and technical services subsidiary, Misenge. We will further provide technical expertise to the artisanal gold miners with regards to mine planning, safety, among others,” said Chipata.

Source: News Diggers
ZCCM-IH News

Sanitise Gold Mining for Maximum Revenue

MINING has for over five decades been the mainstay of the country’s economy and has been the goose which has laid the golden eggs.
It has provided employment – direct and indirect – to thousands of Zambians and expatriates, as well as being the net foreign exchange earner.
Copper and other metals such as cobalt, lead, nickel and zinc have kept the economic wheels running as they are some of the most essential elements with strategic and irreplaceable industrial uses world over.
But the resumption of mining activities in North-Western Province, starting with Kansanshi in Solwezi and Lumwana in Kalumbila district, has added another dimension following the discovery of gold.
This has meant that Zambia’s mining portfolio has value addition, what with emeralds which are mined in Lufwanyama district on the Copperbelt.
Last week, Vice-President Inonge Wina told Parliament that more than 24,000 kilogrammes of gold was produced by four mining companies in Zambia from 2017 to February 2019.
Mrs Wina, however, said it was difficult to be exact about the figure due to rampant illegal mining of gold taking place all over the country.
Under-declaration of the actual production figures of gold by some mines cannot also be ruled out as there is no independent verification of the same.
While gold mined at Kansanshi, Lumwana and other mines is said to be aligned to copper, the discovery of pure gold at Kasenseli in Mwinilunga district of North-Western Province should make the difference.
There has been illegal mining at Kasenseli since the gold was discovered. The gold rush has unfortunately led to loss of lives.
It is public knowledge that charter planes have been landing in North-Western Province taking out gold (and suspected diamonds) that has been clandestinely mined.
Government cannot watch illegality to continue at Kasenseli and has since suspended all mining activities where about 2,000 illegal miners reportedly dig gold at the premises during the night.
The suspension of mining activities at Kasenseli Gold Mine has been made in public interest to bring order in Mwinilunga and security wings will be manning the facility.
Minister of Mines and Mineral Development Richard Musukwa said on Saturday that Cabinet resolved to suspend the mining activities at the facility to put in place a robust mining exploration programme.
It is also alleged that foreigners have camped in Mwinilunga to conduct illegal mining at Kasenseli.
The Zambia Consolidated Copper Mines–Investment Holding (ZCCM-IH), in partnership with the community in Mwinilunga, will oversee operations at the mine.
It has become inevitable for the State, through ZCCM-IH, to normalise gold production at Kasenseli for the benefit of all the stakeholders.
It is a pity that ZCCM-IH has been very slow to possess the mine and find partners to start production.
The country is in a hurry to develop and needs all the sales of its minerals to enhance foreign exchange earnings.
Gold is one of the best-selling minerals on the world market.
The successful production of gold will change the fortunes of Mwinilunga, which has for a long time relied on pineapples.
It also confirms the status of North-Western as the new copper belt region of the country.
Government will ensure that the gold endowment of Kasenseli is felt by all citizens in Mwinilunga and beyond as the revenue from exports will go towards social sectors such as health, education and cash transfer.
Going forward, ZCCM-IH should be proactive by being on top of things as opposed to waiting for illegal miners to discover minerals.
This country has trained and is still training geologists to ensure that all mineral-rich areas are zoned and protected.

source: www.daily-mail.co.zm/sanitise-gold-mining-for-maximum-revenue/
ZCCM-IH News

Barnaby Mulenga to be unveiled at the next ZCCM IH AGM

Finance, ZCCM-Investment Holdings Plc
Written by 

The appointment of Barnaby Mulenga will be announced and his position on the Board of ZCCM IH Group ratified by shareholders when the group of companies hosts its next annual general meeting in mid-January 2020, according to a statement from the Group.

Barnaby Mulenga, Incoming Board Member 

Barnaby, who is a Master’s degree holder in Environmental Law from the University of Sydney Australia, is currently the Permanent Secretary at the Ministry of Mines after being transferred from Ministry of Labour and Social Security in September 2019. Prior to that, he held the positions of Commissioner of Lands and Head of Estates and valuation all under the Ministry of Lands.

His appointment to the Eric Silwamba led board comes at a time when the group is seeking to create value outside traditional investments. Dividends out of investee companies that have largely been in the mining sector. In 2019 alone, CEO Mabvuto Chipata’s ZCCM-IH and Urban Hotel Group partnered to invest K60 million in the construction of a mixed-development property in Lusaka. Barnaby will be looking closely at this particular investment as the group seeks to expand on its property portfolio.

At the moment, Barnaby is also the interim Chairman of the Public Service Pensions Fund (PSPF) Board. He also serves on a number of other Boards that include the National Pension Scheme Authority (NAPSA), Workers Compensation Control Fund Board (WCFCB), Zambia Development Agency (ZDA) and the Pensions and Insurance Authority (PIA) among others.

His appointment to the board is a strategic one as his background will aid the board in achieving one of the 5 strategic focus areas. Real estate remains a priority for the investment holding group and Barnaby will provide insight from his experience at the Ministry of Lands.