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CSR in a time of Corona – ZCCM IH steps up to be counted

Many corporates have answered the call for assistance from Zambia’s Ministry of Health during these difficult times of the COVID-19 Pandemic. On 2nd April 2020, ZCCM IH led by their CEO Mabvuto Chipata step up to the cause in a significant way by donating a Mercedes Benz ambulance to help in fight against the deadly virus.

ZCCM-IH joins Government in the fight against Covid-19 by donating a Mercedes Benz Ambulance. Source ZCCM IH Twitter @zccmihplc

At the moment, in all continents of the world, the health care infrastructures of various nations have been tested and stretched by the Pandemic. Although it’s been described as a black swan moment, the needs of the healthcare supply chains, which for many have reached breaking points, are in desperate need of apparatus (masks, hand sanitizer, ventilator, and mobility) to aid in this crisis.

Corporates have choices when it comes to making donations for causes such as this one. Some have opted to give sizable cheques to meet funding needs for this specific period of the crisis. However, others such as ZCCM IH have a CSR strategy that seeks to build on the infrastructure of the entities directly responsible for dealing with the crisis with a long term view in mind.

A review of ZCCM IH’s 2019 annual report reveals that through their Corporate Social Responsibility (CSR) programmes, the investment group continued meeting social obligations by supporting access to clean water to enhance sanitation and support health and education programmes among others. One such contribution was to support Ndola Teaching Hospital by sinking two commercial water boreholes and setting up a complete water reticulation system to support water to critical areas of the hospital including the operating theatres and wards which were known to have experienced severe water shortage (crisis) in the past.

Ministry of Health officials examining the apparatus

Therefore, the recent donation of an ambulance further exposes the DNA of ZCCM IH’s ongoing CSR strategy which focuses more on building supporting infrastructure that ensures long term sustainability.

But pundits far and wide will still ask the question “Why is it so important for corporates such as ZCCM IH and others in Zambia’s private sector to step up during this moment”. In strategic management literature, the debate over the social responsibilities of companies has been both contentious and confusing. On the one hand, which is a property conception views the company as a set of assets owned by the shareholders, whereas on the other hand, which is the social entity conception, views the company as the community of individuals that is sustained and supported by its relationships with its social, political, economic and natural environment. However, both opposing opinions must recognize that for an entity to survive and earn a profit it must maintain social legitimacy. Therefore, it is prudent for corporate entities such as ZCCM IH to purse CSR strategies that will inadvertently support their long term strategic goals.

With ZCCM IH now firmly redefining the gold mining ecosystem in Zambia by embracing artisan miners, ensuring their health at this moment in its development is crucial as having a healthy human capital base will secure long term success for both the corporation and the wider community.
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LOCAL CONTRACTORS WIN BIG IN $1.7BN FQM BONANZA

SOLWEZI AND KALUMBILA, ZAMBIA – First Quantum Minerals spent US$1.7 billion within Zambia in the last year, latest figures from the company have revealed.
The mining giant’s Kansanshi Mining Plc subsidiary spent US$958,767,110 locally in 2019, while US$659,712,101 was spent by Kalumbila Minerals Ltd at Sentinel mine. This equates to 88% and 80% of the mines’ total spend respectively.
The company’s Roads Division alone spent $152,815,503 within Zambia – 72% of its total expenditure for the year. In partnership with local town councils, it has stabilised roads in Solwezi, Kalumbila and other districts that were previously in a deplorable condition and presented a danger to road users.
The Roads Division is responsible for the construction and continuous maintenance of the roads and infrastructure on all First Quantum Minerals operations in Zambia, as well as development of the roads infrastructure of the communities in which it operates.
FQM Country Manager General Kingsley Chinkuli said that because of the company’s intensive use of infrastructure, FQM has recognised the transport sector as an important component of the economy and a common tool used for development.
“The relationship between the quantity and quality of transport infrastructure and the level of economic development is apparent,” he noted.
He added that to promote transparency and accountability, FQM adheres to the procurement procedures and laws of Zambia and strives to procurement from Zambian registered business.
“It is entirely right and proper that mines are open to scrutiny and held accountable for their actions, and indeed First Quantum goes to great lengths to ensure it is transparent in its corporate operations and sustainability programmes,” said General Chinkuli.
Projects that the company’s Road Division in recent years include a 2,800m runway at Solwezi, another 2,800m runway at Kalumbila, the earthworks and internal roads for the Kansanshi copper smelter, and the earthworks and internal roads for the new Sentinel mine process plant. They also include a 32km access road to the newly developed Sentinel mine at Kalumbila, a 15km access road to the new copper smelter and various roads around Solwezi, including the main access road to Kansanshi Mine.
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Mwinilunga Gold Explorers lose Licences

GOVERNMENT has revoked licences for PCB and Kampoko Mineral Resources, which were carrying out gold mining exploration in Kasenseli in Mwinilunga district. Gold deposits have been discovered in Kasenseli and the two companies have allegedly been engaging in illegal mining of the mineral. Zambia Consolidated Copper Mines-Investment Holdings (ZCCM-IH) chief executive officer Mabvuto Chipata said the exploration licences for PCB and Kampoko Mineral Resources have been transferred to ZCCM-IH and will be operated by ZCCM-Gold Company, which has been mandated by Government to harness the gold sector in the country. Mr Chipata said when he paid a courtesy call on Mwinilunga District Commissioner Arnott Mapulanga on Wednesday that ZCCM-Gold Company will partner with the previous licence holders in exploiting the mineral in Kasenseli.

Mr Chipata said ZCCMGold Company will quickly secure the mine premises by putting up a fence to prevent illegal mining activities. “We need to enhance security in the area to ensure that we continue to preserve the resource before we can start to mine it properly,” he said. Mr Chipata also said the company will work closely with the local people to improve their livelihoods.

“We have a number of corporate social responsibility programmes we are going to implement, including those that will be recommended by our environmental teams, as well as those which require improving social amenities,” he said. Mr Chipata said ZCCMGold Company has been tasked to do explorations countrywide in areas where gold deposits have been discovered, conduct mining activities, as well as processing and marketing of the resource. “Our mandate is to organise this sector [gold sector] to ensure that we provide a transparent market, and also to be able to empower people with better tools to enable them to properly extract gold,” he said. Mr Chipata said ZCCMIH will ensure that as the company conducts mining activities in various parts of the country, it does not cause harm to the environment.

“With regards to Kasenseli, we have taken an inclusive approach where we are partnering with the previous licence holders instead of excluding them,” he said. Mr Chipata also said ZCCMGold Company is going to work with the Chibwika Chiefdom Development Trust, which will be allowed to participate in gold mining in Kasenseli. “That is the way we have structured our approach to ensure that the community is involved,” he said.
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Kansanshi Donates 2838 books to solwezi council

Solwezi Municipal Council has received a donation of 2, 838 books from Kansanshi Mine Plc.

Speaking when he received the donation, Solwezi Mayor Nicholas Mukumbi said books still remain the most popular source of information and knowledge for academics

Mr Mukumbi said despite the advent of Information Communication Technologies (ICT), the books helps to improve the reading and writing skills of people.

He said the Council is in the process of establishing a Library at the Kimasala Community Centre and planned to set up one preferably at the Civic Centre and others in each ward in order to reduce on movement of people from distant places to access books.

The Mayor encouraged members of the community to read the books once the Library is opened.

He expressed gratitude to the mining company for the gesture indicating that it will go a long way in improving the literacy levels of many in the district.

And Kansanshi Mining Plc Education Advisor Onward Mandevu said that Solwezi district and Zambia at large cannot develop with low literacy levels hence the donation of the novels, early childhood and senior school textbooks will help develop a culture of reading within the district because people that read, keep learning.

Kimasala Ward Councilor Nephan Kamwandi thanked the Council for being equal to the task by implementing provisions of the Local Government Act No. 2 of 2019 and bringing education services closer to the people as this guarantees improved literacy levels in Solwezi district.

Mr Kamwandi said the community will be enlightened about the donation and the importance of reading because this is for their benefit.

This is according to a media statement made available to The Independent Observer by Solwezi Council Assistant Public Relations Manager Esther Chirwa
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Zambia’s ZCCM-IH to appeal against High Court judgment

Zambia’s ZCCM Investments Holdings (ZCCM-IH) Plc, has said it intends to appeal against the ruling of the Lusaka High Court delivered on March 23, 2020 regarding a matter the state-owened company commenced in 2016, against First Quantum Minerals Limited, FQM Finance Limited, Philip Pascall, Arthur Mathias Pascall, Clive Newall, Martin Rowley, and Kansanshi Mining Plc.

In a media statement, ZCCM-IH alleges that the defendants’ conduct on several occasions fraudulently engaged in transactions totaling in excess of $2bn for the benefit of the FQM Group, is detrimental to ZCCM-IH’s interests and those of the nation, and remained committed to protecting the said interests, adding that it will be appealing against the ruling.

In 2016, state-owned ZCCM-IH started the process of claiming up to $1.4bn from First Quantum Minerals Ltd after it accused the Canadian-based metals and mining company of engaging in fraud. The claim included $228m in interest on $2.3bn of loans that ZCCM-IH said First Quantum wrongly borrowed from the Kansanshi Copper Mine, as well as 20% of the principal amount or $570m, according to an internal company presentation, dated November 4, 2016.

ZCCM-IH is also seeking $26m as part of a tax liability the Zambia Revenue Authority (ZRA) said Kansanshi owed it and the cost of the mine borrowing money commercially that ZCCM-IH said could have been avoided.

In papers filed in the Lusaka High Court on October 28, 2016, ZCCM-IH said First Quantum used the money as cheap financing for its other operations.

ZCCM-IH is listed on three stock exchanges namely Lusaka Securities Exchange (primary listing), London Stock Exchange and the Euronext Access (Paris – Marche Libre secondary listings).

The Zambian government holds directly 17.25% shares and its 60.28% shares is held through the Industrial development Corporation (IDC) of Zambia, with the remaining 22.47% held by institutional and private individual shareholders.

ZCCM-IH currently has an investment portfolio of 22 companies, including Kansanshi Mining Plc (20%), Mopani Copper Mines Plc (10%) and Konkola Copper Mines Plc (20.6%). Its shareholdings in these companies range from 10% to 100%, with commodities and services that are diversified in nature, including copper, gold, cobalt, coal and power, limestone, mining consultancy, financial services and gemstones.

Source: Business Tech Africa
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Maamba Collieries Intensifies COVID – 19 Safety Measures

Maamba Collieries Ltd (MCL), the largest thermal power producer in Zambia has scaled-up efforts to stop the spread of COVID-19, by implementing stringent preventive safety measures.

Maamba Collieries Manager Yotham Phiri said MCL is treating the global pandemic with utmost seriousness, and taking all measures to ensure the health and safety of its staff, while also sensitising the community.

“We are alive to the gravity of the situation and are taking every possible precaution to prevent the COVID-19 infecting our people. Measures we have implemented include daily fumigation of all MCL buildings, equipment and vehicles to minimise contamination, as well as stopping all visitors. Our safety team is working hard to ensure every entry point to the mine and all buildings have sanitising equipment for our staff to use.” He said

And HR and Administration Manager Bwali Ndau highlighted measures to minimise person-to-person contact and ensuring social distancing and personal hygiene have been put in place.

In a statement made available to the Zamvian Business Times – ZBT on April 7, 2020 MCL has advised all employees who had travelled abroad on vacation, not to return to Zambia or if they return, to adhere to strict health guidelines and has stopped non-essential travel within the country, until the situation returns to normal.

MCL interventions against COVID-19 have also extended to the sensitisation of the local community, special sessions for school children on hygiene, helping the community with materials to ensure hygiene, as well as donating a critical care ventilator for treatment of infected personnel.

Meanwhile, in support of the request of the Sinazongwe Council, MCL has donated the much-need materials for the COVID-19 Isolation Site – including N95 masks, disposable overalls, gumboots, gloves as well as hand-washing facilities and personal hygiene items including liquid hand wash soap, detergent and much-needed fuel for vehicles.

Maamba Collieries is a key player in Zambia’s energy sector feeding 300MW into the national grid. Since the start of COVID-19 pandemic, MCL has ensured it remains at the forefront in the fight against the deadly virus in the country, through a strong demonstration of commitment to stringent safet

Source: Zambian Busines Times
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Maamba collieries – empowering community and workforce safety

Maamba Collieries Ltd (MCL) has scaled-up efforts to stop the spread of COVID-19, implementing stringent preventive safety measures.

SHEQ Manager Yotham Phiri said MCL is treating the global pandemic with utmost seriousness, and taking all measures to ensure the health and safety of its staff, while also sensitising the community.

He said “We are alive to the gravity of the situation and are taking every possible precaution to prevent the COVID-19 infecting our people. Measures we have implemented include daily fumigation of all MCL buildings, equipment and vehicles to minimise contamination, as well as stopping all visitors. Our safety team is working hard to ensure every entry point to the mine and all buildings have sanitising equipment for our staff to use.”

HR and Administration Manager Bwali Ndau highlighted that measures to minimise person-to-person contact, ensuring social distancing and personal hygiene have been put in place. Also, special COVID-19 advisory posters have been posted at multiple locations to remind everyone of necessary precautions. As an added precaution, MCL has advised all employees who had travelled abroad on vacation, not to return to Zambia and has stopped non-essential travel within the country, until the situation returns to normal.

MCL interventions against COVID-19 have also extended to the sensitisation of the local community, special sessions for school children on hygiene, helping the community with materials to ensure hygiene, as well as donating a critical care ventilator for treatment of infected personnel.

Meanwhile, in support of the request of the Sinazongwe Council, MCL is donating much-need materials for the COVID-19 Isolation Site – including N95 masks, disposable overalls, gumboots, gloves as well as hand-washing facilities and personal hygiene items including liquid hand wash soap, detergent and much-needed fuel for vehicles.

Maamba Collieries is a key player in Zambia’s energy sector feeding 300MW into the national grid. Since the start of COVID-19 pandemic, MCL has ensured it remains at the forefront in the fight against the deadly virus in the country, through a strong demonstration of commitment to stringent safety measures and community awareness.

Source: Mining News
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It’s final: only ZCCM-IH will manage Kansenseli

By SILUMESI MALUMO
WE shall not issue multiple mining rights for Kasenseli gold area in Mwinilunga district as the area will only managed by the ZCCM-IH, Mines Minister Richard Musukwa has said.
Mr Musukwa said that gold had been identified as a strategic reserve and it should be mined in a well-structured and transparent way.
He said in an interview yesterday that Government would not risk by issuing a number of licences because the country would not benefit from the mineral.
Last week, over 100 youths of Kasenseli area in Chief Chibwika’s area petitioned Government to consider empowering them with mining rights at the newly discovered gold mine.
The youths, who gathered at the District Commissioner’s office, requested Government to allow them undertake mining activities in one of the three pits known as veins at the site.
And in receiving the petition, Mwinilunga District Commissioner (DC) Arnot Mapulanga praised youths for expressing their discontent over the gold mining activities at Kasenseli.
Mr Mapulanga said government was cognisant of the fact that any mining firm engaged at Kasenseli must first empower the local citizens, especially youths.
But the Minister said Government would not issue mining rights to any individual while youths would only benefit through the third party arrangement.
“Gold is a strategic mineral which must benefit the entire country and not just a few individuals. So the youths will benefit through an organised structure, once the anchor company ZCCM-IH has now taken over.
“This is a Cabinet decision and it must be respected,” Mr Musukwa said.
He said countries like Botswana had deployed armed soldiers to guard the areas so that the resource was exploited for the good of everyone.
And ZCCM-IH has in-cooperated ZCCM Gold to manage gold mining at Kasenseli area.
ZCCM-IH chief executive officer, Mabvuto Chipata said his management team was in the province on an ambitious program to assess the situation on the ground at Kasenseli gold mine.
Mr Chipata explained that the tour was aimed at ensuring that the resource was harnessed so that exploration works could begin and quickly move into mining.
He said this when he paid a courtesy call on Provincial Minister, Nathaniel Mubukwanu in Solwezi yesterday.

Source: Daily Nation
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KCM Liquidator stays as Vedanta’s petition to have him removed is rejected

The tribunal appointed in the arbitration proceedings in the matter of Vedanta versus ZCCH-IH which were commenced by the former, has rejected the application for the withdrawal of the matter as well as the removal of the liquidator, according to a statement from ZCCM-IH.

“Shareholders of ZCCM Investments Holdings Plc (“ZCCM-IH”) are referred to the announcements dated 23 May 2019, concerning the filing by ZCCM-IH of a petition in the High Court of Zambia for the winding up of Konkola Copper Mines PLC (“KCM”) on 21 May 2019 (the “Petition”), the appointment by the Court of Mr. Milingo Lungu as provisional liquidator of KCM (the “Provisional Liquidator”) and the legal proceedings commenced in the High Court of South Africa and applications made to the Zambian High Court by Vedanta Resources Limited and Vedanta Resources Holdings Limited (together “Vedanta”)”, read a statement authorized by order of the Board issued by Company Secretary Chabby Chabala on 1st April 2020. “In compliance with the requirements of the Securities Act No. 41 of 2016, shareholders are informed that on 23 March 2020, the tribunal appointed in arbitration proceedings commenced by Vedanta against ZCCM-IH dismissed an application by Vedanta for an interim measure requiring ZCCM-IH to withdraw the Petition and procure the removal of the Provisional Liquidator from office”.

ZCCM-IH has indicated it will provide details of these proceedings in due course. KCM is currently under provisional liquidation, a process that was initiated by ZCCM-IH, a minority shareholder, which presented a petition for compulsory liquidation in the High Court on 21st May, 2019.

A comprehensive Ministerial statement on the petition was provided by Minister of Mines and Minerals Development, Richard Musukwa to Zambia’s parliament following the appointment of the liquidator.

“The petition included an application for the appointment of a provisional liquidator”, read the Minister’s statement. “The appointment of a provisional liquidator was necessitated by the need to protect assets in the interim period between the presentation of the petition and the determination of the matter”.

Prior to the petition application, the Minister stated that there was a technical audit that was conducted on the mine by a multifaceted team of professionals. “The audit was conducted by a technical audit committee appointed by the Government comprising experts in mineral resources management, mineral processing, governance, labour issues, mining engineers and business administrators including lawyers from various institutions such as the Government, academia, the legal profession, industry and various universities in our country”.

The technical team revealed the following areas of concern regarding the financial and operational health of Zambia’s wettest mine:

  • High Indebtedness and Threat of Insolvency
  • Non-Compliance to the Commitment to Bring In Foreign Direct Investment (FDI)
  • Lack of Investment to Develop New Ore Sources
  • Failure to Adopt Cost-Effective Means of Production
  • Lack of a Strategic Plan to Improve Operations at KCM

As the matter continues to play out, the Mines Minister’s message remains consistent. In February 2020, at the annual Cape Town Mining Indaba, he reiterated some of the challenges the country had faced with investor. “Zambia is a victim and it needs support. Vedanta Resources pledged to put in $300 million (R4.44 billion) they further pledged $500m and another $250m they did not bring that money”, read an extract from his response regarding the KCM debacle.

Source: Financial Insight Zambia
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Govt grounds Luanshya Copper Mines

By BENNIE MUNDANDO
MY ministry has suspended all mining operations by Luanshya Copper Mines including ground clearing in the Roan Basin until the mine meets all the conditions of approval of the project, Mines Minister Richard Musukwa has said.
Mr. Musukwa told the Sunday Nation that the Roan Basin Pit is part of the five open pits comprising ore sources for the Muliashi Copper Project of LCM.
He said the other four open pits were Muliashi North Pit, Muliashi South Pit, Baluba East Pit, and Baluba Central Pit.
He said the Roan Basin Pit Site is overlain with critical surface infrastructure that includes the Cricket Club, the Tennis Club and lies in close proximity to the main General Offices, soccer field and residential houses.
He said the Zambia Environmental Management Agency (ZEMA), with input from Mines Safety Department, approved the Muliashi Copper Project by CLM through a letter dated November 10, 2010.
He said the project was approved subject to, amongst other conditions, that “CNMC Luanshya Copper Mines Plc shall not implement mining of the Roan Basin which was close to the general offices for the company and the residential areas within the Town Centre without submitting a specific plan that shall be approved by relevant authorities.”
“With total disregard of the condition in the Decision Letter, management commenced clearing the site for the Roan Basin Open Pit and in the process disturbed some surface infrastructure such as the Cricket Club and the Basketball Court. Management’s explanation for this action was that they first wanted to clear the surface area and not to commence mining operations.
“They further claimed that they wanted to ward off the illegal miners by maintaining their presence on the ground. The truth of the matter is that clearing of the ground is commencement of project implementation. The company is in clear breach of the condition of approval of the project by the Zambia Environmental Management Agency,” Mr. Musukwa said.
He said for this reason, the ministry had suspended all mining operations, including ground clearing in the Roan Basin, until the mine meets all the conditions of approval of the project.
“Further, appropriate sanctions (penalties) will be applied on the mine as provided for under the Mines and Minerals Development Act in addition to sanctions to be applied by the Zambia Environmental Management Agency,” Mr Musukwa said.

Source: Daily Nation