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Investee Company News

Kansanshi Flags Off 2019/2020 Farming Season

Kansanshi Mining Plc has flagged off the 2019/2020 farming season by releasing farming inputs to more than 7,400 farmers in Solwezi and the surrounding areas in North-Western Province.

Solwezi District Commissioner Rosemary Kamalonga, who flagged off the 2019/2020 farming season, said government recognized the importance that Kansanshi Mining Plc attached to uplifting people’s living standards.

She said it was relieving to note that Kansanshi Mining Plc, which had trained more than 36,000 farmers under its Conservation Farming Programme, had continued to distribute farming inputs to farmers supported by the mine’s Corporate Social Responsibility (CSR) wing.

“Government is happy with its current partnership with Kansanshi Mining Plc in the crusade to improve food security through concerted efforts to ensure that agriculture assumes its rightful position as an alternative to mining and that Solwezi alone can be a food basket for Zambia,” Kamalonga said.

She added that the government equally recognized the mining company’s efforts to meet various community needs and extend social services to the people.

Kamalonga expressed government’s gratitude to what Kansanshi Mining Plc had done to empower residents in Solwezi and surrounding areas.

Kansanshi Foundation Supervisor Maximillian Katanga explained that 12,600 bags each of D Compound, Urea and seed respectively were ready for distribution to local farmers.

“Farmers pay K425 towards the inputs comprising a 50Kg bag of Urea, a 50Kg bag of D Compound and 10Kg bag maize seed to which Kansanshi adds the balance for each farmer so that they can manage to complete one lima of crops. 300 tonnes of lime has also been distributed to farmers, free of charge, with a view to boosting their yields,” explained Katanga.

Solwezi District Agriculture Coordinating Officer (DACO) Muyobo Shimabale also expressed gratitude for being part of the programme and thanked Kansanshi Mining Plc for supplementing what the Ministry of Agriculture was doing.

“I wish to encourage farmers to continue practicing conversation farming as it is in tune with climate change. When conversation farming is practiced, even in low rainfall periods, farmers are able to get the best results,” Shimabale said.

One of the beneficiaries of the farming inputs, Victoria Musumali, who produced 48 bags of maize from one lima during the 2018/2019 farming season, thanked Kansanshi Mine for the input support because she was able to feed her family and sell surplus maize to the Food Reserve Agency (FRA) and pay for her children’s school fees, among other needs for the family.

Kansanshi Mine provides training in farming’s best practice to farmers, farming input loans and close monitoring of the farmers’ activities to ensure maximum returns from their farming projects.

The model applied in the farming practices strictly observed sustainable permaculture rotation of maize, soya and groundnuts with minimum tillage, the use of mulch and early planting.
ZCCM-IH News

ZCCM-IH Investment Grows

INCREASED investment in companies under the ZCCM-Investment Holding (IH) Group has boosted the holding’s financial portfolio, posting a profit of over K3 billion in assets.
The significant increase translates in a 30 percent growth, attributed to an increase in plant and equipment, investments in associate, inventories, trade and other receivables as well as held-to-maturity investment.https://epaper.daily-mail.co.zm/
Investee Company News

CEC, 3 Other Firms Strike Solar Power Deal

THE Copperbelt Energy Corporation (CEC) has forged partnerships with three private companies in establishing solar-powered plants estimated to cost US$340 million that will be generating 230 megawatts (MW) of electricity.
CEC has formed a consortium with a French company in implementing the GET Fit programme, a government programme aimed at enhancing the use of renewable energy in the country.https://epaper.daily-mail.co.zm/
Investee Company News

Govt Nods CEC Power Deal

GOVERNMENT has granted the Copperbelt Energy Corporation (CEC) approval to import about 200 megawatts (MW) of power from the Southern Africa Power Pool (SAPP) to mitigate the supply deficit in the wake of the power shortfall being experienced in the country.
SAPP is a cooperation of the national electricity companies in Southern Africa under the auspices of the Southern African Development Community (SADC).
CEC supplies power to the mines on the Copperbelt and in the Democratic Republic of Congo (DRC), some which is sourced locally from Zesco Limited through the bulk power supply agreement. 
Investee Company News

CEC Donates Car to Kitwe Police

he Copperbelt Energy Corporation (CEC) has donated a motor vehicle to the Zambia Police Service in Kitwe to enhance security of strategic power installations on the Copperbelt.

The Motor vehicle valued at US $40,000 was received by Home Affairs Minister Stephen Kampyongo who was accompanied by Copperbelt Provincial Minister Japhen Mwakalombe and Inspector General of Police Kakoma Kanganja.

Speaking at the handover ceremony that was held at the CEC offices in Kitwe today, Home Affairs Minister Stephen Kampyongo said the donation has come at the right and critical time when mobility of the police officers is most important in the maintenance of law and order and protection of strategic infrastructure.

“We cannot as a country afford vandalism to our essential energy infrastructure at a time when the country is stressed by inadequate production of electricity due to the inadequate rainfall received in the southern half of the country, ” Mr Kampyongo charged.

He said while government is committed to providing necessary tools and equipment to the police officers, they were yet to be fully equipment to curb crime and vandalism of critical economic infrastructure.

He said the donation will enhance the Ministry’s resolve to discharge its mandate of protecting property and people.

Kampyongo further appealed to other corporate entities on the Copperbelt and the country as a whole to emulate CEC in supporting the police.

And CEC Board Chairman, London Mwafulilwa said the company has been experiencing a heightened spate of infringements to its electrical installations ranging from vandalism and theft of transmission lines for copper conductors.
Mwafulilwa said these have resulted in the monetary losses as well as disruptions in service delivery to productive sectors of the economy reliant on power.

He stated that this year alone, the company has recorded 10 cases of theft and three of vandalism where about 1, 505 metres of its overhead copper conductors have been cut off and stolen from the system on the Copperbelt.

He noted that arresting the market for copper conductors would help curb the problem.

Mwafulilwa further proposed that the police considers deploying dedicated officers to work on anti-theft involving conductors and other components of electrical systems containing copper for the benefit of all power utilities in the country.

And Copperbelt Police Commissioner Charity Katanga said the donated vehicle will enhance the operations of the police in curbing crimes targeted at CEC power installations.
ZCCM-IH News

MUZ calls on govt to award gold mining licenses to locals

Mineworkers Unions of Zambia (MUZ) president Joseph Chewe has urged government to prioritize the awarding of mining licenses on the gold deposits found in North-Western province to Zambians.

In an interview, Chewe said the country had long suffered with foreign investors who continued to externalize huge revenues from their mining operations to other countries.

“This country has learnt lessons. Look at the capital flight that is leaving the country all the proceeds go to (other) countries. I can tell you that, for example, Vedanta (Resources) is a family, even FQM (First Quantum Minerals) the biggest mines in North-Western (Province); they are a family. So, I think the challenge to us Zambians to rise to the occasion and start owning some of these mines either in partnerships or bringing in other partners to develop the gold deposits that have been found in North-Western,” Chewe said.

“Otherwise, we have the potential, though we may not reach there now, but I think the President (Edgar Lungu) must drive that one day, a Zambian should own a mine, which should be run as profitably and efficiently. So, I think the gold deposits in North-Western should be an eye-opener and I think the President should encourage Zambian ownership because there’s no money that is being left in the country. So, it will mean just a name having gold here in Zambia; beneficiaries are outsiders! Look at Switzerland; Switzerland is a country where billionaires are sitting and syphoning money there.”

He said Zambians had a successful trackrecord of managing mining companies, citing the old ZCCM as a success story.

“Yes, we may not have resources as a country, but I think we need to start somewhere. I can tell you that, currently, there are Zambians running KCM; you have seen how production is now going up. Even Mopani, the people that are actually doing the mines are Zambians, so, we have the capacity. What we just need is capital and also sustainability. We have run the mines before; ZCCM was one of the best companies in the world and foreigners destroyed it! So, we still have that capacity. We have the capacity, we have the brains,” argued Chewe.

But in a separate interview, Zambia Chamber of Mines president Goodwell Mateyo stressed that the challenge for locals to own mining companies lay mainly with the need to mobilize large capital investment.

“There is nothing wrong when equating Zambians from applying for mining licenses. But, of course, there is a challenge of mining being largely capital intensive and, therefore, what Zambians would need to be able to make that work is to have access to big fields of capital and finance because it is a highly capital intensive venture and it has very long time to profitability; that is the biggest obstacle into Zambians owning (mines), not to say that we can’t run or we can’t own mines, but Zambians are free to apply for mining licenses and a number of them are holders of mining licenses. But when it comes to developing them and working them, the biggest challenge is access to finance. Because, locally, we don’t have a sort of big pools of capital that will work a large mining enterprise endeavor for a period say, 15 to 20 years, from the time you start exploration to the time you actually start mining unless you can access it from abroad. That is the reason why Foreign Direct Investment (FDI) is still critical in the working of mines in Zambia,” said Mateyo.
Investee Company News

Investrust Bank sues LSA, demands K11.6m payment for unpaid mortgage

Investrust Bank Plc has sued Lawrence Sikutwa and Associates Limited and another company in the Lusaka High Court, demanding payment of over K11 million, which was allegedly secured by way of a third-party mortgage.

The bank has cited Lawrence Sikutwa and Associates Limited as a first respondent, Amalgamated Tourism Investment Limited as second respondent and Sikutwa as third respondent, respectively.

In an affidavit in support of originating summons, Investrust Bank credit manager Chisanga Ireen Komeki stated that Lawrence Sikutwa and Associates was a customer of the bank with an account, but disclosed that the company had defaulted in servicing four loans.

She explained that in March, 2013, Lawrence Sikutwa and Associates applied and was availed a refinance and restructured loan facility of K10 million, plus compound interest accrued by way of a third-party mortgage.

“In March, 2013, Lawrence Sikutwa and Associates in its own volition and request, applied for and was availed by the bank, a refinance and restructured loan facility for K10 million, plus compound interest accrued by way of a third-party mortgage dated May 17, 2013, over the remaining extent of S/D of Stand No. 1942, Livingstone, by Amalgamated and a third-party mortgage dated May 17, 2013, over Stand no. 3938, Lusaka by Sikutwa and personal guarantee by the third-respondent,” read the affidavit.

Komeki stated that as further security, Sikutwa executed a director’s personal guarantee as continuing security for the whole K10 million interest, costs and expenses and guarantying the repayment of the said sum to the bank.

She further disclosed that in October, 2013, Lawrence Sikutwa and Associates of its volition and request, also applied for and was availed a short-term loan facility of K2,910,267.53 plus compound interest, secured by further charge dated December 31, 2013, over the Lusaka Stand by Sikutwa.

Komeki stated that in February, 2016, Sikutwa applied and was availed restricted and enhanced loan facility by the bank in the sum of K7,407,497.00 plus compound interest to be secured by, among others, continuing security of the third-party mortgage.

She stated that in February, 2015, Lawrence Sikutwa and Associates procured a finance lease facility in the sum of US $38,277.60 for the purchase of a motor vehicle namely, Ford Ranger 3.2 diesel D/Cab LTD 4×4.

Komeki disclosed that the company had defaulted in servicing the four said loans and had failed or neglected to adhere to the repayment terms despite numerous reminders from the bank, thereby, resulting in the loss and damage to the bank.

She added that it was an express term of the various loan agreements that in the event that Lawrence Sikutwa and Associates failed to repay the monies within the stipulated period, the bank would be at liberty to enforce the securities alluded to.

Komeki explained that Lawrence Sikutwa and Associates was at of May 15, this year, indebted to the bank in the sum of K11,652,847.80.
Investrust Bank is now seeking payment of charge created by Sikutwa in favour of his firm in respect of Stand No.3938, Lusaka and the third-party mortgage over REM/Stand1942/A, Livingstone created by Amalgamated in favour of Lawrence Sikutwa and Associates.

Its also seeking an order that, should Lawrence Sikutwa and Associates neglect or refuse to pay the aforementioned monies, the third-party mortgage and favour charge created by Sikutwa in favour of his firm in respect of the stands in Lusaka and third-party mortgage over the stand in Livingstone created by Amalgamated, be enforced by the order of foreclosure, vacant possession and sale thereof.

Investrust is further seeking an order for the payment of the sum of K11,652,847.80 as of May 15, 2019, plus interest by Sikutwa arising out of personal guarantee dated April 12, 2013, which Sikutwa personally guaranteed to pay.

The matter will be heard on August 27.
Investee Company News

Mopani Backfills Sinkhole

Mopani Copper Mines has commenced the process of backfilling the sinkhole near the South Ore Body (SOB) Shaft in Kitwe.

Public Relations Manager Nebert Mulenga said the move is a safety precaution in line with mine safety regulations.

He said backfilling exercise has already started and will go on until the process is completed.

“Mopani Copper Mines Plc is working closely with the Mines Safety Department (MSD), Zambia Police Service and other relevant authorities during this operation,” Mulenga said.

He said the sinkhole is a two-hectare caving area within Mopani Copper Mines Plc’s mining rights area and was a safety hazard to the informal miners invading it.

Last week, the mining giant had illegal miners to contend with immediately an announcement was made that the area would be closed, a move that sparked riots in Kitwe’s Wusakile Township.
Investee Company News

Negotiations with potential KCM buyers haven’t yet started – Musukwa

Mines Minister Richard Musukwa says government has not started any negotiations with any potential buyer of Konkola Copper Mine (KCM) Plc’s assets.

Musukwa explained that there had been no steps to invite effective bids of the sale of KCM’s assets as the process would be done after the pending court clearance.

The Minister said this in Parliament, Tuesday, when he responded to a written question from Nchanga PF member of parliament Chali Chilombo, who wanted to know whether government was aware that the residents of Chililabombwe and Chingola were extremely anxious over the liquidation of KCM and if so, how far government had gone with the potential buyers of KCM’s assets.

“Madam Speaker, in recognizing the guidance and sanctity of the Judiciary, who are handling the matters concerning the liquidation process of Konkola Copper Mine, government has not started any negotiations with any potential buyer of KCM assets. However, KCM has been visited by several sections of international and local entities expressing interest following the announcement of the divorce process by Konkola Copper Mine and ZCCM-IH. There has been no steps to invite effective bids of the sale of the assets. This process will be done and has been reserved awaiting clearance from the courts of law, which we respect. The House may wish to know that the liquidation process is basically the first process before resolving the issues surrounding KCM. We have taken advice to ensure that the sale is done within the confines of the law and pursuant to a court order,” Musukwa said.

He insisted that there was no sale that would take place at KCM, which would undermine the integrity of the court process.

“In that regard, no sale will be undertaken that undermines the integrity of the court process, and as government, we understand that the due process of the law has to be followed and respected and we are committed to that effect. Madam Speaker, to this effect, I wish to state that the High Court proceedings, which are currently going on, are matters that the Government of the Republic of Zambia continues to respect because we are a government of laws,” Musukwa said.

And Musukwa said the decision to offload KCM was made on account of the deteriorating social and economic situation caused by Vedanta Resources’ mismanagement.

“Government is fully aware of the anxieties of residents of Chililabombwe and Chingola over the future of KCM. The House may wish to know that residents of Chingola and Chililabombwe started raising concerns over the future of KCM way before the commencement of the liquidation process. The action Zambia Consolidated Investment ZCCM-IH took was on account of deteriorating social and economic situation caused by mismanagement of KCM by Vedanta. If left unchecked, it would have spelt catastrophe for the residents of Chililabombwe and Chingola and the entire Copperbelt,” said Musukwa.

“Government also has a duty to safeguard its citizens and the actions were taken in that context. The ultimate aim of ZCCM-IH instituting the liquidation process was to secure an investor who would develop the mine to its full potential guaranteeing the much-needed jobs and business opportunities on the Copperbelt in particular, Chingola, Chililabombwe and other peripheral areas.”