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Investee Company News, ZCCM-IH News

ZCCM-IH gets extra $36 million

An English Court has awarded ZCCM Investment Holdings PLC an addition 36 million U.S dollars in claims against Konkola Copper Mines -KCM.

This is was as a result of unpaid sums due to ZCCM IH pursuant to a settlement agreement entered by the parties in 2013.

This brings the total amount awarded to ZCCM IH to 139 million US dollars in claims against Konkola Copper Mines.

The court has also given directives for the inquiry to determine whether KCM had breached the settlement agreement by making payments to Vendetta group of companies whilst sums remained due and owing to ZCCM-IH.

ZCCM-IH Executive Director Pius Kasolo disclosed this at a media briefing in Lusaka on Tuesday.

Dr Kasolo said the parties have since agreed a repayment plan for the recovery of the additional sums which consists of 21 equal months instalments together with interest at three percent.

He said the final payment is expected on August 31st, 2019.

Dr Kasolo said partners should not take the move as a deliberate attack on them but a move that will make the investment holdings answerable to Zambians.

He however, said that ZCCM IH remains committed to ensuring that the KCM operations continue in Zambia.

Dr Kasolo said ZCCM IH will continue to provide the necessary support to ensure the value of the stake in the company.

Source: ZNBC

Corporate Announcements

ZCCM-IH | Trading Statement

In accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of ZCCM-IH hereby advises the Shareholders of the Company that the Earnings Per Share (EPS) for the year ended 31 March 2017 are approximately 145% higher than for the year ended 31 March 2016.

The movement in earnings is mostly due to improved performance for most major mining companies in ZCCM-IH’s portfolio. This improved performance is attributable to stability in energy supply and continuous upsurge of copper prices on the international market.

Shareholders are advised that the information contained in this trading statement has not been reviewed or reported on by the external auditors of the Company.

The Company expects its provisional results for the year ended 31 March 2017 to be released via the LuSE SENS and published in the local press on or about 3 January 2018. Accordingly, shareholders are advised to exercise caution when dealing in the Company’s securities until publication of the results.

By Order of the Board

C Chabala
Company Secretary
Issued in Lusaka, Zambia on 29 December 2017

Lusaka Securities Exchange Sponsoring Broker
T | +260-211-232456
E | advisory@sbz.com.zm
W | www.sbz.com.zm
Stockbrokers Zambia Limited (SBZ) is a founder member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on 29 December 2017

Download the original SENS Announcement

Corporate Announcements

ZCCM-IH | Market Update

We refer to the Market Announcement (Announcement) provided in December 2016, in which the market was informed that the English High Court had granted default judgment in favour of ZCCM-IH in its claim against Konkola Copper Mines Plc (KCM), brought pursuant to a Settlement Agreement entered by the parties in 2013, for a sum in excess of US$100 million.

In the same Announcement, the market was further informed that the Court had given directions for an inquiry to determine whether KCM had breached the Settlement Agreement by making payments to Vedanta Group Companies whilst sums remained due and owing to ZCCM-IH, and whether ZCCM-IH would be entitled to recover additional sums from KCM as a result.

We now advise that ZCCM-IH has successfully brought an application for summary judgment against KCM for such additional sums. Granting the claim in full, the Court has awarded ZCCM-IH a further US$35,991,768, bringing the total amount awarded to approximately US$139 million. ZCCM-IH was also awarded its costs of bringing these proceedings.

The parties have agreed a repayment plan for the recovery of these additional sums, which consists of 21 equal monthly instalments of US$1,713,893.72, together with interest at 3 per cent. The final payment is expected on 31 August 2019.

By Order of the Board

C Chabala
Company Secretary
Issued in Lusaka, Zambia on 29 December 2017

Lusaka Securities Exchange Sponsoring Broker
T | +260-211-232456
E | advisory@sbz.com.zm
W | www.sbz.com.zm
Stockbrokers Zambia Limited (SBZ) is a founder member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on 10 June 2016

Download the original SENS Announcement

Investee Company News

PE firm EMR Capital completes acquisition of 80% stake in Zambia copper mine

Australian resources specialist private equity firm EMR Capital has completed the acquisition of an 80 per cent controlling stake in Zambia copper mine Lubambe from African Rainbow Minerals (ARM) and Vale International for $97.10 million.

EMR will partner with 20 per cent shareholder, ZCCM Investments Holdings, an investment company majority owned by Zambia government, a statement said on Thursday. It added that the acquisition, which was announced earlier in August, will substantially enhance EMR’s copper portfolio.

Lubambe, the mine in Zambia — the second largest copper producing nation in Africa — is an existing underground high-grade copper mine and extension area development project, with a total resource base of approximately 9.2 million tonnes of contained copper metal.

It currently produces close to 20 ktpa of copper in concentrate with EMR planning to optimize operations and ramp up annual production significantly over time.

EMR now has eight operations worldwide, including three copper mines that have potential to expand and other opportunities in the pipeline, EMR chief executive Jason Chang said.

Nick Bowen, a former Macmahon and Orica executive, has been appointed Lubambe CEO and will be based in Chingola, Zambia. His key focus will be the completion of the final feasibility study on the larger extension area orebody (resources greater than 212mt at 3.6% Cu) some 6 km to the southeast of the existing workings.

Taylor Collison acted as financial advisor for EMR while Allen & Overy acted as legal counsel and KPMG was EMR’s accounting and taxation advisor. The specialist mining private equity manager founded by Jason Chang and Owen Hegarty has linkages to Asian markets and has a focus on assets in copper, gold, potash and coking coal that it looks to acquire globally.

The mineral and natural resources investor closed its second private equity fund earlier, EMR Capital Resources Fund II, at $860 million (AU$1.12 billion) and also purchased Golden Grove, a copper zinc mine in Western Australia last year.

Source: Deal Street Asia
Archived Tenders

Re-Tender – Request for Expressions of Interest (EOI) for Conducting of a Detailed Technical Due Diligence of Wangwa Farms in Chibombo District – Lusaka

1.0 BACKGROUND

ZCCM Investments Holdings Plc. (ZCCM-IH) is an investments holding company with diversified interests in mining, energy, banking, property and other sectors of the Zambian economy. The company has a primary listing under ISIN number ZM0000000037 on the Lusaka Stock Exchange, and secondary listings on London Stock Exchange and Euronext Stock Exchange in Paris.

The Zambian Government (GRZ) directly holds 17.25% of the shares in ZCCM-IH and 60.28% indirectly through Industrial Development Corporation (IDC), an investment company wholly owned by the Zambian Government. With the remaining 22.47% being held by institutions and individuals. The geographical spread of the minority shareholders, who number around 4300, covers over 29 countries in Europe, Africa, the Caribbean, Australia, Asia and the USA.

2.0 PROJECT SUMMARY

ZCCM-IH in its strategy, has prioritized the diversification of its portfolio, which is predominantly exposed to the mining sector. ZCCM-IH has identified key focal sectors including Agriculture, which would form the key pillars of its diversification drive.

It is with this backdrop, that ZCCM-IH is assessing the prospects of investing in Wangwa Farms Limited (“Wangwa” or the “Target”), an integrated farming operation located in Chibompo District, just 70 km north of Lusaka along the Great North Road. Wangwa’s operations include row cropping, livestock rearing – beef and pork, milling and grain storage.

The Target is a privately owned agriculture business firm. It operates an integrated farming system growing soya beans, maize and wheat as well as beef and pork enterprises. The farm also has grain storage and milling facilities. It is also self-sufficient in stock feed supply as it produces its own feed using its own milling plant.

It is from this background that the Company now requires to engage the services of an independent, competent and experienced Consultancy Firm to carry out a detailed Technical Due Diligence on the Target’s entire business. Eligible firms must be specialized in Agribusiness formations, valuation, strategy and closures. As such Audit Firms, Legal firms, Agribusiness Consultancy firms and firms specialized in formation, evaluation and closure of businesses are therefore encouraged to respond for this purpose.

ZCCM-IH now invites eligible Agribusiness Consultants to indicate their interest in providing the above services. Interested firms must provide information to demonstrate that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions etc.).

Interested consultants may obtain further information at the address below during office hours between 08:00 – 13:00 hours and between 14:00 – 17:00 hours local time from Monday to Friday.

A consultant will be selected using Quality and Cost Based Selection (QCBS) method. Interested consultants must submit one (01) original and three (03) hard copies of the Expression of Interest to the address below not later than Friday, 5th January 2018.

Procurement Manager
ZCCM Investments Holdings Plc
ZCCM-IH Office Park
Stand No. 16806, Alick Nkhata Road
Mass Media Complex Area
P.O. Box 30048
Lusaka.
Email: kabwekd@zccm-ih.com.zm

Industry News

How attractive is Zambia as a mining investment destination?

Zambia is currently ranked as the world’s 30th most attractive mining destination in the world. This is according to the latest rankings from the Fraser Institute, a Canadian think tank, which looks at various aspect of economic freedom. One of the issues that it measures is the investment climate of mining jurisdictions around the world, based on the opinions of mining industry executives and managers. They are asked their opinion on fifteen issues that contribute to investment attractiveness. These include uncertainty around existing regulations; uncertainty around environmental regulations; the legal system; the tax system; availability of skills and labour; labour regulations; and political stability, among other issues. The answers are then collated to determine how attractive a particular jurisdiction will be for mining investors.

In 2016 Zambia enjoyed a strong jump in its attractiveness as a mining destination.

As noted, Zambia fared well on the most recent survey released by the Fraser Institute, being ranked 30th out of 104 mining jurisdictions. In Africa it was the fifth most attractive mining destination in Africa, behind Ivory Coast, Botswana, Ghana, and the Democratic Republic of Congo (DRC).

Zambia’s position as a mining investment of choice had been on a downward trend for some time over the past decade, with a sharp drop in 2015. However, in 2016, as the graph shows, Zambia (represented by the orange line) enjoyed a strong jump in its attractiveness as a mining destination.

According to the Fraser Institute, Zambia’s drop in 2015 was due to the increase in the Mineral Royalty Tax, and the lack of policy certainty around the implementation of the tax. Conversely, the reason for Zambia’s marked advance on the rankings in 2016 was because of improvements in labour regulations, as well as greater availability of labour and skills. The survey may also reflect investor sentiment regarding policy decisions made by governments in a previous year. For example, a drop in Zambia’s ranking in 2015 could reflect negative policy decisions made in 2014.

Source: Mining For Zambia

Industry News

Zambia sees 2017 copper output rising up to 850,000 tonnes

LUSAKA (Reuters) – Zambia’s 2017 copper output is expected to increase to between 800,000 and 850,000 tonnes due to stable power supply and higher copper prices from 774,290 tonnes in last year, mines minister Christopher Yaluma said on Thursday.

Zambia’s copper production is next year likely to increase further to reach 1 million tonnes, Yaluma said, citing improved power generation and higher prices.

“As we see it right now there is a good picture. We have sufficient power and the price has gone up. With the new trends, we have projected at least 800-850,000 tonne this year and next year will manage to hit a million,” Yaluma said.

Zambia in September estimated copper production to inch lower to 753,992 tonnes this year mainly due to lower output from Konkola Copper Mines, a subsidiary of London-listed Vedanta Resource.

Source: Lusaka Times
Archived Tenders

Invitation for Bids (IFB) | Retender for the Provision of Security Services to ZCCM Investments Holdings (ZCCM-IH)

ONB No.: ZCCM-IH/047/2017

  1. ZCCM Investments Holdings Plc. has received financing from own sources for the 2017/2018 Financial Year, and intends to apply part of the funds to cover eligible payments under the Contract for the Provision of Security Services to ZCCM-IH, Contract No.: ZCCM-IH/047/2017.

  2. ZCCM-IH now invites sealed bids from eligible bidders for the Provision of Security Services to ZCCM-IH as follows:
    Lot 1 – ZCCM-IH Office Park, Alick Nkhata Road, Lusaka & 30B Kudu Road, Kabulonga, Lusaka;
    Lot 2 – Investments House, Kantanta Street, Kitwe; Technical Library and Mawe House, Kalulushi;
    Lot 3 – Kabwe Offices and Laboratory, Kabwe; and
    Lot 4 – Cash In-Transit Services, Lusaka.
    The contract duration will be 12 months subject to renewal depending on satisfactory performance during the initial 12 months.

  3. Bidding will be conducted through the Open National Bidding (ONB) procedures specified in the Public Procurement Act of 2008 and the Public Procurement Regulations of 2011 and is restricted to firms registered in Zambia. The following CEEC preferential treatment shall be applied as part of the evaluation:
    3.1 Citizen-influenced company – 4%
    3.2 Citizen-empowered company – 8%
    3.3 Citizen-owned company – 12%

  4. Interested eligible bidders may obtain further information from the address below and inspect the Bidding Documents at this address from 08:00 – 13:00 and 14:00 – 17:00 local time, Monday to Friday inclusive.

  5. Qualifications requirements include:i) Experience as the main service provider in at least two (02) contracts of a similar nature and scope in the last five (05) years;
    ii) A minimum amount of liquid assets and/or credit facilities per lot as follows:
    Lot 1 – ZMW56,100.00;
    Lot 2 – ZMW188,700.00;
    Lot 3 – ZMW30,600.00; and
    Lot 4 – ZMW10,000.00
    iii) Average Annual Turnover in any of the last ten (10) years per lot as follows:
    Lot 1 – ZMW673,200.00;
    Lot 2 – ZMW2,264,400.00;
    Lot 3 – ZMW367,200.00; and
    Lot 4 – ZMW122,496.00.

  6. A complete set of Bidding Documents in English may be purchased by interested bidders ON THE SUBMISSION OF A WRITTEN APPLICATION to the address below and upon payment of a non-refundable fee of Zambian Kwacha Five Hundred (ZMW500.00). The method of payment will be Cash or Bank Certified Cheque.

  7. Bids shall be valid for a period of 90 days after Bid closing and shall be delivered to the address below at or before 10:00 hours on Thursday, 28th December 2017. Electronic bidding shall not be permitted. Late bids will be rejected. Bids will be opened physically in the presence of bidders’ representatives who choose to attend in person at the address below immediately after 10:00 hours on 28th December 2017. All bids must be accompanied by a Bid Securing Declaration.

  8. There will be official site visits as follows:
    Lot 1 & 4 – Lusaka; Friday, 15th December 2017. All Bidders to meet at ZCCM-IH Office Park, along Alick Nkhata Road, Lusaka at 09:00 hours;
    Lot 2.1 & 2.2 – Kalulushi; Tuesday, 12th December 2017. All bidders to meet at Catholic University in Kalulushi at 10:00 hours; and
    Lot 2.3 – Kitwe; Wednesday, 13th December 2017. All bidders to meet at Investments House along Kantanta Street in Kitwe at 10:00 hours; and
    Lot 3 – Kabwe; Monday, 11th December 2017. All bidders to meet at Kabwe Offices at 11:00 hours.

  9. The address referred to above is:
    ZCCM Investments Holdings Plc.
    ZCCM-IH Office Park
    Stand No. 16806, Alick Nkhata Road
    Mass Media Complex Area
    Lusaka, Zambia
    Tel: +260-211-388000
    E-mail: kabwekd@zccm-ih.com.zm
Archived Tenders

Invitation for Bids | Supply, Delivery, Installation and Commissioning of Digitisation Solution at Mining Industry Archives in Ndola

ONB No.: ZCCM-IH/056/2017

  1. ZCCM Investments Holdings Plc. has received financing from own sources for the 2017/2018 Financial Year, and intends to apply part of the funds to cover eligible payments under the Contract for the Supply, Delivery, Installation and Commissioning of Digitisation Solution at Mining Industry Archives in Ndola, Contract No.: ZCCM-IH/056/2017.
  2. ZCCM-IH now invites sealed bids from eligible bidders for the Supply, Delivery, Installation and Commissioning of Digitisation Solution at Mining Industry Archives in Ndola.
  3. Bidding will be conducted through the Open National Bidding (ONB) procedures specified in the Public Procurement Act of 2008 and the Public Procurement Regulations of 2011 and is restricted to firms registered in Zambia. The following CEEC preferential treatment shall be applied as part of the evaluation:
    3.1 Citizen-influenced company – 4%
    3.2 Citizen-empowered company – 8%
    3.3 Citizen-owned company – 12%
    3.4 Domestically manufactured goods by citizen-influenced company, citizen-empowered or citizen-owned company – 15%.
  4. Interested eligible bidders may obtain further information from the address below and inspect the Bidding Documents at this address from 08:00 – 13:00 and 14:00 – 17:00 local time, Monday to Friday inclusive.
  5. Qualifications requirements include:
    i) Experience as the main supplier in at least two (02) contracts of a similar nature and scope in the last five (05) years;
    ii) A minimum amount of liquid assets and/or credit facilities of ZMW360,000.00.
  6. A complete set of Bidding Documents in English may be purchased by interested bidders ON THE SUBMISSION OF A WRITTEN APPLICATION to the address below and upon payment of a non-refundable fee of Zambian Kwacha Five Hundred (ZMW500.00). The method of payment will be Cash or Bank Certified Cheque.
  7. Bids shall be valid for a period of 90 days after Bid closing and shall be delivered to the address below at or before 10:00 hours on Thursday, 4th January 2018. Electronic bidding shall not be permitted. Late bids will be rejected. Bids will be opened physically in the presence of bidders’ representatives who choose to attend in person at the address below immediately after 10:00 hours on 4th January 2018. All bids must be accompanied by a Bid Securing Declaration.
  8. There will be a pre-bid conference on Tuesday, 19th December 2017 at ZCCM-IH Office Park, Stand No. 16806, Alick Nkhata Road, Mass Media Complex Area, Lusaka at 10:00 hours.
  9. The address referred to above is:
    ZCCM Investments Holdings Plc.
    ZCCM-IH Office Park
    Stand No. 16806, Alick Nkhata Road
    Mass Media Complex Area
    Lusaka, Zambia
    Tel: +260-211-388000
    E-mail: kabwekd@zccm-ih.com.zm
Corporate Announcements

ZCCM First Cautionary – Sell-Down

The Board of ZCCM-IH (“the Board”) wishes to advise Shareholders and the market that in order to comply with the Lusaka Securities Exchange (“LuSE”) free-float requirement, the Government of the Republic of Zambia (“GRZ”) has requested ZCCM-IH to commence the process of selling 27,961,237 (17.3%) class B shares held by GRZ on its behalf.

Accordingly, pending completion of the sale of the Government’s 17.3% B Class shareholding in ZCCM-IH, shareholders are advised to exercise caution when dealing in the Company’s securities.

By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on 24 November 2017

Lusaka Securities Exchange Sponsoring Broker
T | +260-211-232456
E | advisory@sbz.com.zm
W | www.sbz.com.zm
Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on 24 November 2017