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SI on compulsory solar systems installation coming

GOVERNMENT is expected to sign a statutory instrument (SI) to compel shopping malls and housing units being constructed to install solar systems to cushion the power deficit.

Ministry of energy David Mabumba said the SI process will only come into effect upon Cabinet approval.
Mr Mabumba said recently that it is important for the country to change people’s mind-sets on the exploration of alternative sources of energy.

“We will not continue to depend on hydro power once the SI is in effect. All shopping malls and all houses that are going to be constructed in the country will no longer depend on Zesco entirely .When we went to Israel, each house had about three power supplies; gas, solar and hydro-power.

“This is the direction we need to start taking as a country but in Zambia when you talk about gas, the myth that surrounds it immediately is that it will burst,” he said.

He also called on companies to engage Government to put up mini- solar projects in their firms to reduce reliance on Zesco.

Mr Mabumba said Government is restructuring the energy sector to allow it to be competitive and unlock its potential.

He said some of the reforms aimed at restructuring the sector are the tariff adjustment cost of service study which will be concluded by the end of this year and general structuring of electricity sub-sector to make it efficient and address the issue of competition.

Source: Daily Mail
Archived Jobs

ZCCM-IH | Job Advertisement – Chief Investments Officer

ZCCM Investments Holdings Plc (ZCCM-IH) is an investments holding company which has a primary listing on the Lusaka Stock Exchange and secondary listings on the London and Euronext (Paris) Stock Exchanges. The Company has majority of its investments held in the copper mining and energy sectors of Zambia. ZCCM-IH’s majority shareholders are the Industrial Development Corporation (IDC) with 60.3%, Government of the Republic of Zambia (GRZ) with 17.3% shareholding. The National Pensions Scheme Authority (NAPSA) holds 15% shares while other individual and institutional shareholders numbering over 4,000 located in different parts of the world hold 7.4% shares.

The Company invites applications from suitably qualified and experienced individuals who are innovative, energetic and performance driven to fill the following vacancy in the Investments Directorate;

Position
Chief Investments Officer – 1 position

Grade
ZH2

For a detailed job description and specification for the position above please visit:
https://zccm-ih.com.zm/news/careers-tenders/

Application Procedure

Application letters together with certified copies of certificates and detailed curriculum vitae should reach the undersigned not later than 21st April 2017.

Human Resources Manager
ZCCM Investments Holdings Plc
ZCCM IH Office Park, Stand No 16806
Alick Nkhata Road, Mass Media Complex Area
P O Box 30048
LUSAKA

Alternatively, applications should be sent to: jobs@zccmnew.wpenginepowered.com

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Investee Company News

Konkola Copper Mines Kicks Off Ambitious Bio Diesel Project

CHINGOLA, APRIL 4, 2017 – Konkola Copper Mines (KCM) today took a major step towards the coming to life of a bio-diesel project, which will be a first for a tailing storage facility in Zambia and for elite Pongamia Pinnata trees to be used in mine rehabilitation.

KCM teamed-up with the Minister of Works and Supply and Chingola MP Honourable Matthew Nkhuwa and other local leaders to plant 500 elite Pongamia trees on a four-hectare overburden site to bring to 2,000, trees planted all as part of the pilot programme to determine the viability of producing bio-diesel from the trees.

The project has the potential to create 500 direct jobs and 1,000 indirect jobs for the youths in agro-forestry, farming, bio-energy processing, and energy service delivery. The commercial project is targeted for 650 hectares of land with 400,000 trees to be planted at an estimated cost of US$7 million.

Mr Nkhuwa noted that, “the government is spending huge amounts of money to import fuel into the country every month. With projects such as this, the burden on the government will be lighter and resources will be channeled to other areas for holistic development.” He added that, “The government is creating an enabling environment for public private partnerships such as this one in order to foster development.”

KCM Chief Executive Officer Steven Din said during the event that the project attested to the company’s commitment to invest in clean energy as an integral part of the KCM vision for sustainable development. “The trees we have planted here will revegetate a disused dump site, suck-up impurities and fix back nitrogen to the soil, improving its fertility.

In addition to all this, employment will be created for the local people,’’ Mr Din noted. The company is working in partnership with Better World Energy on the project seeking to re-fertilise bare land which KCM currently cannot use for agriculture purposes.

In addition, the project will provide a cheap and environmental-friendly source of energy for KCM. Pongamia is an ideal plant for recovering a variety of waste burdens such as saline soil reclamation. It brings soils back to life as the nitrogen and carbon feed rich soil microbial communities enabling other plants to grow on previously dead soil. Virtually, every part of the Pongamia tree is useful, with the seeds producing biodiesel and seedcake from the trees used to make briquettes for cooking and cattle feed after removing toxins.

The slurry can be used as a fertilizer, and because the tree is repulsive to animals naturally, bio-pesticides can be made from it.

Source: kcm.co.zm
Annual Report Summaries

METS Extract from 2017 Annual Report

Misenge Environmental and Technical Services Limited (METS) earned a total of K8.80 million as revenue for the year ended 31st March 2017 (2016: K6.22 million).

K2.63 million of the total revenue, was realised from recurring services to ZCCM-IH (2016: K5.15 million) and K6.17 million was from non-ZCCM-IH sources (2016: K1.10 million). METS recorded a loss before tax of K1.25 million (2016: K2.90 million loss).

During the year under review, ZCCM-IH advertised for the purchase of Fume extractors and Dust extractors to be installed at the Kabwe Analytical Laboratory. When the remaining works at the laboratory are complete, METS will be in a position to provide more analytical services at the laboratory and increase revenue.

There were no dividends declared during the year under review (2016: Nil).
Annual Report Summaries

Investrust Plc Extract from 2017 Annual Report

Investrust Bank Plc (Investrust) recorded an 8.22% decrease in net interest income to K40.82 million during the year ended 31st December 2016 (2015: K37.72 million). Interest rates on loans and advances were adjusted upwards following the removal on the lending rate caps for commercial banks. Nonetheless, the growth in net interest income remained constrained due to the high cost of funds on term deposits which form a significant part of Investrust’s deposit base.

Total operating expenses reduced by 19% to K148 million (2015: K183 million). This was mainly attributed to a non-recurring expense in respect of redundancy and severance booked the previous financial period. Salaries and staff benefit costs declined by 4% to K65 million (2015: K67 million). During the year under review, the bank recorded a loss of K48 million (2015: K51 million).

During the financial period, Investrust embarked on a capital raising exercise through a Clawback Rights Offer to meet the minimum capital requirement set by Bank of Zambia. ZCCM-IH fully underwrote the offer. Subsequent to the completion of the Rights Offer, ZCCM-IH’s shareholding increased from 10.6% to 48.6%. In the latter part of the financial period, Investrust undertook another capital raise through the issuance of non-voting preference shares, which saw the bank’s primary capital increase beyond the minimum capital requirement.

The bank’s share price on the LuSE closed the period under review at K13.50 (2014: K13.50).

There were no dividends declared during the financial year ended 31st December 2015 (2014: Nil).
Annual Report Summaries

CEC Extract from 2017 Annual Report

The Company continued to be listed on the LuSE and has 50% direct shareholding in CEC Liquid Telecommunications Limited, a joint venture company registered and domiciled in Zambia. CEC Liquid Telecom wholly owns Hai Telecommunications Limited.

During the financial year ending 31st December 2016, adjusted EBITDA was K888.12 million (US$90 million) compared to K520.35 million (US$80 million) the previous period posting an increase of 12.5% average. The increase in adjusted EBITDA is attributed to increased power trading income and the aggressive cost management initiatives, which impacted positively on the results.

Revenue at K3,503.14 million (US$355 million) was equivalent to the revenue in 2015 despite a drop of about 15% in domestic power supplies which had an equivalent reduction in domestic power sales from K2,743.3 million (US$278 million) to K2,180.83 (US$221 million.)

The increase in power trading supplies resulted in an overall increase of 86% in power trading revenue, which compensated for the drop in domestic power sales. Overall, domestic power sales remain the prime revenue source contributing 62% of the total revenue down from 78% the previous year, with power trading revenue increasing from 18% the previous year to 34% of total revenue.

The demand for electricity is expected to increase following plans to ramp up production on account of NFCA’s South East body project, MCM’s Synclinorium and KCM’s Konkola Deep Mining Project.

CEC Liquid Telecom continues to outperform past financial and operational results. Revenue at K207.23 (US$21 million) grew at 17% while gross margin and EBITDA increased by 10% and 33% respectively. The above financials are based on consolidated results of CEC Liquid Telecom incorporating Hai. The company, during the year, secured long term funding to support its expansion projects; mainly new backhaul bandwidth fibre connecting Zambia to Botswana and Namibia. This enables the creation of a robust network, reinforcing the strategy of operating the Zambian network as a regional hub. Further, the business commissioned its first investment in LTE spectrum, a wireless solution for provision of connectivity solutions as an alternative to fibre solution. Further investments are planned in this area to grow the business and realize the expected market disruption.

Effective 30th December 2016, CEC Africa was separated from the CEC Group and is now a sister company to CEC Plc rather than its wholly owned subsidiary. At an EGM held on 9th December 2016, the shareholders, on the proposal of the board, resolved to dividend out CEC Africa as a distribution to the shareholders of CEC. Hence, a dividend in specie of CEC Africa from CEC Plc to its shareholders was made. The effect of that transaction is that both CEC Plc and CEC Africa are now held by the same shareholders. The action was premised on the assumption that shareholders must be allowed to measure the performance of the two entities separate from each other as they face very different risks, and to enable the shareholders retain any upside that may occur in CEC Africa in the future.

The future business outlook for CEC Plc is positive, with growth expected to be derived from the increase in local power supply demand arising from the commissioning of new mine projects currently under construction.

The positive outlook in the copper price demand forecast has further ignited mining activities in Zambia and the DRC, creating an opportunity for increased demand. Lastly, growth is expected to come from the strategy around power trading and focus on the DRC mining supplies market in addition to the support for industry-wide cost reflective tariffs.

During the year, the Company paid out two dividends to its ordinary shareholders, the first being a cash dividend of K161.84 million (US$16.4 million) paid in the first quarter of 2016. The second dividend was a dividend in specie of CEC Africa of K9.68 (US$1). This dividend was paid on 30th December 2016.

The CEC Board on Tuesday, 7th February 2017 recommended an interim dividend of US Cents 1.29 per ordinary share, which translates to 12.80 Ngwee (K0.1280) per share, using the Bank of Zambia mid-rate applicable on the date of declaration. The dividend was paid to the shareholders registered in the share register of the Company at the close of business on Friday, 3rd March 2017.

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Annual Report Summaries

NFC Africa Mining Plc Extract from 2017 Annual Report

NFC Africa Mining Plc (NFCA) recorded a turnover of K1,716.05 million (US$173.9 million) for the financial year
ending 31st December 2016 (2015: K677.11 million (US$104.1 million) as a result of increased sales volumes.

NFCA recorded a loss after tax of US$31.1 million (2015: K45.8 million loss).

NFCA continues to work on the development of the South East Ore Body project. The company reported project expenditure of K2,666.33 million (US$270.2 million) as at 31st December 2016. Total planned project investment is K8,537.65 (US$832 million). Once completed, the project is expected to extend the life of the mine for 20 years. The design and annual capacity at full production is estimated at 3.3 million tonnes of ore containing 60 000 tonnes of copper.

There were no dividends paid during the year ended 31st December 2016 (2015: Nil).
Annual Report Summaries

Ndola Lime Company Ltd Extract from 2017 Annual Report

Ndola Lime Company Limited (NLC) reported total revenues for the financial year ended 31st March 2017 of K89.6 million (2016: K196.6 million) and a loss before tax of K1,163 million (2016: K82.3 million loss).

Major contributors to the loss was lower sales of 75.7% (K279.4 million) below budget, impairment of the plant amounting to K861 million, finance costs and penalties on overdue Zambia Revenue Authority (ZRA) tax obligations totalling K93.7 million.

Ndola Lime Company (“NLC”) has been working on optimizing a second vertical kiln (“VK-2”) to be powered by coal that will result in additional capacity of 500 tonnes per day. The primary objectives of the VK2 is to substitute the inefficient and out-dated operations of the Rotary Kiln and reduce operational expenses attributable to the use of Heavy Fuel Oil (“HFO”) through the use of coal. Following the perennial escalation in costs related to the Recapitalization Project (RP) and adverse financial performance from the latter half of 2013 onwards, owing to a myriad of factors including significant escalations in the price of HFO, loss of market share, ZCCM-IH resolved to finance the completion of the RP which has cost about $105 million to date. The hot commissioning of the project started in December 2015. However, the commissioning of the project has been met with a lot of challenges.

There were no dividends declared during the year under review (2016: Nil).
Annual Report Summaries

Mopani Copper Mines Plc Extract from 2017 Annual Report

During the financial year ending 31st December 2016, Mopani Copper Mines (MCM) recorded net revenue of
K2, 519.99 million (US$255.37 million) (2015: K7, 291.43 million (US$1,121 million). The net loss was at K1, 776.14 million (US$179.99 million) (2015: K1, 853.75) US$285 million net loss).

During the year ending 31st December 2016, MCM produced a total of 41,100tonnes of copper from own sources (2015: 92,100 tonnes). The 55% lower production figures in 2016 compared to 2015 were driven by the partial suspension of production, which were aimed at improving MCM’s operations and cost reduction. Progress was made in the upgrading as MCM’s Synclinorium Shaft at Nkana was commissioned and started to hoist ore at the end of 2016.

During the year under review, Mopani produced 41,100 tonnes of copper from own sources and this was 51,000 tonnes (55%) lower than the previous year due to the partial suspension of production while the major upgrade projects are being completed.

There were no dividends paid during the financial year ended 31st December 2016 (2015: Nil).