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ZESCO applies to raise tariffs by 75%

The Energy Regulation Board (ERB) has confirmed that state power utility ZESCO has applied to increase its electricity tariffs by an average of 75 percent.

The proposed agreement is with effect from May 1st 2017.

In its application, ZESCO wants to increase tariffs in two phases starting with 50 percent on 1st May and a further 25 percent in September 2017.

This was confirmed by ERB Director of Consumer and Public Affairs Agnes Phiri.

“Following the ZESCO application, the ERB will now proceed to consider the application tariff increase in line with the provisions of the Law that governs electricity tariff determination, particularly as specified in the Electricity Act, Chapter 435 of the Laws of Zambia, as amended by Act No. 21 of 2003 (the Electricity Act),” Mrs Phiri said.

She said the ERB shall, therefore, be receiving written submissions from the public in view of the ZESCO application within the next 30 days as stipulated by Law.

“Further, the ERB shall convene a public hearing to consider submissions from members of the public, if at all any would have been received within the 30-day period,” she said.

“With regard to the mining tariffs, the ERB shall as it has always done, approve Power Purchase Agreements (PPAs) that have been agreed by ZESCO and its mining customers. The PPAs specify at what tariff individual mining customers buy electricity from ZESCO.”

Mrs Phiri stated that in August 2015, ZESCO had applied for tariff increase averaging 187 percent for all customer categories except the mines, which was granted by the ERB effective December 2015.

“However, following consultations with key stakeholders, in January 2016 ZESCO suspended the implementation of the tariff awarded by ERB. The withdrawal of the ‘new’ tariffs was based on the need to allow for a smooth transition from the old tariffs to new ones,” she said.

She added that ZESCO notified the public that it would reapply for a tariff increase once consultations had been concluded.

“Therefore, the new application comes after conclusion of that consultation process,” she said.

Source: Lusaka Times

Investee Company News

Vedanta Resources to invest US$1 billion in Konkola Copper Mines

LSE-listed Vedanta Resources has outlined its 50-year vision for mining in the Copperbelt and plans to invest US$1 billion for its next phase of growth.

This investment by Vedanta Resources is expected to create 7 000 jobs.

“I want Konkola Copper Mines (KCM) to be the largest integrated copper producer in Africa, the pride of Zambia and Vedanta Resource’s hub for copper and cobalt production in Africa,” sates Vedanta Resources chairman, Anil Agrawal.

“The ramp up of KCM is the centerpiece of my 50-year vision. It’s technically very challenging, because of the massive amount of water we have to pump out of the mine, but I’m determined to find technical solutions,” explains Agarwal.KCM is one of Zambia’s largest integrated copper producers.

Agrawal has committed to further help diversify the economy of the Copperbelt by supporting initiatives in agriculture and technology. KCM currently supports 2 700 families and small scale farmers through its Sustainable Livelihoods programme.

Agrawal made his ambitions for KCM knows after recently meeting with His Excellency President Edgar Chagwa Lungu. The meeting took place at State House in Lusaka. Lungu and the chairman discussed the outlook for the global mining industry and Vedanta’s investment in KCM.

KCM is one of Zambia’s largest copper producers, with mining operations in Chingola, Chililabombwe, Kitwe and Nampundwe. It is a subsidiary of Vedanta Resources, a London-listed diversified global natural resources company. The group produces aluminium, copper, zinc, lead, silver, iron ore, oil & gas and commercial energy. Vedanta has operations in India, Zambia, Namibia, South Africa, Ireland and Australia.

Feature image credit: Vedanta Resources (photograph of Vedanta Resources chairman, Anil Agrawal)

Source: Mining review
Archived Tenders

Invitation for Bids | Supply, Delivery, Installation and Commissioning of Digitisation Equipment and Software ONB No.: ZCCM-IH/090/2016

  1. ZCCM Investments Holdings Plc. (ZCCM-IH) has received financing from own sources toward the CAPEX for the 2017/2018 Financial Year, and it intends to apply part of the proceeds of this financing to payments under the Contract for the Supply, Delivery, Installation and Commissioning of Digitisation Equipment and Software.

  2. ZCCM-IH now invites sealed bids from eligible and qualified bidders for the Supply, Delivery, Installation and Commissioning of Digitisation Equipment and Software. The delivery period is no more than six (06) weeks.

  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 open to all bidders from Eligible Source Countries as defined in the Bidding Documents.

  4. Interested eligible bidders may obtain further information from ZCCM-IH, K D Kabwe (Mrs.), E-mail: kabwekd@zccmnew.wpenginepowered.com and inspect the Bidding Documents at the address given below from 08:00 – 13:00 and 14:00 – 17:00.

  5. Qualifications requirements include:
    i) Experience and Technical Capacity:

    • Carried out at least two (02) contracts of a similar nature and scope in the last three (03) years;
    • Bidder to demonstrate availability of own servicing workshops in Ndola;

    ii) Liquidity 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 Zambian Kwacha Five Hundred (ZMW500.00). The method of payment will be Cash or Bank Certified Cheque.

  7. Bids must be delivered to the address below at or before 10:00 hours on 31st March 2017. Electronic bidding will not be permitted. Late bids will be rejected. Bids will be opened in the presence of the bidders’ representatives who choose to attend in person at the address below immediately after 10:00 hours on 31st March 2017. All bids must be accompanied by a Bid Securing Declaration (in the format included in the Bidding documents):

  8. The address referred to above is:
    K D Kabwe (Mrs.)
    ZCCM Investments Holdings Plc.
    ZCCM-IH Office Park
    Stand No. 16806
    Alick Nkhata Road
    Mass Media Complex Area
    P.O. Box 30048
    Lusaka
Archived Tenders

Invitation for Bids | Supply and Delivery of Brand New On-highway Vehicles ONB No.: ZCCM-IH/089/2016

  1. ZCCM Investments Holdings Plc. (ZCCM-IH) has received financing from own sources toward the CAPEX for the 2016/2017 Financial Year, and it intends to apply part of the proceeds of this financing to payments under the Contract for the Supply and Delivery of the following Brand New On Highway Vehicles:
    Lot No. Description Quantity Delivery
    1 4 x 4 Double cab (with canopy) 01 4 – 6 weeks
    2 Panel Van (Mini Bus) 01 4 – 6 weeks
  2. ZCCM-IH now invites sealed bids from eligible and qualified bidders for the Supply and Delivery of Brand New On Highway Vehicles. The delivery period is no more than six (06) weeks.
  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 open to all bidders from Eligible Source Countries as defined in the Bidding Documents.
  4. Interested eligible bidders may obtain further information from ZCCM-IH, K D Kabwe (Mrs.), E-mail: kabwekd@zccmnew.wpenginepowered.com and inspect the Bidding Documents at the address given below from 08:00 – 13:00 and 14:00 – 17:00.
  5. Qualifications requirements include:
    i) Experience and Technical Capacity:

    • Carried out at least two (02) contracts of a similar nature and scope in the last three (03) years;
    • Bidder to demonstrate availability of own servicing workshops in Lusaka and the Copperbelt;

    ii) Liquidity of:
    Lot 1 – ZMW520,000.00
    Lot 2 – ZMW400,000.00

  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 Zambian Kwacha Five Hundred (ZMW500.00). The method of payment will be Cash or Bank Certified Cheque.
  7. Bids must be delivered to the address below at or before 10:00 hours on 23rd March 2017. Electronic bidding will not be permitted. Late bids will be rejected. Bids will be opened in the presence of the bidders’ representatives who choose to attend in person at the address below immediately after 10:00 hours on 23rd March 2017. All bids must be accompanied by a Bid Securing Declaration (in the format included in the Bidding documents):
  8. The address referred to above is:
    K D Kabwe (Mrs.)
    ZCCM Investments Holdings Plc.
    ZCCM-IH Office Park
    Stand No. 16806
    Alick Nkhata Road
    Mass Media Complex Area
    P.O. Box 30048
    Lusaka
Archived Jobs

ZCCM-IH | Job vacancies

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 positions in the Legal Directorate:

  1. Deputy General Counsel (X1) – Kitwe
  2. Legal Counsel – Compliance ( X1) – Lusaka
  3. Legal Counsel – Dispute Resolutions (X1) – Kitwe
  4. Conveyancing Officer (X1) – Kitwe
  5. Conveyancing Assistant – Matching and verification (X2) – Kitwe
  6. Conveyancing Assistant – Assignments ( X2) – Kitwe
  7. Officer Manager (X1) – Kitwe

Application Procedure

Application letters together with copies of certificates and detailed curriculum vitae should reach the undersigned by 28th February 2017.

Human Resources Manager
ZCCM Investments Holdings Plc
Mukuba Pension House
P O Box 30048
LUSAKA

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

– Download the full advert for full details
ZCCM-IH News

ZCCM-IH | Directors’ Interim Summary for Period Ended 30th September 2016

Introduction

In compliance with the requirements of the “Securities Act, Cap 354 of the Laws of Zambia” and the Listing Rules of the Lusaka Securities Exchange, ZCCM Investments Holdings Plc announces the unaudited results for the six months’ period ended 30th September 2016.

Financial Performance

The Group achieved a turnover of K65.5 million for the six-month period ended 30th September 2016 which was 49% below the turnover of K128.4 million achieved during the six months to 30th September 2015. The decrease in Group turnover was mainly as a result of a decrease in turnover for Ndola Lime Company by 46% from K116.5 million to K62.5 million for the period under review. No Dividends were earned for the period ended 30th September 2016 (September 2015: K11.9 million)…

Operations and Strategic developments

On 6th June 2016 ZCCM-IH filed a Claim Form with the English High Court to recover outstanding sums in excess of US$100 million due to it from KCM, pursuant to the terms of the Settlement Agreement entered into in 2013. On 16 December 2016, ZCCM-IH was successful in its application for default judgment. KCM was ordered to pay all sums owed to ZCCM-IH pursuant to the Settlement Agreement (plus associated contractual interest) within thirty (30) days. The total amount to be paid by KCM amounted to approximately US$103 million. KCM was also ordered to reimburse ZCCM-IH 80% of the costs it had incurred in pursuing its claim. Further directions were given to determine whether KCM made payments to Vedanta Group Companies in breach of the prohibition on doing so under the Settlement Agreement. If and to the extent it is determined that such payments were made, ZCCM-IH will be entitled to recover additional sums from KCM…

Subsequent events to 30 September 2016

ZCCM-IH also filed a Notice of Arbitration on 26th October 2016 in London against Kansanshi Holdings Limited and Kansanshi Mining PLC. Further, on 28th October 2016 ZCCM-IH commenced Legal Proceedings in Lusaka against First Quantum Limited, FQM Finance Limited, Philip K.R. Pascal, Arthur Mathias Pascal, Clive Newall, Martin R. Rowley and Kansanshi Mining PLC for various Claims arising from transactions between Kansanshi Mining Plc and FQM Finance Limited…
By Order of the Board

Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on 23 January 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 23 January 2017

Related download
ZCCM-IH Interims to 30 September 2016
Investee Company News, ZCCM-IH News

ZCCM-IH | Agreement with Konkola Copper Mines PLC (“KCM”)

Following the Market Update issued on 20 December 2016 confirming that ZCCM-IH was successful in its application for default judgment against KCM, ZCCM-IH wishes to provide further details on the matter.

Pursuant to the judgment of the English Court, KCM was ordered to pay ZCCM-IH, by 13 January 2017:

  1. the sum of approximately US$103 million in respect of outstanding sums owed to ZCCMIH under a Settlement Agreement (the “Judgment Sum”); and
  2. the sum of GBP 180,000 in respect of the costs incurred by ZCCM-IH in pursuing its application before the English court.

Further, ZCCM-IH hereby advises that:

  1. KCM paid the sum of GBP 180,000 on 13 January 2017 in accordance with the Court’s Judgment; and
  2. ZCCM-IH and KCM have agreed to amend the dates by which KCM will make payments in respect of the Judgment Sum (which sum remains outstanding as ordered by the English Court).

The agreement to amend the dates by which KCM will make payments in respect of the outstanding sums owed to ZCCM-IH will be recorded in a Consent Order of the English Court.

Pursuant to the terms of the Consent Order, KCM will pay ZCCM-IH:

  1. US$ 20 million on 31 January 2017;
  2. US$ 22 million on 28 February 2017; and
  3. US$ 2,550,000 at the end of every month (commencing on 31 March 2017) until such time as the Judgment Sum has been paid in full.

The English court’s further directions to determine whether KCM made payments to Vedanta Group Companies in breach of the prohibition on doing so under the Settlement Agreement remain unchanged. If and to the extent it is determined that such payments were made, ZCCM-IH will be entitled to recover additional sums from KCM. A further announcement will be made at that time.

Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on 17 January 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 17 January 2017

Corporate Announcements

ZCCM-IH | Unaudited provisional abridged results to 31 March 2016

In compliance with the requirements of the Listing Rules of the Lusaka Securities Exchange, ZCCM-IH Plc announces its unaudited provisional annual financial statements for the year ended 31 March 2016. Below are excepts from the financial statements.

Financial highlights

  • Performance of the Group continued to be impacted by low Global Copper Prices and low production. The Price of Copper on the LME further fell from US$6,052/ton at 31 March 2015 to US$4,848/ton at 31 March 2016. As a result, most of the Investee Companies recorded significant operating losses during the period. Further, the Kwacha depreciated by 48% from K7.5755/US$ in March 2015 to K11.1800/US$ at 31 March 2016. This had a significant impact on the Group results.
  • Operating loss reduced by 91% to K207 million (2015: K 2,179million). The Group’s share of losses of equity accounted investees was K2, 259 million (2015: Share of Profit K280 million).
  • Loss after tax was K2,303 million (2015: Loss K987million).
  • Total assets increased by 29% from K8, 504 million to K10, 956 million largely on account of translation differences on equity accounted investees.
  • The Ndola Lime recapitalization project underwent hot commissioning. The K651 million shareholder loan that ZCCM-IH lent to Ndola Lime Company Limited (NLC) was converted into Equity in order to strengthen the company’s balance sheet.

Outlook

The copper price has recently shown signs of recovery, and it would appear that beyond 2016 the price will continue to recover. ZCCM-IH’s investee companies that operate mines, have been undergoing restructuring in order to contain operating costs in the midst of the global copper price crunch. This should have positive results going forward, though recovery will be slow.

In order to ensure survival ZCCM-IH, continues to explore diversification. Introducing initiatives to achieve efficiencies at Ndola Lime Company Limited, investment into property and agriculture are activities expected to positively impact the Group in the medium to long term.

By Order of the Board

Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on 16 January 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 16 January 2017

Related download
ZCCM-IH Abridged to 31 March 2016

Corporate Announcements

ZCCM-IH | Cautionary withdrawal announcement

In accordance with the Lusaka Securities Exchange Limited (“LuSE”) Listings Requirements, shareholders are referred to the cautionary announcement dated 7 November 2016 regarding the late publication of the Company’s results for the financial year ended 31 March 2016 and the Company not having a quorate Board.

Shareholders are advised that the ZCCM-IH Board is quorate following new appointments, and that the unaudited Provisional results for the financial year ended 31 March 2016 have been finalised and will be published on or about 16 January 2017.

By Order of the Board

Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on 16 January 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 16 January 2017

Corporate Announcements

ZCCM-IH | Notice of change of Directorate

ZCCM-IH wishes to announce the appointment of three (3) Directors to the Board with effect from 15th December 2016. These appointments have been made subject to ratification by ZCCM’s shareholders at the next Annual General Meeting.

The appointed directors and their brief profiles are:-

  1. Mr Fredson Kango Yamba:- Appointed as Non-Executive Director and Vice Chairperson.

    Mr Yamba is currently serving as Secretary to the Treasury in the Ministry of Finance. Mr Yamba’s career spans over thirty years mainly in the Civil Service. Prior to his appointment as Secretary to the Treasury, Mr Yamba was Director at the National Institute of Public Administration (NIPA) under the Research, Consultancy and Development Division.Mr Yamba has worked at the Ministry of Finance in various portfolios including Chief Budget Analyst and Acting Director. He also served as Director in the Ministry of Commerce, Trade and Industry in the Planning and Information Department. He has, in the past, provided consultancy services for different Ministries including Education, Judiciary and Finance.

    Mr Yamba has vast experience at serving as Non-Executive Director on various Boards and currently serves as Director on Mofed (Chairperson), Bank of Zambia, Zambia Revenue Authority and the Millennium Challenge Corporation (Chairperson). Mr Yamba holds an MSc in Development Finance and a Bachelor’s Degree in Economics and Public Administration. He has also received various training and certification in Budgeting in the Public Sector, Investment Appraisal and Management and Macroeconomic Policy Management from the Harvard University, USA.

  2. Mr Paul Mbotwa Chanda:- Appointed as Non-Executive Director.

    Mr Chanda is Permanent Secretary in the Ministry of Mines and Minerals Development. He has worked in the Public Service since 1995 and held various positions including that of Chief Human Resources Management Officer in the Ministry of Finance and Assistant Director, Human Resources and Administration at Cabinet Office among others. Mr Chanda previously served as Non-Executive Director on the ZCCM-IH Board from November 2014 to July 2016. He has extensive experience serving on Boards of Directors having being a Non-Executive Director on various Boards including ZESCO, Indeni Oil Refinery and Zambezi River Authority.

    Mr Chanda holds a Master of Arts Degree in Public Sector Management and a Bachelor of Arts Degree in Public Administration.

  3. Mr Mateyo Cresta Kaluba:- Appointed as Non-Executive Director.

    Mr Kaluba is currently the Acting Chief Executive Officer of the Industrial Development Corporation Limited (IDC) of Zambia. Mr Kaluba has experience in industrial development policy and planning, economic policy and planning; strategic planning; policy research; and monitoring and evaluation. He has served in senior positions in the Public Service including, Director Planning and Information in the Ministry of Commerce, Trade and Industry; Interim Director, Business Regulatory Review Agency; Advisor to the Chief Executive Officer on Policy & Strategy – IDC and Special Assistant to the Minister of Commerce, Trade and Industry.He has served as a Board Member on various public and private institutions.

    Mr Kaluba holds a Master’s Degree in Public Administration, a Master’s Degree in Business Administration and a Bachelor’s Degree in Business Administration. The ZCCM-IH Board is confident that the appointed Director’s will use their vast knowledge, skills and qualifications to add immeasurable value to the Company.

By Order of the Board

C Chabala
Company Secretary

Issued in Lusaka, Zambia on 10 January 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 January 2017