Invitation for Bids (IFB) Construction of Low-Cost Houses, Houses, Rural Health Centre and Drilling of a Borehole in Kasenseli in Mwinilunga District

Construction of Low-Cost Houses, Rural Health Centre and Drilling of a Borehole in Kasenseli in Mwinilunga District
ONB No.: ZCCM-IH/115/2020

  1. ZCCM Investments Holdings Plc. has received financing from own sources toward the CAPEX for the 2020 Financial Year, and it intends to apply part of the proceeds of this financing to payments under the Contract for the Construction Works in Kasenseli, Mwinilunga District; Contract No.: ZCCM-IH/115/2020.
  2. ZCCM Investments Holdings Plc now invites sealed bids from eligible and qualified bidders for the Construction Works in Kasenseli, Mwinilunga:

    Lot 1 – Construction of Two (02) x 3-Bedroomed Low-Cost Houses in Kasenseli, Mwinilunga District (Duration – 16 weeks);
    Lot 2 – Construction of a Rural Health Centre in Kasenseli, Mwinilunga District (Duration – 16 weeks); and
    Lot 3 – Siting, Drilling, and Equipping of a Borehole at the Rural Health Centre in Kasenseli, in Mwinilunga District (Duration – 6 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. The following CEEC preferential treatment shall be applied as part of the evaluation:
    1. Citizen-influenced company – 4%
    2. Citizen-empowered company – 8%
    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 a prime contractor 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 as follows:
    Lot 1 – ZMW338,536;
    Lot 2 – ZMW320,248; and
    Lot 3 – ZMW196,000.
    iii) Average Annual Turnover for the past three (03) years as follows:
    Lot 1 – ZMW5,501,120;
    Lot 2 – ZMW5,204,030; and
    Lot 3 – ZMW6,361,244.

  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).

  7. Due to the COVID-19 pandemic, ZCCM-IH is requesting all potential bidders to deposit the non-refundable fee of Zambian Kwacha Five Hundred (ZMW500.00) stated in item 6 above into the following ZCCM-IH Account:
    BANK: STANDARD CHARTERED BANK
    BRANCH: Main Branch
    ACCOUNT NAME: ZCCM INVESTMENTS HOLDINGS PLC
    ACCOUNT NUMBER: 0100110001501
    Currency: ZMW or USD equivalent.

  8. Bids must be delivered to the address below at or before 10:00 hours on Friday, 8th January 2021. Electronic bidding shall not be permitted. Late bids will be rejected. Bids will be opened physically in the presence of the bidders’ representatives who choose to attend in person at the address below immediately after 10:00 hours on 8th January 2021. All bids must be accompanied by a Bid Securing Declaration.
  9. There will be mandatory site visits and pre-bid conferences as follows:
    Lot 1 – Construction of Two (02) 3-Bedroomed Low-Cost Houses in Kasenseli, Mwinilunga District on Tuesday, 29th December 2020 at 14:00 hours.
    Lot 2 – Construction of a Rural Health Centre in Kasenseli, Mwinilunga district on Tuesday, 29th December 2020 at 14:00 hours; and
    Lot 3 – Siting, Drilling, and Equipping of a Borehole at the Rural Health Centre in Kasenseli, in Mwinilunga District on Tuesday, 29th December 2020 at 14:00 hours.
    Bidders to meet at the District Commissioner’s Office in Mwinilunga at 13:00 hours.
  10. 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
    Lusaka, Zambia
    Tel: +260-211-388000
    E-mail: kabwek@zccm-ih.com.zm; and temboc@zccm-ih.com.zm

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ZCCM IH reduces appetite for banking and milling

FinanceZCCM-Investment Holdings Plc

Written by 

During the last six months of the 2020 financial half-year of ZCCM IH, a proposal was tabled that would see the investment group reduce its stake in banking and milling.

According to sources close to the matter, ZCCM IH has been in the process of recrafting their strategic plan. This refinement in strategy comes with the blessings of IDC who are the parents of the investment group.

Industrial Development Corporation (IDC) Group CEO Mr Mateyo Kaluba has said ZCCM-IH will take up a more active role as an investor in the mining sector rather than being a holding company for the Government’s minority shares”, read a statement published on the ZCCM IH website after the IDC CEO toured Kabundi Resources Limited mine, ZCCM-IH’s manganese mining operation in Serenje district.

This was a very strong signal that indicated that IDC along with ZCCM IH would seek out a strategic path that would see IDC increase its investment umbrella by snapping up ZCCM IH’s banking and milling interests.

According to a SENS announcement published on 1st October 2020, through the IDC Reorganization Transaction initiative, the Board of ZCCM-IH considered and approved the proposed IDC/ZCCM-IH Group reorganization exercise whereby:

  1. IDC transfers its 25% equity stake in Kagem Mining Limited, at fair market value, to ZCCM IH;
  2. ZCCM-IH transfers its 71.4% equity stake in Investrust Bank PLC, at fair market value to IDC; and
  • iii) ZCCM-IH transfers its 100% stake in Mushe Milling Limited to IDC at fair market value.

These 3 corporate actions listed above will be undertaken simultaneously as a corporate group reorganization exercise involving IDC and ZCCM-IH and constitute the proposed Group Portfolio Rationalization and Reorganization.

Based on the IDC CEO’s statement, it can be deduced that the stars are being aligned for ZCCM IH to increase its focus on mining whilst reducing its arm of influence over sectors that have potential to be a distraction. What this entails is ZCCM IH seeking out a healthier chunk in shareholding for mining assets that become available over the near and long term.

No doubt CEO Mabvuto Chipata will be aligning his charges and ensure that they apply their skills sets on the refined strategic mandate that is beginning to unfold.

ZCCM-IH to appeal court decision asking it to enter arbitration with Vedanta

ZAMBIAN mines minister, Richard Musukwa, said the country’s government remained steadfast in its desire to find a buyer for control of Konkola Copper Mines (KCM), currently owned by Vedanta Resources.

“It is still the government’s wish to find a new equity investor with technical and financial capacity to recapitalise the mine and operate it effectively,” Musukwa said after the state mining arm ZCCM-IH signalled its intention to appeal a court ruling in favour of Vedanta.

Earlier this month, a Court of Appeal ruled that ZCCM-IH should go into arbitration with Vedanta regarding disputes related to KCM. Vedanta owns 80% of KCM with ZCCM-IH owning the balance. Musukwa, however, said the country wanted KCM to be put into liquidation proceedings.

In 2019, Zambia accused Vedanta of failing to live up to its investment and dividend promises and barred the Indian company from accessing KCM assets. Vedanta argued that any dispute between shareholders should be negotiated in terms of their agreement.

“ZCCM-IH has already indicated that they are appealing because they are not happy with the court judgment,” Musukwa told Zambia’s parliament on Thursday.

Potential buyers of KCM were awaiting a resolution to the dispute, Musukwa said, adding that steps taken by the government should not be “considered as nationalism”.

Vedanta was not immediately available for comment, said Reuters.

Source: miningmx

Kansanshi Holdings Limited Commences Confidential Arbitration Proceedings Against ZCCM Investments Holdings Plc

In compliance with the requirements of the Securities Act No 41 of 2016 and the Lusaka Securities Exchange (“LuSE”) Listings Requirements (the “Rules”), shareholders are informed that on 11 November 2019, KHL filed a Request for Arbitration in London against ZCCM-IH (as Respondent) and KMP (as Nominal Respondent). These Arbitration proceedings are strictly confidential as between the parties. The Arbitration proceedings follow a criminal complaint made by ZCCM-IH against the allegedly unauthorised transfer by KMP of KMP monies to a KHL related party/affiliate.

The matter is yet to be determined and may have a material effect on the price of the Company’s securities.

Shareholders will be updated as the case progresses.

Accordingly, shareholders of ZCCM-IH are accordingly advised to exercise caution when dealing in securities of the Company until further information is published.

By Order of the Board
Chabby Chabala
Company Secretary

Issued in Lusaka, Zambia on Wednesday, 25 November 2020

Source: Financial Insights

Zambia’s copper output increases amid foreign debt default

Zambia, Africa’s second-largest copper miner, produced 646,111 tonnes of the metal in the first nine months of 2020, up from 590,321 tonnes in the same period last year, official figures show.

The country’s mines and minerals ministry attributed the 9.45% rise to increased mine output. He said the in southern African nation now expects total production for the year to reach 820,000 tonnes, driven by rising copper prices.

This comes as good news to Zambia, which missed a $42.5 million interest payment on part of its international debt last week, becoming Africa’s first bond default during the coronavirus pandemic.

ZAMBIA’S MINING ASSETS HAVE BEEN IN THE SPOTLIGHT AS THE COUNTRY’S FINANCIAL SITUATION DETERIORATED THIS YEAR AND THE PANDEMIC PROMPTED GLENCORE TO SHUT ITS MOPANI COPPER MINES

Pesident Edgar Lungu’s government, which is battling for re-election next year, has blamed covid-19 for problems managing the country’s $12 billion debt.

While it seeks a compromise with bondholders, the government has announced it has no plans to sell its shares in mining companies it has stakes in to raise cash.

Zambia’s mining assets have been in the spotlight as the country’s financial situation deteriorated this year and the pandemic prompted Glencore (LON: GLEN), one of the biggest miners operating in the country, to shut its Mopani Copper Mines (MCM).

The move angered the government, which threatened to revoke Mopani’s mining licenses and temporarily blocked its chief executive officer Nathan Bullock from leaving the country. 

Glencore reacted by putting its 73.1% stake in the operation on the table, hoping to reach a deal with authorities.

No plans to sell mining stakes

Zambia said earlier this week that negotiations with Glencore about increasing the government’s stake in Mopani were nearing a conclusion, although no information about the size of the stake that state-owned ZCCM Investments Holdings is trying to acquire was given.

The government, which was in arbitration over mining assets it seized last year from billionaire Anil Agarwal’s Vedanta Resources, lost an important battle in the case on Friday.

A local court ordered a halt to liquidation proceedings KCM to allow owners Vedanta and ZCCM-IH to proceed to arbitration.

The ruling hands a significant win to Vedanta, which is seeking the removal of the liquidator appointed by ZCCM-IH — which owns 20% of KCM on the government’s behalf — to run the company.

Other copper miners have halted $2 billion of planned investments because of a dispute over royalty taxes.

Zambia has promised to address the issue at a mining conference later this year.

– With files from Reuters and Bloomberg

Source: Mining.com

Zambia: government wants to complete buyout of Glencore’s stake in Mopani Copper Mines within a month

(Ecofin Agency) – Zambia is expected to complete a majority stake in Switzerland’s local subsidiary Glencore, which owns various copper mines in the country, within a month. According to the Minister of Mines, financing will not be a problem, despite the current state of public finances.

In Zambia, Glencore could soon cede to the state all or part of its interest (73.1%) in Mopani Copper Mines, a local subsidiary active in the copper mines of the Swiss commodities giant. At least that is what emerges from the words of Barnaby Mulenga (photo), permanent secretary at the Zambian Ministry of Mines, who foresees the end of the negotiations within a month, without specifying the importance of the participation that the national company ZCCM Investments Holdings is trying to acquire.

If the country has been in “payment default” for several weeks, according to the rating agency S&P, raising the necessary funds for the operation does not appear to be a problem. However, we learn, the funding will not come from the public treasury.

“The resource attracts money, so the question of financing is the last worry for the Zambian government,” Mulenga told Bloomberg as Glencore valued the various operations at $ 704 million.

As a reminder, the decision to acquire a majority stake in Mopani Copper Mines came earlier this year, after tensions with Glencore. The company wanted to put its mines on a maintenance and upkeep regime, against the advice of the government, which currently holds only 10% interest through ZCCM-IH, the rest belonging to First Quantum Minerals.

Source: Agence Ecofin

Why ZCCM IH cautionary notice on KCM is timely

ZCCM IH recently informed the market on the outcome of the tribunal proceedings which sought to determine whether the Provisional Liquidator at KCM would continue in office or not following Vedanta Resource Limited and Vedanta Resources Holdings Limited pursuing the matter. The ruling was in favor of ZCCM IH by way of the arbitrator dismissing the application by the Vedanta Group.

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”, read a statement issued by ZCCM IH’s Company Secretary Chabby Chabala on 10th November 2020 in Lusaka.

Under the section relating to consideration of applications for proposed take-overs and mergers in the Securities Act of 2016, section 134(4)(b), which states that the disclosure of timely and adequate information to enable shareholders to make an informed decision as to the merits of an offer, ZCCM IH was compelled to provide this timely update to investors.

The market has been waiting patiently for the announcement of this particular outcome. Part of the composition of the market is potential investors who, among other things, consider all matters of concern such as environmental and internal factors.

With knowledge on the outcome of know environmental factors, the investment decision is influenced. In the case of KCM, the proceedings with the arbitrator placed a pebble in the timeline for an investor decision to be made. Hence, clarity in the matter now paves the way for an astute investment decision to be made going forward.

However, matters outside the control of either party involved in this particular case is Country Risk. At the moment, many investors have been following with intent the issue of the Ministry of Finance’s deliberations with Euro Bondholders and Chinese Lenders. The outcome of these discussions has never been more important in the investment journey of Zambia.

Fitch, Moodys, and S&P credit rating agencies all place Zambia’s credit rating as a country with substantial risks. Some of these risks include the risk of default. Until recently, the Ministry of Finance has been in discourse with Bondholders and Chinese lenders for a possible moratorium of facilities following the Covid 19 pandemic. Zambia is not the only country to engage its lenders in such a manner. Argentina and Mozambique also engaged the services of Lazard, a world-leading financial advisory and asset management firm, to aid in restructuring conversations that would also involve difficult discussions with lenders.

With a myriad of environmental factors, mostly weighted towards those that are not within the investment entity’s control, investors will be watching very closely with sand in their hour glasses before investment decisions can be made.

Source: Financial Insights 

ZCCM IH Further Cautionary Announcement relating to KCM

FinanceZCCM-Investment Holdings Plc

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”).

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 will provide details of these proceedings in due course.

In the meantime, Shareholders of ZCCM-IH are advised to exercise caution when dealing in securities of the Company until further information is published.

By Order of the Board
Chabby Chabala
Company Secretary

Source: Financial Insight

APPLICATIONS FOR APPOINTMENT AS ZCCM-IH’S REPRESENTATIVE DIRECTORS ON BOARDS OF INVESTEE COMPANIES

 ZCCM Investments Holdings Plc.

ZCCM Investments Holdings plc (ZCCM-IH or the Company) is an investments holdings company with a primary listing on the Lusaka Securities Exchange and secondary listings on the London and Euronext (Paris) Stock Exchanges. The Company has the majority of its investments held in the copper mining sector of Zambia. ZCCM-IH’s shareholders are the Industrial Development Corporation (IDC) holding 60.3% of the shares, Government of the Republic of Zambia (GRZ) with 17.3%, National Pension Scheme Authority (NAPSA) holding 15% and private investors holding the remaining 7.4%.

ZCCM-IH holds equity investments ranging from 10% to 100% in 22 companies in Zambia. The Company is entitled to appoint persons to the Boards of the companies in which it holds shares (Investee Companies) as indicated below:

Count Investee Company Shareholding percentage No. of Board seats for ZCCM-IH
1. Chambishi Metals Plc 10.0 1
2. Mopani Copper Mines Plc 10.0 1
3. NFCA Africa Mining Plc 15.0 1
4. Chibuluma Mines Plc 15.0 1
5. Copper Tree Minerals Limited 15.6 1
6. CNMC Luanshya Copper Mines Plc 20.0 2
7. Kansanshi Mining Plc 20.0 2
8. Lubambe Copper Mine Plc 20.0 1
9. Konkola Copper Mines Plc 20.6 2
10. Copperbelt Energy Corporation Plc 24.1 2
11. Maamba Collieries Limited 35 2
12. Consolidated Gold Company Ltd 45.0 2
13. Central African Cement Ltd 49.0 2
14. Rembrandt Properties Ltd 49.0 2
15. Zambia Gold Company Ltd 51.0 2
16. Investrust Bank Plc 71.4 6
17. Limestone Resources Ltd 100.0 4
18. Misenge Environmental and Technical Services Ltd 100.0 4
19. Kariba Minerals Ltd 100.0 4
20. Kabundi Resources Ltd 100.0 3
21. Mushe Milling Ltd 100.0 3

ZCCM-IH has, available for immediate occupation, non-executive Board seats in majority of its Investee Companies. The Company invites applications from suitably qualified and experienced professionals and business practitioners to be considered for appointment as non-executive Representative Directors of ZCCM-IH on Investee Companies.
Summary of Duties and Obligations of Representative Directors

  1. The Representative Directors will be expected to exercise their business judgement to act in what they reasonably believe to be in the best interest of the Investee Company and ZCCM-IH and specifically to ensure ZCCM-IH’s investment value is enhanced and protected.
  2. In discharging this duty and obligation, the Representative Directors will be expected to rely on the honesty and integrity of the Company’s senior executives, its outside advisors, auditors and also on their own experience and analysis of core business.
  3. Representative Directors will be expected to attend Board and Committee meetings and to spend the necessary time needed to discharge their responsibilities. The Representative Directors will be expected to cause the receipt of the Board Packs in due time before the date of the meetings to facilitate adequate preparation.
  4. The Representative Directors will submit reports of the meetings and events attended pertaining to the Investee Company, highlighting the critical issues, outcomes, resolutions and any proposals deemed necessary.

Qualifications, Experience and General Competences of Representative Directors

The requirements for one to be considered for appointment as a Representative Director include the following:

  1. At least an undergraduate degree or equivalent from a respected university/qualifications body. A post graduate qualification will be an added advantage.
  2. These educational criteria will not exclude exceptional candidates who do not meet them but have other demonstrated capabilities such as setting up and running successful companies of their own or other visible accomplishments which will add great value to ZCCM-IH;
  3. Over seven years extensive business management experience at a senior level such as Chief Executive Officer, Chief Operating Officer, Chief Financial Officer or such other senior levels.
  4. Exposure in an international environment will be an added advantage;
  5. Ability to read, understand and offer suggestions and comments on financial statements;
  6. Demonstrate competences in strategic planning and business leadership;
  7. Self-starter with visible leadership skills and the ability to be persuasive and persevering under, sometimes, trying circumstances;
  8. Knowledge of the mining sector will be an added advantage;
  9. Have no material relationship and or conflict of interest with the Company or any of its Investee Companies;
  10. Sufficient applicable experience to understand fully the legal and other responsibilities of an independent director of a company based in Zambia.

Suitably qualified women candidates are urged to apply as due consideration will be given to them in an effort to improve representation of women on the Boards.

Duration of appointment and remuneration
The appointment will be for a period of three years. Continued representation will purely be based on results of the annual assessments of performance of the Representative Director against goals and objectives agreed with ZCCM-IH.
The Representative Director will be remunerated according to the fee structure existing at the Investee Company on whose Board he/she is appointed.

Submission of applications
Interested professionals and business practitioners should submit signed applications with detailed curriculum vitae indicating contact telephone number or e-mail address, together with names and contact address of three traceable referees and copies of educational and professional qualifications to the underlisted on or before 25/11/2020.
The Company Secretary

ZCCM Investments Holdings Plc
ZCCM-IH Office Park
Stand No. 16806, Alick Nkhata Road – Mass Media
P.O BOX 30048
Lusaka

Phone:3888000
Email:corporate@zccm-ih.com.zm
Website: www.zccm-ih.com.zm

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FQM posts 211,000 tonnes of copper production in the third quarter

FIRST Quantum Minerals (FQM) Limited posted record quarterly copper production of over 211,000 metric tonnes in the third quarter of this year, up 10% from the same period last year, mainly driven by its unit Sentinel mining company based in Kalumbila.

And the FQM says it is working to manage the logistical challenges posed by closing trade borders in response to the coronavirus pandemic using other avenues where possible.

In a statement announcing its financial results for the third quarter of 2020, the FQM posted a total of 211,396 tonnes of copper during the period ending September 30, up from 192,510 tonnes produced during the period. corresponding last year, mainly driven by the increase in productive production at the Sentinel copper mine, among other units.

“211,396 tonnes of total copper production in the quarter, up 10% from the same period in 2019, due to record production at Sentinel and Cobre Panama. Sentinel performed exceptionally well during the quarter, achieving its strongest quarterly production on record of 70,829 tonnes and record cash costs. Increased throughput and rising grades resulted in a 25% increase in copper production compared to the same period in 2019, while lower maintenance costs, lower fuel prices and depreciation of currency have resulted in improved unit costs, ”the FQM said in a statement.

“Performance at Cobre Panama was strong as it went from preservation and safety maintenance in July to full production levels in August, slightly above expectations. Copper production during the quarter amounted to 62,055 tonnes, which is significantly higher than the same period in 2019. Kansanshi performed steadily during the quarter. Copper production of 54,430 tonnes was slightly lower than in the third quarter of 2019 due to lower grades and recoveries despite increased throughput. Treasury costs were lower due to currency depreciation and lower fuel costs. Production forecasts for 2020 have been updated. Total copper production forecast for 2020 has been increased to between 750,000 and 785,000 tonnes; gold production is now expected to be between 245,000 and 260,000 ounces and the forecast for nickel production has been reduced to 13,000 – 15,000 tonnes.

In contrast, sales revenue jumped 42% to over US $ 1.4 billion in the period ending September 30 from the corresponding period a year earlier, in part due to the increase in sales volumes of its Solwezi-based kansanshi Mining unit.

“Sales revenue for the quarter of $ 1,402 million, up 42% from the comparable period of 2019, was primarily attributable to Cobre Panama’s commercial copper and gold sales volumes,”

volumes in Kansanshi and higher metal prices, ”he said.

And the FQM said it was working to manage the logistical challenges posed by closing trade borders in response to the coronavirus pandemic using other avenues when possible.

“COVID-19 has had a direct impact in Cobre Panama where the operation was placed on preservation and security maintenance from April 7, 2020, following the Panamanian government restrictions related to COVID-19. The company’s other operations have not been significantly affected by the restrictions stemming from COVID-19. The company has not experienced any significant disruption to supply chains and product shipments since the start of the pandemic. The company is working to manage the logistical challenges of closing trade borders, using alternate routes where possible. The border restrictions, if ongoing, could cause delays in the supply chain, ”said the FQM.

Source: Tradings At