CONFIRMED CASE OF COVID-19 AT ZCCM-IH HEAD OFFICE IN LUSAKA

ZCCM Investments Holdings Plc (ZCCM-IH) wishes to inform the general public that the Company has recorded a case of Covid-19 at its head office in Lusaka.

To prevent the further spread of the virus, ZCCM-IH Lusaka office will remain closed to the public, for it to undertake all necessary measures as per health guidelines to ensure the safety of employees and the public. We therefore wish to advise all stakeholders to call/contact ZCCM-IH through the general line +260 211 388000 or email address corporate@zccm-ih.com.zm, for any communication.

ZCCM-IH will continue to operate via digital platforms and will resume office presence within strict public health guidelines once cleared by health authorities as per Statutory Instrument No. 22 of 2020, The Public Health (Infected Areas) (Coronavirus Disease 2019) Regulations, 2020.

Issued by:
Loisa Mbatha-Kakoma
Public Relations Manager

Download statement here: Statement for Immidiate Release – Covid-19 Case at ZCCM-IH Lusaka Head Office

Zambia’s state investment arm be operator of mines in future, says govt

LUSAKA, July 19 (Reuters) – Zambia’s state-owned investment arm will run mines as an operator rather than a minority investor in future investments, a executive said on Sunday, as the government seeks a more active role in mining assets it holds.

ZCCM-Investment Holding (ZCCM-IH), controlled by Industrial Development Corporation (IDC), is a mining investment arm of Africa’s second largest copper producer.

“What we have asked ZCCM-IH to do is too seek its own mines, do explorations and develop mining operations,” Mateyo Kaluba, chief executive of IDC, said in a statement.

ZCCM-IH should have a higher stakes in mining ventures of the future, Kaluba said.

Mining, which contributes more than 10% to Zambia’s economy, is also the nation’s largest foreign exchange earner.

ZCCM-IH has minority shares in mines including First Quantum Mines’s Kansanshi Mine and Glencore’s Mopani Copper Mines with highest stake in Konkola Copper Mines (KCM) where it has 20.6% and Vedanta Resources 79.4%

“We are not averse to them getting into partnerships but those partnership must be balanced. Most of the partnerships that ZCCM-IH has right now are not balanced because the stakes are very small minorities,” Kaluba said.

Lately, ZCCM-IH has ramped up its exploration efforts and have commissioned new mines in gold and manganese.

“We are confident that we’ll see it taking stronger positions in copper mining and many other minerals in the country,” Kaluba said.

It has already done so in gold and manganese mines.

Kaluba was on a tour of a new manganese mine – Kabundi Resources – owned by ZCCM-IH in central Zambia.

Kabundi Resources, which has started its first phase of mining, aims to reach an output of 240,000 tonnes of manganese ore annually once commercial production is achieved. (Reporting by Chris Mfula; Editing by Promit Mukherjee)

Source: https://af.reuters.com/article/zambiaNews/idAFL5N2EQ08H

ZCCM-IH will take up a more active role as an investor in the mining sector-IDC CEO

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.

Mr Kaluba said ZCCM-IH should meet the aspirations of the Zambian people as far as ownership of mineral resources is concerned.

“What we have asked ZCCM-IH to do is too seek its own mines, do explorations and develop mining operations. We are not averse to them getting into partnerships but those partnership must be balanced. Most of the partnerships that ZCCM-IH has right now are not balanced because the stakes are very small minorities. But we are increasingly seeing ZCCM-IH taking a more assertive approach, doing more explorations and opening up new mines,” he said during the tour of Kabundi Resources Limited mine, ZCCM-IH’s manganese mining operation in Serenje district

“With ZCCM-IH taking important roles in the gold mining sector and in manganese mining, we are confident that we’ll see it taking stronger positions in copper mining and many other minerals in the country. What you will see is ZCCM taking an active role as an investor rather than a holding company for shares.”

Kabundi Resources has commenced phase one mining at the project whose targeted production is expected to reach 240,000 tonnes of manganese ore annually once commercial production is achieved.

Mr Kaluba also toured the Kampumbu Resettlement where families relocated from the Kabundi mining site are having their new houses constructed. The mine is also constructing a one-by-two classroom school block, a health center and houses for a teacher and medical staff.

Source: https://www.lusakatimes.com/2020/07/19/zccm-ih-will-take-up-a-more-active-role-as-an-investor-in-the-mining-sector-idc-ceo/

ZCCM-IH To Increase Stake In Mines, Reveals IDC

Industrial Development Corportation (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.

Mr Kaluba said ZCCM-IH should meet the aspirations of the Zambian people as far as ownership of mineral resources is concerned.

“What we have asked ZCCM-IH to do is too seek its own mines, do explorations and develop mining operations. We are not averse to them getting into partnerships but those partnership must be balanced. Most of the partnerships that ZCCM-IH has right now are not balanced because the stakes are very small minorities. But we are increasingly seeing ZCCM-IH taking a more assertive approach, doing more explorations and opening up new mines,” he said during the tour of Kabundi Resources Limited mine, ZCCM-IH’s manganese mining operation in Serenje district

“With ZCCM-IH taking important roles in the gold mining sector and in manganese mining, we are confident that we’ll see it taking stronger positions in copper mining and many other minerals in the country. What you will see is ZCCM taking an active role as an investor rather than a holding company for shares.”

Kabundi Resources has commenced phase one mining at the project whose targeted production is expected to reach 240,000 tonnes of manganese ore annually once commercial production is achieved.

Mr Kaluba also toured the Kampumbu Resettlement where families relocated from the Kabundi mining site are having their new houses constructed. The mine is also constructing a one-by-two classroom school block, a health center and houses for a teacher and medical staff.

Source: https://zambiareports.com/2020/07/19/zccm-ih-increase-stake-mines-reveals-idc/

GOVT DETERMINED TO INCREASE STAKES IN MINES

Mines Minister Richard Musukwa says Government through ZCCM-IH is working towards increasing its stake of shareholding in mining firms.

And Mr. Musukwa has challenged emerald mining firms in Lufwanyama to invest in infrastructure development so that locals benefit from its mineral wealth.

The Minister was speaking when Kagem Limited donated medical supplies and oxygen ventilators to Nkana Health Center, at a cost of 1-Million Kwacha.

He said authorities want to see ZCCM-IH and Industrial Development Corporation-IDC play a major role in mining operations for citizens to derive maximum benefits.

Mr. Musukwa said Government will continue to create an enabling environment for both small and large scale mine operations to enable indigenous Zambians fully exploit the country’s wealth.

And Copperbelt Province Permanent Secretary Bright Nundwe said Government continues to embrace new investments in the sector.

Meanwhile,  Chief Nkana of Lufwanyama District assured authorities that traditional leaders are actively supplementing Government efforts in the fight against COVID-19.

Meanwhile Lufwanyama Member of Parliament Leonard Fungulwe hailed Government for embarking on the upgrading of feeder roads in his area.

Source: https://www.znbc.co.zm/news/govt-determined-to-increase-stakes-in-mines-2/

 

What they missed about the golden ambitions of ZCCM-IH

There is a livelihood that has been the bedrock of small-scale mining since time in memorial. The men, women, and children from across the world who wake up eat morning in search of pieces of minerals that promise to change their lives. Ironically though, though the informal nature and on the whole un-mechanized operation that is artisanal mining generally results in low productivity, the sector represents an important livelihood and income source for the poverty affected local population.

These miners deserve structure to participate in the Gold mining value chain.

One country that has had its fair share of artisanal mining in Brazil. In their article aptly titled “Policies and regulations for Brazil’s artisanal gold mining sector: analysis and recommendations“, Rodolfo Sousa et al. published in the Journal of Cleaner Production stated that “In Brazil, artisanal and small-scale gold mining (ASGM) produces in the range of 6 tonnes of gold (Au) per annum, and employs approximately 200,000 people. Most of this mining activity is in the Amazon region, where miners have been extracting gold for more than 40 years. In the Tapajos River Basin, assessments indicate that around 99% of miners operate without the environmental and mining permits required by law. This is a result of a combination of unrealistic or lack of proper policies and regulations, lack of political will, lack of infrastructure to enforce the existing regulations, and lack of incentives to miners to comply with legal requirements”.

In present-day Zambia, artisanal gold miners who have long been “mining” alluvial gold which can easily be obtained on the surface have been exploited by environmental elements that have taken advantage of the lack of structure around their operations. This includes the lack of security, lack of health and safety mechanisms, lack of a trusted market for the gold, and devoid of traceability among others. These are all factors that make up the fulcrum of sustainable and the now trending ethical mining.

According to mining.com and echoed at this year’s Mining Indaba in February 2020, the ethics of any business-related operation have never been more in focus and prone to scrutiny – and the natural resources industry is no exception, indeed it should, in principle, be one of the most attentive, given its transformative qualities where landscape and labour are concerned”. What this means is that for artisanal miners in Zambia to carve a roadmap that will see them sit at the same table as the AngloGold Ashanti of this world, there has to be structure in what they are doing.

With the first step being taken by Government to give artisanal miners gold panning certificates to legalise their alluvial or riverbed gold mining activities, the next logical step was to bring forth infrastructure that would enable the transition of the artisanal miners to high yielding mining. This has been made possible by ZCCM Gold which has been established to work with these licenced artisanal gold miners by providing them with gold equipment, access to earth-moving machinery, and offering technical expertise among others.

Source: https://fizambia.com/?p=7205

ZCCM-IH charts way forward for Ndola Lime

Three months after the ZCCM IH management team signalled a way forward for their distressed asset, Ndola Lime, a way forward has been established, according to a statement from the investment group.

In March 2020, ZCCM IH announced the appointment of a Business Rescue Administrator (BRA) who would oversee the much need turnaround of Ndola Lime. The BRA had commenced the process of restructuring the operations of NLC with a view to creating a business that will take over the running of the limestone operations sustainably.

With over K1 billion kwacha already sunk into the lime company over the last 10 years, the entity continued making losses from operations. According to year on year annual reports from ZCCM IH in the last 5 years, indications of the causes of the challenges the entity was facing emanated from its core asset (Vertical Kiln).

In the 2012 AR, ZCCM IH reported that it had recapitalized Ndola Lime Company through a shareholder loan of K28.7 million (US2.82 million) for the NLC Recapitalization Project. At the time of publishing the 2016 AR, the Second Vertical Kiln (VK-2) was still undergoing hot commissioning.

Fast forward to the 2017 AR, it appears that the hot commissioning phase of the Recapitalization Project was met with a series of technical hurdles that affected the performance of the company. Small wonder why in the 2017 AR this particular update appeared under the “Strategic New Investments” section of the report? We asked the question because according to the 2017 AR, the Board was undertaking a review of the entire operation of the Ndola Lime to determine an appropriate option that will result in improving operations of NLC as well as the performance of the Group. This marked the first strong single that it was only a matter of time that the management team at ZCCM IH would make the strategic decision of bringing on board the BRA to turnaround this operation.

The task for the BRA according to the published statement from ZCCM IH entails the rollout of restructuring proposals in the Scheme of Arrangement which include:

  1. The creation of a New Company (NewCo);
  2. The restructuring of the liabilities of NLC;
  3. The transfer of the assets and business of Ndola Lime to the NewCo;
  4. Retrench, pay and transfer the employees of NLC to the NewCo; and,
  5. Dissolve NLC with or without winding up.

The new company is a vehicle that is being used as part of the road map to financial health. The management team is well aware that there was need to start life anew for this segment of their portfolio and hence why the NewCo has been incorporated and is known as Limestone Resources Limited (LRL) 100% owned by ZCCM-IH.

According to their published statement, “at a Final Creditors Meeting held on the 10th June 2020, the creditors passed a special resolution to approve the Restructuring Proposals as contained in the Scheme of Arrangement and the main objectives of the restructuring plan are for NLC’s successor company, LRL, to commence operations on a clean slate, debt-free, recruit a new management to spearhead the re-orientation of strategy and operations without any legacy problems associated with NLC”.

Limestone Resources Limited begins life anew and will address the challenges that were faced in Ndola Lime’s resources and capabilities. Without the institutional memory that Ndola Lime held, the management team at LRL can choose to cut the losses of Ndola lime and attract fresh capital to revamp the business. Furthermore, LRL can adopt its own business strategy that can relook at the manufacturing of quicklime (calcium oxide), slaked lime (calcium hydroxide), cement, and mortar which are typical limestone business segments and carve out the best option going forward that can create value for ZCCM IH. Furthermore, LRL can also decide to partner up with other successful entities in the same sector so that mistakes of the past are avoided.

Investors will be pleased with this move as a way forward for the investment group’s Achilles heel has been found.

Source: https://fizambia.com/?p=7195

ZCCM-IH’S EYES ON NDOLA LIME

ZCCM IH is currently in the process of obtaining statutory and other approvals to facilitate the transition of Ndola Lime Limited to the newly created company Limestone Resources Limited.

The proposed restructuring plan will ensure the continuation of Ndola Lime business under a different entity name Lime Resources Limited.

The move comes after ZCCM-IH was granted an order by meeting of creditors to consider and approve the scheme of arrangement.

ZCCM-IH Public Relations Manager Loisa Kakoma says the restructuring proposed in the scheme involves creating a new company, restructuring the liabilities of Ndola lime and dissolve Ndola Lime with or without winding off.

Mrs. Kakoma says the main objective of the plan are for Ndola Lime’s Successor company to commence business on a clean slate, recruit a new management and spearhead the formation of the new strategy.

She says this new approach will ensure workers welfare is taken into consideration, debt is resolved and ensure the company’s assets are secured.

Meanwhile Mrs. Kakoma said the processes of approvals, transfer, recruitment and recapitalization will take approximately six months from August 2020.

She said in a statement to ZNBC news that the achievement of the objective will enable the effective recapitalization of the business.

Source: https://www.znbc.co.zm/news/zccm-ihs-eyes-on-ndola-lime/

ZCCM-IH denies selling off Ndola Lime

ZCCM-IH has denied reports that it has sold off Ndola Lime Company.

In a statement, ZCCM-IH Spokesperson Loisa Mbatha clarified that Ndola Lime Company has ceased to exist due to huge debts and that a new company known as Limestone Resources Limited has been created.

“Over the past 8 years Ndola Lime Company Limited (NLC) accumulated an insurmountable amount of debt, in excess of K1 billion, owed to various statutory bodies as well as private creditors, which led to the Company being technically insolvent,” Ms. Kakoma said.

“In September 2018, two (2) former employees instituted business rescue proceedings in the Lusaka High Court pursuant to the Corporate Insolvency Act No. 9 of 2017,” she said.

“By order of the Court dated 5th October 2018, the Official Receiver was appointed as Interim Business Administrator of NLC. Without the prospect of recapitalisation, the Business Rescue Administration (BRA) process would effectively result in the closure of NLC’s business and loss of jobs.”

“As such, ZCCM Investments Holdings Plc (ZCCM-IH) requested and was granted an Order to convene a meeting of creditors to consider and approve a proposed Scheme of Arrangement.”

“The restructuring proposals in the Scheme of Arrangement were to:
i. Create a New Company (NewCo);
ii. Restructure the liabilities of NLC;
iii. Transfer the assets and business of Ndola Lime to the NewCo;
iv. Retrench, pay and transfer the employees of NLC to the NewCo; and,
v. Dissolve NLC with or without winding up.”

She added, “The NewCo has been incorporated and is known as Limestone Resources Limited (LRL) 100% owned by ZCCM-IH.”

“At a Final Creditors Meeting held on the 10th June 2020, the creditors passed a special resolution to approve the Restructuring Proposals as contained in the Scheme of Arrangement.”

Ms. Kakoma said the main objectives of the restructuring plan are for NLC’s successor company, LRL, to commence operations on a clean slate, debt free, recruit a new management to spearhead the re-orientation of strategy and operations without any legacy problems associated with NLC.

“The achievement of the objectives above would enable effective recapitalisation of the business. In order to preserve jobs, a recruitment exercise for LRL will commence beginning August 2020.”

“The proposed restructuring plan ensures the continuation of NLC’s business, albeit under a different entity name – Limestone Resources Limited (LRL). This new approach and plan ensures that employee welfare is prioritised, NLC’s debt is resolved, and that NLC’s core assets are secured,” she said.

“ZCCM-IH is currently in the process of obtaining statutory and other approvals to facilitate the transition of NLC to LRL. The processes of approvals, transfer, recruitment and recapitalisation will take approximately six months from August 2020.”

She said ZCCM-IH remains committed to revamp the operations at NLC, under a new entity and brand, and the proposed restructuring plan provides practical solution to the key challenges currently faced at NLC.

Sources: https://www.lusakatimes.com/2020/06/14/zccm-ih-denies-selling-off-ndola-lime/

REQUEST FOR EXPRESSIONS OF INTEREST (EOI) TO UPDATE THE 2017 BUSINESS CASE REVIEW FOR CENTRAL AFRICAN CEMENT – TENDER NO.: ZCCM-IH/060/2020

INTRODUCTION
ZCCM Investments Holdings PLC (“ZCCM-IH” or “the Company”) is an investments holdings company primarily holding key minority interests across the mining industry in Zambia. ZCCM-IH also has significant investments in diversified energy entities through strategic minority interests in Copperbelt Energy Corporation PLC (“CEC”). CEC is a power distribution and generation company that supplies power to all the major mines in Zambia and is listed on the Lusaka Securities Exchange. The Company also has shares in Maamba Collieries Limited, the largest producer of coal in Zambia which operates a 300 megawatts thermal power plant. The Company also has investments and exposure in financial services and the real estate sector.

ZCCM-IH has a primary listing on the Lusaka Securities Exchange (“LuSE”), and secondary listings on the Paris, Euronext and London Stock Exchange (“LSE”).

2. BACKGROUND
In 2017, the 2014 Central African Cement Company Limited (CAC) Business Case of the Cement Project (“Business Case”) located in the Maisiti District, Ndola, was reviewed and updated. The review process confirmed the viability of the Cement Project and hence the Cement Project proceeded. Given the delay (arising from meeting statutory requirements) in the commencement of construction of the CAC cement plant, there is a requirement that the CAC 2017 Business Case be reviewed yet again.

Therefore, it has now become critical to review the viability of the Cement Project including its concept as the competition from other cement producers is expected to have risen and market dynamics changed since the last Business Case review. The review and investigation shall include the material changes to the following factors such as pricing, demand, forex impact on the production cost and final pricing, statutory approvals and their validity and market absorption rate of cement.

3. OBJECTIVE OF THE ASSIGNMENT
The main objective of this assignment is to conduct a detailed review of and update the market study and commercial feasibility for the CAC Cement Project. This will involve reviewing and assessing the commercial viability of the project from market, strategic and competitive perspectives within Zambia and the region. The information generated from the market study may be used in the commercial feasibility. The consultant shall also be required to upgrade the Thermal Power Plant size from the 50MW to 200MW. This should be a standalone supplementary report. ZCCM-IH now wishes to engage a Consulting firm to update the 2017 Business Case Review for Central African Cement.

ZCCM-IH now invites eligible 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 Based Selection (QBS) method. Interested consultants must submit one (01) original and three (03) hard copies of the Expression of Interest (EOIs) to the address below no later than Tuesday, 16 th June 2020.

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: kabwek@zccm-ih.com.zm

Download the full document here: REQUEST FOR EOI TO UPDATE THE 2017 BUSINESS CASE REVIEW FOR CENTRAL AFRICAN CEMENT- Final